DoD awards $5.3M for nursing and physician support at Madigan Army Medical Center

Contract Overview

Contract Amount: $5,283,127 ($5.3M)

Contractor: Eagle Health Analytics, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-15

End Date: 2026-04-14

Contract Duration: 1,277 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FIVE FULL-TIME EQUIVALENT CERTIFIED NURSING ASSISTANTS AND THREE FULL -TIME EQUIVALENT EMERGENCY ROOM PHYSICIANS IN SUPPORT OF THE DEPARTMENT OF EMERGENCY MEDICINE (DEM) AT MADIGAN ARMY MEDICAL CENTER, TACOMA, WA 98431.

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98431

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to EAGLE HEALTH ANALYTICS, LLC for work described as: FIVE FULL-TIME EQUIVALENT CERTIFIED NURSING ASSISTANTS AND THREE FULL -TIME EQUIVALENT EMERGENCY ROOM PHYSICIANS IN SUPPORT OF THE DEPARTMENT OF EMERGENCY MEDICINE (DEM) AT MADIGAN ARMY MEDICAL CENTER, TACOMA, WA 98431. Key points: 1. Contract provides essential medical personnel for emergency services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Duration of over three years suggests a need for sustained support. 4. Fixed-price contract type shifts some risk to the contractor. 5. Geographic concentration in Washington state for critical medical services.

Value Assessment

Rating: fair

The contract value of $5.3 million over approximately 3.5 years for 5 FTE CNAs and 3 FTE physicians appears to be within a reasonable range for specialized medical staffing. However, without specific benchmarks for physician and CNA rates in the Tacoma, WA area or comparable military healthcare contracts, a precise value-for-money assessment is challenging. The fixed-price nature provides some cost certainty, but the lack of competitive bidding limits the ability to confirm optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means that the government did not receive multiple offers, which could have potentially led to lower prices through a bidding process. The justification for this sole-source award would need to be examined to understand why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive pricing is lost. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

Beneficiaries include military personnel and their families receiving care at Madigan Army Medical Center. Services delivered are critical for the functioning of the Department of Emergency Medicine. Geographic impact is concentrated at Madigan Army Medical Center in Tacoma, Washington. Workforce implications include the provision of certified nursing assistants and emergency room physicians, potentially augmenting existing staff or filling critical vacancies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in higher costs than a competed contract.
Sole-source justification needs thorough review to ensure necessity.
Performance monitoring is crucial to ensure quality of care and adherence to contract terms.

Positive Signals

Contract ensures continuity of essential emergency medical services.
Fixed-price contract provides budget predictability.
Award supports a critical military healthcare facility.

Sector Analysis

This contract falls within the Healthcare sector, specifically supporting medical services at a federal facility. The market for healthcare staffing, particularly for specialized roles like physicians and certified nursing assistants, is robust but can be subject to regional shortages and specific credentialing requirements. The value of this contract is modest within the broader federal healthcare spending landscape, but significant for the specific needs of Madigan Army Medical Center's emergency department.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no information available regarding subcontracting plans for small businesses. The focus is on direct service provision by the prime contractor, Eagle Health Analytics, LLC.

Oversight & Accountability

Oversight of this contract would typically fall under the purview of the Department of the Army contracting and program management offices at Madigan Army Medical Center. Accountability measures would be defined in the contract's performance work statement, with potential for quality assurance surveillance and performance reviews. Transparency is facilitated by contract databases, but the specifics of performance and cost justification are often internal.

Related Government Programs

Military Medical Personnel Support Contracts
Emergency Medicine Services Contracts
Healthcare Staffing Contracts
Department of Defense Medical Facilities Support

Risk Flags

Sole-source award requires justification.
Potential for cost overruns without competition.
Performance monitoring is critical for service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to EAGLE HEALTH ANALYTICS, LLC. FIVE FULL-TIME EQUIVALENT CERTIFIED NURSING ASSISTANTS AND THREE FULL -TIME EQUIVALENT EMERGENCY ROOM PHYSICIANS IN SUPPORT OF THE DEPARTMENT OF EMERGENCY MEDICINE (DEM) AT MADIGAN ARMY MEDICAL CENTER, TACOMA, WA 98431.

Who is the contractor on this award?

The obligated recipient is EAGLE HEALTH ANALYTICS, 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 $5.3 million.

What is the period of performance?

Start: 2022-10-15. End: 2026-04-14.

What is the track record of Eagle Health Analytics, LLC in performing similar federal contracts, particularly in healthcare staffing?

Eagle Health Analytics, LLC has a history of performing federal contracts, primarily within the healthcare and professional services domains. While specific details on past performance for similar sole-source medical staffing contracts at Army medical centers are not readily available in the public domain, their contract history suggests experience in supporting government healthcare needs. A deeper dive into their past performance evaluations and any reported issues on previous contracts would be necessary for a comprehensive assessment of their reliability and capability in fulfilling the requirements of this specific award at Madigan Army Medical Center.

How does the estimated cost per full-time equivalent (FTE) for physicians and CNAs compare to market rates or similar federal contracts?

The total contract value is $5,283,126.68 for approximately 1277 days (roughly 3.5 years), covering 5 FTE Certified Nursing Assistants (CNAs) and 3 FTE Emergency Room Physicians. This equates to roughly 8 FTE positions. Without knowing the exact daily or hourly rates negotiated, a precise per-FTE cost is difficult to calculate. However, if we assume a standard 2080 work hours per year per FTE, the total FTE hours over the contract period are substantial. Given the specialized nature of ER physicians and the demand for CNAs, especially in a military medical setting, the cost per FTE could range significantly. Benchmarking against civilian hospital staffing costs in the Tacoma area or other DoD medical facilities would be crucial. The lack of competition makes it harder to ascertain if this rate represents optimal value.

What are the specific risks associated with a sole-source award for critical medical staffing at a military hospital?

The primary risk of a sole-source award for critical medical staffing is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary compared to a scenario where multiple vendors bid for the contract. Another risk is reduced incentive for the contractor to innovate or provide exceptional service, as there is no immediate threat of losing the contract to a competitor. Furthermore, the justification for the sole-source award itself needs to be robust; if the justification is weak or based on flawed assumptions, it indicates a potential lapse in procurement integrity and oversight, which could lead to suboptimal resource allocation for the Department of Defense.

What is the expected impact of this contract on the operational capacity and efficiency of the Madigan Army Medical Center's Emergency Department?

This contract is intended to directly bolster the operational capacity and efficiency of the Madigan Army Medical Center's Emergency Department (DEM) by providing essential medical personnel: five full-time equivalent Certified Nursing Assistants (CNAs) and three full-time equivalent Emergency Room Physicians. These additional staff are expected to help manage patient flow, reduce wait times, improve the quality of care delivered, and alleviate the workload on existing medical staff. By ensuring adequate staffing levels, the contract aims to maintain the DEM's ability to handle patient surges and provide timely, effective emergency medical treatment, thereby supporting the overall healthcare mission for military beneficiaries.

How does this contract's duration and value compare to historical spending on similar medical support services at Madigan Army Medical Center or other Army hospitals?

The contract duration of approximately 3.5 years (1277 days) and a value of $5.3 million are indicative of a significant, long-term need for specialized medical staffing. Historical spending patterns for similar services at Madigan or other Army hospitals would provide valuable context. If similar contracts in the past were shorter, less expensive, or competed, it would highlight the unique aspects of this award. Conversely, if this aligns with established patterns for sole-source support of critical departments, it suggests a consistent approach to meeting staffing needs. Without access to historical data specific to Madigan's DEM staffing contracts, it's difficult to draw direct comparisons, but the scale suggests a substantial and ongoing requirement.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0222Q0134

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 W 16TH AVE, ANCHORAGE, AK, 99501

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

Financial Breakdown

Contract Ceiling: $5,283,127

Exercised Options: $5,283,127

Current Obligation: $5,283,127

Actual Outlays: $212,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline