VA awards $26.8M contract for emergency physicians to University of Maryland Emergency Medicine Associates

Contract Overview

Contract Amount: $26,853,585 ($26.9M)

Contractor: University of Maryland Emergency Medicine Associates, P.A.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-10-01

End Date: 2022-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRACTOR TO PROVIDE EMERGENCY PHYSICIANS IGF::OT::IGF

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.9 million to UNIVERSITY OF MARYLAND EMERGENCY MEDICINE ASSOCIATES, P.A. for work described as: CONTRACTOR TO PROVIDE EMERGENCY PHYSICIANS IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 2007 days (over 5 years) suggests a long-term need for these services. 3. Fixed-price contract type aims to control costs, but the absence of competition limits price discovery. 4. The service is critical for patient care within the VA system, indicating high performance requirements. 5. Geographic concentration in Maryland for the contractor may limit broader access to specialized emergency care. 6. No small business set-aside was utilized, suggesting the primary contractor is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The total award of $26.8 million over approximately five years averages to about $5.36 million annually. Without comparable contracts or market rates for emergency physician services in the specific geographic region, it's difficult to definitively assess if this represents excellent value. The fixed-price nature of the contract provides some cost certainty, but the absence of competition means there's no direct market pressure to ensure the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential providers. This approach is typically used when only one source is capable of meeting the requirement. The lack of competition means there were no other bidders to compare against, and therefore, no direct price discovery through a bidding process. This raises concerns about whether the government obtained the best possible price.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the negotiated price reflects the most cost-effective option available in the market.

Public Impact

Veterans in the service area will benefit from continuous access to emergency medical care. The contract ensures the provision of essential emergency physician services at a VA facility. The primary geographic impact is within Maryland, where the contractor is based. The contract supports a workforce of emergency medicine physicians, contributing to healthcare employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the sole-source justification process could hide inefficiencies.
Contract duration of over five years may not be optimal if needs change significantly.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Ensures continuity of essential emergency medical services for veterans.
Contractor is an established entity likely familiar with VA healthcare needs.

Sector Analysis

The healthcare sector, particularly emergency medicine, is a critical component of the federal health system. The Department of Veterans Affairs (VA) relies on a vast network of healthcare providers to serve its patient population. Contracts for physician services are common and essential for maintaining operational capacity. Benchmarking this contract's value is difficult without specific data on per-physician costs or comparable contracts for similar services within the VA or other federal agencies. The market for emergency medicine services is often specialized, with established groups providing these services to hospitals.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a university-affiliated medical group suggests a focus on specialized expertise rather than small business participation. This means that opportunities for small businesses within this specific contract are likely minimal, and the primary economic benefit flows to the larger, established entity.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations. The fixed-price nature provides some level of cost control. However, the sole-source award means that oversight will focus more on performance and adherence to contract terms rather than on ensuring competitive pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Physician Services Contracts
Emergency Medical Services Contracts
Federal Healthcare Provider Agreements
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.9 million to UNIVERSITY OF MARYLAND EMERGENCY MEDICINE ASSOCIATES, P.A.. CONTRACTOR TO PROVIDE EMERGENCY PHYSICIANS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MARYLAND EMERGENCY MEDICINE ASSOCIATES, P.A..

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 $26.9 million.

What is the period of performance?

Start: 2016-10-01. End: 2022-03-31.

What is the track record of University of Maryland Emergency Medicine Associates, P.A. with federal contracts, particularly with the VA?

Information on the specific track record of University of Maryland Emergency Medicine Associates, P.A. with federal contracts, especially with the VA, is not directly provided in the abbreviated data. However, the award of a definitive contract valued at $26.8 million suggests a prior relationship or demonstrated capability that the VA found sufficient for this sole-source award. To fully assess their track record, one would need to examine their past performance reviews, any previous contracts with the VA or other federal agencies, and any history of disputes or contract terminations. The fact that this is a sole-source award might imply a long-standing relationship or a unique capability that the VA has relied upon previously. Further investigation into their contract history would be necessary for a comprehensive understanding.

How does the $26.8 million contract value compare to similar emergency physician contracts awarded by the VA or other federal agencies?

Direct comparison of the $26.8 million contract value for emergency physician services is difficult without more specific data points, such as the number of physicians provided, the hours of coverage, or the specific services rendered. The contract duration is over five years, making the annual value approximately $5.36 million. This figure needs to be benchmarked against the average cost per physician, per hour, or per patient encounter for similar services within the VA system or comparable healthcare providers. Given the sole-source nature of this award, it is challenging to determine if this represents a competitive market rate. A thorough value analysis would require access to a database of similar VA contracts or industry benchmarks for emergency medicine staffing.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with awarding a contract of this magnitude ($26.8 million) on a sole-source basis is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, the government loses the leverage that competitive bidding provides to secure the best possible price and terms. There's also a risk that the government may not be aware of or have access to potentially more innovative or cost-effective solutions that other providers might offer. Furthermore, sole-source awards can sometimes indicate a lack of market research or a failure to adequately plan for competition, which could lead to missed opportunities for cost savings and efficiency gains. Transparency in the justification for the sole-source award is crucial to mitigate these risks.

What is the expected effectiveness of University of Maryland Emergency Medicine Associates, P.A. in fulfilling the VA's need for emergency physicians?

The expected effectiveness of University of Maryland Emergency Medicine Associates, P.A. in fulfilling the VA's need for emergency physicians is presumed to be high, given the sole-source nature of the award. This implies that the VA has determined this entity possesses unique qualifications, a proven track record, or a specific capability that makes them the only viable option. As an emergency medicine group associated with a university, they likely have access to qualified physicians, established protocols, and experience in managing high-acuity patient care. The effectiveness will ultimately be measured by the quality of care provided, patient outcomes, physician availability, and adherence to VA standards and protocols throughout the contract period.

How does this contract's spending pattern compare to historical VA spending on emergency physician services?

The provided data only details a single contract award of $26.8 million from October 1, 2016, to March 31, 2022. To compare this spending pattern to historical VA spending on emergency physician services, one would need access to historical VA procurement data. This would involve analyzing trends in contract values, the number of contracts awarded, the types of competition used (competitive vs. sole-source), and the average cost per service over several fiscal years. Without this broader dataset, it's impossible to determine if this $26.8 million award represents an increase, decrease, or stable level of spending compared to past VA investments in emergency physician services. Understanding historical patterns is crucial for identifying budget trends and potential shifts in procurement strategies.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA245-15-R-0119

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 S PACA ST # 6TH, BALTIMORE, MD, 21201

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

Financial Breakdown

Contract Ceiling: $26,853,585

Exercised Options: $26,853,585

Current Obligation: $26,853,585

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline