DoD awards $6.5M contract for 4 ER Physician FTEs to POHAKU PACIFIC LLC in Louisiana
Contract Overview
Contract Amount: $6,548,694 ($6.5M)
Contractor: Pohaku Pacific LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2026-10-31
Contract Duration: 1,856 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ER PHYSICIAN 4 FTES
Place of Performance
Location: FORT POLK, VERNON County, LOUISIANA, 71459
Plain-Language Summary
Department of Defense obligated $6.5 million to POHAKU PACIFIC LLC for work described as: ER PHYSICIAN 4 FTES Key points: 1. Contract awarded for essential medical services to support military personnel. 2. Sole source award raises questions about price discovery and competition. 3. Long-term contract (2021-2026) with a significant dollar value. 4. Focus on healthcare services within the Department of the Army.
Value Assessment
Rating: questionable
The contract value of $6.5M for 4 FTEs over 5 years averages $325,000 per physician per year. Without specific benchmarks for ER physician salaries in this region and for this type of support, it's difficult to definitively assess value. However, this figure appears high compared to typical physician compensation.
Cost Per Unit: $325,000 per FTE per year (estimated)
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this award potentially leads to higher taxpayer costs due to the absence of competitive bidding.
Public Impact
Ensures critical emergency medical services are available for military personnel and their families. Supports the operational readiness of the Department of the Army by providing essential healthcare staff. Potential for increased costs to taxpayers due to a lack of competitive bidding. Highlights reliance on specific contractors for specialized medical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High per-FTE cost
- Long contract duration
Positive Signals
- Ensures critical medical staffing
- Supports military readiness
Sector Analysis
This contract falls within the healthcare sector, specifically providing general medical and surgical hospital services. The benchmark for physician staffing contracts can vary widely based on location, specialty, and contract type, but significant sole-source awards warrant scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to POHAKU PACIFIC LLC, and further analysis would be needed to determine its size status.
Oversight & Accountability
The sole-source nature of this award suggests that oversight may have focused on justification for the lack of competition rather than on achieving the best possible price through market forces. Robust oversight is needed to ensure the necessity and fair pricing of such sole-source awards.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potentially high per-unit cost for physician services.
- Long-term contract duration may not reflect evolving needs or market conditions.
- Lack of transparency regarding the justification for sole-source procurement.
- No indication of small business participation.
Tags
general-medical-and-surgical-hospitals, department-of-defense, la, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to POHAKU PACIFIC LLC. ER PHYSICIAN 4 FTES
Who is the contractor on this award?
The obligated recipient is POHAKU PACIFIC 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 $6.5 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-10-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government requirements that only one contractor can meet. A thorough review of the contracting officer's justification is necessary to understand the rationale.
How does the per-unit cost compare to similar contracts for ER physicians in comparable geographic locations?
Benchmarking the per-unit cost against similar contracts is crucial for assessing value. Without access to a database of comparable contracts for ER physicians in Louisiana or similar military installations, a precise comparison is difficult. However, the estimated annual cost per FTE of $325,000 appears high and warrants further investigation into market rates.
What measures are in place to ensure the quality and effectiveness of the physician services provided under this contract?
Quality assurance measures for physician services typically include performance monitoring, credential verification, and patient feedback mechanisms. The contracting agency should have a quality assurance surveillance plan (QASP) in place to track performance metrics and ensure the contractor meets the required standards of care and operational effectiveness.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W81K0021R3013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3375 KOAPAKA ST STE F 200, HONOLULU, HI, 96819
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,857,741
Exercised Options: $7,857,741
Current Obligation: $6,548,694
Actual Outlays: $591,189
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-10-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-11
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