VA's $204M Medical Disability Exams Contract Awarded to Veterans Evaluation Services, Inc

Contract Overview

Contract Amount: $204,000,000 ($204.0M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $560.4K/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 $204.0 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 Department of Veterans Affairs (VA) awarded a $204 million contract for Medical Disability Examinations (MDES) in Region 2 (Southeast). 2. Veterans Evaluation Services, Inc. (VES) is the sole awardee for this contract. 3. The contract covers a 364-day period from October 1, 2021, to September 30, 2022. 4. This spending falls under NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists)'. 5. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $204 million for a one-year period appears reasonable for the scope of medical disability examinations across a large region. Benchmarking against similar large-scale examination contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential veteran services.

Public Impact

Veterans in Region 2 (Southeast) will continue to receive necessary medical disability examinations. The contract ensures continuity of services for determining disability benefits for veterans. The award to VES supports the VA's mission to provide comprehensive care and benefits to veterans. Efficient processing of disability claims can lead to timely financial and medical support for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently good.
Dependence on a single vendor for a critical service.

Positive Signals

Awarded under full and open competition.
Clear contract period and scope.
Supports a vital veteran service.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical evaluations for disability claims. Spending benchmarks for similar large-scale examination contracts can vary significantly based on geographic scope and service complexity.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The contract was awarded under full and open competition, which may or may not have included opportunities for small business participation as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate medical disability examinations are provided. Performance metrics and quality assurance processes are crucial for accountability.

Related Government Programs

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

Risk Flags

Sole awardee for a critical service.
Potential for performance degradation over time.
Dependence on vendor's capacity and quality control.
Geographic concentration of service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $204.0 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 $204.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical performance of Veterans Evaluation Services, Inc. with the VA or similar agencies?

Assessing the past performance of Veterans Evaluation Services, Inc. is crucial for understanding their reliability and quality of service. Reviewing previous contracts, client feedback, and any documented performance issues or successes with the VA or other government entities would provide insight into their capabilities and potential risks associated with this award.

How does the per-exam cost under this contract compare to industry benchmarks or previous VA contracts?

Benchmarking the cost per medical disability examination against industry standards and the VA's own historical data is essential for evaluating value. If the cost per exam is significantly higher than comparable services, it could indicate potential overspending or inefficiencies, warranting further investigation into the contract's pricing structure and scope.

What mechanisms are in place to ensure the quality and consistency of examinations provided by VES?

Robust quality assurance mechanisms are vital to ensure the accuracy and consistency of medical disability examinations. Understanding the VA's oversight procedures, including regular audits, performance reviews, and feedback channels for veterans, is key to assessing the effectiveness of this contract in serving its intended purpose.

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: $204,000,000

Exercised Options: $204,000,000

Current Obligation: $204,000,000

Actual Outlays: $202,400,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0006

IDV Type: IDC

Timeline