Decypher Technologies Ltd awarded $30.8M for ancillary services at NMCSD, supporting 182 FTEs

Contract Overview

Contract Amount: $30,785,417 ($30.8M)

Contractor: Decypher Technologies Ltd

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-29

Contract Duration: 728 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANCILLARY SERVICES NMCSD 182 FTE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92134

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to DECYPHER TECHNOLOGIES LTD for work described as: ANCILLARY SERVICES NMCSD 182 FTE Key points: 1. Contract value appears reasonable given the scope of supporting 182 full-time equivalents. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor. 4. Performance period spans nearly two years, indicating a medium-term commitment. 5. The services are critical for the Defense Health Agency's operational readiness. 6. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $30.8 million for nearly two years of ancillary services for 182 FTEs at the Naval Medical Center San Diego (NMCSD) appears to be within a reasonable range for healthcare support services. Benchmarking against similar contracts for medical staffing and support within the Department of Defense would provide a more precise assessment, but the scale of personnel supported suggests a substantial but not exorbitant cost. The firm-fixed-price structure indicates that the contractor bears the primary financial risk for cost overruns, which is generally favorable for the government.

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 initial solicitations might have excluded certain sources, the final award was made through a broad competitive process. The presence of 21 bids suggests a healthy level of competition for this requirement, which typically leads to better pricing and service offerings for the government. The agency's decision to use full and open competition is a positive indicator of seeking the best value.

Taxpayer Impact: The robust competition with 21 bidders is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring the government received optimal value for its investment in critical healthcare support services.

Public Impact

Military personnel and their families receiving care at NMCSD will benefit from uninterrupted ancillary services. The contract ensures the provision of essential support functions within a major military medical facility. Services are geographically concentrated in San Diego, California, supporting a key defense hub. The contract directly impacts the employment of 182 full-time equivalent personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if ancillary services are not clearly defined and managed.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition with 21 bidders suggests a competitive market and potential for good value.
The contract is a delivery order, implying it leverages an existing, potentially pre-vetted contract vehicle.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on contractors for specialized services to support military medical facilities. The Defense Health Agency (DHA) manages a vast network of healthcare providers and facilities, often utilizing contract vehicles to procure a wide range of medical and support services. Spending in this area is substantial, driven by the need to maintain high standards of care for service members and their families. This contract for ancillary services fits within the broader category of healthcare support and facility operations, a significant segment of federal healthcare spending.

Small Business Impact

There is no indication from the provided data that this contract involved a small business set-aside. The award to Decypher Technologies Ltd, a company not explicitly identified as a small business in this context, and the nature of the competition suggest it was not specifically targeted for small business participation. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, but they are not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically internal to the agency. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Defense Health Agency Medical Support Contracts
Naval Medical Center San Diego Operations
Ancillary Healthcare Services Contracts
Federal Healthcare Staffing Contracts

Risk Flags

Contract performance risk
Cost overrun potential (though mitigated by FFP)
Dependency on contractor personnel availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to DECYPHER TECHNOLOGIES LTD. ANCILLARY SERVICES NMCSD 182 FTE

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 $30.8 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-29.

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

A thorough review of Decypher Technologies Ltd's contract history with the federal government, particularly the Department of Defense and the Defense Health Agency, would be necessary to assess their track record. This would involve examining past performance evaluations, any documented issues or disputes, and the successful completion of contracts of similar scope and complexity. Understanding their experience in providing ancillary services, managing large FTE teams, and operating within military medical environments is crucial for evaluating their capability to fulfill this current award effectively. Without specific past performance data, it is difficult to definitively gauge their reliability and expertise.

How does the awarded price compare to market rates for similar ancillary services in the San Diego region?

To benchmark the awarded price of $30.8 million against market rates, one would need to gather data on the cost of comparable ancillary services (e.g., administrative support, logistical assistance, non-clinical patient support) provided by commercial entities in the San Diego area. This would involve researching industry salary data for the 182 FTEs, factoring in overhead, benefits, and profit margins typical for service contractors. Comparing the total contract value, or a pro-rated annual cost, to the average cost of similar services procured by other healthcare facilities or government entities in the region would provide a valuable perspective on whether this contract represents good value for money.

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

Key risks for this contract include potential performance deficiencies by the contractor, leading to disruptions in essential medical center operations, and the possibility of cost overruns if the firm-fixed-price structure is not adequately managed or if unforeseen circumstances arise. Mitigation strategies likely include robust performance monitoring by the Defense Health Agency, clear service level agreements (SLAs) within the contract, and regular communication channels with Decypher Technologies Ltd. The firm-fixed-price nature itself mitigates financial risk for the government, as the contractor is responsible for managing costs. However, ensuring the contractor has adequate resources and expertise to meet the demanding requirements of a military medical facility is paramount.

What is the historical spending pattern for ancillary services at NMCSD or similar military medical facilities?

Analyzing historical spending for ancillary services at NMCSD and comparable military treatment facilities would provide context for the current $30.8 million award. This involves examining previous contracts for similar services, noting their duration, value, and the number of FTEs supported. Trends in spending, such as increases or decreases over time, could indicate changes in service requirements, inflation, or shifts in contracting strategies. Understanding this historical context helps in assessing whether the current contract represents a continuation of established spending levels, a significant deviation, or an adjustment due to evolving operational needs or market conditions.

How does the 'Full and Open Competition After Exclusion of Sources' approach impact overall cost-effectiveness?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance the benefits of broad competition with specific agency needs. While 'full and open' generally maximizes competition, the 'exclusion of sources' clause suggests that certain potential bidders were initially disqualified based on predefined criteria. The impact on cost-effectiveness depends on the justification for the exclusion and the number of remaining competitive bidders. If the exclusion significantly limited the pool of qualified offerors, it could potentially reduce competitive pressure and lead to higher prices than a truly unrestricted full and open competition. However, if the exclusions were narrowly tailored to ensure specific technical capabilities or security requirements were met, and a sufficient number of bidders remained (as indicated by 21 bids), the approach can still yield cost-effective results by ensuring qualified, capable contractors compete.

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: 21

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: $59,511,411

Exercised Options: $38,718,667

Current Obligation: $30,785,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0018

IDV Type: IDC

Timeline