VA awards $137.5M VBA MDE Region 4 contract to OptumServe for physician services

Contract Overview

Contract Amount: $137,488,019 ($137.5M)

Contractor: Optumserve Health 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: $377.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VBA MEDICAL DISABILITY EXAMINATIONS (MDE) REGION 4 OPTION YEAR 1

Place of Performance

Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $137.5 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: VBA MEDICAL DISABILITY EXAMINATIONS (MDE) REGION 4 OPTION YEAR 1 Key points: 1. The contract is for medical disability examinations, a critical service for veterans. 2. OptumServe Health Services, Inc. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The total value is over $137 million for the base year. 5. The contract is firm-fixed-price, indicating clear cost expectations.

Value Assessment

Rating: good

The contract value of $137.5 million for one year appears reasonable for the scope of medical disability examinations across a large region. Benchmarking against similar large-scale examination contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential veteran services.

Public Impact

Ensures timely and accurate medical disability examinations for veterans. Supports the VA's mission to provide benefits and healthcare to veterans. Impacts veterans seeking disability claims and benefits processing. Provides essential healthcare services to a significant veteran population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future options are exercised without re-competition.
Dependence on a single vendor for a critical service.
Ensuring consistent quality of examinations across the region.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract type provides cost certainty.
Supports a vital government function for veterans.

Sector Analysis

This contract falls within the healthcare services sector, specifically related to medical examinations. Spending benchmarks for similar large-scale disability examination contracts would be useful for comparison.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large business. There is no direct information on small business subcontracting opportunities within this award.

Oversight & Accountability

The award was made via a delivery order under a larger contract vehicle. Oversight will focus on performance, quality of examinations, and adherence to the firm-fixed-price terms.

Related Government Programs

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

Risk Flags

Potential for quality variations in examinations.
Dependence on a single contractor for a critical service.
Ensuring timely processing of examinations to avoid veteran claim delays.
Monitoring contractor performance against contract requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $137.5 million to OPTUMSERVE HEALTH SERVICES, INC.. VBA MEDICAL DISABILITY EXAMINATIONS (MDE) REGION 4 OPTION YEAR 1

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE HEALTH 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 $137.5 million.

What is the period of performance?

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

What is the historical performance of OptumServe Health Services, Inc. in delivering similar medical disability examination services?

Assessing OptumServe's past performance on comparable contracts is crucial. This includes evaluating their track record on timeliness, accuracy of reports, veteran satisfaction, and adherence to VA guidelines. A review of past performance evaluations and any documented issues or commendations would provide insight into their capability to meet the demands of this significant contract.

How does the per-examination cost compare to industry benchmarks or previous VA contracts for similar services?

While a per-unit cost is not provided, understanding the average cost per examination is vital for assessing value. Comparing this cost to industry averages for similar medical evaluations and to historical VA contract data can reveal potential cost efficiencies or areas where the pricing might be higher than expected, warranting further investigation.

What mechanisms are in place to ensure the quality and consistency of examinations across Region 4?

Given the large scope and value, robust quality assurance measures are essential. This includes understanding the VA's oversight processes, contractor's internal quality control procedures, examiner credentialing, and audit protocols. Effective mechanisms ensure veterans receive fair and accurate assessments, maintaining the integrity of the disability claims process.

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

Parent Company: Unitedhealth Group Incorporated

Address: 328 FRONT ST S, LA CROSSE, WI, 54601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $137,488,019

Exercised Options: $137,488,019

Current Obligation: $137,488,019

Actual Outlays: $134,503,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0005

IDV Type: IDC

Timeline