DoD awards $7.1M contract for critical care nursing services, raising value-for-money questions
Contract Overview
Contract Amount: $7,142,795 ($7.1M)
Contractor: Kako'o Services LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $6.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: CRITICAL CARE RN BURN CENTER
Place of Performance
Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $7.1 million to KAKO'O SERVICES LLC for work described as: CRITICAL CARE RN BURN CENTER Key points: 1. The contract's value-for-money is questionable given the lack of competitive bidding and limited transparency. 2. Competition dynamics are absent, as the contract was awarded on a sole-source basis. 3. Risk indicators include potential overpayment due to non-competitive award and lack of performance benchmarks. 4. Performance context is limited, with no clear metrics provided for the critical care nursing services. 5. Sector positioning is within healthcare services, specifically supporting military medical facilities. 6. The contract duration of three years suggests a need for sustained critical care support.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without competitive benchmarks. Awarding a $7.1 million contract on a sole-source basis limits the government's ability to ensure the best possible pricing. The absence of detailed performance metrics makes it challenging to evaluate the effectiveness and efficiency of the services provided. Further justification for the pricing and service delivery is needed to confirm value for taxpayer dollars.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits the opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. The lack of competition raises concerns about whether the government secured the most advantageous terms and pricing available in the market.
Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as the government did not leverage competition to negotiate favorable terms.
Public Impact
Military personnel requiring critical care nursing services at facilities supported by this contract will benefit. The services delivered are specialized nursing care, crucial for patient recovery and well-being in critical conditions. The geographic impact is focused on Texas, where the contractor is located and services are likely rendered. Workforce implications include the employment of critical care nurses by KAKO'O SERVICES LLC to fulfill this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding may lead to inflated costs.
- Limited transparency in the sole-source award process.
- Absence of clear performance metrics hinders value assessment.
- Potential for contractor lock-in due to non-competitive nature.
Positive Signals
- Addresses a critical need for specialized nursing services.
- Contract awarded to a single entity, potentially simplifying management.
- Firm fixed price contract type can provide cost certainty if scope is well-defined.
Sector Analysis
The healthcare services sector, particularly within government contracting, is substantial. This contract falls under the sub-sector of specialized medical staffing and support for federal facilities. Comparable spending benchmarks for critical care nursing services can vary widely based on location, facility type, and specific skill requirements. However, the absence of competition for this significant award warrants scrutiny against industry standards.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. The impact on the broader small business ecosystem is minimal for this particular award.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the contracting officer and relevant Department of the Army personnel. Accountability measures would be tied to the terms of the firm fixed-price purchase order. Transparency is limited due to the sole-source award, and there is no explicit mention of Inspector General jurisdiction for this specific contract.
Related Government Programs
- Military Medical Services
- Nursing Staffing Contracts
- Critical Care Services
- Department of Defense Healthcare
Risk Flags
- Sole-source award lacks competition.
- Limited transparency in procurement.
- Potential for non-competitive pricing.
- Unclear performance metrics.
Tags
healthcare, department-of-defense, department-of-the-army, purchase-order, sole-source, firm-fixed-price, critical-care-nursing, medical-services, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.1 million to KAKO'O SERVICES LLC. CRITICAL CARE RN BURN CENTER
Who is the contractor on this award?
The obligated recipient is KAKO'O SERVICES 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 $7.1 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the track record of KAKO'O SERVICES LLC in providing critical care nursing services to the federal government?
Information regarding KAKO'O SERVICES LLC's specific track record in providing critical care nursing services to the federal government is not detailed in the provided data. As this is a sole-source award, it suggests a pre-existing relationship or a specific capability that the agency identified. A deeper dive into the contractor's past performance, especially on similar government contracts, would be necessary to fully assess their reliability and expertise in this specialized field. Without this information, it is difficult to gauge their experience and success rate in delivering critical care nursing.
How does the $7.1 million contract value compare to similar critical care nursing contracts awarded by the DoD or other federal agencies?
Comparing the $7.1 million contract value for critical care nursing services is challenging without more specific details on the scope of work, duration, and location. However, given that this is a sole-source award, it is difficult to establish a direct market-based comparison. Typically, competitive solicitations allow for benchmarking against multiple bids. For a three-year contract (1095 days), this averages to approximately $6,523 per day. The value for money is questionable without understanding the number of nurses, hours, and specific services covered, especially when compared to potentially more competitively priced contracts.
What are the primary risks associated with awarding a sole-source contract for critical care nursing services?
The primary risks associated with awarding a sole-source contract for critical care nursing services include potential overpayment due to the lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Additionally, if the contractor fails to perform adequately, the government has limited options for recourse or replacement without initiating a new, potentially lengthy, sole-source justification process. This can also create a dependency on a single provider.
What specific performance metrics or Key Performance Indicators (KPIs) are associated with this contract to ensure effective service delivery?
The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. For critical care nursing services, effective KPIs would typically include patient outcomes, nurse-to-patient ratios, response times to critical events, adherence to clinical protocols, patient satisfaction scores, and staff retention rates. Without clearly defined and measurable KPIs, it is difficult for the Department of Defense to objectively assess the quality and effectiveness of the services provided by KAKO'O SERVICES LLC and ensure accountability.
What is the historical spending pattern for critical care nursing services within the Department of the Army or similar military medical facilities?
The provided data does not offer historical spending patterns for critical care nursing services within the Department of the Army or similar military medical facilities. Understanding historical spending would provide context for the $7.1 million award, indicating whether this represents an increase, decrease, or stable level of investment. Analyzing past contracts, including their values, durations, and competitive nature, would help determine if this sole-source award is an anomaly or part of a broader trend in how these essential services are procured.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W81K0023Q0170
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 700 BISHOP ST STE 1904, HONOLULU, HI, 96813
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: $7,142,795
Exercised Options: $7,142,795
Current Obligation: $7,142,795
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-10
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