VA awards $23.5M contract for emergency health care services to Medical Faculty Associates, Inc

Contract Overview

Contract Amount: $23,495,181 ($23.5M)

Contractor: Medical Faculty Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-07-09

End Date: 2022-07-08

Contract Duration: 1,825 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF CONTRACTOR TO PROVIDE EMERGENCY HEALTH CARE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20422

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.5 million to MEDICAL FACULTY ASSOCIATES, INC. for work described as: IGF::OT::IGF CONTRACTOR TO PROVIDE EMERGENCY HEALTH CARE SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies and market engagement. 3. A single award suggests limited visibility into competitive pricing benchmarks. 4. The duration of the contract (5 years) provides long-term service continuity. 5. The North American Industry Classification System (NAICS) code 611310 points to services typically provided by educational institutions. 6. The contract value is substantial, requiring careful monitoring of service delivery and performance.

Value Assessment

Rating: fair

The contract value of $23.5 million over five years for emergency health care services is significant. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure offers cost certainty, but the lack of competition may have resulted in a higher price than could have been achieved through a more open process. Further analysis would require access to the specific services and deliverables to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach limits the government's ability to explore a wider range of potential providers and may not yield the most competitive pricing. The absence of bidders means there is no direct comparison of offers to assess market dynamics or identify the best value proposition.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competition, such as price reductions and innovation, are not realized.

Public Impact

Veterans in the Washington D.C. area will benefit from the provision of emergency health care services. The contract ensures the availability of critical medical services for beneficiaries. Services are geographically focused within the District of Columbia. The contract likely supports a workforce of healthcare professionals and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability.
Performance metrics and quality assurance need rigorous oversight due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long contract duration ensures service continuity for beneficiaries.
Award to a known entity (Medical Faculty Associates) may imply established capabilities.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on emergency medical care. The market for such services is often characterized by a mix of public and private providers, with varying degrees of competition depending on geographic location and specialization. The value of this contract, approximately $4.7 million annually, is moderate within the broader federal healthcare spending landscape, but significant for the specific services and beneficiary group it supports.

Small Business Impact

There is no indication that this contract included small business set-asides. The award was made to Medical Faculty Associates, Inc., which is likely a larger entity. Subcontracting opportunities for small businesses are not specified in the provided data, and the sole-source nature of the award further limits the potential for small business participation through competitive subcontracting.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Given the sole-source nature, robust performance monitoring and quality assurance mechanisms are crucial to ensure value for money and adherence to service level agreements. Transparency would be enhanced through public reporting of performance data and any associated audits or reviews by the VA's Office of Inspector General.

Related Government Programs

Department of Veterans Affairs Medical Services Contracts
Federal Emergency Health Services
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.5 million to MEDICAL FACULTY ASSOCIATES, INC.. IGF::OT::IGF CONTRACTOR TO PROVIDE EMERGENCY HEALTH CARE SERVICES

Who is the contractor on this award?

The obligated recipient is MEDICAL FACULTY ASSOCIATES, INC..

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 $23.5 million.

What is the period of performance?

Start: 2017-07-09. End: 2022-07-08.

What specific emergency health care services are covered under this contract?

The provided data indicates the contract is for 'EMERGENCY HEALTH CARE SERVICES' under NAICS code 611310 (Colleges, Universities, and Professional Schools). While the exact scope of services is not detailed, this typically encompasses immediate medical attention for acute illnesses or injuries, stabilization, and initial treatment. Given the awardee is Medical Faculty Associates, Inc., it suggests these services might be provided in conjunction with or through an academic medical center, potentially including specialized emergency care, trauma services, or critical care support for veterans within the District of Columbia.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract type as 'NOT COMPETED' and the award method as 'SOLE SOURCE'. Specific justifications for sole-source awards are typically documented by the procuring agency (in this case, the Department of Veterans Affairs) and often relate to unique capabilities, urgent needs where competition is not feasible, or when only one responsible source exists. Without the agency's justification documentation, the precise reasons remain unknown, but common rationales include specialized expertise, existing infrastructure integration, or a critical, time-sensitive requirement.

How does the $23.5 million contract value compare to similar VA emergency health care contracts?

Benchmarking this $23.5 million contract value against similar VA emergency health care contracts is challenging without more specific details on the scope of services and geographic coverage. However, the annual value of approximately $4.7 million falls within a range that could be considered moderate for specialized medical services supporting a significant population. Larger, multi-site contracts or those covering broader regions could easily exceed this amount. The lack of competition for this specific award makes direct value-for-money comparisons difficult, as market-driven pricing is absent.

What is the track record of Medical Faculty Associates, Inc. with the federal government, particularly the VA?

Medical Faculty Associates, Inc. (MFA) has a history of contracting with the federal government, primarily the Department of Veterans Affairs. While the provided data only shows this single $23.5 million contract, MFA is associated with The George Washington University Medical Faculty Associates, a large academic medical center. Their track record likely involves providing a range of medical services, potentially including specialized care, research support, and educational functions, aligning with their academic and clinical mission. Further investigation into contract databases would reveal the full extent and performance history of their federal engagements.

What are the potential risks associated with a sole-source award for emergency health care services?

The primary risks associated with a sole-source award for emergency health care services include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. For taxpayers, this can mean a higher cost for services than might be achieved in a competitive market. For beneficiaries, while services are secured, the quality and cost-effectiveness may not be optimized. Robust oversight and performance management are critical to mitigate these risks.

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: VA245-16-R-0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2150 PENNSYLVANIA AVE NW, WASHINGTON, DC, 20037

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: $23,495,181

Exercised Options: $23,495,181

Current Obligation: $23,495,181

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline