DoD awards $6.16M for Ophthalmic Support Services to Versability Resources, Inc

Contract Overview

Contract Amount: $6,160,628 ($6.2M)

Contractor: Versability Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-31

End Date: 2026-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPHTHALMIC SUPPORT SERVICES

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23661

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to VERSABILITY RESOURCES, INC. for work described as: OPHTHALMIC SUPPORT SERVICES Key points: 1. Contract awarded as a purchase order, indicating a streamlined acquisition process. 2. The contract duration spans over 1800 days, suggesting a long-term need for services. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The award was not competed, raising questions about potential cost efficiencies. 5. Ophthalmic support services are crucial for maintaining military readiness and personnel health. 6. The contractor, Versability Resources, Inc., is the sole awardee for this requirement.

Value Assessment

Rating: fair

The contract value of $6.16 million over approximately five years for ophthalmic support services appears to be within a reasonable range for specialized medical services. However, without specific details on the scope of services, the number of personnel supported, or the geographic locations covered, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for ophthalmic support within the Department of Defense or other federal agencies would provide a clearer picture of whether the pricing is competitive. The fixed-price nature of the contract offers some cost control, but the lack of competition limits the ability to verify optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when the agency determines that a sole-source award is in the government's best interest. The lack of competition means that potential cost savings that could arise from a competitive bidding process may have been foregone. It is important to understand the justification for this sole-source award to ensure it was appropriate and that the government received fair value.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is reduced when only one vendor is considered.

Public Impact

Military personnel requiring vision care and ophthalmic services will benefit from this contract. The services provided are essential for maintaining the health and readiness of the armed forces. The contract is managed by the Department of the Navy, indicating a focus on naval personnel and operations. Potential workforce implications include the need for specialized ophthalmic technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Sole-source awards require strong justification to ensure fairness and prevent potential overpricing.
The long contract duration could present risks if service needs or market conditions change significantly.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Awarding purchase orders can indicate an efficient procurement process for established needs.
Specialized ophthalmic support is critical for maintaining military readiness.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on specialized support services to maintain the health and operational readiness of its personnel. Ophthalmic support services fall under this category, addressing vision care needs which are critical for many military roles. The market for such services involves a range of providers, from large medical corporations to smaller specialized firms. Federal agencies often procure these services through various contract vehicles, including purchase orders and larger indefinite-delivery, indefinite-quantity (IDIQ) contracts. Benchmarking this $6.16 million award requires comparison with similar contracts for optometry and ophthalmology services within the Department of Defense and other health-focused agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided for this contract. As it was awarded on a sole-source basis, it is less likely to have been specifically set aside for small businesses. Further investigation would be needed to determine if Versability Resources, Inc. is a small business or if there are any subcontracting requirements that would benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a purchase order, it may have less formal oversight than a large-scale contract, but accountability would still be managed through performance reviews and payment processes. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Medical Services
Naval Ophthalmic Support
Federal Healthcare Procurement
Optometry Services Contracts

Risk Flags

Sole-source award without clear justification.
Potential for non-competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to VERSABILITY RESOURCES, INC.. OPHTHALMIC SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VERSABILITY RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2021-12-31. End: 2026-12-31.

What specific ophthalmic services are included under this contract?

The provided data indicates the contract is for 'OPHTHALMIC SUPPORT SERVICES' and the North American Industry Classification System (NAICS) code is 621320, which corresponds to 'Offices of Optometrists'. This suggests the services likely encompass routine eye examinations, vision testing, prescription of corrective lenses, and potentially basic diagnosis and treatment of common eye conditions. However, the exact scope is not detailed in the provided summary. Specific services could range from comprehensive eye care for active-duty personnel and their families to specialized vision screenings required for certain military occupational specialties. Further details would be found in the contract's statement of work (SOW).

What is the justification for the sole-source award of this contract?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common justifications include that only one responsible source exists with the unique capability or specialized knowledge required, or that the agency determines it is necessary to award to a specific source for reasons of urgency, national security, or to maintain a critical capability. Without the specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to determine the precise reason. This lack of competition warrants scrutiny to ensure fair pricing and value.

How does the $6.16 million contract value compare to similar ophthalmic support contracts within the DoD?

Benchmarking the $6.16 million value requires comparing it to similar contracts for ophthalmic support services within the Department of Defense (DoD) or other federal health agencies. The contract duration is approximately five years (1826 days), making the annual value around $1.23 million. This figure needs to be assessed against the number of beneficiaries served, the geographic scope, and the specific services rendered. For instance, contracts supporting large military bases or multiple installations would naturally be higher. Without access to a database of comparable federal contracts, it's difficult to definitively state if this represents excellent, good, or fair value. However, given the sole-source nature, there's a possibility that competitive bidding could have yielded a lower price.

What is the track record of Versability Resources, Inc. in performing federal contracts, particularly for the DoD?

The provided data identifies Versability Resources, Inc. as the contractor. To assess their track record, one would typically examine their past performance on federal contracts, specifically those with the Department of Defense or other healthcare-related agencies. This involves reviewing contract databases (like SAM.gov or FPDS) for previous awards, contract types, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A positive performance history suggests a lower risk for this current contract. Conversely, a history of poor performance or unresolved issues would raise concerns about the contractor's ability to meet the requirements effectively and on time.

What are the potential risks associated with a sole-source award for essential healthcare services like ophthalmic support?

The primary risk associated with a sole-source award for essential healthcare services is the potential for inflated pricing due to the absence of competition. Without competing bids, the government loses the leverage to negotiate the best possible price. This can lead to taxpayers paying more than necessary. Additionally, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential qualified vendors, which could suggest inefficiencies in the procurement process. There's also a risk that the sole provider might not be the most innovative or efficient option available in the market. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Optometrists

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018922Q0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2520 58TH ST, HAMPTON, VA, 23661

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,798,958

Exercised Options: $6,160,628

Current Obligation: $6,160,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline