VA Awards $98.1M Task Order to VETERANS EVALUATION SERVICES for Physician Services in Texas

Contract Overview

Contract Amount: $98,140,298 ($98.1M)

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: $269.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 FUNDING TASK ORDER

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $98.1 million to VETERANS EVALUATION SERVICES, INC for work described as: FY25 FUNDING TASK ORDER Key points: 1. Significant contract value of $98.1 million for physician services. 2. Awarded under full and open competition, indicating market availability. 3. Potential risk associated with reliance on a single vendor for a critical service. 4. Focus on healthcare sector, specifically physician support services.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which provides cost certainty. The awarded amount of $98.1M for 364 days of service needs to be benchmarked against similar physician service contracts to fully assess value.

Cost Per Unit: $270,000 (approximate annual per-unit cost based on total award and duration)

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting multiple vendors were eligible. This method generally promotes competitive pricing and allows the agency to select the best value offering.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring funds are used efficiently for essential physician services.

Public Impact

Ensures continued access to physician services for veterans in Texas. Supports the Department of Veterans Affairs' mission to provide healthcare. Potential for improved veteran health outcomes through dedicated medical evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in risk if performance is poor.
Potential for cost overruns if scope expands beyond initial estimates.
Dependence on a single vendor for critical medical evaluations.

Positive Signals

Clear contract type (FFP) for cost control.
Awarded through full and open competition.
Specific NAICS code indicates a defined service area.

Sector Analysis

This contract falls within the healthcare sector, specifically supporting physician services. Benchmarks for similar physician support contracts would typically range from tens to hundreds of millions of dollars annually, depending on scope and duration.

Small Business Impact

The data does not indicate if small businesses were involved in the competition or subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm-fixed-price contract type and delivery order structure provide some level of accountability for performance and cost.

Related Government Programs

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

Risk Flags

Potential for vendor dependency.
Need for robust performance monitoring.
Scope creep risk.
Ensuring quality of care aligns with VA standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $98.1 million to VETERANS EVALUATION SERVICES, INC. FY25 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 $98.1 million.

What is the period of performance?

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

What is the specific scope of services covered by this task order, and how does it align with the VA's overall healthcare needs?

The task order is for physician services under NAICS code 621111. While the exact scope isn't detailed, it likely involves medical evaluations, assessments, and potentially specialized consultations to support veteran healthcare. This aligns with the VA's mission to provide comprehensive medical care to its beneficiaries, addressing potential backlogs or specific service demands within the Texas region.

What are the key performance indicators (KPIs) for VETERANS EVALUATION SERVICES, INC, and how will their performance be monitored?

Key performance indicators are not explicitly detailed in the provided data. However, typical KPIs for such contracts would include timeliness of evaluations, accuracy of reports, patient satisfaction, and adherence to VA protocols. The VA's contract officers and quality assurance personnel would be responsible for monitoring these aspects throughout the contract period.

How does the $98.1M award compare to historical spending on similar physician services by the VA in Texas?

Without historical spending data for comparable physician services contracts in Texas, a direct comparison is difficult. However, $98.1M for a one-year duration suggests a substantial requirement, potentially indicating a significant need for these services or a consolidation of previously fragmented contracts. Benchmarking against national averages for similar services would provide a broader context.

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: $98,140,298

Exercised Options: $98,140,298

Current Obligation: $98,140,298

Actual Outlays: $79,443,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0009

IDV Type: IDC

Timeline