VA awards $21.5M contract for anesthesia services to University of Texas Health Science Center at San Antonio

Contract Overview

Contract Amount: $21,546,689 ($21.5M)

Contractor: THE University of Texas Health Science Center AT SAN Antonio

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-07-15

End Date: 2019-01-14

Contract Duration: 2,009 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF ANESTHESIA SERVICES IN SUPPORT OF GME, AUDIE L. MURPHY HOSPITAL. BASE YEAR 15 JUL 2013 TO 14 JUL 2014

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.5 million to THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO for work described as: IGF::OT::IGF ANESTHESIA SERVICES IN SUPPORT OF GME, AUDIE L. MURPHY HOSPITAL. BASE YEAR 15 JUL 2013 TO 14 JUL 2014 Key points: 1. Contract awarded to a single entity, raising questions about competition and potential cost savings. 2. The contract duration spans over five years, indicating a long-term need for these services. 3. Services are for a specific hospital, suggesting a localized impact rather than broad geographic reach. 4. The contract type is 'Definitive Contract', which can be used for a variety of purposes. 5. Fixed-price contract structure aims to control costs, but the absence of competition limits price discovery. 6. The awardee is an academic health center, potentially indicating a focus on training and research alongside patient care.

Value Assessment

Rating: fair

The contract value of $21.5 million over approximately five years for anesthesia services at a single hospital appears to be within a reasonable range for such specialized medical support. However, without comparable contract data or detailed service breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competition means there's no direct benchmark to assess if the price is truly competitive in the market. Further analysis would require understanding the scope of services, patient volume, and complexity of procedures covered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement, or in specific circumstances like follow-on contracts where it's deemed impractical to recompete. The limited competition means that the government did not benefit from a bidding process that could drive down prices through market forces. The absence of multiple bidders restricts the ability to compare proposals and ensure the most advantageous offer was secured.

Taxpayer Impact: The lack of competition for this contract means taxpayers may not have received the lowest possible price for these essential anesthesia services. Without a competitive bidding process, there is a reduced incentive for the contractor to offer the most cost-effective solution.

Public Impact

Patients at the Audie L. Murphy Hospital will receive essential anesthesia services, ensuring the continuity of care for surgical and other medical procedures. The University of Texas Health Science Center at San Antonio, as the awardee, will provide the necessary medical personnel and resources. The primary geographic impact is localized to the San Antonio, Texas area, where the hospital is located. This contract supports the healthcare workforce by providing employment and training opportunities for anesthesiologists and related medical staff within the academic health center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in pricing due to sole-source award.
Potential for vendor lock-in if services are highly specialized and difficult to transition.

Positive Signals

Ensures continuity of critical medical services for veterans at a specific VA hospital.
Fixed-price contract provides budget certainty.
Award to an established health science center suggests a reliable provider.

Sector Analysis

The healthcare services sector, particularly within the federal government, involves significant spending on medical supplies, equipment, and professional services. Anesthesia services are a critical component of hospital operations, supporting a wide range of surgical and diagnostic procedures. Contracts for such services can vary widely in value depending on the facility size, patient volume, and complexity of care. Benchmarking this contract would require comparing it to similar anesthesia service contracts awarded to academic medical centers or large hospital systems, considering factors like the number of procedures and staff provided.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of specialized medical services like anesthesia, it is common for such contracts to be awarded to larger institutions or established healthcare providers rather than small businesses. There is no explicit information provided regarding subcontracting plans with small businesses, which could be an area for further inquiry to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA has internal mechanisms for contract management and performance monitoring. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is limited by the sole-source nature of the award, but contract performance metrics and payment details would typically be subject to internal VA review and potentially public reporting through contract databases.

Related Government Programs

VA Medical Care
Anesthesia Services
Hospital Support Services
Medical Personnel Contracts

Risk Flags

Sole-source award limits price competition.
Potential for cost overruns without competitive benchmarking.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.5 million to THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO. IGF::OT::IGF ANESTHESIA SERVICES IN SUPPORT OF GME, AUDIE L. MURPHY HOSPITAL. BASE YEAR 15 JUL 2013 TO 14 JUL 2014

Who is the contractor on this award?

The obligated recipient is THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO.

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 $21.5 million.

What is the period of performance?

Start: 2013-07-15. End: 2019-01-14.

What is the track record of The University of Texas Health Science Center at San Antonio in performing similar federal contracts?

The University of Texas Health Science Center at San Antonio (UTHSCSA) has a history of receiving federal funding and contracts, particularly from agencies like the Department of Veterans Affairs (VA) and the National Institutes of Health (NIH), often related to medical research and healthcare services. While specific performance data for past anesthesia service contracts is not detailed here, UTHSCSA is a large academic medical center with extensive experience in providing a broad spectrum of healthcare services. Its role as a teaching hospital suggests a capacity for managing complex medical operations and personnel. A deeper dive into their contract performance history with the VA, focusing on timeliness, quality of service, and adherence to terms, would be necessary for a comprehensive assessment.

How does the pricing of this contract compare to similar anesthesia service contracts awarded by the VA or other federal agencies?

Direct price comparison is difficult without detailed service scope and volume data for this specific contract and comparable contracts. However, the contract's value of approximately $21.5 million over five years, awarded on a firm-fixed-price basis, suggests a significant but potentially reasonable cost for comprehensive anesthesia services at a major hospital. Federal agencies often benchmark pricing against historical data, other agency awards, and market research. The absence of competition for this award limits the ability to definitively state if the price is optimal. Further analysis would involve comparing the per-case or per-provider cost against similar VA facilities or other large healthcare systems to identify potential outliers or efficiencies.

What are the primary risks associated with this sole-source contract for anesthesia services?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not be securing the most cost-effective solution available in the market. Another risk is vendor dependency; if UTHSCSA's anesthesia services are highly integrated and specialized, transitioning to another provider in the future could be complex and costly. Performance risk also exists, although awarding to a large academic health center generally implies a higher likelihood of reliable service delivery. However, any disruption in service could significantly impact patient care at the Audie L. Murphy Hospital.

How effective is the VA in ensuring value for money when awarding sole-source contracts for essential medical services?

The VA employs various mechanisms to ensure value for money even in sole-source procurements, though the effectiveness can vary. These include robust market research to justify the sole-source justification, negotiation of contract terms, and establishing clear performance metrics. For essential medical services, the VA often prioritizes continuity of care and provider capability, which can sometimes lead to sole-source awards if only one entity can meet the specific, urgent, or highly specialized needs. However, the inherent limitation of sole-source awards is the reduced leverage in price negotiation compared to competitive processes. The VA's Inspector General plays a role in overseeing contract awards to identify potential waste or inefficiencies.

What are the historical spending patterns for anesthesia services at the Audie L. Murphy Hospital or similar VA facilities?

Historical spending patterns for anesthesia services at the Audie L. Murphy Hospital or similar VA facilities would typically show a consistent need for these services, reflecting the ongoing demand for surgical and procedural care. Spending levels are influenced by factors such as patient volume, complexity of procedures, staffing levels, and the specific contract vehicles used. Prior contracts for anesthesia services at this facility, if any, would provide a baseline for comparison. Analyzing trends over several years would reveal whether spending has increased, decreased, or remained stable, and whether these changes correlate with shifts in service delivery models, patient demographics, or market costs. Without specific historical data for this contract, it's presumed that spending aligns with the operational needs of a major VA hospital.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA-257-11-RP-0056

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Texas System (UEI: 042000273)

Address: 7703 FLOYD CURL DR, SAN ANTONIO, TX, 78229

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,546,689

Exercised Options: $21,546,689

Current Obligation: $21,546,689

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline