Army's $34.5M Dental Clinic Services Contract Awarded for 7 Years of Support

Contract Overview

Contract Amount: $34,526,796 ($34.5M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2013-09-27

End Date: 2032-12-31

Contract Duration: 7,035 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY 11 ADD SVCS, DENTAL CLINIC, SPAN [401

Plain-Language Summary

Department of Defense obligated $34.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: FY 11 ADD SVCS, DENTAL CLINIC, SPAN [401 Key points: 1. Contract value appears reasonable for the duration and scope of specialized dental services. 2. Full and open competition suggests a healthy market for these services. 3. Long contract duration may introduce performance and cost escalation risks. 4. Contract is for specialty trade contractors, indicating a specific niche within healthcare support. 5. Fixed-price contract type shifts performance risk to the contractor. 6. The contract is part of broader Army healthcare infrastructure support.

Value Assessment

Rating: good

The contract value of approximately $34.5 million over roughly 7 years (September 2013 to December 2032) averages to about $4.9 million annually. This figure seems aligned with the operational costs of maintaining specialized dental clinics, including staffing, equipment, and supplies. Benchmarking against similar contracts for comprehensive dental support services within the Department of Defense would provide a more precise value-for-money assessment, but the initial estimate appears within a reasonable range for the services described.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were able to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and service quality. This level of competition is favorable for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer their best pricing and performance to win the contract.

Public Impact

Serves military personnel and potentially their dependents by ensuring access to dental care. Supports the operational readiness of the armed forces by maintaining the health of service members. The services are likely geographically concentrated at the specific Army installation where the dental clinic is located. Creates and sustains jobs for dental professionals, technicians, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract (over 7 years) could lead to potential cost increases if market rates rise significantly.
Scope creep is a potential risk if additional services are added without proper modification and pricing adjustments.
Dependence on a single contractor for essential dental services could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition indicates a robust market and likely competitive pricing.
Long contract duration allows for stable service provision and potential for contractor investment in quality.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on specialized medical support. The market for healthcare support services, including dental care, is substantial within the federal government, driven by the need to maintain the health and readiness of military personnel. Comparable spending benchmarks would involve analyzing other contracts for medical and dental facility operations and maintenance across various federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have significant subcontracting requirements mentioned. The primary contractor is likely a larger entity capable of managing comprehensive dental clinic operations. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) at the Army installation, responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE Dental Program
Military Health System contracts
Medical Readiness Support Contracts
Base Operations Support Contracts

Risk Flags

Long-term contract duration may expose the government to future cost increases.
Potential for service quality degradation over the extended contract period.
Dependence on a single provider for essential dental services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. FY 11 ADD SVCS, DENTAL CLINIC, SPAN [401

Who is the contractor on this award?

The obligated recipient is BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2013-09-27. End: 2032-12-31.

What is the historical spending trend for dental clinic services at this specific Army installation?

Analyzing historical spending data for dental clinic services at this specific Army installation prior to this contract award would reveal trends in demand, service costs, and previous contracting approaches. If this is a new requirement, the spending reflects the initial investment. If it replaces previous contracts, comparing the total value and duration can indicate shifts in procurement strategy or service needs. Without specific historical data for this installation, it's difficult to establish a precise trend, but the current award suggests a sustained need for these services over the long term, estimated at approximately $4.9 million per year.

How does the per-unit cost of services under this contract compare to similar dental services provided to the civilian population?

Directly comparing the per-unit cost of services under this contract to civilian market rates is challenging without detailed service breakdowns (e.g., cost per filling, crown, cleaning). Federal contracts often include administrative overhead, compliance costs, and specific security requirements that can influence pricing. However, the average annual value of $4.9 million for a dental clinic suggests a comprehensive service package. Benchmarking against civilian dental practice management costs or group purchasing organization rates for dental supplies could offer some insight, but a definitive comparison requires a detailed service-level analysis.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for a dental clinic services contract would likely focus on clinical outcomes, patient satisfaction, operational efficiency, and compliance. Examples include patient wait times for appointments, the percentage of appointments seen within a target timeframe, patient satisfaction survey scores, infection control compliance rates, equipment uptime, and adherence to dental standards of care. The contract documentation would specify these KPIs, along with acceptable performance levels and any associated award fees or penalties.

What is the contractor's track record in providing similar healthcare support services?

The contractor's track record in providing similar healthcare support services is crucial for assessing performance risk. Information on past performance, including previous contracts held, client feedback, and any history of performance issues or awards, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A positive track record with relevant experience in managing medical or dental facilities, staffing, and operations would indicate a lower risk for this contract's success.

What is the potential impact of the long contract duration (ending in 2032) on service quality and cost escalation?

The long contract duration, extending to December 2032, offers stability and allows the contractor to potentially invest in specialized equipment and staff training. However, it also introduces risks related to cost escalation, as market prices for labor, materials, and technology can change significantly over more than seven years. Service quality could potentially decline if contractor motivation wanes or if the contract structure doesn't adequately incentivize continuous improvement. Robust contract management, including periodic reviews and potential price adjustments tied to economic indices, is essential to mitigate these risks.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bundesrepublik Deutschland

Address: DEICHMANNS AUE 31-37, BONN

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $34,561,134

Exercised Options: $34,561,134

Current Obligation: $34,526,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline