VA's $123M Medical Disability Exams Contract Awarded to Veterans Evaluation Services, Inc

Contract Overview

Contract Amount: $123,168,448 ($123.2M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-11-28

End Date: 2020-11-27

Contract Duration: 365 days

Daily Burn Rate: $337.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST)

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $123.2 million to VETERANS EVALUATION SERVICES, INC for work described as: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST) Key points: 1. The contract focuses on medical disability examinations for veterans in Region 2 (Southeast). 2. Awarded to Veterans Evaluation Services, Inc. under full and open competition. 3. The contract value is substantial at $123.2 million. 4. This spending falls under the Physicians (except Mental Health Specialists) NAICS code.

Value Assessment

Rating: good

The contract's fixed price structure provides cost certainty. Benchmarking against similar large-scale medical examination contracts would be beneficial for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Taxpayer funds are being used for essential veteran disability evaluations, aiming to ensure fair compensation and benefits.

Public Impact

Ensures veterans receive necessary medical evaluations for disability claims. Supports the Department of Veterans Affairs' mission to provide benefits. Impacts a significant number of veterans in the Southeast region. Contributes to the efficiency of the claims processing system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in examination services.
Dependence on a single contractor for a large region.

Positive Signals

Clear contract duration and delivery order structure.
Awarded via full and open competition.

Sector Analysis

This contract falls within the healthcare services sector, specifically related to medical evaluations. Spending benchmarks for similar large-scale examination contracts are difficult to ascertain without more specific service details.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate medical disability examinations are provided to veterans.

Related Government Programs

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

Risk Flags

Contract duration is relatively short (1 year).
Potential for contractor performance issues impacting veteran claims.
Geographic concentration of services in Region 2.
Reliance on a single contractor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $123.2 million to VETERANS EVALUATION SERVICES, INC. MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST)

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 $123.2 million.

What is the period of performance?

Start: 2019-11-28. End: 2020-11-27.

What is the typical cost per examination under this contract, and how does it compare to industry standards?

The provided data does not detail the cost per examination. The total contract value of $123.2 million over 365 days suggests a significant volume of examinations. A precise per-unit cost benchmark would require knowing the number of examinations performed and comparing it to similar services offered by other providers in the healthcare sector.

What are the key performance indicators (KPIs) used to measure the contractor's performance and ensure quality of examinations?

The contract details do not specify the key performance indicators (KPIs) for Veterans Evaluation Services, Inc. Effective oversight would typically involve metrics related to examination timeliness, accuracy, completeness of reports, and veteran satisfaction. The VA's contracting officer's representative (COR) would be responsible for monitoring these aspects.

How does the VA ensure the independence and objectivity of medical disability examinations conducted by this contractor?

Ensuring independence and objectivity is crucial for disability claims. The VA likely has established protocols and quality assurance measures, such as review of examination reports and potentially audits, to verify the impartiality of the evaluations. The competitive award process also aims to select a qualified provider.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $123,168,448

Exercised Options: $123,168,448

Current Obligation: $123,168,448

Actual Outlays: $10,977,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0006

IDV Type: IDC

Timeline