VA Spends $17.9M on Medical Transportation in Illinois via Full and Open Competition
Contract Overview
Contract Amount: $17,891,339 ($17.9M)
Contractor: Logistic Solutions, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-04-15
End Date: 2015-11-30
Contract Duration: 2,055 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Official Description: MEDICAL TRANSPORTATION (HIRED CAR AND WHEELCHAIR VAN) SERVICES, VAMC, MARION, IL
Place of Performance
Location: MARION, WILLIAMSON County, ILLINOIS, 62959
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $17.9 million to LOGISTIC SOLUTIONS, LLC for work described as: MEDICAL TRANSPORTATION (HIRED CAR AND WHEELCHAIR VAN) SERVICES, VAMC, MARION, IL Key points: 1. Significant spending on essential medical transportation services for veterans. 2. Competition method indicates a robust market for these services. 3. Fixed-price contract with economic adjustment suggests potential for cost fluctuations. 4. Long contract duration (2055 days) implies a stable, ongoing need.
Value Assessment
Rating: good
The total award amount of $17.9 million over approximately 5.7 years suggests a substantial but potentially reasonable cost for specialized medical transportation. Benchmarking against similar contracts for medical transport services would be necessary for a definitive assessment.
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 competition was sought, specific sources were initially excluded. This method aims for competitive pricing but the exclusion might limit the full breadth of potential bidders.
Taxpayer Impact: Taxpayers funded essential medical transportation for veterans, with the competitive process aiming to secure fair pricing for these services.
Public Impact
Ensures veterans in Marion, IL, have access to necessary medical appointments. Supports the VA's mission to provide comprehensive healthcare services. The contract's duration suggests a consistent demand for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to economic price adjustment.
- Limited information on the specific reasons for excluding certain sources.
Positive Signals
- Full and open competition was utilized.
- Contract addresses a critical need for veteran healthcare access.
Sector Analysis
This contract falls within the healthcare support services sector, specifically focusing on transportation. Spending benchmarks for medical transportation can vary widely based on geographic location, service type (e.g., wheelchair van vs. standard car), and contract duration.
Small Business Impact
The provided data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to assess small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, suggesting oversight from a federal agency focused on veteran services. The 'definitive contract' type implies a formal agreement with established terms and conditions.
Related Government Programs
- Special Needs Transportation
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment.
- Lack of clarity on the justification for excluding sources.
- No explicit mention of performance metrics or service level agreements.
- Absence of data on small business participation.
Tags
special-needs-transportation, department-of-veterans-affairs, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $17.9 million to LOGISTIC SOLUTIONS, LLC. MEDICAL TRANSPORTATION (HIRED CAR AND WHEELCHAIR VAN) SERVICES, VAMC, MARION, IL
Who is the contractor on this award?
The obligated recipient is LOGISTIC SOLUTIONS, 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 $17.9 million.
What is the period of performance?
Start: 2010-04-15. End: 2015-11-30.
What was the average annual cost per veteran served by this contract?
Calculating the average annual cost per veteran requires knowing the number of unique veterans served by this contract and the total annual spending. Without this data, it's impossible to determine the cost-effectiveness on a per-beneficiary basis. This metric is crucial for understanding the true value delivered to the veteran population.
What were the specific criteria for excluding sources in the competition?
The exclusion of sources during the 'Full and Open Competition' process typically occurs when certain vendors are deemed not to meet specific technical, capability, or past performance requirements. Understanding these criteria is vital to ensure the exclusion was justified and did not unduly limit competition, potentially impacting price discovery.
How did the economic price adjustment clause impact the final cost compared to a fixed-price contract?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in economic factors like inflation or material costs. While it can protect contractors from unforeseen cost increases, it also introduces uncertainty for the government regarding the final expenditure. Analyzing the actual price changes under the EPA would reveal its impact.
Industry Classification
NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › Special Needs Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: VA-255-10-RP-0002
Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 300 SW WOODLAWN AVE, TOPEKA, KS, 66606
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $17,891,339
Exercised Options: $17,891,339
Current Obligation: $17,891,339
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-15
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2016-02-26
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