VA Awards $819M Delivery Order to Optum for R3 FY25 Services
Contract Overview
Contract Amount: $819,320,445 ($819.3M)
Contractor: Optum Public Sector Solutions, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-05-01
End Date: 2025-05-31
Sector: Healthcare
Official Description: EXPRESS REPORT: R3 FY25 3RD QTR MAY
Plain-Language Summary
Department of Veterans Affairs obligated $819.3 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC. for work described as: EXPRESS REPORT: R3 FY25 3RD QTR MAY Key points: 1. Significant contract value of $819.32 million awarded. 2. Optum Public Sector Solutions, Inc. is the sole awardee. 3. Contract duration is for one month (May 2025). 4. Focus on R3 FY25 services indicates ongoing program support.
Value Assessment
Rating: questionable
The contract is a single delivery order for one month, making a direct pricing comparison difficult. The large value for a short period warrants scrutiny to ensure efficiency and necessity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, likely a modification or extension of existing services. Without competition, the VA relies on negotiation to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are committed to this contract, and the lack of competition raises questions about potential overpayment or suboptimal pricing.
Public Impact
Veterans' healthcare services may be impacted by the R3 program. The substantial award highlights the VA's reliance on specific contractors for critical functions. Transparency in sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Short duration, high value
- Lack of competition
Positive Signals
- Supports ongoing VA programs
- Potential for specialized expertise
Sector Analysis
This award falls within the healthcare sector, specifically related to public sector IT and administrative services for the VA. Spending benchmarks in this area are highly variable based on service scope.
Small Business Impact
There is no indication of small business participation in this specific delivery order. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
Oversight is critical for sole-source contracts to ensure the government receives fair value and that the services provided are necessary and cost-effective.
Related Government Programs
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Risk of vendor lock-in if this is a recurring sole-source award.
- Limited transparency on the specific services and justification.
- Short contract duration with a high value may indicate urgency or scope creep.
Tags
department-of-veterans-affairs, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $819.3 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC.. EXPRESS REPORT: R3 FY25 3RD QTR MAY
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 $819.3 million.
What is the period of performance?
Start: 2025-05-01. End: 2025-05-31.
What specific R3 FY25 services are being procured, and why is this a sole-source award?
The specific R3 FY25 services are not detailed in the provided data. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgency, or continuation of a previous contract where competition is not feasible or cost-effective.
What is the historical pricing for these R3 services, and how does this award compare?
Historical pricing data is not available in the provided extract. A comprehensive review would require access to previous contract modifications, task orders, and pricing structures for similar R3 services to establish a benchmark and assess the current award's value.
What is the VA's strategy for ensuring cost-effectiveness and value in sole-source healthcare IT contracts?
The VA employs various strategies, including market research, negotiation techniques, and independent cost estimates, to ensure cost-effectiveness in sole-source procurements. Robust internal review processes and potentially leveraging government-wide acquisition contracts can also help achieve better value and oversight.
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.)