DoD's $75.8M Contract for International SOS Medical Services Raises Questions on Competition and Value
Contract Overview
Contract Amount: $75,797,230 ($75.8M)
Contractor: International SOS Government Medical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2025-03-15
Contract Duration: 533 days
Daily Burn Rate: $142.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TRAVEL, LODGING, MEALS, AND INCIDENTALS
Plain-Language Summary
Department of Defense obligated $75.8 million to INTERNATIONAL SOS GOVERNMENT MEDICAL SERVICES, INC. for work described as: TRAVEL, LODGING, MEALS, AND INCIDENTALS Key points: 1. Significant spending on medical services for personnel operating internationally. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. Long-term contract duration (533 days) requires ongoing scrutiny. 4. Focus on physician and mental health services highlights critical support needs.
Value Assessment
Rating: questionable
The contract value of $75.8 million for physician and mental health services is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar services procured through open competition.
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. This limits the opportunity for price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for essential medical services.
Public Impact
Ensures critical medical and mental health support for DoD personnel in potentially high-risk international environments. Provides specialized services that may not be readily available through other means. Supports operational readiness by maintaining the health and well-being of deployed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High contract value warrants scrutiny.
- Lack of clear justification for sole-source award.
Positive Signals
- Provides essential medical and mental health services.
- Supports critical DoD operations abroad.
Sector Analysis
The healthcare sector, particularly specialized medical services for government and defense, often involves complex contracts. Benchmarks for similar international medical support contracts are difficult to establish due to unique operational requirements and limited providers.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely large, provider on a sole-source basis.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the services provided are necessary, effective, and priced appropriately. The Department of Defense should provide a clear justification for the lack of competition.
Related Government Programs
- Offices of Physicians, Mental Health Specialists
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding.
- Potential for inflated pricing.
- Limited transparency in award justification.
- Long-term commitment without demonstrated value.
- Dependency on a single provider.
Tags
offices-of-physicians-mental-health-spec, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.8 million to INTERNATIONAL SOS GOVERNMENT MEDICAL SERVICES, INC.. TRAVEL, LODGING, MEALS, AND INCIDENTALS
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL SOS GOVERNMENT MEDICAL SERVICES, 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 $75.8 million.
What is the period of performance?
Start: 2023-09-29. End: 2025-03-15.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without this information, it's impossible to fully assess the fairness of the price. The government should have conducted a price analysis, comparing proposed costs to historical data or independent cost estimates, to validate the $75.8 million award.
What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the medical and mental health services being measured?
Measuring the effectiveness of medical and mental health services is crucial, especially in demanding international environments. KPIs could include response times, patient outcomes, satisfaction rates, and the availability of specialized care. Robust monitoring and reporting mechanisms are essential to ensure the contractor meets its obligations and provides high-quality care.
What is the anticipated taxpayer impact if this contract were to be re-competed, and what is the potential cost savings?
Re-competing this contract could potentially lead to significant taxpayer savings by introducing competition. While the exact savings are unknown without a competitive process, sole-source contracts often carry a price premium. A competitive bidding process would likely drive down costs through market forces and encourage innovative solutions.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9114F23R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1201 LOUISIANA ST, HOUSTON, TX, 77002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $75,797,230
Exercised Options: $75,797,230
Current Obligation: $75,797,230
Actual Outlays: $8,605,413
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2025-03-15
Potential End Date: 2025-03-15 00:00:00
Last Modified: 2024-08-30
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