DoD's $6.8M contract for neonatal nurse practitioners awarded to UNC Health Care System
Contract Overview
Contract Amount: $6,801,624 ($6.8M)
Contractor: University of North Carolina Health Care System
Awarding Agency: Department of Defense
Start Date: 2020-12-12
End Date: 2026-03-11
Contract Duration: 1,915 days
Daily Burn Rate: $3.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NEONATAL NURSE PRACTITIONER
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $6.8 million to UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM for work described as: NEONATAL NURSE PRACTITIONER Key points: 1. Value for money appears reasonable given the specialized nature of neonatal nurse practitioners. 2. Competition was robust, with 11 bidders indicating a healthy market for these services. 3. Performance risk is moderate, as the contract is for established healthcare services. 4. This contract supports critical healthcare delivery within a military medical facility. 5. The sector is healthcare services, specifically supporting military medical needs.
Value Assessment
Rating: good
The contract's value of $6.8 million over its period of performance (approximately 5.2 years) suggests a per-year cost of roughly $1.3 million. This is difficult to benchmark precisely without more granular data on the number of practitioners and their specific roles. However, for highly specialized medical professionals like neonatal nurse practitioners within a federal healthcare system, this pricing appears within a reasonable range, especially considering the administrative overhead and compliance requirements associated with government contracts.
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 exclusions were applied. With 11 bidders, the competition level was strong, suggesting that multiple qualified entities vied for the contract. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: A high number of bidders ensures that taxpayer funds are likely being used efficiently, as the government can select the most cost-effective and capable provider from a competitive pool.
Public Impact
Military families and personnel requiring specialized neonatal care will benefit from the services provided. The contract ensures the availability of essential neonatal nursing services at a Department of Defense facility. The geographic impact is concentrated in North Carolina, where the University of North Carolina Health Care System is located and likely where the services will be rendered. This contract supports specialized healthcare professionals, potentially impacting the availability of these roles within the broader healthcare workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'neonatal nurse practitioner services' is not clearly delineated.
- Dependency on a single contractor for a critical healthcare function could pose a risk if performance issues arise.
Positive Signals
- Award to a reputable academic health system suggests a high likelihood of quality service delivery.
- The competitive bidding process indicates a strong market interest and potential for sustained service provision.
- A fixed-price contract structure provides cost certainty for the government.
Sector Analysis
The healthcare services sector is a significant area of federal spending, particularly for the Defense Health Agency, which provides medical care to military personnel and their families. Contracts for specialized medical professionals are crucial for maintaining the quality and availability of care within military treatment facilities. Benchmarking this contract against similar awards for specialized nursing services within the federal government would provide further context on its value.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses within this award, suggesting that the prime contractor, UNC Health Care System, will likely perform the majority of the services directly.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. The Defense Health Agency is responsible for monitoring performance and ensuring compliance. Given the nature of healthcare services, quality assurance and patient safety protocols are paramount. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Defense Health Agency Contracts
- Military Medical Services
- Healthcare Professional Services
- Neonatal Care Services
Risk Flags
- Potential for performance issues if contractor personnel turnover is high.
- Clarity of service scope is crucial for managing expectations and preventing disputes.
Tags
healthcare, defense, department-of-defense, defense-health-agency, north-carolina, definitive-contract, firm-fixed-price, full-and-open-competition, medical-services, nurse-practitioner, neonatal-care, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.8 million to UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM. NEONATAL NURSE PRACTITIONER
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $6.8 million.
What is the period of performance?
Start: 2020-12-12. End: 2026-03-11.
What is the specific scope of services required for these neonatal nurse practitioners?
The provided data does not detail the specific scope of services. However, 'NEONATAL NURSE PRACTITIONER' implies services related to the care of newborn infants, particularly those who are premature, ill, or require specialized medical attention. This typically includes assessment, diagnosis, treatment, and management of neonatal conditions, as well as consultation with physicians and other healthcare providers. The contract likely specifies the number of practitioners, their required qualifications, hours of service, and reporting requirements to ensure comprehensive care within the Department of Defense's healthcare facilities.
How does the contract value of $6.8 million compare to similar contracts for neonatal nurse practitioners within the DoD or other federal agencies?
Direct comparison is challenging without access to a comprehensive database of similar federal contracts, including the specific number of practitioners, duration, and geographic location. However, $6.8 million over approximately 5.2 years (1915 days) equates to roughly $1.3 million per year. This figure needs to be divided by the number of practitioners to assess individual cost. Given the high demand and specialized training required for neonatal nurse practitioners, this annual cost per practitioner is likely competitive, especially when factoring in the administrative and compliance overhead associated with federal contracts. Further analysis would require benchmarking against contracts with similar service levels and provider numbers.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential performance deficiencies by the contractor, such as failure to provide qualified personnel or meet service level agreements. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen circumstances, though fixed-price contracts generally aim to mitigate this. Another risk is the potential for contractor personnel turnover, impacting continuity of care. Mitigation strategies likely involve robust performance monitoring by the Defense Health Agency, clear contract terms and conditions, defined quality assurance surveillance plans, and potentially incentives for high performance or penalties for non-compliance. The selection of a large, established healthcare system like UNC Health Care System also mitigates some risk due to their presumed stability and resources.
What is the track record of the University of North Carolina Health Care System as a federal contractor?
The provided data does not include the specific track record of the University of North Carolina Health Care System as a federal contractor. However, as a large academic health system, it is generally recognized for its expertise in healthcare delivery and medical education. Its ability to win a competitive federal contract suggests it has the capacity and qualifications to meet government requirements. A deeper dive into past performance evaluations, other federal awards, and any history of disputes or contract terminations would be necessary for a comprehensive assessment of their track record.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact price and availability of services?
This procurement method aims to balance broad competition with specific needs or justifications for excluding certain sources. While 'full and open' suggests maximum competition, the 'exclusion of sources' implies that some potential bidders were deemed ineligible for reasons not detailed here (e.g., specific certifications, geographic limitations, or prior performance issues). With 11 bidders, the competition was still robust, which generally drives down prices and encourages innovation. The exclusion of sources, if justified, ensures that the selected contractor is the most suitable for the specific requirements, potentially leading to better service quality and reliability, even if it slightly limits the bidder pool compared to unrestricted full and open competition.
What is the historical spending trend for neonatal nurse practitioner services within the Department of Defense?
The provided data only includes information for this specific contract (award amount $6,801,624.44, start date 2020-12-12, end date 2026-03-11). It does not offer historical spending trends. To analyze historical spending, one would need to query federal procurement databases for similar contracts awarded by the DoD or Defense Health Agency over multiple fiscal years. This would involve identifying contracts with keywords like 'neonatal nurse practitioner,' 'pediatric nurse practitioner,' or related medical specialties, and then aggregating their values to identify patterns, increases, or decreases in spending over time.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6264520R0068
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101 MANNING DR, CHAPEL HILL, NC, 27514
Business Categories: Category Business, Government, Hospital, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations
Financial Breakdown
Contract Ceiling: $6,801,624
Exercised Options: $6,801,624
Current Obligation: $6,801,624
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-12
Current End Date: 2026-03-11
Potential End Date: 2026-03-11 00:00:00
Last Modified: 2025-12-08
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)