VA awards $311M for Medical Disability Exams, facing potential funding limitations

Contract Overview

Contract Amount: $311,183,536 ($311.2M)

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: $854.9K/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 $311.2 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. Significant contract value for essential medical disability examinations. 2. Competition method is 'Full and Open', suggesting a competitive bidding process. 3. Risk of funding availability as stated in the contract terms. 4. Sector is Healthcare, specifically physician services.

Value Assessment

Rating: fair

The contract value of $311M for a 1-year period is substantial. Benchmarking against similar VA contracts for MDE services would be necessary to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. The fixed-price nature of the contract aims to control costs.

Taxpayer Impact: Taxpayer funds are being used for a critical service to veterans, with the potential for competitive pricing to ensure value.

Public Impact

Ensures veterans receive necessary medical evaluations for disability claims. Supports the Department of Veterans Affairs' mission to serve veterans. Potential impact on veterans if funding is not available as prescribed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Availability of Funds Clause (FAR 52.232-18)
Potential for funding disruptions impacting service delivery

Positive Signals

Full and open competition utilized
Firm fixed price contract type

Sector Analysis

This contract falls within the Healthcare sector, specifically for physician services (NAICS 621111). Spending in this area is critical for processing veteran disability claims.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would focus on ensuring timely and accurate medical disability examinations are provided.

Related Government Programs

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

Risk Flags

Availability of Funds Clause
Potential for funding shortfalls impacting service continuity
Reliance on a single vendor for a critical service (if task order specific)
Lack of explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $311.2 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 $311.2 million.

What is the period of performance?

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

What is the historical cost per examination for similar services, and how does this contract's pricing compare?

A detailed cost analysis would require access to historical data for comparable Medical Disability Examinations (MDE) contracts. Benchmarking against these would reveal if the current contract's pricing is competitive or inflated. Without specific per-unit cost data, it's difficult to definitively assess value, but the overall contract value suggests a significant investment in veteran services.

What are the specific risks associated with the 'Availability of Funds' clause and how are they mitigated?

The 'Availability of Funds' clause (FAR 52.232-18) introduces a risk that the contract could be terminated or modified if funds are not appropriated or allocated. Mitigation strategies might include close monitoring of VA budget allocations, contingency planning for alternative funding sources, or contractual clauses that protect the contractor in case of termination due to lack of funds.

How effectively does this contract support the VA's mission to process disability claims in a timely manner?

The effectiveness of this contract in supporting the VA's mission hinges on the contractor's performance in delivering timely and accurate medical disability examinations. Key performance indicators (KPIs) related to turnaround time, accuracy of reports, and veteran satisfaction would be crucial metrics to assess its contribution to efficient claims processing.

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

Parent Company: Maximus Inc

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: $311,183,536

Exercised Options: $311,183,536

Current Obligation: $311,183,536

Actual Outlays: $303,271,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0006

IDV Type: IDC

Timeline