DoD awards $10.5M contract for patient transport, highlighting need for specialized medical logistics
Contract Overview
Contract Amount: $10,548,856 ($10.5M)
Contractor: United Medevac Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-12-15
End Date: 2026-12-14
Contract Duration: 1,095 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PATIENT TRANSPORT SERVICES IN SUPPORT OF BAMC, JBSA FT. SAM HOUSTON, TX
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.5 million to UNITED MEDEVAC SOLUTIONS, INC. for work described as: PATIENT TRANSPORT SERVICES IN SUPPORT OF BAMC, JBSA FT. SAM HOUSTON, TX Key points: 1. Contract value of $10.5M over three years suggests a significant demand for patient transport services at a major military medical center. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a deliberate process to ensure broad market participation while potentially addressing specific source requirements. 3. The definitive contract type suggests a clear scope of work and established terms, reducing ambiguity for both parties. 4. The fixed-price nature of the contract provides cost certainty for the government, shifting performance risk to the contractor. 5. The contract supports critical medical operations at Brooke Army Medical Center, a key facility for military healthcare. 6. The award to United Medevac Solutions, Inc. indicates their capability to meet the stringent requirements of military medical support.
Value Assessment
Rating: good
The contract value of $10.5M over three years for patient transport services at a major military medical center appears reasonable given the specialized nature of the services required. Benchmarking against similar contracts for ambulance and medical evacuation services within the Department of Defense would provide a more precise assessment of value. The firm fixed-price structure helps control costs for the government. However, without specific details on the scope of services (e.g., number of transports, types of patients, response times), a definitive value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or prior arrangements. The number of bidders (7) indicates a moderate level of competition. This approach aims to balance broad market access with the need to potentially engage specific capabilities or address unique operational requirements, which can influence price discovery.
Taxpayer Impact: While a moderate number of bidders participated, the exclusion of certain sources might have limited the full potential for price competition, potentially impacting taxpayer savings compared to a truly unrestricted full and open competition.
Public Impact
Beneficiaries include military personnel, their families, and potentially civilian beneficiaries receiving care at Brooke Army Medical Center. Services delivered include essential patient transportation, ensuring timely access to medical care and facilities. Geographic impact is focused on the JBSA Fort Sam Houston area in Texas, supporting a critical military installation. Workforce implications include the employment of skilled medical transport personnel by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion, which could impact price.
- Dependence on a single contractor for critical medical transport services.
- Ensuring consistent quality of care and response times across all transports.
Positive Signals
- Clear contract type (definitive) and pricing (firm fixed price) provide predictability.
- Award to a contractor with demonstrated experience in medical logistics.
- Competition, even if limited, ensures some level of market vetting.
Sector Analysis
This contract falls within the Healthcare and Ambulance Services sector, a critical component of the broader healthcare industry. The market for specialized medical transport, particularly for government and military clients, requires adherence to strict regulations, specialized equipment, and trained personnel. Spending in this area is driven by the need for reliable emergency and non-emergency medical logistics, especially in support of large institutions like military bases. Comparable spending benchmarks would typically be found within government healthcare procurement data for similar services.
Small Business Impact
The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the primary focus was on securing the necessary capabilities and competitive pricing from the market. There is no explicit information on subcontracting plans for small businesses within the provided data, which warrants further investigation to understand the potential impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would likely fall under the purview of the Department of the Army contracting and program management offices responsible for medical services at JBSA Fort Sam Houston. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Medical Logistics Services
- Ambulance Services
- Emergency Medical Services
- Healthcare Support Services
- Department of Defense Medical Contracts
Risk Flags
- Potential for limited competition due to source exclusion.
- Contract performance risk associated with a single provider.
- Need for detailed service metrics to fully assess value for money.
Tags
healthcare, medical-transportation, ambulance-services, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, texas, major-contract, medical-logistics, military-health
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to UNITED MEDEVAC SOLUTIONS, INC.. PATIENT TRANSPORT SERVICES IN SUPPORT OF BAMC, JBSA FT. SAM HOUSTON, TX
Who is the contractor on this award?
The obligated recipient is UNITED MEDEVAC SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.5 million.
What is the period of performance?
Start: 2023-12-15. End: 2026-12-14.
What is the track record of United Medevac Solutions, Inc. in performing similar patient transport contracts for the federal government?
A review of federal procurement databases indicates that United Medevac Solutions, Inc. has a history of securing contracts related to medical transportation and logistics, including services for various government agencies and military installations. Their past performance would be a key factor considered during the evaluation of this bid. Assessing the number and value of previous contracts, along with any performance reviews or past performance questionnaires (PPQs) associated with them, would provide insight into their reliability and capability to fulfill the requirements of this $10.5M contract for BAMC. Specific details on past performance metrics, such as on-time delivery, quality of service, and adherence to budget, would be crucial for a comprehensive assessment.
How does the per-transport cost under this contract compare to industry benchmarks for similar medical evacuation services?
The provided data does not include a per-unit cost or the specific volume of transports anticipated under this $10.5M contract, making a direct per-transport cost comparison impossible. To benchmark effectively, one would need to know the average number of transports, the types of transports (e.g., critical care, routine), and the average distance covered. Industry benchmarks for ambulance services can vary significantly based on location, level of care provided (e.g., basic life support vs. advanced life support), and whether the service is emergency or non-emergency. A detailed analysis would require access to the contract's service delivery details and comparison with publicly available data on average ambulance service rates or rates from similar government contracts.
What are the specific risks associated with relying on a single contractor for patient transport services at a major military medical center?
Relying on a single contractor, even with a competitive award process, introduces several risks. The primary risk is service disruption due to contractor failure, such as financial instability, labor disputes, or equipment malfunction, which could critically impact patient care continuity at BAMC. There's also a potential for reduced leverage in future negotiations if the contractor becomes indispensable. Furthermore, a lack of ongoing competition might disincentivize the contractor from proactively seeking efficiencies or innovations. Mitigation strategies often include robust performance monitoring, clear contract clauses for service continuity, and contingency planning for alternative transport options.
What is the historical spending pattern for patient transport services at BAMC, JBSA Fort Sam Houston?
Historical spending data for patient transport services specifically at BAMC, JBSA Fort Sam Houston, is not provided in the current data extract. To analyze historical spending patterns, one would need to examine contract awards for similar services over previous fiscal years. This would involve identifying previous contracts for patient transport, ambulance services, or medical evacuation at this location, noting their values, durations, and awarded contractors. Comparing these past expenditures to the current $10.5M award would reveal trends in spending, potential increases or decreases in service costs, and the stability of contractor relationships over time, offering context for the current contract's value.
How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact overall cost-effectiveness for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of broad competition with specific operational needs. While it allows more vendors to bid than a sole-source contract, the exclusion of certain sources means the government may not be accessing the entire potential market. This could limit the number of competitive bids received, potentially leading to higher prices than if all qualified sources were allowed to compete. The cost-effectiveness for taxpayers depends heavily on the justification for excluding sources and the degree of competition that remains. If the excluded sources were critical competitors, taxpayers might bear a higher cost; if exclusions were minor or based on essential qualifications, the impact could be minimal.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81K0023R0018
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 105 CEDAR BRANCH DR, GEORGETOWN, TX, 78628
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $18,331,336
Exercised Options: $10,548,856
Current Obligation: $10,548,856
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-15
Current End Date: 2026-12-14
Potential End Date: 2028-12-14 00:00:00
Last Modified: 2025-12-18
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)