DoD's $48M pharmacist contract to Global Dynamics LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $48,003,730 ($48.0M)

Contractor: Global Dynamics LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2024-03-31

Contract Duration: 1,947 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::CT::IGF FY19 FOLLOW-ON, 42 FTE PHARMACISTS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to GLOBAL DYNAMICS LLC for work described as: IGF::CT::IGF FY19 FOLLOW-ON, 42 FTE PHARMACISTS Key points: 1. Value for money appears reasonable given the specialized nature of pharmacist services. 2. Competition dynamics were limited, raising questions about optimal price discovery. 3. Risk indicators are moderate, with performance context suggesting a stable, ongoing need. 4. Sector positioning is within healthcare support services for military personnel. 5. The contract's duration and fixed-price nature suggest predictable cost management.

Value Assessment

Rating: good

The contract's total value of approximately $48 million over nearly six years suggests a per-year cost of roughly $8 million. Benchmarking against similar contracts for specialized medical personnel is challenging due to unique military requirements. However, the firm-fixed-price structure indicates that the government has locked in a price, which can be advantageous if costs rise. The number of Full-Time Equivalents (FTEs) at 42 suggests a substantial workforce, and the price per FTE is within a plausible range for highly skilled medical professionals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. The presence of 10 bidders suggests a degree of market interest, but the exclusion of sources limits the breadth of competition. This approach can sometimes be justified for specific capabilities or to ensure participation from certain types of contractors, but it may also lead to less aggressive pricing than a truly open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price than could have been achieved with broader participation. Taxpayers might be paying a premium due to the restricted bidding pool.

Public Impact

Military personnel and their families benefit from consistent access to pharmacy services. The contract ensures the delivery of essential pharmacy support at Department of Defense facilities. The primary geographic impact is within Texas, where the contractor is based. The contract supports approximately 42 FTE pharmacists, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Exclusion of sources requires clear justification to ensure fairness and value.
Contract duration of nearly six years may not fully adapt to changing market conditions.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Global Dynamics LLC suggests a proven capability in providing these services.
The contract addresses a critical need for healthcare support within the DoD.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically supporting medical services. The market for healthcare staffing, particularly for specialized roles like pharmacists within government contracts, is significant. Comparable spending benchmarks would typically involve other federal agencies or large healthcare systems procuring similar professional services. The size of this contract is moderate within the broader federal healthcare procurement landscape.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this contract. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed in this summary.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price structure and performance expectations. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Medical Personnel Contracts
Federal Pharmacy Services
Healthcare Staffing Contracts
Military Medical Support

Risk Flags

Limited competition may impact price efficiency.
Justification for source exclusion needs review.
Long contract duration may reduce flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to GLOBAL DYNAMICS LLC. IGF::CT::IGF FY19 FOLLOW-ON, 42 FTE PHARMACISTS

Who is the contractor on this award?

The obligated recipient is GLOBAL DYNAMICS 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 $48.0 million.

What is the period of performance?

Start: 2018-12-01. End: 2024-03-31.

What is the track record of Global Dynamics LLC in fulfilling federal contracts, particularly within the healthcare sector?

Global Dynamics LLC has a history of performing federal contracts, including those within the healthcare domain. While specific details on past performance for this exact type of service (pharmacist FTEs) require deeper investigation into contract databases like FPDS-NG, their ability to win this competitive award suggests a demonstrated capability. Analyzing past performance reviews, any contract modifications, and on-time delivery rates for previous DoD or other federal healthcare contracts would provide a more comprehensive understanding of their reliability and expertise in meeting government requirements.

How does the per-FTE cost of pharmacists under this contract compare to market rates for similar professional services?

Calculating a precise per-FTE cost requires dividing the total contract value ($48,003,729.86) by the number of FTEs (42) and the contract duration in years (approximately 5.33 years). This yields roughly $226,000 per FTE per year. This figure needs to be benchmarked against civilian market rates for pharmacists, considering factors like location (Texas), experience level, and benefits packages. Federal contracts often include overhead and administrative costs that can inflate the price compared to direct commercial hiring. A detailed comparison would involve analyzing salary surveys and other federal healthcare contracts for similar roles.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential underperformance by the contractor, leading to gaps in pharmacy services, and the possibility of cost overruns if the fixed-price structure doesn't adequately account for unforeseen market changes (though less likely with FFP). Mitigation strategies likely involve robust performance monitoring by the Army contracting officer's representative (COR), clear performance standards outlined in the contract, and regular communication channels. The limited competition also presents a risk of suboptimal pricing, which is mitigated by the initial competitive bidding process, albeit restricted.

What is the historical spending pattern for pharmacist services within the Department of the Army, and how does this contract fit?

Historical spending on pharmacist services by the Department of the Army likely fluctuates based on military readiness needs, base closures/expansions, and healthcare privatization initiatives. This $48 million contract over nearly six years represents a significant, ongoing investment in ensuring adequate pharmacy staffing. It suggests a sustained requirement for these services, potentially at specific installations within Texas. Analyzing prior contracts for similar services would reveal trends in contract values, durations, and awarded contractors, indicating whether this award is consistent with past procurement strategies or represents a shift.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type for this contract?

This award type signifies that the contract was initially intended for full and open competition, but specific sources were later excluded from consideration. The reasons for exclusion are critical and could range from national security concerns to specific technical requirements that only certain companies could meet. While 10 bidders participated, the exclusion limits the potential for the most competitive pricing. This approach requires strong justification from the agency to ensure it serves the government's best interest and doesn't unduly restrict competition, potentially leading to higher costs for taxpayers.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5950 SYMPHONY WOODS RD STE 160, COLUMBIA, MD, 21044

Business Categories: Category Business, Community Development Corporation, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Nonprofit Organization, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $57,350,266

Exercised Options: $57,350,266

Current Obligation: $48,003,730

Actual Outlays: $1,962,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0005

IDV Type: IDC

Timeline