DoD Awards $9.5M for Nurse Staffing at Military Medical Centers, Competition Drives Value
Contract Overview
Contract Amount: $9,538,234 ($9.5M)
Contractor: Decypher Health Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-11
End Date: 2026-09-30
Contract Duration: 537 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICAL Q-CODED SERVICES NURSE STAFFING SUPPORT FOR WALTER REED, FORT BELVOIR AND THE PENTAGON MEDICAL TREATMENT CENTERS AND CLINICS.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.5 million to DECYPHER HEALTH SERVICES, LLC for work described as: MEDICAL Q-CODED SERVICES NURSE STAFFING SUPPORT FOR WALTER REED, FORT BELVOIR AND THE PENTAGON MEDICAL TREATMENT CENTERS AND CLINICS. Key points: 1. Contract awarded via full and open competition, suggesting competitive pricing. 2. Focus on nurse staffing for key military medical facilities highlights critical healthcare support. 3. Potential risk related to service continuity given the 537-day duration. 4. IT sector is not directly involved, but healthcare IT systems may be indirectly impacted.
Value Assessment
Rating: good
The contract value of $9.5M for 537 days of nurse staffing appears reasonable given the scope. Benchmarking against similar healthcare staffing contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives fair market value. The use of a delivery order under a larger contract structure suggests a streamlined procurement process.
Taxpayer Impact: Competition in awarding this contract is expected to yield cost savings for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Ensures continued medical care for service members and their families at major military treatment centers. Supports the operational readiness of military healthcare facilities. Provides employment opportunities for nurses within the healthcare sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for nurse shortages impacting service delivery.
- Reliance on a single contractor for critical staffing needs.
Positive Signals
- Competitive award process.
- Support for essential military healthcare services.
Sector Analysis
This contract falls within the healthcare services sector, specifically focusing on medical staffing. Spending benchmarks for nurse staffing can vary significantly based on location, specialization, and contract duration.
Small Business Impact
The data does not indicate if small businesses were involved in this specific delivery order, but the 'full and open competition' nature suggests they had the opportunity to bid.
Oversight & Accountability
The Department of Defense, through the Defense Health Agency, is responsible for overseeing this contract. Accountability will be measured by the quality and continuity of nursing services provided.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for service disruption if contractor fails to provide adequate staffing.
- Dependence on a single vendor for critical medical personnel.
- Fluctuations in healthcare labor market could impact contractor's ability to maintain staffing levels.
- Ensuring consistent quality of care across multiple facilities.
Tags
offices-of-physicians-except-mental-heal, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.5 million to DECYPHER HEALTH SERVICES, LLC. MEDICAL Q-CODED SERVICES NURSE STAFFING SUPPORT FOR WALTER REED, FORT BELVOIR AND THE PENTAGON MEDICAL TREATMENT CENTERS AND CLINICS.
Who is the contractor on this award?
The obligated recipient is DECYPHER HEALTH SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $9.5 million.
What is the period of performance?
Start: 2025-04-11. End: 2026-09-30.
What is the projected cost per nurse per day, and how does it compare to industry averages?
The total contract value is $9,538,233.92 over 537 days. Assuming an average of 10 nurses (based on 'no': 10), the approximate cost per nurse per day would be $1776.20. This figure needs to be benchmarked against average daily rates for contract nurses in similar geographic locations and with comparable qualifications to assess its competitiveness.
What are the contingency plans if Decypher Health Services, LLC fails to meet staffing requirements?
Contingency plans would typically involve contractual remedies outlined in the delivery order, such as penalties for non-performance or the right to terminate the contract. The Defense Health Agency would likely have pre-identified backup staffing resources or alternative contractors to engage in such an event to ensure continuity of care.
How will the quality of nursing care be monitored and ensured throughout the contract period?
Quality assurance will likely be managed through regular performance reviews, patient satisfaction surveys, and adherence to clinical protocols. The Contracting Officer's Representative (COR) will be responsible for monitoring performance metrics and addressing any deficiencies to ensure high-quality patient care is consistently delivered.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001523R0004
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 200 CONCORD PLAZA DRIVE, SAN ANTONIO, TX, 78216
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,974,787
Exercised Options: $17,152,316
Current Obligation: $9,538,234
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001524D9001
IDV Type: IDC
Timeline
Start Date: 2025-04-11
Current End Date: 2026-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-01-02
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