VA awards $113M for medical disability exams, with 7 bidders competing for the contract

Contract Overview

Contract Amount: $113,183,079 ($113.2M)

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: $310.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS (MDE) - THIS TASK ORDER IS SUBJECT TO THE AVAILABILITY OF FUNDS AS PRESCRIBED IN FAR 52.232-18 AVAILABILITY OF FUNDS.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $113.2 million to VETERANS EVALUATION SERVICES, INC for work described as: MEDICAL DISABILITY EXAMINATIONS (MDE) - THIS TASK ORDER IS SUBJECT TO THE AVAILABILITY OF FUNDS AS PRESCRIBED IN FAR 52.232-18 AVAILABILITY OF FUNDS. Key points: 1. The contract value of $113.2 million represents a significant investment in supporting veterans' healthcare needs. 2. With 7 bidders, the competition level suggests a healthy market for these specialized medical services. 3. The firm-fixed-price contract type helps to control costs and provides predictability for the agency. 4. The contract duration of 364 days aligns with the need for ongoing medical evaluation services. 5. The primary service area is Texas, indicating a focused regional approach to fulfilling these MDE requirements. 6. The contract is subject to availability of funds, a common clause for task orders.

Value Assessment

Rating: good

The total contract value of $113.2 million for medical disability examinations appears reasonable given the scope and duration. Benchmarking against similar contracts for MDE services would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control. Without specific per-unit cost data or detailed service delivery metrics, a definitive value assessment is challenging, but the competitive nature of the award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 7 bidders vying for the opportunity. This level of competition is a positive indicator, suggesting that multiple capable vendors were aware of and interested in the requirement. A robust competitive process typically leads to better pricing and service quality as contractors strive to win the award. The agency's decision to pursue full and open competition demonstrates a commitment to maximizing value and exploring the broadest possible vendor pool.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative service delivery. It ensures that the VA is receiving services at a competitive market rate, preventing potential overspending.

Public Impact

Veterans requiring medical disability examinations will benefit from timely and efficient evaluations. The services delivered are crucial for determining eligibility for VA benefits and healthcare. The primary geographic impact is within Texas, ensuring veterans in that state have access to these essential services. The contract supports a network of healthcare professionals and administrative staff involved in conducting and processing these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for funding fluctuations due to 'availability of funds' clause.
Geographic concentration in Texas might limit accessibility for veterans outside the state.
Reliance on a single task order for a critical service could pose continuity risks if not managed well.

Positive Signals

Full and open competition indicates a robust market and likely competitive pricing.
Firm-fixed-price contract type provides cost certainty for the agency.
The contract addresses a critical need for veterans' disability evaluations.

Sector Analysis

The healthcare services sector, particularly within the government contracting space, sees significant demand for specialized medical evaluations. This contract falls under the 'Offices of Physicians' NAICS code, indicating a focus on clinical assessment services. The market for medical disability examinations is driven by the needs of agencies like the VA, which require objective assessments to process claims and determine benefits. Spending in this area is substantial, reflecting the large veteran population and the complexity of disability claims.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless they are participating as subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist and if small businesses are being utilized by the prime contractor, Veterans Evaluation Services, Inc.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, likely through its program managers and contracting officers. The firm-fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is facilitated by the contract award itself being publicly available. Specific Inspector General jurisdiction would depend on the nature of any potential issues, but the VA OIG typically covers such contracts.

Related Government Programs

Veterans Health Administration (VHA) Services
Disability Benefits Questionnaire (DBQ) Processing
TRICARE Medical Evaluations
Federal Employee Health Examinations

Risk Flags

Funding Contingency
Geographic Limitation
Contract Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $113.2 million to VETERANS EVALUATION SERVICES, INC. MEDICAL DISABILITY EXAMINATIONS (MDE) - THIS TASK ORDER IS SUBJECT TO THE AVAILABILITY OF FUNDS AS PRESCRIBED IN FAR 52.232-18 AVAILABILITY OF FUNDS.

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 $113.2 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 (MDE) by the Department of Veterans Affairs?

Historical spending on Medical Disability Examinations (MDE) by the Department of Veterans Affairs (VA) has shown a consistent and significant trend, reflecting the ongoing need to assess veterans' health conditions for benefit eligibility. While specific year-over-year figures fluctuate based on demand, policy changes, and contract vehicles, the overall expenditure has remained substantial. For instance, in recent fiscal years, the VA has obligated billions of dollars towards MDE services, often through a combination of prime contracts, task orders, and support agreements. This spending is distributed across various regions and contractors, with a focus on ensuring timely and accurate evaluations. The $113.2 million awarded in this specific task order represents a portion of this broader annual investment, underscoring the critical nature and scale of MDE services within the VA's healthcare system.

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

Determining the precise per-unit cost for these medical disability examinations and comparing it to industry benchmarks is challenging without access to the detailed pricing structure of the contract. The provided data indicates a total contract value of $113.2 million for a 364-day period, with 7 bidders, suggesting a competitive environment. However, 'per-unit cost' can vary significantly based on the type of examination (e.g., orthopedic, neurological, mental health), the complexity of the case, and the specific services included (e.g., review of records, physical examination, diagnostic tests). Industry benchmarks for similar services can range widely. Generally, government contracts aim for competitive pricing, and the full and open competition here is a positive sign. A thorough benchmark analysis would require comparing the average cost per examination against similar contracts awarded by the VA or other federal agencies for comparable services, considering factors like geographic location and contractor overhead.

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

Veterans Evaluation Services, Inc. (VES) has a significant track record in providing medical disability examination services, particularly to the Department of Veterans Affairs. VES is a well-established entity in this space, often awarded large-scale contracts to support the VA's mission of evaluating veterans' health conditions for benefit claims. Their history includes managing extensive networks of healthcare providers and processing a high volume of examinations. Reviews and performance data available through federal procurement databases (like SAM.gov or FPDS) would offer more granular insights into their past performance, including on-time delivery, quality of service, and client satisfaction. Generally, companies that secure substantial contracts like this one have demonstrated capability and experience in handling complex, high-volume requirements within the federal healthcare sector.

What are the potential risks associated with the 'availability of funds' clause in this contract?

The 'availability of funds' clause (FAR 52.232-18) introduces a specific type of risk for both the contractor and the agency. For the contractor, it means that the contract performance is contingent upon funds being appropriated and allotted by Congress. If funds are not made available, the contract or task order may be terminated or modified, potentially leading to financial losses or disruptions for Veterans Evaluation Services, Inc. For the agency (Department of Veterans Affairs), this clause ensures they do not obligate funds in excess of available appropriations. While common, especially for task orders or contracts that span fiscal years where appropriations might be uncertain, it introduces a layer of uncertainty regarding program continuity. This risk is typically mitigated through careful planning and communication between the agency and the contractor regarding funding status.

How does the geographic focus on Texas impact the overall effectiveness of the MDE program?

The geographic focus on Texas for this specific task order means that Veterans Evaluation Services, Inc. will primarily be conducting medical disability examinations for veterans residing in or accessible to Texas. This regional concentration can enhance program effectiveness within that specific area by allowing for optimized provider networks, streamlined logistics, and potentially faster turnaround times for veterans in Texas. However, it also implies that veterans in other states are not directly served by this particular task order. The VA likely utilizes multiple contracts and task orders with similar scopes across different geographic regions to ensure nationwide coverage. Therefore, while effective for Texas-based veterans, this contract alone does not address the MDE needs of the entire veteran population across the United States.

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: $113,183,079

Exercised Options: $113,183,079

Current Obligation: $113,183,079

Actual Outlays: $111,268,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0011

IDV Type: IDC

Timeline