DoD's $12M Referral Management Services Contract Awarded to Prairie Quest, Inc

Contract Overview

Contract Amount: $11,988,451 ($12.0M)

Contractor: Prairie Quest, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-09

End Date: 2026-03-31

Contract Duration: 1,087 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REFERRAL MANAGEMENT SERVICES, NORTHWEST NODE (LEGACY AIR FORCE MEDICAL TREATMENT FACILITIES).

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to PRAIRIE QUEST, INC. for work described as: REFERRAL MANAGEMENT SERVICES, NORTHWEST NODE (LEGACY AIR FORCE MEDICAL TREATMENT FACILITIES). Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 3 years (1087 days) indicates a medium-term service requirement. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. Services are for legacy Air Force medical treatment facilities, indicating a focus on established infrastructure. 6. The North American Industry Classification System (NAICS) code 621399 points to services provided by miscellaneous health practitioners. 7. The contract is managed by the Defense Health Agency, a key entity within the DoD's healthcare system.

Value Assessment

Rating: fair

Benchmarking the value of this $11.99 million contract for referral management services is challenging without specific performance metrics or comparable contract data. The fixed-price nature suggests an attempt to control costs, but the overall value depends heavily on the efficiency and effectiveness of Prairie Quest, Inc.'s service delivery. Without details on the volume of referrals managed or the success rate of patient connections, a definitive value-for-money assessment is difficult. The contract's duration and total value suggest a significant operational commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid, but certain sources were excluded for specific reasons (e.g., national security, prior performance issues). The presence of two bidders indicates some level of competition, but the exact number of proposals received and the evaluation criteria are not detailed. A limited number of bidders can sometimes lead to less aggressive pricing.

Taxpayer Impact: The competitive nature of the award, even with only two bidders, is generally beneficial for taxpayers as it encourages more favorable pricing compared to sole-source awards. However, the exclusion of other potential sources warrants further investigation to ensure maximum value was achieved.

Public Impact

Beneficiaries include military personnel and their families receiving care at legacy Air Force medical treatment facilities. Services delivered involve managing patient referrals to ensure continuity of care and access to necessary medical services. The geographic impact is primarily within Texas, where the contractor is located, and potentially at Air Force facilities served by the contract. Workforce implications may include employment opportunities for healthcare administrators and support staff within Prairie Quest, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the referral management services.
The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure it did not unduly limit competition.
The contract's reliance on 'legacy' facilities might indicate potential challenges with outdated systems or processes.
Limited information on the specific scope of 'referral management' could lead to scope creep or unmet needs.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair bidding process.
The firm fixed-price contract type provides cost certainty for the government.
The Defense Health Agency's oversight suggests a focus on standardized healthcare delivery within the DoD.
The contractor, Prairie Quest, Inc., has secured a significant contract, implying a level of capability and trust.

Sector Analysis

The healthcare services sector, particularly within the federal government, is characterized by complex procurement processes and a focus on specialized medical support. This contract for referral management services fits within the broader category of healthcare administration and support, which is a critical component of ensuring efficient patient care within military treatment facilities. Comparable spending benchmarks for similar referral management services are not readily available, but the total contract value of approximately $12 million over three years suggests a substantial operational requirement.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to Prairie Quest, Inc., a company not immediately identifiable as a small business based on the provided data, suggests it may be a larger entity. Further investigation would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Health Agency (DHA), which is responsible for healthcare delivery within the Department of Defense. Accountability measures would typically include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases, but specific details on performance monitoring and Inspector General involvement would require deeper analysis of the contract's terms and conditions.

Related Government Programs

TRICARE
Defense Health Agency Contracts
Medical Support Services
Federal Healthcare Procurement

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance metrics makes value assessment difficult.
Reliance on 'legacy' facilities may present integration or efficiency challenges.
Scope definition clarity is crucial to prevent overruns or unmet needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to PRAIRIE QUEST, INC.. REFERRAL MANAGEMENT SERVICES, NORTHWEST NODE (LEGACY AIR FORCE MEDICAL TREATMENT FACILITIES).

Who is the contractor on this award?

The obligated recipient is PRAIRIE QUEST, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2023-04-09. End: 2026-03-31.

What is the specific track record of Prairie Quest, Inc. in managing federal healthcare contracts, particularly those involving referral management?

Information regarding Prairie Quest, Inc.'s specific track record in managing federal healthcare contracts, especially those focused on referral management, is not detailed in the provided data. To assess their capabilities, one would need to review past performance evaluations, contract histories, and any documented successes or failures in similar roles. A thorough review would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to Prairie Quest, Inc., examining any past performance questionnaires (PPQs) or contractor performance assessment reporting tool (CPARS) data, and looking for any debriefings from competitors on past solicitations. Understanding their experience with the Defense Health Agency or other military health systems would be particularly relevant.

How does the per-unit cost or cost-per-referral for this contract compare to industry benchmarks or similar federal contracts?

The provided data does not include specific per-unit cost metrics such as cost-per-referral, cost-per-patient, or cost-per-transaction. Therefore, a direct comparison to industry benchmarks or similar federal contracts is not possible with the current information. To conduct such an analysis, one would need to obtain the detailed pricing structure of the contract, including any CLINs (Contract Line Item Numbers) that break down costs by service volume. Subsequently, this data would need to be compared against publicly available data for similar referral management services procured by other federal agencies or large healthcare organizations, which often involves significant research into contract databases and industry reports.

What are the key performance indicators (KPIs) for this contract, and how is Prairie Quest, Inc. being evaluated against them?

The provided data does not specify the key performance indicators (KPIs) established for this referral management services contract. Typically, such contracts would include metrics related to referral timeliness, accuracy, patient engagement rates, provider satisfaction, and compliance with healthcare regulations. The evaluation of Prairie Quest, Inc. against these KPIs would be documented through performance reports, quality assurance reviews, and potentially Contractor Performance Assessment Reporting System (CPARS) entries. Without access to the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO), these specific KPIs and evaluation methods remain unknown.

What is the historical spending pattern for referral management services at legacy Air Force medical treatment facilities, and how does this award compare?

Historical spending data for referral management services specifically at legacy Air Force medical treatment facilities is not provided. To establish a historical context, one would need to analyze past contracts awarded by the Defense Health Agency or its predecessors for similar services at these types of facilities. This would involve searching contract databases for previous awards, noting the contractors, contract values, durations, and the specific services rendered. Comparing the current $11.99 million award over approximately three years to previous spending would reveal whether this represents an increase, decrease, or stable level of investment in referral management for these facilities.

What are the potential risks associated with the 'full and open competition after exclusion of sources' award type, and how are they mitigated?

The 'full and open competition after exclusion of sources' award type presents potential risks if the exclusion criteria were not justified or if they significantly limited the pool of qualified bidders, potentially leading to higher prices or less innovative solutions. Mitigation strategies would involve ensuring the exclusion was based on objective, documented reasons (e.g., national security, specific technical requirements, past performance issues) and that the solicitation clearly communicated these exclusions. The contracting agency should have robust justification for any exclusions and ensure that the remaining competitive field still offers sufficient choice and price discovery. Post-award, monitoring performance and ensuring adherence to the contract's scope are crucial.

What is the anticipated impact of these referral management services on patient outcomes and healthcare access for the target population?

The anticipated impact of these referral management services on patient outcomes and healthcare access is expected to be positive, assuming effective implementation by Prairie Quest, Inc. Well-managed referrals can lead to more timely access to specialists, reduced wait times, improved continuity of care, and potentially better health outcomes by ensuring patients receive appropriate treatment. For the target population (military personnel and families at legacy Air Force facilities), efficient referral management can streamline the process of navigating the healthcare system, reducing administrative burdens and ensuring they connect with the necessary medical providers. The success of this impact hinges on the contractor's ability to accurately process, track, and facilitate referrals.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4211 HOBSON CT STE A, FORT WAYNE, IN, 46815

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,988,451

Exercised Options: $11,988,451

Current Obligation: $11,988,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001521D5002

IDV Type: IDC

Timeline