DoD's $2.17M contract for nursing staff at Beale AFB awarded to Decypher Technologies Ltd

Contract Overview

Contract Amount: $2,173,919 ($2.2M)

Contractor: Decypher Technologies Ltd

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REGISTERED NURSE [4 FULL-TIME EQUIVALENTS (FTES)], NURSE PRACTITIONER (1 FTE), AND LICENSED PRACTICAL/VOCATIONAL NURSE (3 FTES)SERVICES AT 9TH MEDICAL GROUP BEALE AIR FORCE BASE

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to DECYPHER TECHNOLOGIES LTD for work described as: REGISTERED NURSE [4 FULL-TIME EQUIVALENTS (FTES)], NURSE PRACTITIONER (1 FTE), AND LICENSED PRACTICAL/VOCATIONAL NURSE (3 FTES)SERVICES AT 9TH MEDICAL GROUP BEALE AIR FORCE BASE Key points: 1. Contract provides essential nursing services to support military personnel and their families. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overruns for the government. 4. The duration of the contract is three years, aligning with typical healthcare service needs. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The geographic location of service delivery is California.

Value Assessment

Rating: good

The contract value of $2.17 million over three years for 8 FTE nursing staff appears reasonable when benchmarked against similar healthcare service contracts within the Department of Defense. The firm-fixed-price structure provides cost certainty. Without specific details on the skill mix and experience levels required, a precise value-for-money assessment is challenging, but the pricing seems competitive given the specialized nature of military healthcare support.

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 multiple potential bidders were allowed to submit proposals. The presence of 13 proposals suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The strong competition for this nursing services contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive offers for essential healthcare support.

Public Impact

Military personnel and their families at Beale Air Force Base will receive consistent and quality healthcare services. The contract ensures the availability of registered nurses, nurse practitioners, and licensed practical/vocational nurses. Services are delivered at the 9th Medical Group, directly impacting the health and readiness of the base population. The contract supports the operational readiness of the Air Force by ensuring healthcare needs of its members are met.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for staff turnover impacting continuity of care.
Ensuring consistent quality of care across all nursing roles.
Dependence on a single contractor for critical healthcare services.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract provides cost predictability.
Contract duration aligns with service needs, allowing for stable staffing.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting military medical facilities. The market for healthcare staffing services, particularly for specialized government facilities, is substantial. This contract represents a small but vital component of the broader federal healthcare spending, ensuring the operational readiness of military installations by providing essential medical personnel.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned. The award to Decypher Technologies Ltd. suggests it is capable of handling this size of requirement. Further analysis would be needed to determine if small businesses are participating in the supply chain or if there are opportunities for them within this contract's execution.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Defense Health Agency (DHA) is responsible for monitoring performance and ensuring compliance. The firm-fixed-price nature of the contract provides a degree of financial oversight. Inspector General reviews may occur periodically to assess program effectiveness and contractor performance.

Related Government Programs

Defense Health Agency Contracts
Military Medical Services
Nursing Services Contracts
Beale Air Force Base Operations

Risk Flags

Potential for staff turnover impacting continuity of care.
Ensuring consistent quality of care across all nursing roles.
Dependence on a single contractor for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to DECYPHER TECHNOLOGIES LTD. REGISTERED NURSE [4 FULL-TIME EQUIVALENTS (FTES)], NURSE PRACTITIONER (1 FTE), AND LICENSED PRACTICAL/VOCATIONAL NURSE (3 FTES)SERVICES AT 9TH MEDICAL GROUP BEALE AIR FORCE BASE

Who is the contractor on this award?

The obligated recipient is DECYPHER TECHNOLOGIES LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Decypher Technologies Ltd. in performing similar federal healthcare contracts?

Decypher Technologies Ltd. has a history of performing federal contracts, including those within the healthcare and professional services domains. While specific details on past performance for nursing services at military installations require deeper investigation into contract databases and performance reports, their ability to win this competitive award suggests a demonstrated capability. Analyzing past contract awards, performance evaluations (if publicly available), and any past performance issues would provide a clearer picture of their reliability and expertise in delivering similar services. It's important to note that contract performance can vary significantly based on the specific requirements, location, and duration of each engagement.

How does the awarded price compare to market rates for similar nursing services?

Benchmarking the awarded price requires detailed information on the specific qualifications, experience levels, and number of Full-Time Equivalents (FTEs) for the nurses. The contract specifies 4 Registered Nurses, 1 Nurse Practitioner, and 3 Licensed Practical/Vocational Nurses. Given the firm-fixed-price nature and the three-year duration, the total contract value of approximately $2.17 million suggests an average annual cost of roughly $724,000 for 8 FTEs. This translates to an average annual salary cost per FTE of about $90,500. This figure needs to be compared against prevailing wage data for these roles in the specific geographic area (near Beale AFB, California) and adjusted for any specialized military healthcare requirements or benefits. Without access to detailed market surveys or specific contract performance data for comparable DHA contracts, a precise comparison is difficult, but the rate appears within a plausible range for contracted healthcare professionals supporting federal facilities.

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

Key risks include potential contractor performance issues, such as failure to provide qualified personnel or maintain service continuity, and potential cost increases if the firm-fixed-price contract doesn't adequately account for unforeseen circumstances. Mitigation strategies include the robust competition process, which incentivizes good performance, and the firm-fixed-price structure, which caps the government's financial exposure. The Defense Health Agency's oversight and performance monitoring are critical to identifying and addressing any issues proactively. Contractor performance history and adherence to contract terms and conditions are also crucial risk mitigation factors. Additionally, the contract duration allows for stable staffing, reducing risks associated with frequent staff turnover.

How effective is the competition level in ensuring value for taxpayer money?

The award under 'full and open competition after exclusion of sources' with 13 proposals is a strong indicator of effective competition. A higher number of bidders generally leads to a more competitive pricing environment, pushing contractors to offer their best value proposals to win the contract. This process helps ensure that the government is not overpaying for the required nursing services. The firm-fixed-price contract type further enhances value by providing cost certainty. While the ultimate value depends on the quality of services delivered, the competitive nature of the award process is a significant factor in achieving cost-effectiveness for taxpayers.

What is the historical spending pattern for nursing services at Beale Air Force Base or similar medical groups?

Analyzing historical spending for nursing services at Beale AFB or comparable military medical groups would provide valuable context. This involves examining past contracts awarded for similar services, their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate changes in healthcare needs, staffing models, or market pricing. Understanding this historical trend helps in assessing whether the current $2.17 million award is consistent with past investments or represents a notable shift. Without specific historical data for this location or similar facilities, it's challenging to establish a precise pattern, but such analysis is crucial for long-term budget planning and identifying potential cost efficiencies.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT005016R0001

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 CONCORD PLAZA DR STE 780, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,249,267

Exercised Options: $2,397,698

Current Obligation: $2,173,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0018

IDV Type: IDC

Timeline