DoD spent $26.7M on anesthesiologist services via sole-source purchase order from 2008-2014

Contract Overview

Contract Amount: $26,700,407 ($26.7M)

Contractor: Defense Civilian Medical Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-16

End Date: 2014-01-31

Contract Duration: 1,963 days

Daily Burn Rate: $13.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENERAL ANESTHESIOLOGIST

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20012

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to DEFENSE CIVILIAN MEDICAL ASSOCIATES, LLC for work described as: GENERAL ANESTHESIOLOGIST Key points: 1. Contract awarded without competition, raising questions about price discovery and potential value. 2. Long contract duration of 1963 days suggests a sustained need for these services. 3. Services provided by a single firm indicate a lack of market testing for competitive pricing. 4. The fixed-price contract type offers cost certainty but may limit savings if market rates decreased. 5. Geographic concentration in the District of Columbia for services. 6. No small business participation noted, potentially missing opportunities for smaller providers.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive data. The $26.7 million expenditure over nearly six years for anesthesiologist services, awarded sole-source, means there's no direct comparison to other bids. While fixed-price contracts offer predictability, the absence of competition prevents an assessment of whether the government secured the best possible price or if market rates for similar services were lower during the contract period. Without competitive bids, it's difficult to ascertain if the pricing was optimal.

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. The data indicates only one offer was solicited and accepted. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. Consequently, there was no opportunity for price discovery through market competition, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers did not benefit from the potential cost savings that competition can drive. The government may have paid more than necessary without a competitive process to establish fair market value.

Public Impact

Beneficiaries include military personnel and their families receiving medical care. Services delivered are essential anesthesiology support within a Department of Defense medical facility. Geographic impact is concentrated in the District of Columbia, where the services were rendered. Workforce implications involve the direct employment of anesthesiologists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source award limits transparency and accountability in pricing.
Long contract duration without re-competition raises concerns about sustained value.
No indication of small business participation or subcontracting.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Contract addresses a critical healthcare need within the DoD.
Services were delivered over an extended period, indicating reliability.

Sector Analysis

The healthcare sector, particularly medical services, is a significant area of federal spending. Anesthesiology is a specialized field within healthcare. This contract represents a portion of the Department of Defense's broader healthcare procurement, which includes a vast array of medical supplies, equipment, and personnel services. Benchmarking this specific contract is difficult without comparable sole-source anesthesiology contracts, but the overall federal spending on healthcare services is in the hundreds of billions annually.

Small Business Impact

This contract did not involve small business set-asides, nor is there any indication of subcontracting to small businesses. The sole-source nature of the award meant that opportunities for small businesses to participate in providing these specialized anesthesiology services were not explored. This represents a missed opportunity to engage the small business ecosystem within the healthcare sector.

Oversight & Accountability

Oversight mechanisms for this contract would typically fall under the Department of Defense's contracting and financial management regulations. As a sole-source award, the justification for not competing would have required specific documentation and approval. Accountability measures would focus on the contractor's performance against the terms of the purchase order. Transparency is limited due to the lack of a competitive bidding process.

Related Government Programs

Department of Defense Medical Services
Federal Healthcare Procurement
Anesthesiology Services Contracts
Sole-Source Medical Contracts

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for overpayment due to absence of market competition.
Limited transparency regarding the justification for sole-source procurement.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to DEFENSE CIVILIAN MEDICAL ASSOCIATES, LLC. GENERAL ANESTHESIOLOGIST

Who is the contractor on this award?

The obligated recipient is DEFENSE CIVILIAN MEDICAL ASSOCIATES, 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 $26.7 million.

What is the period of performance?

Start: 2008-09-16. End: 2014-01-31.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs, or when a public interest determination is made. For a service like anesthesiology, potential justifications could include unique qualifications of the contractor, specific facility requirements, or a lack of other available providers meeting the stringent criteria. Further investigation into the contract file or agency records would be necessary to ascertain the precise rationale.

How does the total contract value compare to typical spending on anesthesiologist services for similar military facilities?

Direct comparison is difficult without knowing the specific facility's size, patient volume, and the scope of services required. However, $26.7 million over approximately six years averages to about $4.45 million per year. This figure needs to be contextualized against the number of anesthesiologists provided, their hours, and the complexity of cases. Given the sole-source nature, it's impossible to benchmark against competitive bids. To assess value, one would need to compare the contractor's pricing structure against industry benchmarks for similar services in comparable geographic locations, considering the unique demands of a military healthcare setting.

What were the key performance indicators (KPIs) or service level agreements (SLAs) outlined in the contract?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Purchase orders, especially those awarded sole-source over extended periods, typically include clauses related to service delivery standards, availability of personnel, response times, and quality of care. Without access to the full contract document, it's impossible to list the specific KPIs. However, for anesthesiology services, common metrics would likely involve patient safety, adherence to medical protocols, physician availability, and patient satisfaction.

Were there any performance issues or contract modifications during the contract's lifespan?

The available data summary does not provide information on contract modifications or performance issues. The contract duration (2008-2014) and the total award amount are listed, but details regarding amendments, change orders, or any disputes or performance deficiencies are absent. To determine if there were performance issues or modifications, one would need to consult the contract's official record, which might include modification logs, performance reviews, or any associated documentation from the contracting officer.

What is the track record of Defense Civilian Medical Associates, LLC in providing similar services to the government?

Defense Civilian Medical Associates, LLC (DCMA) has a history of providing medical services to government entities. While this specific contract was sole-source, DCMA has likely been involved in other contracts, potentially including competed ones. Their track record would be assessed by examining past performance evaluations, any history of contract disputes or awards, and the breadth of services they offer. A deeper dive into federal procurement databases (like FPDS or SAM.gov) could reveal other contracts awarded to DCMA, their types (competed vs. sole-source), values, and performance ratings, providing a more comprehensive view of their government contracting history.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91YTZ08R0151

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12310 STEEPLE CHASE DR, REISTERSTOWN, MD, 21136

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,218,499

Exercised Options: $28,471,162

Current Obligation: $26,700,407

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline