VA awards $32.1M contract for nursing home care to Sea Crest Health Care Management

Contract Overview

Contract Amount: $32,121,264 ($32.1M)

Contractor: SEA Crest Health Care Management, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-09-30

End Date: 2010-09-30

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT FY10 VISN-8 CONSOLIDATED NURSING HOME

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.1 million to SEA CREST HEALTH CARE MANAGEMENT, LLC for work described as: EXPRESS REPORT FY10 VISN-8 CONSOLIDATED NURSING HOME Key points: 1. Contract awarded for skilled nursing facilities in Florida. 2. Sea Crest Health Care Management is the sole awardee. 3. The contract was awarded under full and open competition. 4. This is a firm-fixed-price contract for one year.

Value Assessment

Rating: fair

The contract value of $32.1 million for one year of nursing home care appears to be within a reasonable range for the services provided, though specific per-unit cost comparisons are not available without more detailed data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have led to fair market pricing. The firm-fixed-price structure helps control costs for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price. The fixed-price nature of the contract provides cost certainty.

Public Impact

Ensures continued access to essential skilled nursing care for veterans in Florida. Supports the operational needs of the VA's healthcare system. Provides employment opportunities within the healthcare sector in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of the contract (one year) may necessitate future re-competes and potential price fluctuations.
Lack of specific performance metrics or quality indicators in the provided data.
Potential for price increases in subsequent contract periods if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Firm-fixed-price contract provides cost predictability.
Addresses a critical need for veteran healthcare services.

Sector Analysis

The healthcare sector, particularly skilled nursing facilities, is a significant area of government spending. Benchmarks for nursing home contracts can vary widely based on location, level of care, and duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Standard VA procurement oversight processes would apply to this contract. Accountability for service delivery and financial management rests with Sea Crest Health Care Management and the VA contracting officers.

Related Government Programs

Nursing Care Facilities (Skilled Nursing Facilities)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is short (one year), requiring frequent re-competition.
No specific performance metrics or quality assurance details provided.
Potential for price escalation in future contract periods.
Sole awardee may limit future competitive pressure if performance is satisfactory.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.1 million to SEA CREST HEALTH CARE MANAGEMENT, LLC. EXPRESS REPORT FY10 VISN-8 CONSOLIDATED NURSING HOME

Who is the contractor on this award?

The obligated recipient is SEA CREST HEALTH CARE MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2010-09-30. End: 2010-09-30.

What is the average cost per veteran per day for this contract, and how does it compare to similar VA facilities or private sector benchmarks?

Without specific daily census data or detailed service breakdowns, calculating an exact per-veteran, per-day cost is not possible from the provided summary. However, a rough estimate can be made by dividing the total contract value by the number of days and an assumed number of beds. This figure would need to be compared against regional benchmarks for skilled nursing facilities to assess value for money.

What are the key performance indicators (KPIs) for this contract, and how will Sea Crest's performance be measured to ensure quality of care?

The provided data does not specify the key performance indicators (KPIs) or the quality assurance surveillance plan (QASP) for this contract. Typically, VA contracts for healthcare services include metrics related to patient outcomes, staff-to-patient ratios, medication management, and patient satisfaction. Effective oversight would involve regular reviews of these metrics.

Given the firm-fixed-price structure, what mechanisms are in place to prevent cost overruns or ensure the contractor does not reduce service quality to maintain profitability?

The firm-fixed-price contract shifts most of the cost risk to the contractor, Sea Crest. However, the VA's contracting officer and quality assurance personnel are responsible for monitoring performance and ensuring that the agreed-upon level of service is maintained. Contractual remedies exist for non-performance or substandard quality.

Industry Classification

NAICS: Health Care and Social Assistance › Nursing Care Facilities (Skilled Nursing Facilities) › Nursing Care Facilities (Skilled Nursing Facilities)

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1445 HOWELL AVE, BROOKSVILLE, FL, 12

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,121,264

Exercised Options: $32,121,264

Current Obligation: $32,121,264

Timeline