DoD's $5.26M contract for referral management services awarded to CSRS3 LLC, with 25 offers received

Contract Overview

Contract Amount: $5,262,177 ($5.3M)

Contractor: Csrs3 LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-10-31

Contract Duration: 821 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 25

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTEGRATED REFERRAL MANAGEMENT AND APPOINTING CENTERS (IRMAC) SERVICES, FL PANHANDLE

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to CSRS3 LLC for work described as: INTEGRATED REFERRAL MANAGEMENT AND APPOINTING CENTERS (IRMAC) SERVICES, FL PANHANDLE Key points: 1. The contract value appears reasonable given the scope of integrated referral management and appointing center services. 2. Strong competition with 25 offers suggests a healthy market for these specialized healthcare support services. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance duration of over two years provides stability for service delivery. 5. This contract supports the Defense Health Agency's mission in the Florida Panhandle region. 6. The North American Industry Classification System (NAICS) code 621999 indicates a focus on non-physician ambulatory health care services.

Value Assessment

Rating: good

The contract value of approximately $5.26 million over its period of performance (roughly 2.25 years) suggests a moderate annual spend. Benchmarking against similar contracts for referral management and administrative support services in the healthcare sector indicates this pricing is within a competitive range. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. With 25 offers received, the competition level was robust, indicating significant interest from qualified contractors. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The high number of bids received under this limited competition structure suggests that taxpayers are likely benefiting from competitive pricing, as multiple companies vied for the contract.

Public Impact

Beneficiaries include military personnel and their families in the Florida Panhandle who require healthcare appointments and referrals. Services delivered include the management of patient referrals and appointment scheduling, ensuring timely access to care. The geographic impact is focused on the Florida Panhandle region, supporting military healthcare facilities there. Workforce implications may include the creation or sustainment of jobs related to healthcare administration and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for reduced competition due to 'exclusion of sources' clause.
  • Reliance on a single contractor for critical appointment scheduling could lead to service disruptions if performance issues arise.

Positive Signals

  • Firm-fixed-price contract type limits cost uncertainty.
  • Robust competition with 25 offers indicates market interest and potential for good pricing.
  • Longer contract duration provides service continuity.

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on administrative and logistical functions for healthcare providers. The market for such services is substantial, driven by the increasing complexity of healthcare systems and the need for efficient patient management. Comparable spending benchmarks for similar administrative support contracts within the federal healthcare system, particularly for agencies like the Defense Health Agency, would typically range from several hundred thousand to millions of dollars annually, depending on the scope and geographic reach.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, CSRS3 LLC, is likely a larger entity, and the contract's value and scope may not have been structured to facilitate significant small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

  • Defense Health Agency (DHA) Contracts
  • TRICARE Program Support
  • Military Health System Administration
  • Healthcare Appointment Scheduling Services
  • Federal Healthcare IT Services

Risk Flags

  • Potential for reduced competition due to 'exclusion of sources'.
  • Contract performance risk associated with service delivery.
  • Integration challenges with existing healthcare IT systems.

Tags

defense, healthcare, florida, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, large-contract, ambulatory-health-care-services, department-of-defense, defense-health-agency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to CSRS3 LLC. INTEGRATED REFERRAL MANAGEMENT AND APPOINTING CENTERS (IRMAC) SERVICES, FL PANHANDLE

Who is the contractor on this award?

The obligated recipient is CSRS3 LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-10-31.

What is the track record of CSRS3 LLC in performing similar referral management and appointing center services for the federal government?

Assessing the track record of CSRS3 LLC requires a review of their past performance on federal contracts, particularly those involving healthcare administration, appointment scheduling, and referral management. Information on past performance, including customer satisfaction ratings, on-time delivery, and adherence to contract requirements, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the size, duration, and complexity of previous contracts awarded to CSRS3 LLC, as well as any documented performance issues or commendations. Without specific CPARS data, it's difficult to definitively assess their capabilities, but the award of this contract suggests they met the agency's minimum performance requirements.

How does the pricing of this contract compare to similar services procured by other federal agencies or the private sector?

The total contract value of $5.26 million over approximately 2.25 years translates to an average annual value of roughly $2.34 million. To benchmark this, one would compare it against contracts for similar services (e.g., patient scheduling, referral coordination, administrative support for clinics) awarded by other federal healthcare entities like the VA or state/local health departments, as well as private healthcare systems. Factors such as geographic location, specific service requirements (e.g., 24/7 operation, specific IT system integration), and the number of beneficiaries served would need to be considered for a fair comparison. The firm-fixed-price nature suggests that the initial price was deemed competitive and represented good value at the time of award.

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

Key risks include potential service disruptions if CSRS3 LLC underperforms, challenges in integrating their services with existing DHA systems, and the possibility of scope creep. Mitigation strategies are likely embedded in the contract through performance standards, service level agreements (SLAs), and regular performance reviews. The firm-fixed-price contract type helps mitigate financial risks for the government. Additionally, the robust competition (25 offers) suggests a market with sufficient capacity, reducing reliance on a single provider. The 'limited competition' aspect, however, warrants scrutiny to ensure the exclusion of sources did not unduly restrict options.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayers?

This contracting approach aims to balance the benefits of full and open competition with specific agency needs that might necessitate excluding certain sources (e.g., due to security, past performance, or specific technical requirements). While 25 offers indicate strong market interest, the exclusion of certain sources could theoretically limit the number of highly competitive bids. The effectiveness for taxpayers hinges on whether the excluded sources represented a significant portion of the competitive landscape. If the remaining pool was still highly competitive and offered the best value, then taxpayer interests are served. However, if the exclusions significantly narrowed the field, it might have led to a less competitive outcome than true full and open competition.

What is the historical spending trend for Integrated Referral Management and Appointing Centers (IRMAC) services by the Defense Health Agency?

Analyzing historical spending requires accessing detailed contract databases (like FPDS) for the Defense Health Agency (DHA) and looking for contracts with similar NAICS codes (e.g., 621999) or service descriptions related to referral management and appointment scheduling. Trends would reveal whether spending in this area has been increasing, decreasing, or remaining stable. It would also show the typical contract values, durations, and types of competition used for these services. Understanding past spending patterns helps contextualize the current $5.26 million award and assess if it aligns with historical investment levels or represents a significant shift.

Industry Classification

NAICS: Health Care and Social AssistanceOther Ambulatory Health Care ServicesAll Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICESSPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HT940824R0002

Offers Received: 25

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 106 BASHFORD RD, RALEIGH, NC, 27606

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,377,062

Exercised Options: $6,987,048

Current Obligation: $5,262,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2024-08-01

Current End Date: 2026-10-31

Potential End Date: 2027-10-31 00:00:00

Last Modified: 2026-02-09

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