DoD's $6.18M contract for 29 FTEs supports medical services at a California facility

Contract Overview

Contract Amount: $6,175,697 ($6.2M)

Contractor: Concentric Methods, LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANCILLARY NHCP 29 FTE

Place of Performance

Location: OCEANSIDE, SAN DIEGO County, CALIFORNIA, 92057

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to CONCENTRIC METHODS, LLC for work described as: ANCILLARY NHCP 29 FTE Key points: 1. Contract value appears reasonable given the scope of 29 full-time equivalents (FTEs) for medical support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 729 days (2 years) provides a stable period for service delivery. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The contractor, Concentric Methods, LLC, has a track record with federal agencies. 6. The North American Industry Classification System (NAICS) code 622110 points to general medical and surgical hospitals.

Value Assessment

Rating: good

The contract's value of approximately $6.18 million for 29 FTEs translates to roughly $106,000 per FTE per year. This figure is within a reasonable range for specialized medical personnel supporting federal operations, especially considering potential benefits, overhead, and the specialized nature of military healthcare. Benchmarking against similar contracts for medical support staff within the Department of Defense (DoD) would provide a more precise value-for-money assessment, but initial indications suggest fair pricing.

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 bidders were likely considered. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. However, the use of full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, which is expected to drive down costs and ensure the government receives quality services at a fair market price.

Public Impact

Beneficiaries include military personnel and their families receiving medical care at the designated facility. Services delivered encompass the provision of 29 full-time equivalent medical personnel. The geographic impact is localized to the specific military installation in California where the services are rendered. Workforce implications include the employment of medical professionals by the contractor, Concentric Methods, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor staffing shortages impacting service continuity.
Ensuring consistent quality of care across all contracted personnel.
Managing contract modifications and potential cost overruns if scope changes.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency.
Full and open competition suggests a robust selection process.
Contract duration provides stability for service provision.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on contracted services to supplement military medical personnel. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category, indicating a focus on direct patient care. Spending in this area is substantial across agencies like the Department of Defense (DoD) and Veterans Affairs, with significant market size driven by the need for specialized medical expertise and support staff.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Concentric Methods, LLC, a company that may or may not be classified as a small business, means the direct impact on the small business ecosystem is not immediately clear without further data on the contractor's size and subcontracting practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency (DHA) contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Health Agency Contracts
Military Medical Support Services
Federal Healthcare Staffing Contracts
General Medical and Surgical Hospital Services

Risk Flags

Potential for service disruption if contractor fails to maintain adequate staffing levels.
Ensuring consistent quality of care across all contracted medical personnel.
Monitoring contractor performance against contract requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to CONCENTRIC METHODS, LLC. ANCILLARY NHCP 29 FTE

Who is the contractor on this award?

The obligated recipient is CONCENTRIC METHODS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of Concentric Methods, LLC with federal contracts, particularly within the Department of Defense?

Concentric Methods, LLC has a history of securing federal contracts, including those with the Department of Defense and other government agencies. Their portfolio often includes healthcare staffing and support services. Analyzing their past performance on similar contracts, including any reported issues or successes, provides insight into their reliability and capability. Specific contract awards, values, and performance ratings from sources like the Federal Procurement Data System (FPDS) or agency performance evaluations would offer a more detailed picture of their track record. Understanding their experience with military healthcare environments is crucial for assessing their suitability for this specific contract.

How does the per-FTE cost of this contract compare to similar medical support contracts awarded by the DoD?

The approximate cost per FTE for this contract is around $106,000 annually ($6.18M / 29 FTEs / 2 years). To benchmark this effectively, one would need to compare it against recent DoD contracts for similar medical support roles (e.g., nurses, medical technicians, administrative staff) in comparable geographic locations. Factors such as the specific skill mix required, the level of security clearance, and the complexity of the medical services provided can significantly influence per-FTE costs. A detailed analysis would involve querying federal procurement databases for contracts with similar NAICS codes and service descriptions, then calculating and comparing the average per-FTE costs, adjusting for any significant differences in scope or duration.

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

Key risks include potential contractor performance deficiencies (e.g., failure to provide qualified personnel, service disruptions), cost overruns (though mitigated by the firm-fixed-price structure), and reliance on a single contractor for critical medical support. Mitigation strategies typically involve robust performance monitoring by the Defense Health Agency, clear contract requirements and deliverables, defined remedies for non-performance, and potentially contingency planning for service continuity. The firm-fixed-price nature shifts much of the financial risk to the contractor, incentivizing them to manage costs effectively. However, ensuring the quality and availability of personnel remains a primary oversight concern.

What is the historical spending pattern for similar medical support services by the Defense Health Agency?

Historical spending patterns for medical support services by the Defense Health Agency (DHA) reveal a consistent and significant investment in augmenting military medical capabilities with civilian personnel. The DHA frequently utilizes contracts for various medical specialties, including general medical and surgical support, to ensure comprehensive care for service members and their families. Annual spending in this category can range from hundreds of millions to billions of dollars, depending on global deployments, base closures/expansions, and evolving healthcare needs. Analyzing past DHA solicitations and awards for similar services provides context on typical contract values, durations, and competition levels, indicating whether this $6.18M award is within the expected range for the scope of services.

How does the 'full and open competition after exclusion of sources' clause impact the bidding process and potential cost savings?

The 'full and open competition after exclusion of sources' clause indicates that the government initially considered a broader range of potential sources but ultimately decided to restrict the competition to a specific set of qualified offerors, possibly due to specific technical requirements or prior market research. While it's not as broad as unrestricted full and open competition, it still implies that multiple bidders were allowed to compete. This approach aims to balance the need for specialized capabilities with the benefits of competition, potentially leading to better pricing and value than a sole-source award. However, it may result in fewer bidders than a truly unrestricted competition, potentially limiting the downward pressure on prices.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

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: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cape FOX Corporation

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,957,659

Exercised Options: $11,903,595

Current Obligation: $6,175,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0017

IDV Type: IDC

Timeline