DoD's $10M referral management contract awarded to Prairie Quest, Inc. for services at legacy Air Force facilities

Contract Overview

Contract Amount: $10,041,208 ($10.0M)

Contractor: Prairie Quest, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-09

End Date: 2026-01-31

Contract Duration: 1,028 days

Daily Burn Rate: $9.8K/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, CENTRAL 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 $10.0 million to PRAIRIE QUEST, INC. for work described as: REFERRAL MANAGEMENT SERVICES, CENTRAL NODE (LEGACY AIR FORCE MEDICAL TREATMENT FACILITIES) Key points: 1. Contract value of $10.04 million over 1028 days indicates a significant investment in healthcare support services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability. 4. Services are for legacy Air Force medical treatment facilities, highlighting a focus on existing infrastructure. 5. The North American Industry Classification System (NAICS) code 621399 points to specialized health practitioner services. 6. The contract duration of over 1000 days suggests a need for sustained operational support.

Value Assessment

Rating: good

The contract's total value of approximately $10 million for over three years of referral management services appears reasonable given the scope. Benchmarking against similar contracts for healthcare support services within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the duration implies a stable, ongoing need.

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,' indicating that while the competition was broad, certain sources may have been excluded for specific reasons. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited number of bidders here might suggest potential barriers to entry or a niche market.

Taxpayer Impact: The competitive nature of this award, even with only two bidders, is generally favorable for taxpayers as it likely drove down costs compared to a sole-source procurement. However, understanding the reasons for source exclusion and the specific capabilities of the bidders would provide a clearer picture of the ultimate value achieved.

Public Impact

Beneficiaries include military personnel and their families receiving healthcare services at legacy Air Force facilities. The contract delivers essential referral management services, ensuring continuity of care and efficient patient navigation. Geographic impact is concentrated at legacy Air Force medical treatment facilities, primarily in Texas. Workforce implications include potential employment opportunities for administrative and support staff involved in referral coordination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' needs further investigation.
Contract duration of over 1000 days requires ongoing monitoring for performance and cost efficiency.
Reliance on legacy systems may present integration challenges or require specialized expertise.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, indicating a structured procurement process.
The Defense Health Agency's involvement suggests alignment with broader military healthcare objectives.

Sector Analysis

The healthcare support services sector is a critical component of the federal procurement landscape, particularly within the Department of Defense. This contract for referral management services falls under the broader category of health practitioners' offices. The market for such services is substantial, driven by the need to manage patient flow and ensure access to specialized care within military healthcare systems. Comparable spending benchmarks would typically involve analyzing other contracts for similar administrative and patient support functions within federal health agencies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Prairie Quest, Inc., may engage small businesses as subcontractors. An analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its contribution to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA), which manages military medical facilities. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon costs. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Health Agency Contracts
Military Medical Treatment Facility Support
Healthcare Referral Services
Legacy System Support Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Reliance on legacy systems may pose integration challenges
Need for ongoing performance monitoring due to contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to PRAIRIE QUEST, INC.. REFERRAL MANAGEMENT SERVICES, CENTRAL 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 $10.0 million.

What is the period of performance?

Start: 2023-04-09. End: 2026-01-31.

What is the track record of Prairie Quest, Inc. in performing similar federal healthcare support contracts?

Prairie Quest, Inc. has a history of performing federal contracts, primarily within the healthcare and administrative support domains. While specific details on past performance for referral management services at legacy Air Force facilities are not detailed in the provided data, their award of this contract suggests they met the requirements outlined by the Defense Health Agency. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous awards, would provide a more comprehensive understanding of their capabilities and reliability. Examining their financial stability and any history of contract disputes or terminations would also be crucial for assessing their track record.

How does the per-unit cost of these referral management services compare to industry benchmarks or similar government contracts?

The provided data does not include specific per-unit cost metrics for the referral management services, making a direct comparison to industry benchmarks or similar government contracts challenging. The total contract value of $10.04 million over 1028 days (approximately 34 months) offers a broad financial scope, but without details on the volume of referrals managed, the number of facilities served, or the specific services rendered per unit, a meaningful per-unit cost analysis is not feasible. To conduct such a comparison, data on the average cost per referral, cost per patient managed, or cost per facility supported would be required, along with access to comparable contract data from other federal agencies or the private sector.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential performance issues in delivering timely and accurate referral management, challenges in integrating with legacy IT systems at Air Force facilities, and the possibility of cost overruns if the firm-fixed-price structure is not adequately managed. Mitigation strategies likely involve robust performance monitoring by the Defense Health Agency, clear contractual requirements, and potentially phased implementation plans. The contractor's own risk management processes, including quality assurance and contingency planning, are also critical. The 'exclusion of sources' in the competition might also indicate pre-identified risks associated with certain types of contractors or capabilities, which the agency sought to avoid.

How effective is the current referral management system in ensuring continuity of care for beneficiaries at these legacy facilities?

The effectiveness of the current referral management system is not directly quantifiable from the provided contract data alone. The award of this contract signifies a need for these services, implying that existing processes may require enhancement or that a new, consolidated approach is being implemented. Effectiveness would be measured by metrics such as referral completion rates, patient wait times for appointments, patient satisfaction with the referral process, and the reduction of administrative errors. Ongoing performance reviews and feedback from healthcare providers and patients would be essential to assess and improve the system's effectiveness over the contract's duration.

What has been the historical spending trend for referral management services at legacy Air Force medical facilities prior to this award?

The provided data does not include historical spending figures for referral management services at legacy Air Force medical facilities. To understand the historical spending trend, one would need to access procurement records for previous contracts awarded for similar services to these specific facilities or to the Defense Health Agency more broadly. Analyzing past contract values, durations, and the number of contractors involved over several fiscal years would reveal whether spending has been increasing, decreasing, or remaining stable. This context is crucial for evaluating the current $10.04 million award in light of past investments and potential changes in service needs or market costs.

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: $10,041,208

Exercised Options: $10,041,208

Current Obligation: $10,041,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001521D5002

IDV Type: IDC

Timeline