VA Awards $18M for Medical Credentialing to Ross Agency, Inc. Under SAP

Contract Overview

Contract Amount: $18,004,769 ($18.0M)

Contractor: THE Ross Agency, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-12-03

End Date: 2025-12-02

Contract Duration: 1,825 days

Daily Burn Rate: $9.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEDICAL CREDENTIALING FOR VBA'S MDE PROGRAM

Place of Performance

Location: SPRINGFIELD, SANGAMON County, ILLINOIS, 62704

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.0 million to THE ROSS AGENCY, INC. for work described as: MEDICAL CREDENTIALING FOR VBA'S MDE PROGRAM Key points: 1. Contract awarded to The Ross Agency, Inc. for $18M. 2. Service category is Investigation and Personal Background Check Services. 3. Competition was conducted under Special Access Program (SAP). 4. Contract duration is 5 years, ending December 2, 2025. 5. Firm Fixed Price contract type.

Value Assessment

Rating: fair

The contract value of $18M over 5 years is substantial for credentialing services. Benchmarking is difficult without specific service details and comparable SAP contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting limited competition due to security or proprietary information. This can impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for essential medical credentialing services for veterans, with potential for cost inefficiencies due to limited competition.

Public Impact

Ensures qualified medical professionals serve veterans. Supports the VBA's Medical Disability Examination (MDE) program. Potential for long-term impact on veteran healthcare access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for cost overruns in SAP environments.
Long contract duration.

Positive Signals

Essential service for veteran healthcare.
Established vendor for a critical program.

Sector Analysis

The IT and professional services sector, particularly background check and credentialing, is competitive. However, SAP contracts often operate with fewer bidders, impacting typical market benchmarks.

Small Business Impact

No indication of small business participation in this SAP-competed contract.

Oversight & Accountability

Oversight is crucial for SAP contracts to ensure fair pricing and performance, given the inherent limitations on transparency.

Related Government Programs

Investigation and Personal Background Check Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Potential for higher costs due to SAP.
Lack of public pricing benchmarks.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.0 million to THE ROSS AGENCY, INC.. MEDICAL CREDENTIALING FOR VBA'S MDE PROGRAM

Who is the contractor on this award?

The obligated recipient is THE ROSS AGENCY, 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 $18.0 million.

What is the period of performance?

Start: 2020-12-03. End: 2025-12-02.

What specific factors necessitated the use of SAP for this credentialing service, and how did it affect the pricing?

The use of SAP likely stems from the sensitive nature of the data involved in medical credentialing for the VBA's MDE program. This classification restricts the pool of potential bidders, potentially increasing costs compared to a fully open competition. The specific factors and their precise impact on pricing would require access to classified or restricted documentation.

How does the $18M contract value compare to industry benchmarks for similar credentialing services, considering the SAP environment?

Direct comparison to industry benchmarks is challenging due to the SAP classification. Standard benchmarks are unlikely to apply. The value represents a significant investment, and its reasonableness is difficult to assess without insight into the specific requirements, service levels, and the limited competitive landscape inherent in SAP procurements.

What mechanisms are in place to ensure the effectiveness and value for money of this contract, given the limited transparency of SAP?

Effectiveness and value are typically ensured through stringent performance metrics, regular reviews, and robust contract management by the agency, even within SAP. The VA would monitor deliverables and outcomes closely. However, the limited transparency inherent in SAP makes independent verification of value for money more difficult for external observers.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C10X21Q0024

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2131 W WHITE OAKS DR STE B, SPRINGFIELD, IL, 62704

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,822,078

Exercised Options: $18,979,109

Current Obligation: $18,004,769

Actual Outlays: $15,020,463

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline