DoD's Army Spends $24.9M on Physician Services via Full & Open Competition
Contract Overview
Contract Amount: $24,921,583 ($24.9M)
Contractor: Chenega Tri-Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-01
End Date: 2024-04-17
Contract Duration: 229 days
Daily Burn Rate: $108.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FEE BASIS PROVIDERS (PHYSICIAN)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78249
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to CHENEGA TRI-SERVICES, LLC for work described as: FEE BASIS PROVIDERS (PHYSICIAN) Key points: 1. Significant contract value of $24.9M for physician services. 2. Awarded to CHENEGA TRI-SERVICES, LLC, indicating a specific vendor relationship. 3. Full and open competition after exclusion of sources suggests a structured procurement process. 4. The contract falls within the Offices of Physicians sector, highlighting healthcare services.
Value Assessment
Rating: good
The contract value of $24.9M for physician services appears reasonable given the duration and the nature of the services provided. Benchmarking against similar contracts for physician staffing within the Department of Defense would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process was used, but with specific criteria for participation. This method aims to ensure fair pricing while potentially focusing on specialized capabilities.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a structured bidding process, likely resulting in a fair market price for the physician services.
Public Impact
Ensures access to essential physician services for military personnel and their families. Supports the operational readiness of the Department of the Army by providing medical staff. The contract's duration of 229 days indicates a medium-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if 'exclusion of sources' criteria are overly restrictive.
- Need to monitor service quality and cost-effectiveness throughout the contract period.
Positive Signals
- Competitive award process should drive reasonable pricing.
- Focus on physician services addresses a critical healthcare need.
Sector Analysis
This contract falls within the healthcare sector, specifically for physician services. Spending benchmarks for physician staffing contracts within the Department of Defense can vary widely based on location, specialty, and duration. The $24.9M value for a 229-day period suggests a substantial requirement.
Small Business Impact
The contract was awarded to CHENEGA TRI-SERVICES, LLC. Information regarding small business participation or subcontracting is not explicitly provided in the data, warranting further investigation into the prime contractor's small business utilization plan.
Oversight & Accountability
The Department of the Army's procurement process, including the 'full and open competition after exclusion of sources' method, suggests a degree of oversight. However, ongoing monitoring of performance and adherence to contract terms is crucial for accountability.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed service breakdown for cost comparison.
- Potential for limited competition due to 'exclusion of sources'.
- Need for clarity on small business subcontracting.
- Contract duration suggests a short-to-medium term solution, not necessarily long-term staffing strategy.
Tags
offices-of-physicians-except-mental-heal, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to CHENEGA TRI-SERVICES, LLC. FEE BASIS PROVIDERS (PHYSICIAN)
Who is the contractor on this award?
The obligated recipient is CHENEGA TRI-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 $24.9 million.
What is the period of performance?
Start: 2023-09-01. End: 2024-04-17.
What specific physician specialties are covered under this contract, and how do their costs compare to market rates?
The provided data does not specify the physician specialties. To assess value, a detailed breakdown of the services rendered and a comparison with industry benchmarks for those specific specialties would be necessary. Without this granular information, a precise cost-effectiveness analysis is challenging, though the competitive award suggests a reasonable price was sought.
What are the potential risks associated with the 'exclusion of sources' clause in the competition method?
The 'exclusion of sources' clause, while allowing for focused competition, carries the risk of limiting the pool of qualified bidders. This could potentially lead to higher prices if the excluded sources represent significant competition or if the criteria for exclusion are overly narrow. It also raises concerns about whether the most innovative or cost-effective solutions were considered.
How effectively does this contract meet the Army's long-term physician staffing needs?
This contract addresses a specific, medium-term need for physician services, indicated by its 229-day duration. Its effectiveness in meeting long-term needs depends on whether it's part of a broader strategy for physician recruitment and retention or a series of short-term solutions. Continuous evaluation of service delivery and patient outcomes is essential.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81K0418R0003
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5726 W HAUSMAN RD STE 100, SAN ANTONIO, TX, 78249
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $24,921,583
Exercised Options: $24,921,583
Current Obligation: $24,921,583
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W81K0419D0001
IDV Type: IDC
Timeline
Start Date: 2023-09-01
Current End Date: 2024-04-17
Potential End Date: 2024-04-17 00:00:00
Last Modified: 2024-04-11
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