VA awards $177.4M task order to VETERANS EVALUATION SERVICES, INC for physician services in Texas

Contract Overview

Contract Amount: $177,408,333 ($177.4M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $487.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 FUNDING TASK ORDERS

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $177.4 million to VETERANS EVALUATION SERVICES, INC for work described as: FY25 FUNDING TASK ORDERS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for physician services, a critical component of healthcare delivery. 3. The duration of 364 days indicates a one-year service period. 4. The award amount represents a significant investment in healthcare support for veterans. 5. Fixed-price contract type aims to control costs and provide budget certainty. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The award of $177.4 million for physician services appears substantial, but a direct comparison to similar contracts is needed for a full value assessment. The firm fixed-price structure is a positive indicator for cost control. Benchmarking the per-unit cost of physician services against market rates or other VA contracts would provide a clearer picture of value for money. Without more granular data on the specific services rendered and the number of physicians or hours billed, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The VA likely sought the best value through a structured evaluation process, which should benefit taxpayers by ensuring a fair market price.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential offerors and drives down prices through robust bidding. This method ensures that the government receives competitive proposals, leading to better value and reduced risk of overpayment.

Public Impact

Veterans in Texas will benefit from enhanced access to physician services. The contract supports the delivery of essential medical evaluations and consultations. The geographic impact is focused on Texas, serving the veteran population in that state. This contract will likely support a workforce of physicians and administrative staff in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased workload on existing VA healthcare infrastructure if not properly managed.
Reliance on a single contractor for a significant portion of physician services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost predictability.
Focus on physician services directly addresses veteran healthcare needs.

Sector Analysis

The healthcare sector, specifically physician services, is a critical area of federal spending. This contract falls under the broader category of healthcare support services for veterans. The market for physician services is competitive, with numerous providers capable of meeting federal requirements. The VA's spending in this area is substantial, reflecting the ongoing need to provide comprehensive medical care to the veteran population.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific task order. This suggests that the primary award was not set aside for small businesses, nor does it appear to have explicit subcontracting goals for small businesses based on the provided fields. Further analysis of the parent IDIQ contract or specific subcontracting plans would be necessary to determine the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Health Administration Medical Care Programs
TRICARE Medical Services
Federal Employee Health Benefits Program Medical Services

Risk Flags

Potential for performance issues impacting veteran care.
Cost management and budget adherence.
Contractor staffing and retention challenges.
Ensuring quality and accuracy of medical evaluations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $177.4 million to VETERANS EVALUATION SERVICES, INC. FY25 FUNDING TASK ORDERS

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 $177.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

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

VETERANS EVALUATION SERVICES, INC (VES) has a significant history of contracting with the Department of Veterans Affairs (VA), primarily focused on providing medical disability evaluations. They have been awarded numerous contracts over the years to support the VA's claims processing system. Their performance has generally been viewed as critical to the VA's ability to process claims efficiently, particularly for veterans seeking disability benefits. However, like many large contractors, there have been periods of scrutiny regarding turnaround times and data accuracy, necessitating ongoing oversight and performance management by the VA. The scale of their involvement indicates a deep integration into the VA's operational framework for claims adjudication.

How does the value of this task order compare to similar physician service contracts awarded by the VA?

The $177.4 million value for this one-year task order for physician services is substantial. To benchmark its value, one would need to compare it against other VA contracts for similar services, considering factors like the number of physicians, hours of service, geographic scope, and complexity of medical evaluations. For instance, if this contract covers a large number of physicians providing a wide range of specialties across multiple facilities in Texas, the cost might be justified. Conversely, if it represents a smaller scope of services or fewer personnel, it could indicate a higher per-unit cost. A detailed comparison would require access to data on comparable contracts, including their award amounts, durations, and service descriptions.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract include potential performance deficiencies by VETERANS EVALUATION SERVICES, INC, such as delays in service delivery, inadequate quality of medical evaluations, or failure to meet staffing requirements. Another significant risk is cost overruns, although the firm fixed-price structure mitigates this to some extent. There's also a risk related to contractor personnel qualifications and retention, ensuring that highly competent physicians are consistently available. Furthermore, if this task order is part of a larger IDIQ, there's a risk of vendor lock-in or a lack of flexibility if market conditions or VA needs change significantly. Ensuring robust oversight and clear performance metrics is crucial to managing these risks.

How effective is the VA in managing contracts for physician services to ensure program effectiveness?

The VA's effectiveness in managing contracts for physician services varies. They employ various mechanisms, including performance work statements (PWS), quality assurance surveillance plans (QASP), and regular performance reviews. The success of these management strategies often depends on the clarity of the PWS, the diligence of the contracting officer's representatives (CORs), and the contractor's commitment to meeting performance standards. For large, critical contracts like this one, the VA typically assigns dedicated teams to oversee performance and ensure that the services delivered contribute effectively to veteran healthcare outcomes. Feedback mechanisms and data analysis are used to identify areas for improvement and ensure that program goals are met.

What are the historical spending patterns for physician services by the Department of Veterans Affairs?

Historical spending patterns for physician services by the VA have shown a consistent and significant increase over the past decade, driven by growing veteran populations, expanding healthcare benefits, and the increasing complexity of medical needs. The VA relies heavily on both direct provision of care through its own facilities and the use of contracted services to supplement its workforce and specialized capabilities. Spending on contracted physician services, including evaluations and direct patient care, represents a substantial portion of the VA's overall healthcare budget. This trend is expected to continue as the VA strives to meet demand and address healthcare access challenges, particularly in areas with physician shortages.

What is the typical duration and value range for similar physician service delivery orders issued by the VA?

The typical duration for physician service delivery orders issued by the VA can range from a few months to several years, often tied to the period of performance of the parent IDIQ contract. One-year durations, like the 364 days for this task order, are common for annual service needs or initial phases. The value range is highly variable, depending on the scope of services, number of physicians, and specialties required. Smaller orders might be in the hundreds of thousands or low millions, while large-scale contracts or those covering extensive geographic areas or specialized services can easily reach tens or hundreds of millions of dollars, similar to the $177.4 million seen here. This task order appears to be on the higher end, suggesting a significant scope of services.

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: $177,408,333

Exercised Options: $177,408,333

Current Obligation: $177,408,333

Actual Outlays: $147,889,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0006

IDV Type: IDC

Timeline