VA awards $20.5M contract for vocational rehabilitation services to VR & E SERVICE FOR VETERANS LLC

Contract Overview

Contract Amount: $20,480 ($20.5K)

Contractor: VR & E Service for Veterans LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2027-03-31

Contract Duration: 363 days

Daily Burn Rate: $56/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DETROIT VRE OFFICE CHAPTER 31 LOCAL DISCRETE SERVICES

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20,480 to VR & E SERVICE FOR VETERANS LLC for work described as: DETROIT VRE OFFICE CHAPTER 31 LOCAL DISCRETE SERVICES Key points: 1. Contract aims to provide essential vocational rehabilitation and employment services to veterans. 2. The contract is a firm-fixed-price delivery order, indicating predictable costs for the government. 3. Competition under SAP suggests a streamlined procurement process, potentially for smaller value contracts. 4. The duration of the contract is approximately one year, allowing for regular performance review. 5. The services fall under NAICS code 624310, Vocational Rehabilitation Services. 6. The awardee, VR & E SERVICE FOR VETERANS LLC, will be responsible for delivering these critical services.

Value Assessment

Rating: good

The contract value of $20.5 million for a one-year period for vocational rehabilitation services appears to be within a reasonable range for such specialized support. Benchmarking against similar contracts for veteran services requires access to a broader dataset of comparable awards. However, the firm-fixed-price structure suggests that the government has a clear understanding of the expected costs, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically implies a less extensive competition than full and open procedures. While the specific number of bidders is not provided, SAP is often used for contracts below certain thresholds where competition might be limited to a smaller pool of pre-qualified vendors or through specific set-aside programs. This approach can expedite the acquisition process but may not always yield the lowest possible price.

Taxpayer Impact: The use of SAP suggests a balance between efficient procurement and achieving competitive pricing. Taxpayers benefit from a potentially faster delivery of services to veterans, though the level of price competition might be less intense than in larger, full-and-open procurements.

Public Impact

Veterans in Michigan will benefit from enhanced vocational rehabilitation and employment support. The contract will facilitate services aimed at helping veterans transition to civilian employment. Geographic impact is focused on Michigan, where the services will be delivered. The contract supports the workforce by providing employment opportunities for those delivering the rehabilitation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP could impact price optimization.
Dependence on a single awardee for critical veteran services requires close performance monitoring.
Scope creep could increase costs if not managed effectively within the firm-fixed-price structure.

Positive Signals

Focus on a specific NAICS code ensures specialized service delivery.
Firm-fixed-price contract provides cost certainty for the government.
Clear end dates for the contract allow for future re-evaluation of needs and vendor performance.

Sector Analysis

The vocational rehabilitation services sector is a critical component of government support for individuals seeking employment, particularly for veterans transitioning from military service. This contract fits within the broader healthcare and social assistance sector (NAICS 624310). The market for these services involves specialized providers with expertise in career counseling, job placement, and adaptive training. Spending in this area is often driven by legislative mandates and the need to support veteran reintegration into the workforce.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was competed under SAP, it's possible that small businesses were encouraged to bid, or that this was not a specific set-aside. Further analysis would be needed to determine the extent of small business participation and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs program officials responsible for vocational rehabilitation services. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs - Vocational Rehabilitation and Employment (VR&E)
Department of Labor - Veterans' Employment and Training Service (VETS)
State Workforce Agencies - Veteran Services

Risk Flags

Potential for limited competition
Contract performance risk
Scope management risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20,480 to VR & E SERVICE FOR VETERANS LLC. DETROIT VRE OFFICE CHAPTER 31 LOCAL DISCRETE SERVICES

Who is the contractor on this award?

The obligated recipient is VR & E SERVICE FOR VETERANS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $20,480.

What is the period of performance?

Start: 2026-04-02. End: 2027-03-31.

What is the track record of VR & E SERVICE FOR VETERANS LLC with the Department of Veterans Affairs?

A thorough review of VR & E SERVICE FOR VETERANS LLC's past performance with the Department of Veterans Affairs (VA) is crucial for assessing this award. While the provided data indicates this is a new award, understanding the company's history with federal contracts, particularly with the VA, would reveal its reliability, quality of service, and adherence to contractual obligations. Information on previous contracts, their values, durations, and any performance reviews or disputes would offer significant insight. Without this historical data, it's difficult to definitively assess the contractor's suitability beyond the immediate award details. Future performance will be a key indicator.

How does the value of this contract compare to similar vocational rehabilitation services procured by the VA?

The $20.5 million contract value for vocational rehabilitation services over approximately one year needs to be benchmarked against similar procurements by the VA and other federal agencies. Without access to a comprehensive database of comparable contracts, a precise comparison is challenging. However, the value suggests a significant scope of service delivery. Factors influencing this value include the number of veterans to be served, the complexity of their needs, and the specific services offered (e.g., job training, placement assistance, counseling). A higher value might indicate a larger client base or more intensive support requirements compared to smaller contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential underperformance by the contractor, leading to inadequate support for veterans, and the possibility of cost overruns if the firm-fixed-price model is not strictly managed. Another risk is the limited competition indicated by the use of SAP, which might mean the VA did not secure the most competitive pricing. Mitigation strategies likely involve robust performance monitoring by the VA, clear contractual deliverables, and regular progress reviews. The VA's established oversight mechanisms are intended to address these risks, ensuring that veterans receive the necessary services and that taxpayer funds are used efficiently.

How effective is the VA's current approach to procuring vocational rehabilitation services through contracts like this one?

The effectiveness of the VA's procurement approach for vocational rehabilitation services is multifaceted. The use of firm-fixed-price contracts aims for cost predictability, while competing under SAP seeks efficiency. The ultimate measure of effectiveness lies in the successful reintegration of veterans into the workforce. Data on veteran employment rates, job retention, and satisfaction levels post-service would be key indicators. While this specific contract award is a step in service delivery, a broader analysis of the VA's VR&E program outcomes and procurement strategies over time would provide a more comprehensive assessment of its overall effectiveness.

What are the historical spending patterns for vocational rehabilitation services by the Department of Veterans Affairs?

Historical spending patterns for vocational rehabilitation services by the VA reveal a consistent commitment to supporting veterans' employment needs. The VA's VR&E program has historically received substantial funding to address the diverse challenges veterans face in the job market, including those with service-connected disabilities. Spending fluctuates based on veteran population needs, economic conditions, and legislative priorities. Analyzing past budgets and contract awards for VR&E services would show trends in program scope, service provider engagement, and overall investment. This context helps in evaluating whether the current $20.5 million award represents an increase, decrease, or stable level of investment in these critical services.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11245 CARROZA CT, SAN DIEGO, CA, 92124

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,480

Exercised Options: $20,480

Current Obligation: $20,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10E22D0003

IDV Type: IDC

Timeline