VA awards $156M task order to Veterans Evaluation Services, Inc. for physician services in FY24

Contract Overview

Contract Amount: $156,281,415 ($156.3M)

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: $428.2K/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 $156.3 million to VETERANS EVALUATION SERVICES, INC for work described as: FY24 FUNDING TASK ORDER. Key points: 1. This contract represents a significant investment in physician services, aiming to support veterans' healthcare needs. 2. The firm-fixed-price structure suggests a defined scope and budget, potentially offering cost certainty. 3. Competition was full and open, indicating a broad market search and potential for competitive pricing. 4. The contract duration of one year aligns with typical task order cycles for ongoing service needs. 5. Performance is geographically concentrated in Texas, suggesting a focus on specific regional veteran populations. 6. The primary service code (621111) points to general physician services, a critical component of healthcare delivery.

Value Assessment

Rating: good

The award of over $156 million for physician services indicates a substantial need within the VA. While specific benchmarks for this exact task order are not readily available, the firm-fixed-price contract type suggests that pricing was determined upfront. Comparing this to other large-scale physician service contracts within the federal government would provide further context on its value. The absence of detailed performance metrics in the provided data makes a definitive value assessment challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving fair market value for the services rendered.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overcharges that could arise from limited or sole-source awards.

Public Impact

Veterans across the nation, particularly those in Texas, will benefit from enhanced access to physician services. The contract supports the delivery of essential medical evaluations and consultations for the veteran population. This award contributes to the operational capacity of the Department of Veterans Affairs in meeting its healthcare obligations. The contract may indirectly support a workforce of physicians and administrative staff involved in delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'evaluation services' is broad and not tightly managed.
Dependence on a single contractor for a significant volume of services could pose a risk if performance falters.
Ensuring consistent quality of care across all evaluations will be critical.
The geographic concentration in Texas might not address physician service needs in other regions effectively.

Positive Signals

The firm-fixed-price contract provides cost predictability for the VA.
Full and open competition suggests a thorough vetting of potential providers.
The contract is awarded to a specialized entity (Veterans Evaluation Services, Inc.), implying expertise in the required services.
The task order is for a defined period, allowing for reassessment and potential re-competition.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on contracted services to supplement direct care capabilities. Physician services, including evaluations and consultations, are a critical component of this ecosystem. The NAICS code 621111, Offices of Physicians (except Mental Health Specialists), represents a broad category of medical practitioners. Federal spending in this area is substantial, driven by the needs of agencies like the VA and DoD, as well as other health-focused entities. Benchmarking this contract's value would involve comparing its per-diem or per-service rates against similar contracts awarded by other federal agencies or large healthcare systems.

Small Business Impact

The provided data indicates that small business participation is not a primary focus for this specific task order, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is also false. This suggests the contract was not specifically set aside for small businesses. While Veterans Evaluation Services, Inc. may be a large business, the implications for subcontracting are not detailed here. Further analysis would be needed to determine if there are any subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver specific services within a set budget. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. While no specific Inspector General jurisdiction is mentioned, the VA Office of Inspector General typically has oversight over VA programs and contracts to detect and prevent waste, fraud, and abuse.

Related Government Programs

VA Medical Care Programs
TRICARE Physician Services
DoD Medical Support Contracts
Federal Healthcare Services Contracts

Risk Flags

Potential for performance issues given the large contract value.
Geographic concentration may not meet needs in other regions.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $156.3 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 $156.3 million.

What is the period of performance?

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

What is the historical spending pattern for Veterans Evaluation Services, Inc. with the Department of Veterans Affairs?

Analyzing the historical spending with Veterans Evaluation Services, Inc. (VES) by the Department of Veterans Affairs (VA) is crucial for understanding the contractor's track record and the VA's reliance on their services. While the provided data is for a single FY24 task order, a comprehensive review would involve examining all contracts awarded to VES by the VA across multiple fiscal years. This would include the total dollar value of contracts, the types of services rendered, and the duration of these engagements. A trend of consistent, high-value awards might indicate a strong, established relationship and satisfaction with VES's performance. Conversely, a fluctuating pattern could suggest periodic needs or a competitive bidding process that VES has consistently won. Understanding this history helps contextualize the current $156 million award as part of a larger engagement or a new significant undertaking.

How does the pricing of this $156 million task order compare to similar physician service contracts awarded by the VA or other federal agencies?

Benchmarking the pricing of this $156 million task order against similar contracts is essential for assessing value for money. This involves identifying comparable contracts for physician evaluation services awarded by the Department of Veterans Affairs (VA) or other federal agencies (e.g., Department of Defense, Health and Human Services) within a similar timeframe. Key metrics for comparison would include the average cost per evaluation, cost per physician hour, or a blended rate if the contract covers a variety of services. Factors such as geographic location, complexity of cases, and specific service requirements can influence pricing. If this contract's rates are significantly higher than comparable contracts without a clear justification (e.g., specialized expertise, unique service delivery model), it could indicate potential overpricing. Conversely, rates in line with or below market benchmarks would suggest good value.

What are the primary performance risks associated with this contract, and how are they being mitigated?

The primary performance risks for this $156 million task order likely revolve around the contractor's ability to consistently deliver high-quality physician evaluation services in a timely manner and meet the VA's specific requirements. Risks could include potential delays in scheduling appointments, variations in the quality of evaluations, difficulties in recruiting and retaining qualified physicians, and challenges in managing the large volume of service requests. Mitigation strategies typically involve robust performance standards outlined in the contract, regular performance monitoring by the VA, clear communication channels, and defined remedies for non-performance. The firm-fixed-price nature of the contract also incentivizes the contractor to manage resources efficiently to meet performance targets within budget. The VA's oversight and the contractor's own quality assurance processes are critical for mitigating these risks.

What is the expected effectiveness of these physician services in improving veteran healthcare outcomes?

The effectiveness of these physician services in improving veteran healthcare outcomes is directly tied to the quality and accessibility of the evaluations provided by Veterans Evaluation Services, Inc. (VES). These services are likely intended to support the VA's disability claims process, medical reviews, and potentially proactive health assessments. High-quality, thorough, and timely evaluations can lead to more accurate diagnoses, appropriate treatment plans, and faster processing of benefits, all of which contribute to better health outcomes and quality of life for veterans. Conversely, if the evaluations are superficial, delayed, or inaccurate, they could hinder veterans' access to necessary care and benefits. The VA's internal metrics for claims processing times, veteran satisfaction, and diagnostic accuracy following these evaluations would be key indicators of effectiveness.

How does the current contract's value and scope compare to previous contracts for similar services awarded to Veterans Evaluation Services, Inc. or other providers?

Comparing the current $156 million task order to previous contracts provides insight into the scale and evolution of the VA's need for physician evaluation services and the role of Veterans Evaluation Services, Inc. (VES). If previous contracts with VES were significantly smaller, this current award might represent an expansion of services or an increase in demand. If other providers have historically held larger contracts, it could indicate a shift in procurement strategy or a re-evaluation of market capabilities. Analyzing the scope—the specific types of evaluations, geographic coverage, and service level agreements—of past contracts versus the current one is also important. A consistent award size and scope to VES might suggest a stable, long-term partnership, while significant changes could signal evolving VA requirements or increased competition.

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: $156,281,415

Exercised Options: $156,281,415

Current Obligation: $156,281,415

Actual Outlays: $125,338,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0011

IDV Type: IDC

Timeline