DoD's $17M nursing contract with Catalyst Professional Services saw 31 bids, raising value-for-money questions

Contract Overview

Contract Amount: $17,030,709 ($17.0M)

Contractor: Catalyst Professional Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-06-01

End Date: 2014-03-31

Contract Duration: 1,764 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TELEMETRY/STEP DOWN/PACU REGISTERED NURSES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to CATALYST PROFESSIONAL SERVICES, INC. for work described as: TELEMETRY/STEP DOWN/PACU REGISTERED NURSES Key points: 1. The contract's duration of 1764 days (approx. 4.8 years) suggests a long-term need for specialized nursing services. 2. A high number of bids (31) indicates significant market interest, potentially driving competitive pricing. 3. The firm fixed-price contract type aims to control costs, but performance monitoring is crucial. 4. The contract's focus on 'TELEMETRY/STEP DOWN/PACU REGISTERED NURSES' highlights a specific, critical healthcare need within the DoD. 5. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity. 6. The contract's completion date in 2014 means current market comparisons may be less relevant without updated data.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this contract is challenging due to its age and the specialized nature of the services. The initial award amount of $17 million over nearly five years suggests a significant investment in nursing staff. Without access to the specific deliverables and performance metrics, it's difficult to definitively assess if the pricing was competitive against similar contracts awarded around the 2009-2014 timeframe. The large number of bidders, however, implies a degree of market competition that should have theoretically led to reasonable pricing.

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 that while the competition was initially broad, certain sources may have been excluded prior to the final award. The presence of 31 bidders suggests a robust level of interest in this requirement. This high number of bids generally points to a healthy competitive environment, which should theoretically lead to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A high number of bidders typically benefits taxpayers by fostering competition that can drive down prices and encourage innovation among contractors vying for the award.

Public Impact

Military healthcare facilities benefit from the provision of specialized registered nurses, ensuring critical patient care. Services delivered likely include telemetry monitoring, step-down unit care, and post-anesthesia care unit support. The geographic impact is primarily within Department of Defense healthcare facilities, likely concentrated where these specialized units operate. Workforce implications include the provision of skilled nursing professionals to support military medical readiness and personnel health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's age (awarded in 2009, ended in 2014) makes direct value comparisons difficult without updated market data.
The specific exclusion of sources prior to full and open competition warrants further investigation into the rationale.
Lack of detail on performance metrics makes it hard to assess the quality of services rendered against the cost.
The 'DEFINITIVE CONTRACT' type, while flexible, requires diligent oversight to manage scope and cost effectively.

Positive Signals

The high number of bidders (31) indicates strong market interest and a competitive procurement process.
The firm fixed-price contract type provides cost certainty for the government, assuming effective performance.
The focus on specialized nursing roles addresses a critical need within military healthcare.

Sector Analysis

This contract falls within the Healthcare services sector, specifically focusing on specialized nursing staff augmentation for government facilities. The market for healthcare staffing is substantial, with significant government spending directed towards supporting military and veteran health. Comparable spending benchmarks would involve analyzing other contracts for registered nurses, particularly those with telemetry, step-down, or PACU specializations, across federal agencies and within the broader healthcare industry.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as 'ss' (small business set-aside) and 'sb' (small business) are both false. This suggests the contract was not specifically targeted to encourage small business prime contractors. However, the prime contractor, Catalyst Professional Services, Inc., may have utilized small businesses for subcontracting, though this information is not provided in the summary data. The lack of a set-aside could mean larger, more established firms were better positioned to compete.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting agency, the Department of the Army, within the Department of Defense. As a definitive contract, it likely involved regular performance reviews and financial audits to ensure compliance with terms and conditions. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to performance metrics and adherence to the firm fixed-price agreement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Medical Personnel Contracts
Nursing Services Procurement
Healthcare Staffing Augmentation
Federal Healthcare Services
Military Medical Readiness

Risk Flags

Potential for uncompetitive pricing due to source exclusion
Lack of detailed performance metrics in summary data
Difficulty in benchmarking value due to contract age
Definitive contract type requires ongoing oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to CATALYST PROFESSIONAL SERVICES, INC.. TELEMETRY/STEP DOWN/PACU REGISTERED NURSES

Who is the contractor on this award?

The obligated recipient is CATALYST PROFESSIONAL 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 $17.0 million.

What is the period of performance?

Start: 2009-06-01. End: 2014-03-31.

What was the specific rationale for excluding certain sources before the 'full and open competition' phase?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that a preliminary screening or justification process occurred, leading to the exclusion of some potential bidders before the broader competition commenced. This could be due to various reasons, such as specific technical requirements, past performance issues with certain companies, or a pre-determined need for specific capabilities that only a subset of the market could provide. Without further documentation from the contracting agency (Department of the Army), the precise reasons for this exclusion remain unclear. Typically, such exclusions require documented justifications to ensure fairness and prevent undue market restriction. Understanding this rationale is key to assessing whether the competition was truly as open as possible and if it potentially limited price discovery.

How did the final contract value compare to the initial estimated value, and what factors influenced any discrepancies?

The provided data indicates an award amount of $17,0,30708.92, but does not specify an initial estimated value or ceiling for the contract. As a 'DEFINITIVE CONTRACT,' it allows for orders to be placed up to a certain limit over its duration. The 'FIRM FIXED PRICE' type suggests that the price per unit or service was established upfront. Discrepancies between initial estimates and final costs can arise from variations in the quantity of services ordered, changes in contract scope (if modifications were made), or unforeseen market fluctuations affecting labor costs, although the FFP structure aims to mitigate the latter. Without the initial estimate or ceiling value, a direct comparison is not possible. However, the total obligated amount reflects the actual expenditure over the contract's life.

What were the key performance indicators (KPIs) for the registered nurses, and how was performance measured?

The provided summary data does not include specific Key Performance Indicators (KPIs) or details on how the performance of the registered nurses contracted through Catalyst Professional Services was measured. For a contract of this nature, typical KPIs might include patient-to-nurse ratios, patient outcomes (e.g., infection rates, readmission rates), adherence to clinical protocols, timeliness of care, and patient satisfaction scores. Performance would likely be assessed through regular reports from the contracting officer's representative (COR) at the Department of the Army facility, potentially supplemented by feedback from clinical supervisors and patient surveys. The effectiveness of the firm fixed-price contract relies heavily on robust performance monitoring to ensure the quality and necessity of the services provided.

Can we compare the per-diem or hourly rates paid under this contract to market rates for similar nursing specialties during the contract period (2009-2014)?

Directly comparing the per-diem or hourly rates paid under this $17 million contract to market rates from 2009-2014 is challenging without access to the specific pricing structure within the firm fixed-price agreement and comprehensive market data from that period. The contract covered specialized roles like telemetry, step-down, and PACU nurses, which typically command higher rates than general duty nurses. Market rates for these specialties varied significantly by geographic location and the specific healthcare facility's needs. While 31 bidders suggest competition, which should theoretically align rates with market norms, the 'exclusion of sources' element adds a layer of complexity. Accessing historical salary surveys or government contract databases from that era focusing on nursing compensation would be necessary for a more precise benchmark analysis.

What was the total spending on nursing services by the Department of the Army in the years surrounding this contract's award and completion?

To determine the total spending on nursing services by the Department of the Army around the 2009-2014 period of this contract, one would need to analyze historical federal procurement data. This involves querying databases like the Federal Procurement Data System (FPDS) for contracts categorized under relevant Product Service Codes (PSCs) related to nursing and medical staffing, specifically within the Department of the Army. This contract represented approximately $17 million of that total. Understanding the broader spending context helps in assessing whether this particular contract was an outlier, a standard investment, or part of a larger trend in military healthcare staffing procurement during that timeframe.

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: W91YTZ09R0018

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1490 GARDEN OF THE GODS RD B, COLORADO SPRINGS, CO, 80907

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,136,712

Exercised Options: $17,030,709

Current Obligation: $17,030,709

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline