DoD's $19.5M contract for temporary medical staffing services awarded to TMI Management Systems Inc. shows potential value concerns

Contract Overview

Contract Amount: $19,523,523 ($19.5M)

Contractor: TMI Management Systems Inc

Awarding Agency: Department of Defense

Start Date: 2004-01-26

End Date: 2008-11-30

Contract Duration: 1,770 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::21 2020::TAS 200404!000342!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !GS07F0007N !C!N! !Y!W81K0004F0157! !20040126!20040930!014442607!014442607!014442607!N!TMI MANAGEMENT SYSTEMS, INC !9 WINTERGREEN CIRCLE !EAST STROUDSBU !PA!18301!26736!027!48!FORT HOOD !BELL !TEXAS !+000001854850!N!N!000000000000!Q999!OTHER MEDICAL SERVICES !S1 !SERVICES !000 !* !621111!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to TMI MANAGEMENT SYSTEMS INC for work described as: TAS::21 2020::TAS 200404!000342!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !GS07F0007N !C!N! !Y!W81K0004F0157! !20040126!20040930!014442607!014442607!014442607!N!TMI MANAGEMENT SYSTEMS, INC !9 WINTERGREEN CIRCLE !EAST STROUDSBU !PA!18301!26736!027!48!FORT HO… Key points: 1. The contract's duration and total value suggest a high per-diem cost for temporary medical personnel. 2. Limited competition information available for this specific delivery order makes a definitive value assessment challenging. 3. The contract was awarded under 'full and open competition after exclusion of sources,' which warrants further investigation into the rationale. 4. The services provided fall under 'Other Medical Services,' a critical but often costly area for federal agencies. 5. The contractor, TMI Management Systems, Inc., has a track record with federal contracts, requiring review of past performance. 6. The contract's significant value raises questions about whether alternative staffing models or direct hires could have been more cost-effective.

Value Assessment

Rating: questionable

The total value of $19,523,522.60 over a period of 1770 days (approximately 4.8 years) indicates a substantial investment in temporary medical staffing. Without specific details on the number of personnel, their roles, and the exact duration of their service, it is difficult to benchmark the per-unit cost effectively. However, given the nature of medical staffing, this amount suggests a potentially high cost per day per professional. Comparing this to industry standards for similar temporary medical staffing contracts would be crucial for a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific designation implies that while the competition was intended to be open, certain sources may have been excluded for reasons that are not immediately clear from the provided data. The number of bidders is not specified, making it difficult to assess the true level of competition. A limited competition scenario can sometimes lead to less competitive pricing.

Taxpayer Impact: The 'limited' competition aspect means taxpayers may not have benefited from the most aggressive pricing that a broader, more inclusive competition might have yielded.

Public Impact

Beneficiaries include military personnel and their families receiving medical care at facilities managed by the Department of the Army. Services delivered encompass providing essential medical personnel to ensure continuity of care and operational readiness. The geographic impact is primarily focused on the areas served by William Beaumont Army Medical Center and potentially Fort Hood, Texas. Workforce implications include the provision of temporary staff, potentially filling critical gaps and supporting the existing medical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed breakdown of services and personnel numbers makes cost-effectiveness assessment difficult.
The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure fairness and optimal pricing.
Long contract duration for temporary services might indicate a systemic staffing issue rather than a short-term need.

Positive Signals

Contract awarded to a single entity suggests a focused relationship and potentially streamlined service delivery.
The contract addresses a critical need for medical services within the Department of Defense.
The use of temporary staffing can offer flexibility in meeting fluctuating healthcare demands.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on temporary staffing solutions for medical professionals. The federal government is a significant consumer of such services to maintain operational readiness and provide care to military personnel and their families. The market for healthcare staffing is competitive, but federal procurement processes can introduce complexities. Benchmarking against other federal contracts for similar medical staffing needs would provide further context on pricing and service delivery.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, TMI Management Systems, Inc., may engage small businesses as subcontractors, though this information is not detailed here. Further analysis of subcontracting plans would be necessary to understand the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would include performance reviews, adherence to contract terms, and financial audits. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight information is often internal. Inspector General jurisdiction may be invoked if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Medical Services Contracts
Temporary Staffing Services
Healthcare Staffing Solutions
Medical Personnel Support Contracts

Risk Flags

Potential for high cost per unit due to temporary staffing model.
Limited transparency on competition specifics ('exclusion of sources').
Lack of detailed service breakdown hinders performance and value assessment.
Extended duration of temporary staffing may indicate underlying systemic issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to TMI MANAGEMENT SYSTEMS INC. TAS::21 2020::TAS 200404!000342!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !GS07F0007N !C!N! !Y!W81K0004F0157! !20040126!20040930!014442607!014442607!014442607!N!TMI MANAGEMENT SYSTEMS, INC !9 WINTERGREEN CIRCLE !EAST STROUDSBU !PA!18301!26736!027!48!FORT HOOD !BELL !TEXAS !+000001854850!N!N!000000000000!Q999!OTHER MEDICAL SERVICES !S1 !SERVICES !000 !* !621111!E

Who is the contractor on this award?

The obligated recipient is TMI MANAGEMENT SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2004-01-26. End: 2008-11-30.

What was the specific rationale for excluding certain sources in the 'full and open competition after exclusion of sources' award?

The rationale for excluding specific sources under a 'full and open competition after exclusion of sources' award is typically documented in the contract file. Common reasons include pre-existing contract vehicles, specific technical requirements that only a limited number of vendors could meet, or urgent and compelling needs where a full solicitation process would cause unacceptable delays. Without access to the detailed justification within the contract's acquisition plan or solicitation documents, it's impossible to definitively state why sources were excluded. This exclusion, however, inherently limits the competitive landscape and could potentially impact the final price achieved for the government.

How does the per-diem cost of medical professionals under this contract compare to market rates for similar temporary staffing?

To accurately compare the per-diem cost, we would need to know the number and types of medical professionals TMI Management Systems, Inc. was contracted to provide, and the specific periods they served. The total contract value of approximately $19.5 million over roughly 1770 days averages to about $10,973 per day. If this daily rate supported multiple professionals or high-demand specialists, it might be within market norms. However, if it supported only a few individuals, it could be significantly higher than average market rates for temporary medical staffing, which can range from a few hundred to over a thousand dollars per day per professional depending on specialty and location. A detailed breakdown of services rendered is essential for a valid comparison.

What is TMI Management Systems, Inc.'s track record with similar federal contracts, particularly in terms of performance and cost control?

TMI Management Systems, Inc. has a history of receiving federal contracts, including those related to staffing and support services. A comprehensive review of their past performance would involve examining contract performance reports (CPARs), any past disputes or claims, and the overall history of successful delivery against contract requirements. Analyzing their previous contracts for similar medical staffing services would reveal patterns in their ability to meet deadlines, quality standards, and budget constraints. Information on whether they consistently delivered value and managed costs effectively on prior engagements is crucial for assessing the risk associated with this current contract.

What was the historical spending pattern for similar medical staffing services at William Beaumont Army Medical Center or the Department of the Army?

Analyzing historical spending for similar medical staffing services at William Beaumont Army Medical Center and across the Department of the Army is vital for context. This contract, valued at $19.5 million, represents a significant investment. Understanding whether this level of spending is consistent with previous years, or if it represents an increase, can indicate trends in healthcare staffing needs or procurement strategies. Comparing this contract's value to prior awards for temporary medical staffing can help identify potential cost escalations or shifts in service provision. Without this historical data, it's difficult to determine if this contract represents a typical expenditure or an anomaly.

What are the potential risks associated with relying heavily on temporary medical staffing for extended periods?

Relying heavily on temporary medical staffing for extended periods carries several risks. These include potential inconsistencies in care quality and team cohesion due to high staff turnover, increased administrative overhead for managing multiple temporary contracts and personnel, and potentially higher overall costs compared to permanent hires when factoring in agency fees and per-diem rates over time. There's also a risk of institutional knowledge loss and a potential impact on morale among permanent staff. Furthermore, long-term reliance might signal underlying issues with recruitment or retention of permanent medical personnel within the agency, which could have broader strategic implications for healthcare readiness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 WINTERGREEN CIR, EAST STROUDSBURG, PA, 18301

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F0007N

IDV Type: FSS

Timeline