VA awards $136.9M for medical disability exams in Northeast region, serving veterans

Contract Overview

Contract Amount: $136,904,864 ($136.9M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $376.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

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 1 (NORTHEAST).

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $136.9 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 1 (NORTHEAST). Key points: 1. Contract provides essential medical disability examinations for veterans, directly impacting their benefits. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration is one year, indicating a need for ongoing services. 5. The contractor, Veterans Evaluation Services, Inc., is responsible for delivering these critical services. 6. This contract falls under the 'Offices of Physicians' NAICS code, highlighting the healthcare service nature.

Value Assessment

Rating: good

The contract value of $136.9 million for a one-year period for medical disability examinations appears to be within a reasonable range for the services provided to a large veteran population in the Northeast region. Benchmarking against similar large-scale contracts for veteran health services or disability evaluations would provide a more precise value assessment. The firm-fixed-price structure helps manage cost predictability for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this significant contract. This competitive environment is generally favorable for price discovery and potentially leads to better value for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the VA received competitive bids for essential veteran services.

Public Impact

Veterans in the Northeast region who require medical disability examinations to process their benefits are the primary beneficiaries. The contract ensures the delivery of critical medical evaluation services, supporting the VA's mission. The geographic impact is focused on the Northeast region of the United States. This contract supports healthcare professionals and administrative staff involved in conducting and processing these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to prioritize speed over thoroughness if performance metrics are not strictly enforced.
Dependence on a single contractor for a critical service could pose a risk if service quality degrades.
Ensuring consistent quality of examinations across all providers under the contractor is crucial.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps manage cost certainty.
The contract addresses a vital need for veteran disability evaluations.

Sector Analysis

The healthcare services sector, specifically the provision of medical evaluations, is a significant area of federal spending. This contract fits within the broader category of healthcare support services for government agencies, particularly those serving specific populations like veterans. Comparable spending benchmarks would involve looking at other large-scale contracts for medical examinations or assessments, both within the VA and other agencies like the Social Security Administration.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). While the primary award is to Veterans Evaluation Services, Inc., there may be opportunities for small businesses to participate as subcontractors to the prime contractor, depending on the subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Performance metrics and quality assurance surveillance plans are typically in place to monitor contractor performance. The contract's firm-fixed-price nature provides some cost control, but ongoing monitoring of service delivery and veteran satisfaction is essential for accountability and transparency.

Related Government Programs

Veterans Health Administration Medical Services
Disability Benefits Questionnaires (DBQs)
TRICARE Medical Services
Federal Employee Health Benefits Program Medical Services

Risk Flags

Contract performance risk
Data security and privacy risk
Timeliness of service delivery risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $136.9 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 1 (NORTHEAST).

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 $136.9 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the historical spending pattern for medical disability examinations by the VA in the Northeast region?

Historical spending data for medical disability examinations in the Northeast region by the VA is not directly available in the provided data snippet. However, the current award of $136.9 million for a one-year period suggests a significant and ongoing requirement for these services. To understand historical patterns, one would need to examine prior contract awards for similar services in the same region, looking at contract values, durations, and the number of contractors involved over several fiscal years. This would help identify trends in spending, potential increases or decreases, and the stability of the contracting landscape for these essential veteran services.

How does the per-veteran cost of these medical disability examinations compare to industry benchmarks?

The provided data does not include the number of examinations performed or the total number of veterans served under this contract, making a direct per-veteran cost calculation impossible. To benchmark the per-veteran cost, we would need to know the total number of examinations conducted within the contract period and divide the total contract value ($136.9 million) by that number. Subsequently, this figure could be compared to industry averages for similar medical disability evaluations, which can vary significantly based on the complexity of the examination, geographic location, and the specific medical specialties involved. Without this granular data, a meaningful comparison cannot be made.

What are the key performance indicators (KPIs) used to evaluate Veterans Evaluation Services, Inc.'s performance?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for contracts involving medical disability examinations, typical KPIs often include metrics such as turnaround time for completing examinations and submitting reports, accuracy and completeness of examination reports, veteran satisfaction scores, and adherence to VA protocols and guidelines. The Department of Veterans Affairs would likely have a Quality Assurance Surveillance Plan (QASP) outlining these KPIs and the methods for monitoring and evaluating the contractor's performance against them. Consistent performance against these KPIs is crucial for ensuring the integrity of the disability claims process.

What is the track record of Veterans Evaluation Services, Inc. with VA contracts?

The provided data indicates that Veterans Evaluation Services, Inc. (VES) is the awardee of this $136.9 million contract. While this specific award highlights their current engagement, a comprehensive assessment of their track record with the VA would require reviewing their past performance on other VA contracts, including their history with other medical evaluation services, claims processing support, or related healthcare services. Information on past performance, including any awards, penalties, or contract terminations, would typically be available through federal procurement databases and performance assessment systems like the Contractor Performance Assessment Reporting System (CPARS).

Are there any identified risks associated with the contractor or the nature of these services?

Potential risks associated with this contract include ensuring the consistent quality and accuracy of medical disability examinations across all providers engaged by Veterans Evaluation Services, Inc. There's also a risk related to the timeliness of report submission, as delays can impact veterans' benefit claims. Furthermore, maintaining data security and privacy for sensitive veteran health information is paramount. The VA would typically mitigate these risks through robust contract oversight, performance monitoring, and adherence to strict data protection regulations. The firm-fixed-price nature of the contract helps mitigate financial risk for the government, but performance risk remains.

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: 7

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: $136,904,864

Exercised Options: $136,904,864

Current Obligation: $136,904,864

Actual Outlays: $132,124,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0003

IDV Type: IDC

Timeline