VA awards $381M task order to VETERANS EVALUATION SERVICES, INC for physician services in FY24

Contract Overview

Contract Amount: $381,143,279 ($381.1M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY24 FUNDING TASK ORDER.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $381.1 million to VETERANS EVALUATION SERVICES, INC for work described as: FY24 FUNDING TASK ORDER. Key points: 1. The contract value represents a significant investment in physician services for veterans. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contractor performance and contract type. 4. Performance context is provided by comparing this award to similar healthcare contracts. 5. The contract positions the VA within the broader healthcare services sector. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The awarded amount of $381.14 million for a one-year period suggests a substantial need for physician services. Benchmarking against similar contracts for medical evaluations and physician staffing within the VA or other federal agencies would provide a clearer picture of value for money. The firm-fixed-price contract type generally offers predictable costs, but the per-unit cost of services rendered is crucial for a definitive value assessment. Without specific service delivery metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging, but the scale of the award indicates a significant program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this competitive process is generally expected to yield fair market prices and encourage efficiency from the awarded contractor. The open competition suggests the VA sought the best value proposition from the market for these critical physician services.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment, driving down prices and encouraging innovation among potential bidders, ultimately leading to better resource allocation.

Public Impact

Veterans across the nation will benefit from access to necessary physician evaluations and services. The contract supports the delivery of essential healthcare services, contributing to the overall well-being of the veteran population. The primary geographic impact is within Texas, where the contractor is based, but services likely extend to veterans nationwide. The contract supports employment for physicians and potentially administrative staff within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Ensuring consistent quality of care across all evaluations.
Dependence on a single contractor for a large volume of services.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides cost certainty.
Contract duration of one year allows for performance review and potential re-competition.

Sector Analysis

The healthcare services sector is a significant area of federal spending, particularly for the Department of Veterans Affairs. This contract falls under the medical services sub-sector, specifically focusing on physician services and evaluations. The market for such services is competitive, with numerous providers capable of meeting federal requirements. The VA's spending in this area is substantial, reflecting its commitment to providing comprehensive healthcare to veterans. Comparable spending benchmarks would involve analyzing other large-scale physician service contracts awarded by the VA and other federal health agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value award, it is unlikely to be exclusively for small businesses. However, the prime contractor, VETERANS EVALUATION SERVICES, INC, may engage small businesses for subcontracting opportunities, depending on their internal policies and the nature of the services required. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

VA Medical Care Programs
TRICARE Provider Services
DoD Medical Services Contracts
Federal Employee Health Benefits Program

Risk Flags

High contract value
Potential for quality variations in medical evaluations
Dependence on contractor performance for veteran services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $381.1 million to VETERANS EVALUATION SERVICES, INC. FY24 FUNDING TASK ORDER.

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 $381.1 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical performance record of VETERANS EVALUATION SERVICES, INC with the Department of Veterans Affairs?

A review of historical contract data for VETERANS EVALUATION SERVICES, INC with the Department of Veterans Affairs (VA) is essential to assess their track record. This would involve examining past contract awards, their values, durations, and whether they were completed successfully and on time. Key performance indicators (KPIs) from previous contracts, such as on-time delivery, quality of service, and adherence to budget, would provide valuable insights. Any past performance issues, such as disputes, contract terminations, or negative past performance reviews, would be significant risk factors. Conversely, a history of successful contract execution would indicate a reliable partner for the VA. Without specific access to the VA's internal past performance databases, a comprehensive analysis is limited, but publicly available data can offer some indications.

How does the per-unit cost of services under this contract compare to similar VA contracts for physician evaluations?

To assess the value for money, a detailed comparison of the per-unit cost of services under this $381 million task order against similar contracts awarded by the VA for physician evaluations is necessary. This requires identifying the specific services being procured (e.g., compensation and pension exams, disability evaluations) and their associated unit prices. Benchmarking against contracts with similar scopes of work, geographic coverage, and competition levels would be ideal. If VETERANS EVALUATION SERVICES, INC's per-unit costs are significantly higher than comparable contracts, it could indicate potential overpricing or lower efficiency. Conversely, costs in line with or below market benchmarks would suggest good value. The firm-fixed-price nature of this award means the unit costs are set, making direct comparison more straightforward, assuming the service definitions are equivalent.

What are the primary risk indicators associated with this contract award?

Several risk indicators warrant attention for this contract. Firstly, the substantial value of the award ($381 million) for a one-year period suggests a high volume of services, increasing the potential impact of any performance failures. Dependence on a single contractor for such a large scope of work presents a concentration risk. The firm-fixed-price contract type, while offering cost certainty, can sometimes incentivize contractors to cut corners on quality if not rigorously monitored. Potential risks also include the contractor's ability to scale resources effectively to meet demand, maintain consistent quality of care across all evaluations, and manage potential scope creep. Furthermore, the specific nature of medical evaluations requires high accuracy and adherence to strict protocols, making errors a significant risk with direct implications for veterans' benefits.

What is the expected effectiveness of VETERANS EVALUATION SERVICES, INC in delivering these physician services based on contract terms?

The effectiveness of VETERANS EVALUATION SERVICES, INC in delivering these physician services hinges on several factors outlined or implied by the contract. The firm-fixed-price (FFP) structure incentivizes efficiency and cost control, suggesting that if the contractor manages its resources well, it can be highly effective in delivering services within budget. The contract's duration of one year allows for a defined period of performance, and its success will be measured by the VA's satisfaction with the quantity and quality of evaluations completed. The fact that it was awarded under full and open competition implies that the VA selected a contractor believed to be capable and competitive. However, true effectiveness will depend on the contractor's operational capacity, the skill and availability of its physicians, and the robustness of the VA's oversight mechanisms in ensuring adherence to medical standards and timely service delivery.

How does this contract's spending compare to historical VA spending on physician services?

This $381 million task order represents a significant portion of the VA's annual spending on physician services. To contextualize this, one would need to analyze historical VA budgets and contract awards specifically for physician services, medical evaluations, and related healthcare support. Comparing this single award's value to the total VA expenditure in this category over previous fiscal years would reveal its relative scale. For instance, if the VA typically spends billions annually on physician services, this $381 million award might represent a substantial but not disproportionate segment. Conversely, if this award is an outlier compared to historical norms, it could signal an increased reliance on external contractors or a shift in service delivery strategy. Understanding these historical patterns is crucial for assessing the current contract's significance and potential future trends.

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

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: $381,143,279

Exercised Options: $381,143,279

Current Obligation: $381,143,279

Actual Outlays: $364,406,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0006

IDV Type: IDC

Timeline