VA awards $596M task order to OptumServe for physician services in Wisconsin

Contract Overview

Contract Amount: $596,120,933 ($596.1M)

Contractor: Optumserve Health 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: $1.6M/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $596.1 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY24 FUNDING TASK ORDER. Key points: 1. Significant contract value of $596 million for physician services. 2. OptumServe Health Services, Inc. is the sole awardee. 3. The contract is for a 1-year duration. 4. This falls under the Offices of Physicians (except Mental Health Specialists) NAICS code.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, indicating a clear understanding of scope and cost. Pricing is benchmarked against similar contracts for physician services, suggesting a competitive and fair assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing multiple vendors to bid. This competitive process is expected to drive favorable pricing and ensure the best value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure cost-effective physician services for veterans.

Public Impact

Ensures continued access to physician services for veterans in Wisconsin. Supports the Department of Veterans Affairs' mission to provide healthcare. Potential impact on local healthcare provider employment and revenue.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Clear performance period.

Sector Analysis

This contract falls within the healthcare sector, specifically for physician services. The $596 million award is substantial and reflects the ongoing demand for medical professionals within the VA system.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to OptumServe Health Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure performance and accountability.

Related Government Programs

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

Risk Flags

Potential vendor lock-in for the contract duration.
Need for robust performance monitoring to ensure quality.
Dependence on a single entity for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $596.1 million to OPTUMSERVE HEALTH SERVICES, INC.. FY24 FUNDING TASK ORDER.

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 $596.1 million.

What is the period of performance?

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

What is the specific scope of physician services covered under this task order?

The task order focuses on 'Offices of Physicians (except Mental Health Specialists)' (NAICS 621111). This typically includes general medical and surgical services, primary care, and specialist physician services, excluding mental health professionals. The exact services would be detailed in the contract's statement of work.

What are the potential risks associated with relying on a single vendor for such a large contract?

While awarded competitively, reliance on OptumServe for a full year carries risks such as potential service disruptions if the vendor faces operational issues, limited flexibility to adapt to changing needs without contract modifications, and potential for price increases in future renewals if competition is less robust.

How does this contract contribute to the VA's overall healthcare delivery effectiveness?

This contract is crucial for maintaining the continuity and quality of physician services for veterans in Wisconsin, directly supporting the VA's mission. Effective execution by OptumServe should lead to improved patient outcomes and satisfaction, contributing to the VA's healthcare effectiveness.

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: $596,120,933

Exercised Options: $596,120,933

Current Obligation: $596,120,933

Actual Outlays: $498,439,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0004

IDV Type: IDC

Timeline