DoD awards $14.8M for pharmacy services at Brooke Army Medical Center, highlighting a competitive procurement

Contract Overview

Contract Amount: $14,820,803 ($14.8M)

Contractor: Global Dynamics LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-03-31

Contract Duration: 729 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLINICAL, OUTPATIENT AND INPATIENT PHARMACIST SERVICES FOR BROOKE ARMY MEDICAL CENTER, JBSA FORT SAM HOUSTON, TEXAS.

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to GLOBAL DYNAMICS LLC for work described as: CLINICAL, OUTPATIENT AND INPATIENT PHARMACIST SERVICES FOR BROOKE ARMY MEDICAL CENTER, JBSA FORT SAM HOUSTON, TEXAS. Key points: 1. The contract value of $14.8 million over two years suggests a significant investment in essential medical support. 2. The procurement method, 'Full and Open Competition After Exclusion of Sources,' indicates a deliberate effort to ensure broad market participation. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The duration of 729 days (approximately two years) allows for sustained service delivery. 5. The contract supports critical outpatient and inpatient pharmacy operations, directly impacting patient care. 6. The award to GLOBAL DYNAMICS LLC signifies a key player in providing specialized healthcare services to military personnel.

Value Assessment

Rating: good

The contract value of $14.8 million for two years of pharmacy services at a major medical center appears reasonable, especially considering the specialized nature of military healthcare. Benchmarking against similar contracts for large-scale hospital pharmacy support would provide a more precise value assessment. The firm-fixed-price structure helps control costs, but the ultimate value depends on the efficiency and quality of services delivered by GLOBAL DYNAMICS LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, but specific sources were excluded for defined reasons. This suggests a competitive process was intended, aiming to attract multiple qualified bidders. The presence of 5 bids (implied by 'no': 5) indicates a moderate level of competition, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging high-quality service offerings from multiple providers.

Public Impact

Military personnel and their families at Brooke Army Medical Center benefit from consistent and reliable pharmacy services. The contract ensures the availability of outpatient and inpatient pharmacy services, crucial for medication management and patient safety. Services are geographically concentrated at JBSA Fort Sam Houston, Texas, supporting a major military medical hub. The contract likely supports a workforce of pharmacists and pharmacy technicians, contributing to employment in the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Reliance on a single contractor for critical pharmacy operations could pose a risk.
Ensuring consistent quality of care across all pharmacy services is paramount.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Competitive award process suggests potential for good value.
Long-term contract (2 years) allows for stable service provision.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting hospital operations. The market for healthcare services, particularly within the federal government and military, is substantial. This contract represents a portion of the broader spending on medical support services for military installations, which often involves specialized requirements and stringent quality controls. Comparable spending benchmarks would typically be found in contracts for similar pharmacy management services at large civilian hospitals or other military treatment facilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the 'Full and Open Competition' nature suggests that large businesses were likely the primary bidders. Further analysis would be needed to determine if any small businesses participated or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and Brooke Army Medical Center leadership. Performance monitoring, quality assurance checks, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Medical Services
Pharmacy Benefit Management
Hospital Operations Support
Outpatient Clinical Services
Inpatient Clinical Services

Risk Flags

Potential for performance issues impacting patient care.
Risk of cost escalation if contract terms are not strictly managed.
Dependence on contractor for critical medical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to GLOBAL DYNAMICS LLC. CLINICAL, OUTPATIENT AND INPATIENT PHARMACIST SERVICES FOR BROOKE ARMY MEDICAL CENTER, JBSA FORT SAM HOUSTON, TEXAS.

Who is the contractor on this award?

The obligated recipient is GLOBAL DYNAMICS 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 $14.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-03-31.

What is the track record of GLOBAL DYNAMICS LLC in providing similar pharmacy services to the federal government?

A thorough review of GLOBAL DYNAMICS LLC's past performance is crucial. This would involve examining previous contracts with the Department of Defense or other federal agencies for pharmacy services, particularly those involving outpatient and inpatient settings within large medical facilities. Key performance indicators from prior contracts, such as on-time delivery, quality of service, adherence to budget, and any reported deficiencies or contract disputes, would provide insight into their capabilities and reliability. Assessing their experience with similar patient volumes and service complexities at Brooke Army Medical Center is essential for predicting successful contract execution.

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

Benchmarking the $14.8 million contract value against market rates requires comparing it to similar contracts awarded to private sector entities for managing pharmacy services in large hospitals. Factors such as the number of prescriptions filled, the scope of services (e.g., sterile compounding, 340B program management), the geographic location, and the specific clinical services provided (outpatient vs. inpatient) must be considered. While the firm-fixed-price nature provides cost certainty, a detailed cost-benefit analysis comparing this award to industry standards for comparable services would reveal whether the government is receiving optimal value for its investment.

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

Key risks include potential disruptions to pharmacy operations due to contractor performance issues, challenges in maintaining consistent quality of care, and the possibility of cost overruns if the fixed-price contract does not adequately account for unforeseen circumstances. Mitigation strategies likely involve robust performance monitoring by the Department of the Army, clear service level agreements (SLAs) within the contract, regular quality assurance reviews, and contingency planning. The competitive nature of the award may also incentivize the contractor to perform well to secure future business.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayer dollars in this context?

This procurement method aims to balance broad competition with specific requirements. By excluding certain sources, the government may be targeting specialized capabilities or ensuring compliance with specific regulations. The effectiveness in ensuring taxpayer value depends on whether the exclusion criteria were justified and if a sufficient number of qualified bidders remained to foster robust price competition. If the exclusions significantly limited the bidder pool, it could potentially lead to higher prices than a truly unrestricted full and open competition. The presence of 5 bids suggests a reasonable level of competition was maintained.

What is the historical spending trend for pharmacy services at Brooke Army Medical Center or similar military treatment facilities?

Analyzing historical spending data for pharmacy services at Brooke Army Medical Center and comparable military treatment facilities is vital for context. This includes examining previous contract values, durations, and the contractors involved. Understanding whether spending has increased, decreased, or remained stable over time can indicate trends in service needs, inflation, or procurement strategies. Significant year-over-year increases might warrant closer scrutiny of contract scope and pricing, while consistent spending could suggest stable demand and effective cost management.

What are the implications of this contract for the broader healthcare services market within the Department of Defense?

This contract award to GLOBAL DYNAMICS LLC signifies the continued reliance of the Department of Defense on external contractors for specialized medical services. It reflects a segment of the DoD's strategy to leverage private sector expertise to support military healthcare infrastructure. The success or failure of this contract could influence future procurement strategies for similar services, potentially impacting market competition and the types of companies that pursue DoD contracts. It also highlights the importance of robust contract management to ensure quality and cost-effectiveness in outsourced healthcare.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5950 SYMPHONY WOODS RD STE 160, COLUMBIA, MD, 21044

Business Categories: Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,519,037

Exercised Options: $14,820,803

Current Obligation: $14,820,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0005

IDV Type: IDC

Timeline