DoD awards $6.3M contract for medical personnel services, with a 4-bid competition

Contract Overview

Contract Amount: $6,267,751 ($6.3M)

Contractor: Giamed Alliance JV LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-01

End Date: 2026-09-30

Contract Duration: 1,187 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PERSONAL SERVICES OF CMA, NP AND PA

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79918

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to GIAMED ALLIANCE JV LLC for work described as: PERSONAL SERVICES OF CMA, NP AND PA Key points: 1. Contract value appears reasonable given the scope of medical personnel services. 2. Competition level suggests a healthy market for these specialized services. 3. Risk indicators are low due to firm fixed-price structure and established contractor. 4. Performance context involves critical medical support for military personnel. 5. Sector positioning is within the healthcare services segment of federal spending.

Value Assessment

Rating: good

The contract value of approximately $6.3 million for medical personnel services over a 3-year period appears to be within a reasonable range for this type of support. Benchmarking against similar contracts for Certified Medical Assistants (CMAs), Nurse Practitioners (NPs), and Physician Assistants (PAs) would provide a more precise value-for-money assessment. However, the firm fixed-price contract type generally offers good value by shifting performance risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. With four bidders participating, the competition level suggests a reasonably competitive market for these specialized medical services. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process with four offers helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the best value proposals.

Public Impact

Beneficiaries include military personnel requiring medical services. Services delivered encompass general medical and surgical care. Geographic impact is primarily within Texas, where the services are rendered. Workforce implications include the provision of skilled medical professionals to support military healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks.
Multiple bidders indicate a competitive market, potentially leading to better pricing.
Contract awarded to a joint venture suggests potential for small business participation.
The contract is for essential medical services, indicating a clear and ongoing need.

Sector Analysis

The federal healthcare services sector is a significant area of government spending, encompassing a wide range of medical support, research, and facility operations. This contract for medical personnel services falls within the General Medical and Surgical Hospitals sub-sector. Comparable spending benchmarks in this area are often driven by the demand for specialized clinical staff, particularly in support of military readiness and veteran care.

Small Business Impact

While the contract is not specifically set aside for small businesses, the award to GIAMED ALLIANCE JV LLC, a joint venture, suggests a potential avenue for small business participation through subcontracting or as a partner in the joint venture. Further analysis would be needed to determine the extent of small business involvement and its impact on the broader small business ecosystem within the federal healthcare contracting space.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and the program office responsible for medical services. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Military Medical Personnel Contracts
General Medical and Surgical Hospitals
Department of Defense Healthcare Services
Physician Assistant Services
Nurse Practitioner Services

Risk Flags

Potential for personnel shortages impacting service delivery.
Ensuring compliance with all healthcare regulations and credentialing standards.
Monitoring contractor performance to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to GIAMED ALLIANCE JV LLC. PERSONAL SERVICES OF CMA, NP AND PA

Who is the contractor on this award?

The obligated recipient is GIAMED ALLIANCE JV 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 $6.3 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-09-30.

What is the track record of GIAMED ALLIANCE JV LLC in performing similar federal contracts?

Information regarding the specific track record of GIAMED ALLIANCE JV LLC in performing federal contracts, particularly those involving medical personnel services, would require a detailed review of their past performance evaluations and contract history. As a joint venture, its performance may be a composite of its member companies. Federal procurement data systems often contain past performance information, which is crucial for assessing a contractor's reliability and capability. Without direct access to this specific data, it's difficult to definitively assess their track record. However, the award of this contract by the Department of the Army suggests they met the necessary pre-award qualifications and demonstrated capability.

How does the awarded price compare to market rates for similar medical personnel services?

A precise comparison of the awarded price to market rates for Certified Medical Assistants (CMAs), Nurse Practitioners (NPs), and Physician Assistants (PAs) requires access to detailed labor market data and potentially other federal contract awards for comparable services. The contract value of approximately $6.3 million over 1187 days (roughly 3.25 years) averages to about $1.94 million per year. This figure needs to be broken down by the number and type of personnel provided to accurately benchmark against market salaries and overhead costs. Factors such as geographic location (Texas), required certifications, and the specific duties outlined in the Performance Work Statement (PWS) significantly influence market rates. A comprehensive analysis would involve comparing the proposed labor mix and rates against industry salary surveys and other government contracts.

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

The primary risks associated with this contract include potential shortfalls in the quality or availability of medical personnel, leading to disruptions in healthcare services for military personnel. Another risk could be contractor non-compliance with healthcare regulations or credentialing requirements. However, these risks are mitigated through several mechanisms. The firm fixed-price contract structure incentivizes the contractor to manage costs and deliver services efficiently. The requirement for full and open competition with four bidders suggests a pool of capable providers, reducing the risk of selecting an underqualified vendor. Furthermore, the Department of the Army's oversight, including performance monitoring and potential penalties for non-performance, serves as a key mitigation strategy. Contractor credentialing and background checks are standard procedures to ensure personnel meet required standards.

How effective is the competition level in ensuring value for taxpayers?

The competition level of four bidders for this contract is generally considered effective in ensuring value for taxpayers. A moderate number of bids, such as four, typically indicates sufficient market interest without the administrative burden of managing an excessive number of proposals. This level of competition fosters a price-sensitive environment where contractors are motivated to offer competitive pricing to win the award. It allows the government to compare different technical approaches and pricing structures, leading to the selection of the best value proposal. While more bidders could potentially drive prices lower, four offers strike a reasonable balance between robust competition and manageable procurement processes, ultimately benefiting taxpayer investment.

What is the historical spending pattern for similar medical personnel services by the Department of the Army?

Analyzing historical spending patterns for similar medical personnel services by the Department of the Army is crucial for context. While specific historical data for this exact contract type and value isn't provided, the Army consistently invests significant funds in healthcare services to support its personnel and their families. Spending in this area is influenced by factors such as troop deployment levels, base closures or expansions, and evolving healthcare needs. Past contracts for medical staffing, physician services, and nursing support would provide a baseline for evaluating the current $6.3 million award. Trends might show an increase in demand for specialized roles like NPs and PAs, or shifts towards fixed-price contracts to control costs. Understanding these patterns helps assess whether current spending is aligned with historical norms or represents a significant deviation.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6550 N FEDERAL HWY STE 210, FORT LAUDERDALE, FL, 33308

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,757,165

Exercised Options: $6,267,751

Current Obligation: $6,267,751

Actual Outlays: $730,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0031

IDV Type: IDC

Timeline