DoD awards $9.6M contract for certified registered nurse anesthetist services to Rieles Group LLC

Contract Overview

Contract Amount: $9,614,219 ($9.6M)

Contractor: Rieles Group LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CERTIFIED REGISTERED NURSE ANESTHETISTS

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $9.6 million to RIELES GROUP LLC for work described as: CERTIFIED REGISTERED NURSE ANESTHETISTS Key points: 1. Contract value of $9.6 million for CRNA services over two years. 2. Awarded to Rieles Group LLC, a single entity. 3. Competition was full and open after exclusion of sources, indicating some initial restrictions. 4. Contract type is Firm Fixed Price, providing cost certainty. 5. Performance period spans from October 2024 to September 2026. 6. The contract is not set aside for small businesses. 7. The North American Industry Classification System (NAICS) code is 622110 (General Medical and Surgical Hospitals).

Value Assessment

Rating: fair

The contract value of $9.6 million for CRNA services over two years appears reasonable given the specialized nature of the services. However, without specific benchmarks for CRNA services in Texas or comparable military healthcare facilities, a precise value-for-money assessment is challenging. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics or comparison data makes it difficult to definitively assess if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources were initially excluded, potentially limiting the pool of bidders. The data indicates 10 bids were received, which is a moderate level of competition. The exclusion of sources warrants further investigation to understand its impact on the final price and the range of available qualified contractors.

Taxpayer Impact: The moderate number of bids suggests that taxpayers likely received a competitive price, but the exclusion of certain sources may have prevented even greater price discovery and potentially lower costs.

Public Impact

Provides essential certified registered nurse anesthetist services, crucial for surgical procedures and patient care within the Department of Defense. Benefits military personnel and their dependents by ensuring access to qualified anesthesia providers. Services are likely to be delivered within Texas, given the contractor's location. Supports the healthcare workforce by engaging skilled CRNAs. Enhances the operational readiness of military medical facilities by securing necessary medical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics makes value assessment difficult.
No small business set-aside, potentially limiting opportunities for smaller specialized firms.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
10 bids received indicates a reasonable level of interest and competition.
Contract duration of two years allows for stable service provision.

Sector Analysis

The healthcare sector, specifically within the military medical services, relies heavily on specialized personnel like Certified Registered Nurse Anesthetists (CRNAs). This contract fits within the broader category of healthcare services procurement for the Department of Defense. Comparable spending benchmarks for CRNA services can vary significantly based on geographic location, facility type (military vs. civilian), and the specific scope of services required. The market for these specialized medical professionals is generally competitive, but demand can fluctuate.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (ss: false, sb: false). This means that larger, established firms or those capable of competing under full and open conditions were the primary focus. While this contract doesn't directly benefit small businesses through a set-aside, it's possible that Rieles Group LLC might engage small businesses as subcontractors, though this is not explicitly stated. The absence of a small business focus means opportunities for smaller, specialized CRNA providers were likely limited in this specific procurement.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Specific oversight mechanisms would likely involve contract officers, quality assurance personnel, and potentially Inspector General investigations if performance issues or fraud are suspected.

Related Government Programs

Department of Defense Medical Services Contracts
Certified Registered Nurse Anesthetist Services Procurement
Military Healthcare Personnel Contracts
General Medical and Surgical Hospital Services

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics for value assessment.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.6 million to RIELES GROUP LLC. CERTIFIED REGISTERED NURSE ANESTHETISTS

Who is the contractor on this award?

The obligated recipient is RIELES GROUP 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 $9.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of Rieles Group LLC in performing similar federal contracts, particularly for medical services?

Information regarding Rieles Group LLC's specific track record with federal contracts, especially for medical services like CRNA provision, is not detailed in the provided data. A comprehensive analysis would require examining past performance evaluations, contract history, and any reported issues or successes on previous government awards. Without this historical data, it's difficult to assess their reliability and experience in fulfilling the requirements of this $9.6 million contract. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed answer on their track record.

How does the awarded price compare to market rates for CRNA services in Texas?

The provided data does not include specific market rate comparisons for CRNA services in Texas. The contract value is $9.6 million over two years, which translates to an average annual cost of $4.8 million. To benchmark this effectively, one would need to research average salaries, hourly rates, or contract costs for CRNAs in similar healthcare settings within Texas, considering factors like experience levels, facility type (e.g., hospital, clinic), and geographic sub-regions. The 'fair' rating in the value assessment reflects this lack of specific market data for a precise comparison.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' clause?

The 'Full and Open Competition After Exclusion of Sources' clause introduces potential risks by initially narrowing the field of eligible bidders. While the intent is to ensure competition among qualified entities, the exclusion of certain sources could inadvertently limit the number of proposals received, potentially leading to less competitive pricing than if all capable sources were allowed to bid. It also raises questions about the justification for the exclusions. If the excluded sources were highly capable or offered unique advantages, the government might not have secured the best possible value. Transparency regarding the reasons for exclusion is crucial for assessing this risk.

What is the expected impact of this contract on the availability of CRNA services for military beneficiaries?

This contract is expected to positively impact the availability of CRNA services for military beneficiaries by ensuring a dedicated provider, Rieles Group LLC, fulfills critical anesthesia needs. By securing these services through a formal contract, the Department of Defense aims to guarantee consistent access to qualified personnel for surgical procedures and other medical interventions. This contributes to the overall healthcare capacity within military treatment facilities, supporting the readiness and well-being of service members, their families, and other eligible beneficiaries who rely on these medical services.

How does the $9.6 million contract value compare to historical spending on CRNA services by the Department of the Army?

The provided data does not contain historical spending figures for CRNA services by the Department of the Army, making a direct comparison difficult. To assess this, one would need to analyze past contract awards for similar services over previous fiscal years. Understanding historical spending patterns would reveal whether this $9.6 million award represents an increase, decrease, or stable level of investment in CRNA services. Factors such as changes in healthcare needs, provider availability, and inflation would influence historical trends and the interpretation of this contract's value in a long-term context.

What are the performance expectations and quality assurance measures for Rieles Group LLC under this contract?

While the contract is Firm Fixed Price, implying a defined scope of work and deliverables, the specific performance expectations and quality assurance measures are not detailed in the summary data. Typically, such contracts would include performance standards, key performance indicators (KPIs), and procedures for monitoring service quality. The government's quality assurance personnel would be responsible for overseeing Rieles Group LLC's adherence to these standards. Without explicit details on these measures, it's challenging to fully assess the robustness of the quality control framework for this contract.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0024R0003

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3340 PEACHTREE RD NE, ATLANTA, GA, 30326

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,506,089

Exercised Options: $10,651,889

Current Obligation: $9,614,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline