DoD awards $5.3M contract for nursing services at Nellis AFB, with a 302-day duration
Contract Overview
Contract Amount: $5,289,858 ($5.3M)
Contractor: PDQ Health Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-22
End Date: 2026-07-21
Contract Duration: 302 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NURSING SERVICES FOR MIKE OCALLAGHAN MILITARY MEDICAL CENTER NELLIS AIR FORCE BASE NEVADA
Place of Performance
Location: NELLIS AFB, CLARK County, NEVADA, 89191
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $5.3 million to PDQ HEALTH SERVICES, LLC for work described as: NURSING SERVICES FOR MIKE OCALLAGHAN MILITARY MEDICAL CENTER NELLIS AIR FORCE BASE NEVADA Key points: 1. Contract value appears reasonable for specialized medical services at a military installation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger contract vehicle. 4. Performance period spans nearly two years, indicating a need for sustained services. 5. The North American Industry Classification System (NAICS) code 621111 points to physician offices, which may not fully capture the scope of nursing services. 6. The contract is firm-fixed-price, transferring some risk to the contractor.
Value Assessment
Rating: good
The contract value of $5.3 million for approximately 302 days of nursing services at Mike O'Callaghan Military Medical Center seems aligned with market rates for specialized healthcare personnel in a high-demand environment. Benchmarking against similar contracts for military medical support would provide a more precise value assessment. The firm-fixed-price structure suggests that the pricing was determined upfront and is intended to cover all contractor costs and profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The presence of 20 offers suggests a robust level of competition, which is generally favorable for price discovery and achieving competitive pricing for the government.
Taxpayer Impact: The high number of offers in a full and open competition is beneficial for taxpayers, as it increases the likelihood of securing services at a competitive price and encourages efficient resource allocation.
Public Impact
Military personnel and their families at Nellis Air Force Base will benefit from continued access to essential nursing care. The contract ensures the provision of critical healthcare services at a key military medical facility. Services are geographically concentrated at Nellis Air Force Base in Nevada. The contract supports healthcare sector jobs, potentially including nurses, LPNs, and CNAs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'nursing services' is not precisely delineated.
- Reliance on a single delivery order under a potentially larger contract vehicle could obscure overall program costs and performance.
- The exclusion of certain sources, even in a full and open competition, warrants scrutiny to ensure fairness and maximum competition.
Positive Signals
- Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
- The award to PDQ Health Services, LLC suggests they met the technical and performance requirements.
- A nearly two-year performance period indicates a stable and predictable service delivery.
Sector Analysis
This contract falls within the Healthcare and Social Assistance sector, specifically related to medical staffing and support services for government facilities. The market for healthcare staffing, particularly for specialized roles like nursing within military settings, is competitive but also subject to unique regulatory and security requirements. Comparable spending benchmarks would likely be found in other Department of Defense medical facility contracts or large civilian hospital staffing agreements.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. However, the prime contractor, PDQ Health Services, LLC, may engage small businesses as subcontractors if it aligns with their operational needs and procurement strategy.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Health Agency (DHA) and the contracting officer at Nellis Air Force Base. Performance monitoring, quality assurance checks, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Health Agency Contracts
- Military Medical Support Services
- Nellis Air Force Base Operations
- Nursing Services Contracts
- Federal Healthcare Staffing
Risk Flags
- Potential for misclassification of services under NAICS code.
- Limited transparency on the parent contract if this is a delivery order.
- Justification for 'Exclusion of Sources' requires review.
Tags
healthcare, department-of-defense, nellis-air-force-base, delivery-order, full-and-open-competition, firm-fixed-price, nursing-services, medical-support, nevada, defense-health-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 million to PDQ HEALTH SERVICES, LLC. NURSING SERVICES FOR MIKE OCALLAGHAN MILITARY MEDICAL CENTER NELLIS AIR FORCE BASE NEVADA
Who is the contractor on this award?
The obligated recipient is PDQ HEALTH SERVICES, 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: 2025-09-22. End: 2026-07-21.
What is the track record of PDQ Health Services, LLC in performing similar federal contracts, particularly within the Department of Defense?
A review of federal contract databases (e.g., SAM.gov, FPDS) would be necessary to assess PDQ Health Services, LLC's track record. This would involve examining past performance on similar contracts, including the types of services provided, contract values, duration, and any reported performance issues or awards. Understanding their history with the Defense Health Agency or other military branches would provide insight into their capability to fulfill the requirements of this nursing services contract at Nellis AFB. Specific details on past performance ratings, if available, would be crucial for a comprehensive assessment.
How does the awarded price per day compare to industry benchmarks for contracted nursing services at military installations?
To benchmark the price per day, we would need to analyze the total contract value ($5,289,858) against the effective duration (302 days). This yields a daily rate of approximately $17,516. This figure should then be compared against publicly available data for similar nursing services contracts awarded by the Department of Defense or other federal agencies to comparable medical facilities. Factors such as the mix of nursing specialties required (e.g., RNs, LPNs, specialized care nurses), the geographic location's cost of living, and the specific scope of work (e.g., 24/7 coverage, specific procedures) would influence the benchmark. Without direct comparable data, it's difficult to definitively state if this rate is high or low, but it provides a starting point for analysis.
What are the specific risks associated with relying on a delivery order under a potentially larger contract vehicle for essential medical services?
Relying on a delivery order (DO) for essential medical services introduces several potential risks. Firstly, the overall cost and performance of the underlying indefinite-delivery/indefinite-quantity (IDIQ) contract may not be fully transparent, making it harder to assess the true value and long-term commitment. Secondly, the competition for the DO itself might be limited if the underlying contract had restricted competition. Thirdly, if the parent contract has unfavorable terms or pricing, those limitations could cascade to the DO. Finally, the government's ability to manage and oversee the services might be fragmented if the DO is one of many issued under a broad contract, potentially impacting service continuity and quality control.
What is the potential impact of the 'Exclusion of Sources' clause on the overall competitiveness and cost-effectiveness of this contract?
The 'Exclusion of Sources' clause, even within a 'Full and Open Competition' framework, means that certain potential offerors were explicitly prevented from bidding. The impact on competitiveness and cost-effectiveness depends heavily on the justification for these exclusions. If the exclusions were based on legitimate technical requirements, security clearances, or specific capabilities essential for the military medical environment, then the competition among the remaining qualified sources could still be robust and lead to fair pricing. However, if the exclusions were arbitrary or overly restrictive, they could artificially limit competition, potentially leading to higher prices and reduced innovation for the government.
How does the NAICS code 621111 (Offices of Physicians) accurately reflect the scope of nursing services being procured for a military medical center?
The NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists),' may not fully encompass the breadth of nursing services typically required in a military medical center. While physicians' offices involve healthcare professionals, military medical centers often require a wider range of nursing specialties, including critical care, emergency services, surgical support, and public health nursing, which might be better aligned with codes like 621112 (Offices of Physical, Occupational and Speech Therapists, and Audiologists) or even broader healthcare support codes. The use of this specific code could indicate a focus on physician-led care teams where nurses provide support, or it might be an imperfect classification. A detailed review of the Statement of Work (SOW) is necessary to understand the precise nursing functions being procured.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
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
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4211 HOBSON CT STE A, FORT WAYNE, IN, 46815
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $15,742,032
Exercised Options: $5,289,858
Current Obligation: $5,289,858
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001525D9029
IDV Type: IDC
Timeline
Start Date: 2025-09-22
Current End Date: 2026-07-21
Potential End Date: 2027-11-27 00:00:00
Last Modified: 2025-12-19
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