DoD's $24.5M TBI Healthcare Contract Awarded to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $24,454,363 ($24.5M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Defense

Start Date: 2008-08-26

End Date: 2014-03-18

Contract Duration: 2,030 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TBI HEALTHCARE PROVIDERS

Plain-Language Summary

Department of Defense obligated $24.5 million to STERLING MEDICAL ASSOCIATES, INC for work described as: TBI HEALTHCARE PROVIDERS Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and the nature of healthcare services. 4. Performance context is within the Department of Defense's healthcare provision for service members. 5. Sector positioning is within healthcare services, specifically TBI and mental health support.

Value Assessment

Rating: good

The contract value of approximately $24.5 million over its duration appears reasonable given the specialized nature of TBI healthcare and mental health services. Benchmarking against similar contracts for comprehensive medical support within the Department of Defense would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (5 indicated) in such a competitive environment generally leads to more favorable pricing and better service offerings for the government. The specific number of bids received is not detailed, but the competition type suggests a robust marketplace.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that drives down costs and encourages innovation, leading to better value for public funds.

Public Impact

Service members, particularly those suffering from Traumatic Brain Injury (TBI) and requiring mental health support, are the primary beneficiaries. The contract delivers essential healthcare services, including diagnosis, treatment, and ongoing management of TBI and related conditions. Geographic impact is likely concentrated around military installations where the services are provided. Workforce implications include the employment of healthcare professionals, specialists, and support staff by Sterling Medical Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for specialized TBI and mental health services may limit flexibility.
Ensuring consistent quality of care across all service locations requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost predictability for the government.
Focus on critical healthcare needs for service members addresses a significant operational requirement.

Sector Analysis

The healthcare services sector, particularly within the federal government, is a significant market. This contract falls under the 'Offices of Physicians, Mental Health Specialists' NAICS code (621112), which encompasses a broad range of medical practices. Comparable spending benchmarks would involve analyzing other large-scale healthcare service contracts awarded by the DoD or other federal agencies for similar patient populations and service scopes.

Small Business Impact

There is no indication that this contract included small business set-asides. The contract was awarded to Sterling Medical Associates, Inc., a prime contractor. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent of any subcontracting arrangements.

Oversight & Accountability

Oversight mechanisms would typically involve the Department of the Army's contracting officers and program managers responsible for monitoring contract performance, ensuring compliance with terms and conditions, and verifying the quality of healthcare services delivered. Accountability measures are inherent in the firm-fixed-price contract structure, with penalties for non-performance. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Department of Defense Healthcare Programs
Military Medical Treatment Facilities
Traumatic Brain Injury (TBI) Research and Treatment Initiatives
Veterans Affairs (VA) Healthcare Services

Risk Flags

Long contract duration
Specialized healthcare services
Potential for performance variability over time

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to STERLING MEDICAL ASSOCIATES, INC. TBI HEALTHCARE PROVIDERS

Who is the contractor on this award?

The obligated recipient is STERLING MEDICAL ASSOCIATES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2008-08-26. End: 2014-03-18.

What is Sterling Medical Associates, Inc.'s track record with federal healthcare contracts, particularly those involving TBI and mental health?

Sterling Medical Associates, Inc. has a history of providing healthcare services to federal agencies, including the Department of Defense. Their experience often encompasses primary care, occupational health, and specialized medical services. For contracts specifically related to TBI and mental health, a detailed review of their past performance on similar engagements would be necessary. This would involve examining past performance evaluations, any documented issues or successes, and their demonstrated capability in managing complex healthcare delivery for specific patient populations like military personnel. Their ability to meet the stringent requirements of TBI and mental health care, which demand specialized expertise and sensitive handling, is a key factor in assessing their suitability and performance.

How does the awarded amount of $24.5 million compare to similar TBI and mental health service contracts within the DoD?

Comparing the $24.5 million award to similar TBI and mental health service contracts within the DoD requires access to a broader dataset of federal procurements. However, based on the contract duration of approximately 2030 days (around 5.5 years) and the nature of specialized healthcare, this figure appears to be within a plausible range for comprehensive service provision. Factors influencing this comparison include the geographic scope of services, the specific types of TBI and mental health interventions required, the patient volume, and the required qualifications of personnel. Contracts for general medical services might be lower, while those involving highly specialized, round-the-clock care or advanced therapeutic modalities could be significantly higher. A detailed benchmark analysis would involve identifying contracts with similar NAICS codes, service descriptions, and agency, adjusting for inflation and contract length.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Key risk indicators for this contract include the long duration (over 6 years), the sensitive nature of TBI and mental health services, and potential challenges in ensuring consistent quality of care across potentially multiple locations. The long duration increases the risk of cost escalation if not managed tightly and the potential for contractor performance degradation over time. The sensitive nature of the services requires highly qualified personnel and robust patient privacy protocols. Mitigation strategies likely involve strong contract oversight by the Department of the Army, including regular performance reviews, quality assurance checks, and adherence to strict clinical protocols. The firm-fixed-price structure also helps mitigate financial risks for the government by setting a ceiling on costs, provided the scope of work remains consistent.

How effective has Sterling Medical Associates, Inc. been in delivering TBI and mental health services in previous contracts?

Assessing the effectiveness of Sterling Medical Associates, Inc. in delivering TBI and mental health services requires a review of their past performance data, which is not fully detailed in the provided summary. Typically, this would involve examining contractor performance evaluation reports (CPARS), any documented instances of outstanding service or deficiencies, and client feedback. Given the critical nature of TBI and mental health care, effectiveness would be measured by patient outcomes, adherence to treatment plans, patient satisfaction, and the ability to meet all contractual obligations regarding staffing, service delivery, and reporting. Without specific performance metrics from prior contracts, a definitive judgment on their effectiveness in this specialized area remains speculative.

What are the historical spending patterns for TBI and mental health services within the Department of Defense, and how does this contract fit?

Historical spending patterns for TBI and mental health services within the Department of Defense have generally shown a consistent and often increasing trend, driven by the ongoing needs of service members returning from combat zones and the recognition of mental health as a critical component of overall readiness. The DoD allocates significant resources to medical care, including specialized services for conditions like TBI, which has been a focus area since the conflicts in Iraq and Afghanistan. This contract, valued at approximately $24.5 million, represents a specific allocation for TBI and mental health provider services. It fits within the broader DoD strategy to ensure comprehensive healthcare support for its personnel, addressing a persistent requirement for specialized medical expertise in these areas.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians, Mental Health Specialists

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9114F08R0019

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Medical Corporation (UEI: 137539750)

Address: 411 OAK ST, CINCINNATI, OH, 45219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,799,898

Exercised Options: $27,244,941

Current Obligation: $24,454,363

Contract Characteristics

Cost or Pricing Data: NO

Timeline