DoD Awards $8.7M Contract for Hospital Services to Ajanta Consulting LLC, Facing Limited Competition

Contract Overview

Contract Amount: $8,735,509 ($8.7M)

Contractor: Ajanta Consulting LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY23 PA/NP REG HRS SRP 5 FTE

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $8.7 million to AJANTA CONSULTING LLC for work described as: FY23 PA/NP REG HRS SRP 5 FTE Key points: 1. Contract value of $8.7M over 4 years. 2. Limited competition raises concerns about price discovery. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector: Healthcare services for military personnel.

Value Assessment

Rating: questionable

The contract is a Purchase Order with a Firm Fixed Price, but the lack of competitive bidding makes it difficult to assess if the $8.7M price is reasonable compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for essential hospital services.

Public Impact

Ensures continued medical services for military personnel. Potential for higher costs due to limited competition. Impact on small businesses is unclear as Ajanta Consulting LLC is not identified as an SMB.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Healthcare sector, specifically for general medical and surgical hospital services. Spending benchmarks for similar services are difficult to ascertain without competitive data.

Small Business Impact

The data does not indicate if Ajanta Consulting LLC is a small business. The award mechanism and lack of competition make it difficult to assess the impact on small businesses in this sector.

Oversight & Accountability

The award is a Purchase Order, which typically has less stringent oversight than larger contract vehicles. Further review of the justification for limited competition is recommended.

Related Government Programs

Risk Flags

Tags

general-medical-and-surgical-hospitals, department-of-defense, tx, purchase-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.7 million to AJANTA CONSULTING LLC. FY23 PA/NP REG HRS SRP 5 FTE

Who is the contractor on this award?

The obligated recipient is AJANTA CONSULTING 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 $8.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the justification for limiting competition on this essential healthcare service contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like urgent need, unique capabilities, or specific government requirements that only one source can meet. Without this justification, it's impossible to assess if the limited competition was appropriate or if it was a missed opportunity for better pricing.

How does the lack of competition impact the risk of overpaying for these medical services?

The lack of competition significantly increases the risk of overpaying. When multiple vendors compete, they are incentivized to offer competitive pricing to win the contract. Without this pressure, the awarded vendor may not have the same motivation to provide the lowest possible price, potentially leading to inflated costs for the government and taxpayers.

What is the potential effectiveness of Ajanta Consulting LLC in providing these hospital services?

The effectiveness of Ajanta Consulting LLC cannot be determined from the provided data alone. While they were awarded the contract, effectiveness depends on their past performance, quality of care, adherence to standards, and ability to meet the specific needs of the Department of the Army. Further due diligence on the contractor's track record would be necessary to assess their effectiveness.

Industry Classification

NAICS: Health Care and Social AssistanceGeneral Medical and Surgical HospitalsGeneral Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICESGENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0022Q0158

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5253 PRUE RD STE 230, SAN ANTONIO, TX, 78240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,522,381

Exercised Options: $9,208,170

Current Obligation: $8,735,509

Actual Outlays: $1,139,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2022-10-01

Current End Date: 2026-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2025-12-11

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