DoD awards $10.9M for patient appointing services, raising questions about competition and value

Contract Overview

Contract Amount: $10,918,806 ($10.9M)

Contractor: Katmai Commodities, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $15.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATIENT APPOINTING SERVICES, TIDE WATER - BASE

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to KATMAI COMMODITIES, LLC for work described as: PATIENT APPOINTING SERVICES, TIDE WATER - BASE Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Firm-fixed-price contract type suggests defined scope, but value needs benchmarking. 3. Contract duration of 729 days (2 years) is standard for service contracts. 4. Small business participation is not explicitly detailed, requiring further investigation. 5. Geographic focus on Virginia may indicate regional service delivery needs. 6. The specific nature of 'patient appointing services' warrants clarification on its criticality.

Value Assessment

Rating: questionable

The contract's value of $10.9 million for patient appointing services over two years lacks immediate comparative data. Without knowing the volume of appointments or the specific services rendered, it's difficult to benchmark the per-unit cost effectively. The firm-fixed-price structure provides cost certainty for the government, but the absence of competitive bidding means there's no market-driven validation of the pricing. Further analysis would require understanding the scope of work and comparing it to similar contracts for administrative support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided in the available data. Sole-source awards can sometimes be necessary for specialized services or when only one vendor can meet specific requirements, but they typically result in higher prices due to the lack of competitive pressure. The absence of a competitive process limits the government's ability to secure the best possible pricing and service.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competition. Without a bidding process, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

Beneficiaries include military personnel and potentially their families requiring medical appointments. Services delivered are administrative, specifically focused on scheduling and managing patient appointments. Geographic impact is concentrated in Virginia, where the services are likely performed. Workforce implications are primarily for the contractor, Katmai Commodities, LLC, which will provide the necessary personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The 'not available for competition' status requires scrutiny to ensure it was genuinely justified.
Limited transparency on the specific performance metrics and expected outcomes for these services.
The broad category of 'Office Administrative Services' might obscure the true cost drivers of patient appointing.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract awarded to Katmai Commodities, LLC, a known entity, suggesting some level of vetting.
Service contract duration of two years allows for stable service provision.

Sector Analysis

The contract falls under the Office Administrative Services sector, specifically NAICS code 561110. This is a broad category encompassing a wide range of support functions for businesses and government agencies. The market for administrative services is generally competitive, with many providers. However, specialized services like patient appointing, especially within a defense context, might have fewer qualified vendors. Comparable spending benchmarks for patient appointing services are not readily available, but general administrative support contracts can range significantly in price depending on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false) and the contractor, Katmai Commodities, LLC, is not explicitly identified as a small business in this context (st: VA, which likely refers to Virginia, not Small Business). There is no information provided regarding subcontracting plans. This suggests that small businesses may not be directly benefiting from this specific award, and their role in the service delivery chain is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of detailed public information on the justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Health Agency Administrative Support Contracts
Department of Veterans Affairs Patient Scheduling Systems
General Services Administration Professional Services Schedule (PSS)
Military Medical Treatment Facility Operations Support

Risk Flags

Sole-source award requires justification review.
Lack of performance metrics hinders value assessment.
Limited transparency on competition rationale.
Potential for overpayment due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to KATMAI COMMODITIES, LLC. PATIENT APPOINTING SERVICES, TIDE WATER - BASE

Who is the contractor on this award?

The obligated recipient is KATMAI COMMODITIES, 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 $10.9 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION'. This designation typically requires a formal justification from the contracting agency, outlining why a competitive process was not feasible or appropriate. Common reasons include the existence of only one responsible source, urgent and compelling needs that preclude competition, or specific national security requirements. Without access to the agency's justification document, it is impossible to determine the precise reason. However, such sole-source awards warrant careful review by oversight bodies to ensure they are indeed necessary and that taxpayer funds are not being unnecessarily expended due to a lack of due diligence in exploring competitive options.

How does the $10.9 million contract value compare to similar patient appointing services contracts within the DoD or other federal agencies?

Benchmarking this $10.9 million contract value is challenging without more specific details on the scope of services, volume of appointments, and geographic coverage. Patient appointing services can range from simple call center operations to complex integrated scheduling systems. Contracts for similar administrative support within the DoD can vary widely. For instance, contracts for call center operations might be priced per call or per hour, while broader administrative support contracts might be fixed-price based on staffing levels. Given the sole-source nature, direct comparison to competitively bid contracts is difficult, as competitive processes generally drive prices down. A thorough value assessment would require comparing the deliverables and expected outcomes against industry standards and other government contracts for comparable administrative functions.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this patient appointing services contract. Typically, for such services, KPIs might include metrics like appointment scheduling accuracy, average time to schedule an appointment, patient satisfaction scores related to the scheduling process, and system uptime for any scheduling software used. SLAs would define the acceptable performance thresholds for these KPIs and outline remedies or penalties if they are not met. The absence of this information in the summary data limits the ability to assess the contractor's expected performance and the government's mechanisms for ensuring service quality and accountability.

What is the track record of Katmai Commodities, LLC in performing similar government contracts, particularly those involving administrative or healthcare support services?

Information regarding the specific track record of Katmai Commodities, LLC in performing similar government contracts is not detailed in the provided data. While the award to this company suggests they possess the capability to perform the required services, a deeper dive into their past performance is crucial for a comprehensive risk assessment. This would involve reviewing their history with federal agencies, including contract performance evaluations (e.g., CPARS reports), any past disputes or contract terminations, and their experience with patient appointing or related administrative functions. Understanding their prior success or challenges in similar roles would provide valuable context for evaluating the likelihood of successful contract execution and value for money.

What is the potential impact of this sole-source award on small business participation in the federal contracting ecosystem?

This sole-source award to Katmai Commodities, LLC, without explicit small business set-aside provisions or subcontracting requirements detailed, suggests a limited direct impact on small businesses for this specific contract. When contracts are awarded non-competitively, opportunities for small businesses to participate as prime contractors are eliminated. Furthermore, if Katmai Commodities, LLC is not a small business itself, and if subcontracting plans are not mandated or robust, the flow-down of work to small businesses could be minimal. This can reduce the overall share of federal contracting dollars reaching the small business sector, potentially hindering their growth and ability to compete for future opportunities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: MEDICAL SERVICES › CLERICAL MEDICAL SUPPORT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0424R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11001 OMALLEY CENTRE DR STE 204, ANCHORAGE, AK, 99515

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, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,649,081

Exercised Options: $10,918,806

Current Obligation: $10,918,806

Actual Outlays: $36,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline