VA Awards $196M for Medical Disability Exams to Veterans Evaluation Services, Inc

Contract Overview

Contract Amount: $196,155,543 ($196.2M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-12-13

End Date: 2018-03-12

Contract Duration: 89 days

Daily Burn Rate: $2.2M/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD A TASK ORDER AGAINST AN IDIQ CONTRACT FOR THE PROVISION OF MEDICAL DISABILITY EXAMS IN VARIOUS US LOCATIONS.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $196.2 million to VETERANS EVALUATION SERVICES, INC for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD A TASK ORDER AGAINST AN IDIQ CONTRACT FOR THE PROVISION OF MEDICAL DISABILITY EXAMS IN VARIOUS US LOCATIONS. Key points: 1. Significant contract value of $196M for essential medical disability exams. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on veteran services highlights a critical government function. 4. The contract spans multiple US locations, indicating broad geographic reach.

Value Assessment

Rating: questionable

The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar medical examination services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a nearly $200M contract may result in the government paying more than necessary, impacting taxpayer funds.

Public Impact

Veterans will continue to receive necessary medical disability examinations. The contract ensures continuity of services for a critical veteran support function. Potential for higher costs due to lack of competition could impact overall VA budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Essential service provision
Supports veteran community

Sector Analysis

The healthcare sector, particularly services supporting veterans, often involves significant government spending. Benchmarks for similar medical examination contracts are difficult to establish without competitive data.

Small Business Impact

The data indicates this contract was not awarded to a small business, representing a missed opportunity for small business participation in this significant federal spend.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained fair and reasonable pricing and that justification for not competing is robust.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $196.2 million to VETERANS EVALUATION SERVICES, INC. THE PURPOSE OF THIS ACTION IS TO AWARD A TASK ORDER AGAINST AN IDIQ CONTRACT FOR THE PROVISION OF MEDICAL DISABILITY EXAMS IN VARIOUS US LOCATIONS.

Who is the contractor on this award?

The obligated recipient is VETERANS EVALUATION SERVICES, 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 $196.2 million.

What is the period of performance?

Start: 2017-12-13. End: 2018-03-12.

What is the justification for awarding this significant contract on a sole-source basis?

The justification for a sole-source award typically involves specific circumstances, such as the unique capability of the contractor, urgent need, or lack of adequate competition. Without further details, it's impossible to ascertain the precise reason, but it's a critical factor in evaluating the procurement's fairness and efficiency.

How does the pricing compare to industry standards for similar services, given the sole-source nature?

Assessing the pricing against industry standards is challenging without competitive bids. The government relies on cost analysis and negotiation for sole-source contracts. A lack of competition inherently limits the ability to benchmark against market-driven prices, potentially leading to suboptimal cost outcomes for the taxpayer.

What is the long-term impact on veteran services if competition is consistently avoided for these essential exams?

Consistently avoiding competition for essential services like disability exams could lead to complacency in service quality and pricing. Over time, this may result in inflated costs that divert funds from other critical veteran programs or necessitate budget increases. It also limits opportunities for innovative providers to enter the market.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc

Address: 2707 NORTH LOOP W # 1000, HOUSTON, TX, 77008

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

Financial Breakdown

Contract Ceiling: $216,199,566

Exercised Options: $196,155,543

Current Obligation: $196,155,543

Actual Outlays: $-5,991,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X18D0014

IDV Type: IDC

Timeline