VA awards $791.8M contract to Optum for R3 FY25 services
Contract Overview
Contract Amount: $791,841,212 ($791.8M)
Contractor: Optum Public Sector Solutions, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-03-01
End Date: 2025-03-31
Sector: Healthcare
Official Description: EXPRESS REPORT: R3 FY25 2ND QTR MARCH
Plain-Language Summary
Department of Veterans Affairs obligated $791.8 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC. for work described as: EXPRESS REPORT: R3 FY25 2ND QTR MARCH Key points: 1. Significant award value of $791.8 million for a single quarter. 2. Optum Public Sector Solutions, Inc. is the sole awardee. 3. Contract type is a Delivery Order, indicating a specific task. 4. Focus on R3 FY25 services suggests ongoing program support.
Value Assessment
Rating: questionable
The contract is a Delivery Order, making direct pricing comparison difficult without task-specific details. The large award value suggests significant scope, but the lack of competition raises concerns about optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for the services rendered.
Public Impact
Veterans' healthcare services are likely impacted by this significant funding. The large sum allocated could fund substantial technological or operational improvements. Dependence on a single vendor for critical services poses a potential risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical VA operations
- Potential for streamlined service delivery
Sector Analysis
This award falls within the Healthcare sector, specifically supporting the Department of Veterans Affairs. Healthcare IT and services contracts can be substantial, but competition is crucial for cost-effectiveness.
Small Business Impact
There is no indication of small business participation in this specific award. Future contracts should explore opportunities for small businesses to contribute to VA services.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the services meet all requirements effectively.
Related Government Programs
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value increases financial risk if not managed effectively.
- Dependence on a single vendor can create operational vulnerabilities.
- Lack of transparency in pricing due to sole-source nature.
Tags
department-of-veterans-affairs, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $791.8 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC.. EXPRESS REPORT: R3 FY25 2ND QTR MARCH
Who is the contractor on this award?
The obligated recipient is OPTUM PUBLIC SECTOR SOLUTIONS, INC..
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 $791.8 million.
What is the period of performance?
Start: 2025-03-01. End: 2025-03-31.
What specific R3 services are being procured, and how do they align with VA's strategic goals?
The R3 (Ready, Reliable, Resilient) program likely encompasses critical IT infrastructure, software, and support services essential for the VA's operational continuity and modernization efforts. Understanding the specific components will clarify how this significant investment directly contributes to enhancing veterans' access to care and improving internal efficiencies.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
Sole-source awards are typically justified by unique capabilities, urgent needs, or lack of market alternatives. The VA must provide a robust justification detailing why Optum was the only viable option and demonstrate that market research was conducted to ensure no other qualified vendors could meet the requirements, thereby safeguarding taxpayer interests.
How will the effectiveness and value of these services be measured and ensured throughout the contract period?
Effectiveness will be measured through key performance indicators (KPIs) tied to service uptime, response times, and user satisfaction. Value will be assessed by comparing delivered outcomes against the contract's objectives and ensuring that the pricing remains competitive relative to similar market services, with regular performance reviews and potential for contract modifications.
More Contracts from Optum Public Sector Solutions, Inc.
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- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Department of Veterans Affairs)
- CCN Region Three FY21 Express Report — $3.1B (Department of Veterans Affairs)
- Express Report: FY21 — $2.9B (Department of Veterans Affairs)
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Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)