VA's Midwest medical disability exams contract awarded to Veterans Evaluation Services, Inc. for $117M

Contract Overview

Contract Amount: $117,000,000 ($117.0M)

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: $321.4K/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 3 (MIDWEST)

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $117.0 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 3 (MIDWEST) Key points: 1. The contract focuses on medical disability examinations for veterans in Region 3 (Midwest). 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which helps in cost predictability. 4. The duration of the contract is one year, aligning with the specified performance period. 5. The contractor, Veterans Evaluation Services, Inc., is responsible for delivering these crucial services. 6. The North American Industry Classification System (NAICS) code 621111 indicates services provided by physicians. 7. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $117 million for a one-year period for medical disability examinations in the Midwest region appears to be within a reasonable range for the services provided. Benchmarking against similar large-scale contracts for veteran health services or medical evaluations would provide a more precise assessment of value for money. The firm fixed-price structure offers cost certainty to the VA, but the ultimate value depends on the quality and efficiency of the examinations delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition can influence pricing and service quality, as contractors are incentivized to offer competitive terms to win the award.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings, ensuring the government receives good value for its expenditure.

Public Impact

Veterans in the Midwest region (Region 3) will benefit from timely and accurate medical disability examinations. These examinations are crucial for determining eligibility for disability benefits under the Veterans Benefits Improvements Act. The services support the Department of Veterans Affairs' mission to provide comprehensive care and benefits to veterans. The contract impacts the healthcare services sector by engaging a provider for specialized medical evaluations. The successful execution of this contract ensures veterans receive the support they are entitled to based on their service-connected disabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to prioritize volume over quality if performance metrics are not strictly enforced.
Dependence on a single contractor for a critical service in a large geographic region could pose a risk if performance falters.
Ensuring consistent quality of examinations across all providers working under Veterans Evaluation Services, Inc. is a potential challenge.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm Fixed Price contract type provides cost certainty for the government.
The contract duration of one year allows for periodic review and potential adjustments in subsequent periods.

Sector Analysis

The healthcare services sector, specifically the provision of medical evaluations and assessments, is a significant area of federal spending. This contract falls under the broader category of healthcare support services, which includes a wide range of activities from direct patient care to specialized assessments. The market for these services is competitive, with numerous firms capable of performing such evaluations. The VA's reliance on external contractors for these examinations is common, especially for large-scale or geographically dispersed needs, allowing the agency to manage workload and access specialized expertise.

Small Business Impact

The provided data indicates that small business participation (sb) is false (ss: false, sb: false). This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mandated within this specific award. Therefore, the direct impact on the small business ecosystem for this particular contract may be limited, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying the quality of services delivered. The VA's Office of Inspector General (OIG) may also conduct audits or investigations into the contract's execution and the contractor's practices if any concerns arise regarding waste, fraud, or abuse. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Veterans Health Administration (VHA) Medical Services
VA Disability Compensation Program
TRICARE Medical Services
DoD Medical Evaluation Boards

Risk Flags

Potential for service delays due to contractor capacity or operational issues.
Risk of inconsistent quality of examinations across different providers within the contractor's network.
Dependence on a single entity for a critical veteran service in a large geographic area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $117.0 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 3 (MIDWEST)

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 $117.0 million.

What is the period of performance?

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

What is the historical spending pattern of the VA on medical disability examinations, and how does this $117 million award compare?

The provided data only includes details for this specific $117 million award for Region 3 (Midwest) from October 1, 2021, to September 30, 2022. To understand historical spending patterns, one would need to access broader VA procurement data. This would involve analyzing previous contract awards for similar medical disability examination services, both regionally and nationally, across different fiscal years. Comparing this award's value to the average annual spending on such services, or to the total value of similar contracts awarded in prior years, would reveal whether this represents an increase, decrease, or stable level of investment in these critical veteran support functions. Without access to that broader dataset, it's impossible to definitively state how this specific award fits into the VA's historical financial commitment to disability evaluations.

What is the track record of Veterans Evaluation Services, Inc. in performing similar government contracts, particularly with the VA?

The provided data identifies Veterans Evaluation Services, Inc. as the contractor for this $117 million award. To assess their track record, a review of their past performance on federal contracts, especially those with the Department of Veterans Affairs, would be necessary. This would involve examining contract databases for previous awards to this company, looking at contract values, durations, and agencies served. Key performance indicators, past performance reviews, any documented disputes, or contract terminations would provide crucial insights into their reliability, quality of service, and ability to manage large-scale contracts. A positive track record with the VA would suggest a lower risk for this current contract, while a history of issues might raise concerns about performance and value.

How does the pricing structure (Firm Fixed Price) of this contract ensure value for money compared to other potential pricing models?

A Firm Fixed Price (FFP) contract, like the one awarded to Veterans Evaluation Services, Inc., establishes a set price for the services to be delivered, regardless of the contractor's actual costs. This model offers significant cost certainty to the VA, as the total expenditure is known upfront. For value for money, FFP is generally considered advantageous when the scope of work is well-defined and risks of cost overruns are manageable. It incentivizes the contractor to control costs and operate efficiently to maximize profit. Compared to cost-plus contracts, FFP reduces the risk of contractor overbilling and provides a clearer benchmark for assessing whether the government received the agreed-upon services within the budgeted amount. However, if the scope is poorly defined or unforeseen issues arise, the contractor might be less inclined to perform additional necessary work without renegotiation, potentially impacting the comprehensiveness of the service.

What are the potential risks associated with relying on a single contractor for medical disability examinations in a large region like the Midwest?

Relying on a single contractor, Veterans Evaluation Services, Inc., for medical disability examinations across the entire Midwest region (Region 3) presents several potential risks. Firstly, there's a risk of service disruption if the contractor experiences operational issues, such as staffing shortages, system failures, or financial difficulties. This could lead to delays in examinations and, consequently, in benefit determinations for veterans. Secondly, a lack of direct competition within this specific contract could potentially reduce the incentive for the contractor to continuously improve service quality or efficiency beyond the minimum contractual requirements. Thirdly, if the contractor's performance is subpar, the VA might face challenges in quickly transitioning to a new provider due to the scale and complexity of the services, potentially prolonging negative impacts on veterans.

What are the key performance indicators (KPIs) likely used to measure the success of this contract, and how are they monitored?

While specific KPIs are not detailed in the provided data, typical performance indicators for medical disability examination contracts include timeliness of appointment scheduling, turnaround time for examination reports, accuracy and completeness of reports, veteran satisfaction scores, and compliance with examination protocols. The VA's contracting officers and program managers would monitor these KPIs through regular performance reviews, analysis of contractor-submitted reports, and potentially through direct feedback mechanisms from veterans. Adherence to these metrics ensures that Veterans Evaluation Services, Inc. is meeting the contractual obligations and providing high-quality, timely services essential for the VA's disability claims process. Failure to meet KPIs could lead to corrective actions or penalties as stipulated in the contract.

How does the geographic scope (Region 3 - Midwest) influence the contract's execution and oversight?

The designation of Region 3 (Midwest) as the geographic scope for this $117 million contract implies that Veterans Evaluation Services, Inc. must establish and manage a network of qualified medical professionals and facilities capable of serving veterans across multiple states within this region. This broad geographic coverage necessitates robust logistical planning, quality control across diverse locations, and potentially different state-specific regulations. Oversight becomes more complex, requiring the VA to ensure consistent service delivery and quality standards are maintained regardless of the veteran's location within the Midwest. The contractor must demonstrate the capacity to recruit, credential, and manage examiners across this wide area, and the VA must have mechanisms to verify this capacity and monitor performance remotely or through regional representatives.

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: $117,000,000

Exercised Options: $117,000,000

Current Obligation: $117,000,000

Actual Outlays: $111,194,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0009

IDV Type: IDC

Timeline