DoD awards $178M for medical staffing, raising concerns about long-term value and competition

Contract Overview

Contract Amount: $15,635,847 ($15.6M)

Contractor: Medical Doctor Associates LLC

Awarding Agency: Department of Defense

Start Date: 2004-11-10

End Date: 2010-03-31

Contract Duration: 1,967 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::21 2020::TAS200506!501398!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !V797P4318A !C!N! !N!W81K0005F0154! !20041110!20041201!178037917!178037917!178037917!N!MEDICAL DOCTOR ASSOCIATES INC !145 TECHNOLOGY PKWY !NORCROSS !GA!30092!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000001612800!N!N!000000000000!Q201!GENERAL HEALTH CARE SERVICES !S1 !SERVICES !000 !* !621399!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !N!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: NORCROSS, GWINNETT County, GEORGIA, 30092

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to MEDICAL DOCTOR ASSOCIATES LLC for work described as: TAS::21 2020::TAS200506!501398!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !V797P4318A !C!N! !N!W81K0005F0154! !20041110!20041201!178037917!178037917!178037917!N!MEDICAL DOCTOR ASSOCIATES INC !145 TECHNOLOGY PKWY !NORCROSS !GA!30092!55776!135!13!NORCROSS… Key points: 1. The contract for medical staffing services was awarded to Medical Doctor Associates Inc. 2. The total value of the contract is $178,037,917 over its duration. 3. The contract was awarded under full and open competition. 4. The sector is primarily healthcare services, specifically temporary help services. 5. There are concerns regarding the overall value and effectiveness of this long-term award.

Value Assessment

Rating: questionable

The contract value of $178M for medical staffing over nearly 6 years appears high, especially considering the duration and the nature of temporary staffing services. Benchmarking against similar contracts for physician staffing would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and significant value may warrant further scrutiny to ensure robust price discovery and prevent potential price creep over time.

Taxpayer Impact: Taxpayer funds are being utilized for medical staffing. While competition was present, the substantial award amount necessitates oversight to ensure efficient use of resources.

Public Impact

Ensures continued availability of medical professionals at military treatment facilities. Supports the operational readiness of the Department of Defense medical services. Potential for long-term cost implications for healthcare services within the DoD. Highlights the reliance on external contractors for specialized medical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration for temporary services
High total contract value
Potential for price escalation over time

Positive Signals

Awarded under full and open competition
Ensures critical medical staffing needs are met

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on temporary medical staffing services. The benchmark for such services can vary widely based on specialty, location, and duration, but large, long-term contracts like this warrant careful review for cost-effectiveness.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The long duration of this contract suggests a need for ongoing oversight to monitor performance, ensure adherence to contract terms, and manage costs effectively. Regular reviews of contractor performance and pricing are crucial.

Related Government Programs

Temporary Help Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpayment due to long contract duration
Risk of contractor complacency impacting service quality
Limited flexibility to adapt to changing healthcare needs or technologies
Dependency on a single contractor for critical staffing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to MEDICAL DOCTOR ASSOCIATES LLC. TAS::21 2020::TAS200506!501398!2100!W81K00!WILLIAM BEAUMONT ARMY MEDICAL !V797P4318A !C!N! !N!W81K0005F0154! !20041110!20041201!178037917!178037917!178037917!N!MEDICAL DOCTOR ASSOCIATES INC !145 TECHNOLOGY PKWY !NORCROSS !GA!30092!55776!135!13!NORCROSS !GWINNETT !GEORGIA !+000001612800!N!N!000000000000!Q201!GENERAL HEALTH CARE SERVICES !S1 !SERVICES !000 !* !621399!E!

Who is the contractor on this award?

The obligated recipient is MEDICAL DOCTOR ASSOCIATES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2004-11-10. End: 2010-03-31.

What was the specific justification for awarding such a long-term contract for temporary medical staffing services?

The justification likely stems from a need for consistent, reliable access to specialized medical personnel to maintain operational readiness within military healthcare facilities. Long-term contracts can offer stability and potentially better rates than numerous short-term renewals, but require careful management to avoid complacency and ensure continued cost-effectiveness.

How does the per-unit cost of medical professionals under this contract compare to market rates for similar services?

Without specific details on the types of medical professionals, their hours, and specific rates, a direct per-unit cost comparison is difficult. However, the total value of $178M over nearly six years suggests a significant investment. Benchmarking against civilian healthcare staffing contracts for comparable roles and locations would be essential to assess if the government is receiving competitive pricing.

What mechanisms are in place to ensure the quality and effectiveness of the medical services provided by the contractor over the contract's lifespan?

The contract likely includes performance standards and quality assurance surveillance plans (QASPs) managed by the contracting officer's representative (COR). Regular performance reviews, patient feedback mechanisms, and adherence to military healthcare protocols would be critical to ensuring the quality and effectiveness of the services rendered throughout the contract's duration.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Cross Country Healthcare, Inc. (UEI: 082423377)

Address: 145 TECHNOLOGY PKWY NW, NORCROSS, GA, 30092

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: V797P4318A

IDV Type: FSS

Timeline