DoD awards $9M for Registered Nurse services to Distinctive Health Spectrum Care JV LLC

Contract Overview

Contract Amount: $9,034,229 ($9.0M)

Contractor: Distinctive Health Spectrum Care JV LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REGISTERED NURSE

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.0 million to DISTINCTIVE HEALTH SPECTRUM CARE JV LLC for work described as: REGISTERED NURSE Key points: 1. Contract awarded to a joint venture, potentially indicating a specialized or emerging business. 2. Full and open competition after exclusion of sources suggests a specific justification for limiting initial bidders. 3. The contract spans five years, indicating a long-term need for these services. 4. The award is for General Medical and Surgical Hospitals services, a critical healthcare function.

Value Assessment

Rating: good

The contract value of $9.03M over five years for registered nurse services appears reasonable given the duration and the specialized nature of healthcare staffing. Benchmarking against similar contracts for RN services in the federal sector would provide a more precise assessment.

Cost Per Unit: $1,372/day (estimated)

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method implies that while competition was sought, certain sources were initially excluded, potentially due to specific qualifications or prior relationships. This could impact price discovery by limiting the pool of potential offerors.

Taxpayer Impact: Taxpayers are funding essential healthcare services for the Department of Defense. The chosen competition method aims to balance access to qualified providers with ensuring fair pricing, though the exclusion of sources warrants scrutiny.

Public Impact

Ensures continued access to essential medical personnel for military healthcare facilities. Supports the operational readiness of healthcare services within the Department of Defense. Provides vital nursing care to service members, veterans, and their families. The contract's duration suggests a stable, ongoing requirement for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method requires justification.
Potential for higher costs due to restricted bidder pool.
Small business status not indicated, potential missed opportunity.

Positive Signals

Addresses a critical healthcare need.
Long-term contract provides stability.
Awarded to a joint venture, potentially fostering new business relationships.

Sector Analysis

The healthcare sector, particularly medical staffing, is a significant area of federal spending. Contracts for registered nurses are common within agencies like the Department of Defense to support military medical facilities. Spending benchmarks vary widely based on location, experience level, and specific duties.

Small Business Impact

The contract does not explicitly indicate if the awardee is a small business. Further investigation is needed to determine if this contract provided opportunities for small businesses, either as the prime contractor or through subcontracting. Awarding to a joint venture could involve small business participation.

Oversight & Accountability

The Defense Health Agency is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger contracts should be in place to ensure performance, quality, and adherence to terms. Accountability rests with the contracting officer and the agency.

Related Government Programs

General Medical and Surgical Hospitals
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Limited competition raises concerns about potential price inflation.
Lack of clear small business participation.
Need for detailed justification for source exclusion.
Potential impact on broader healthcare labor market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.0 million to DISTINCTIVE HEALTH SPECTRUM CARE JV LLC. REGISTERED NURSE

Who is the contractor on this award?

The obligated recipient is DISTINCTIVE HEALTH SPECTRUM CARE JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What was the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' method?

The justification for excluding sources typically relates to specific technical requirements, unique capabilities, or prior performance history that only a limited number of entities possess. For healthcare services, this might involve specialized certifications, established patient care protocols, or demonstrated experience with military healthcare systems. Understanding this rationale is key to assessing whether the competition was appropriately broad given the need.

How does the per-unit cost compare to market rates for registered nurses in similar geographic locations or healthcare settings?

A detailed comparison of the estimated per-unit cost ($1,372/day) against market rates for registered nurses in comparable federal or civilian healthcare settings is crucial. Factors like nurse specialization (e.g., ICU, ER), years of experience, and geographic location significantly influence market rates. Without this benchmark, it's difficult to definitively assess if the government is receiving competitive pricing for these essential services.

What is the expected impact of this contract on the availability of registered nurses for other federal or civilian healthcare providers?

This $9M contract over five years secures a significant number of registered nurse hours for the Department of Defense. Depending on the specific nursing specialties and the overall demand in the region, this could potentially reduce the available pool of nurses for other federal agencies or civilian hospitals, potentially driving up costs or creating staffing challenges elsewhere. The DHA's strategic workforce planning should account for this.

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

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Distinctive Home Care Inc.

Address: 2006 TULSON LANE A-100, BOWIE, MD, 20721

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,806,316

Exercised Options: $9,806,316

Current Obligation: $9,034,229

Actual Outlays: $687,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0029

IDV Type: IDC

Timeline