DoD's $24M Contract for Med-Surg Nurses: Fair Value Amidst Full and Open Competition
Contract Overview
Contract Amount: $24,093,703 ($24.1M)
Contractor: R B Company, LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-01
End Date: 2014-03-31
Contract Duration: 1,764 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 50
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MED-SURG REGISTERED NURSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20307
Plain-Language Summary
Department of Defense obligated $24.1 million to R B COMPANY, LLC for work described as: MED-SURG REGISTERED NURSES Key points: 1. The contract awarded to R B COMPANY, LLC for registered nurses represents a significant investment in healthcare services. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The fixed-price contract structure shifts performance risk to the contractor. 4. The sector is healthcare services, specifically within the Department of Defense's operational needs.
Value Assessment
Rating: good
The contract's total value of $24 million over nearly five years suggests a reasonable annual spend. Benchmarking against similar contracts for registered nursing services would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process that aimed to maximize value. This method generally leads to better pricing through market forces.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for essential medical services.
Public Impact
Ensures critical medical-surgical nursing support for military personnel and their families. Supports the operational readiness of the Department of Defense's healthcare facilities. Provides employment opportunities for registered nurses within the healthcare sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value assessment challenging.
- Contract duration of nearly 5 years may not fully adapt to evolving healthcare needs or market rates.
Positive Signals
- Full and open competition promotes price fairness.
- Firm fixed-price contract aligns contractor incentives with cost control.
- Awarded by the Department of Defense, indicating a critical need.
Sector Analysis
This contract falls within the healthcare services sector, specifically for medical-surgical registered nurses. Spending in this area is crucial for maintaining military readiness and supporting healthcare infrastructure.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses had an opportunity to participate in the competition.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard government oversight mechanisms would apply to ensure contractor performance and compliance.
Related Government Programs
- Offices of All Other Miscellaneous Health Practitioners
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price inflation due to source exclusion.
- Limited transparency on per-unit cost benchmarks.
- Long contract duration may not reflect current market conditions.
- No explicit mention of small business participation.
Tags
offices-of-all-other-miscellaneous-healt, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to R B COMPANY, LLC. MED-SURG REGISTERED NURSES
Who is the contractor on this award?
The obligated recipient is R B COMPANY, 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 $24.1 million.
What is the period of performance?
Start: 2009-06-01. End: 2014-03-31.
What was the average hourly or daily rate paid to nurses under this contract, and how does it compare to market rates for similar services in the same geographic region?
Without specific breakdowns of the total contract value by the number of nursing hours or days, calculating an average rate is not possible from the provided data. A comparison to market rates would require access to external salary data for registered nurses in the District of Columbia and surrounding areas, considering experience levels and specialization.
What were the specific reasons for excluding other potential sources, and did this exclusion potentially limit competition or inflate costs?
The data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implying that while the competition was open, certain sources might have been excluded based on specific criteria or requirements. The exact reasons for exclusion are not detailed, but such exclusions can sometimes limit the pool of bidders, potentially impacting price discovery and overall cost-effectiveness if not justified by unique capabilities.
How effectively did the firm fixed-price contract structure incentivize R B COMPANY, LLC to deliver high-quality nursing services within budget, and what was the actual performance outcome?
The firm fixed-price structure incentivizes the contractor to manage costs effectively to maximize profit. However, the provided data does not include performance metrics or quality outcomes. Assessing effectiveness would require reviewing performance reports, patient satisfaction surveys, and any documented issues or successes during the contract period.
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 › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91YTZ09R0007
Offers Received: 50
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6301 IVY LN STE 700, GREENBELT, MD, 20770
Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $31,837,927
Exercised Options: $24,093,703
Current Obligation: $24,093,703
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-01
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2022-04-07
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