DoD's $11.4M dental services contract for Germany awarded to Sterling Medical Associates, Inc

Contract Overview

Contract Amount: $11,388,142 ($11.4M)

Contractor: Sterling Medical Associates, Inc

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL HYGIENIST (GERMANY)

Plain-Language Summary

Department of Defense obligated $11.4 million to STERLING MEDICAL ASSOCIATES, INC for work described as: DENTAL HYGIENIST (GERMANY) Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Services are for dental hygienists in Germany, supporting military personnel. 5. This contract falls within the Healthcare sector, specifically dental services. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract's total value of approximately $11.4 million over four years suggests a per-year cost of around $2.85 million. This figure needs to be benchmarked against similar contracts for dental hygienist services provided to military installations abroad. Without specific comparable data, it's difficult to definitively assess value for money, but the firm-fixed-price structure provides cost certainty. The duration of the contract (1460 days) is substantial, indicating a significant service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the use of this procurement method suggests a deliberate effort to maximize competition and achieve the best value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, which can lead to cost savings and a wider array of service options.

Public Impact

Military personnel stationed in Germany will benefit from consistent dental hygiene services. The contract ensures the provision of essential dental care, contributing to the overall health and readiness of service members. The geographic impact is localized to U.S. military installations in Germany. The contract supports employment for dental hygienists and potentially administrative staff within the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost predictability.
Long-term contract (4 years) suggests stability for service provision.
Services are essential for military readiness and personnel well-being.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of dental services. The North American Industry Classification System (NAICS) code 621210, 'Offices of Dentists,' encompasses a broad range of dental practices. Federal spending in this area often supports military healthcare systems, public health initiatives, and specific medical research. Benchmarking this contract's value would require comparing it to other government contracts for similar dental services, particularly those provided in overseas locations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor, Sterling Medical Associates, Inc., may engage small businesses as subcontractors if it aligns with their operational needs and procurement strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or Inspector General investigations would depend on performance and potential issues.

Related Government Programs

Military Medical Services
Overseas Healthcare Contracts
Dental Services Procurement
Department of Defense Healthcare

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to STERLING MEDICAL ASSOCIATES, INC. DENTAL HYGIENIST (GERMANY)

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 $11.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the historical spending pattern for dental hygienist services by the Department of Defense in Germany?

Analyzing historical spending for dental hygienist services by the Department of Defense (DoD) in Germany requires accessing detailed procurement data over multiple fiscal years. Without specific historical data for this exact service and location, a general trend can be inferred from broader DoD healthcare spending. The DoD consistently invests significant resources in maintaining the health and readiness of its personnel, which includes comprehensive medical and dental care. Contracts for such services are often long-term and awarded through competitive processes. Fluctuations in spending can be influenced by factors such as troop deployment levels, base consolidation or expansion, and changes in healthcare policy or technology. A detailed analysis would involve tracking contract awards for similar services (NAICS 621210) to installations in Germany, noting contract values, durations, and awarded contractors to identify patterns and potential cost efficiencies or increases over time.

How does the per-year cost of this contract compare to similar dental service contracts at other overseas military installations?

To compare the per-year cost of this contract (approximately $2.85 million annually) to similar dental service contracts at other overseas military installations, one would need access to a database of federal contracts with detailed cost breakdowns and service scopes. Key comparison points would include the number of personnel served, the specific services provided (e.g., routine cleanings, X-rays, patient education), the geographic location's cost of living and operational expenses, and the contract duration. Contracts for dental hygienist services at bases in regions with higher operational costs or serving larger populations might naturally have higher annual expenditures. Conversely, contracts with similar scopes but in lower-cost regions or for smaller populations should exhibit lower annual costs. Without direct comparative contract data, this assessment remains qualitative, but the $2.85M annual figure provides a benchmark for future analysis.

What is Sterling Medical Associates, Inc.'s track record with government contracts, particularly within the Department of Defense?

Sterling Medical Associates, Inc. has a history of securing and performing on government contracts, notably within the Department of Defense (DoD). A review of federal procurement databases would reveal the extent and nature of their past awards. Companies like Sterling Medical often specialize in providing healthcare services to military and veteran populations, both domestically and internationally. Their track record would be assessed based on factors such as the number of contracts awarded, their total value, performance ratings (if available), and any history of contract disputes, terminations, or corrective actions. A positive track record with the DoD suggests familiarity with military healthcare requirements, compliance standards, and operational environments, which can be a significant factor in contract award decisions.

What are the potential risks associated with a firm-fixed-price contract for dental services in an overseas location?

A firm-fixed-price (FFP) contract, while offering cost certainty to the government, can introduce risks for the contractor, which may indirectly affect the government if not managed properly. For dental services in an overseas location like Germany, potential risks for Sterling Medical Associates, Inc. could include unforeseen increases in labor costs (e.g., higher wages required to attract qualified personnel in Germany), currency exchange rate fluctuations if payments are not in a stable currency, unexpected increases in the cost of medical supplies or equipment, and logistical challenges in maintaining a steady supply chain. If these costs significantly exceed the contractor's projections, they might face financial strain, potentially impacting service quality or leading to requests for contract modifications. The government's risk is generally lower in terms of cost overrun but higher in ensuring consistent service delivery if the contractor struggles.

How does the use of 'Offices of Dentists' (NAICS 621210) as a category impact the specificity of services procured?

The use of NAICS code 621210, 'Offices of Dentists,' provides a broad classification for dental services. This category encompasses a wide range of activities, including general dentistry, dental hygiene, orthodontics, and periodontics. When procuring specific services like dental hygienist support, the contract's Performance Work Statement (PWS) or Statement of Work (SOW) becomes crucial for defining the exact scope. The PWS would detail the specific duties expected of dental hygienists, such as performing dental cleanings, taking X-rays, applying preventative materials, and educating patients on oral hygiene. Relying solely on the NAICS code might not fully capture the nuances of the procurement; therefore, the detailed requirements outlined in the contract documents are essential for ensuring the government procures the precise services needed and for evaluating the contractor's performance accurately.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Dentists › Offices of Dentists

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: W9114F22R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $20,107,464

Exercised Options: $15,451,072

Current Obligation: $11,388,142

Actual Outlays: $200,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9114F22D0005

IDV Type: IDC

Timeline