VA awards $131.7M task order to VETERANS EVALUATION SERVICES, INC for physician services in Texas

Contract Overview

Contract Amount: $131,679,112 ($131.7M)

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: $361.8K/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 $131.7 million to VETERANS EVALUATION SERVICES, INC for work described as: FY25 FUNDING TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Services are for physician offices, aligning with the NAICS code 621111. 4. The contract duration is one year, with a start date of October 1, 2024. 5. The awardee, VETERANS EVALUATION SERVICES, INC, is based in Texas. 6. This task order represents a significant portion of the base award value of $361,756.

Value Assessment

Rating: good

The contract's value of $131.7 million for a one-year term for physician services appears substantial. Benchmarking against similar contracts for physician services within the VA or other agencies would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure provides predictable costs. The base award value of $361,756 suggests this task order is a significant expansion or renewal of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method generally promotes a wider range of offers and can lead to better pricing and service options. The number of bidders is not specified, but the competitive nature suggests the VA sought to maximize value through market forces.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through a competitive bidding process, ensuring the government receives the best possible value for its investment.

Public Impact

Veterans in Texas will benefit from access to physician services. The contract supports the delivery of healthcare services to the veteran population. The geographic impact is concentrated in Texas, where the contractor is located. This contract will likely support employment for physicians and administrative staff within VETERANS EVALUATION SERVICES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the task order's requirements are not clearly defined and managed.
Dependence on a single contractor for a large volume of services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarded through full and open competition, suggesting a robust selection process.
The contract duration of one year allows for periodic reassessment of needs and performance.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on physician services. The market for healthcare services, particularly for government entities like the VA, is substantial and highly competitive. This award to VETERANS EVALUATION SERVICES, INC, for a significant dollar amount, indicates their established presence and capability in serving federal healthcare needs. Comparable spending benchmarks would involve analyzing other large-scale physician service contracts awarded by the VA or Department of Defense.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting plans. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process. Further analysis would be needed to determine the extent of small business involvement or any specific subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly available.

Related Government Programs

VA Medical Care Programs
Veterans Health Administration Services
Physician and Surgeon Services Contracts
Healthcare Professional Staffing Contracts

Risk Flags

Large contract value requires diligent oversight.
Potential for performance issues given the scale of services.
Need to ensure competitive pricing against market benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $131.7 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 $131.7 million.

What is the period of performance?

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

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 crucial for assessing their reliability and performance. While specific performance ratings are not publicly detailed in this award notice, agencies typically maintain internal records of contractor performance, including past performance evaluations, any disputes, or contract terminations. Examining past awards, their values, and the duration of services provided by this contractor to the VA can offer insights into their track record. A history of successful, on-time, and within-budget contract completions would indicate a lower risk, whereas a pattern of issues might warrant closer scrutiny of this new award. It is recommended to consult the Federal Awardee Performance and Integrity Information System (FAPIIS) for any publicly available performance concerns.

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

Determining the precise per-unit cost for services under this $131.7 million task order requires a detailed breakdown of the services to be rendered and their associated quantities. The NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists),' is broad and can encompass a wide range of medical specialties and service types. Without specific details on the volume of consultations, procedures, or other physician activities covered, a direct per-unit cost comparison is challenging. However, the VA typically benchmarks pricing against market rates and historical data for similar services. If this task order represents a significant increase in cost compared to previous agreements for comparable services, or if it exceeds established market rates for physician compensation in Texas, it could indicate a potential value concern. Further analysis would involve obtaining the detailed service requirements and pricing structure within the task order.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this $131.7 million task order are not detailed in the provided award abstract. However, for a contract of this magnitude involving physician services, typical KPIs and SLAs would likely focus on aspects such as appointment availability, wait times for patient care, quality of medical documentation, patient satisfaction scores, adherence to clinical protocols, and timely reporting of findings. The Department of Veterans Affairs would establish these metrics to ensure the contractor meets the required standards of care and operational efficiency. Failure to meet these KPIs or SLAs could result in penalties, reduced payment, or contract termination, serving as critical oversight mechanisms for the VA.

What is the projected impact of this contract on the VA's overall healthcare spending in the Texas region?

This $131.7 million task order represents a significant allocation of resources towards physician services within the VA's Texas operations for the fiscal year 2025. Its impact on overall healthcare spending in the region will depend on how it aligns with the VA's strategic healthcare delivery goals and existing budget allocations. If this funding supplements existing services or addresses a newly identified need, it could enhance veteran care capacity. Conversely, if it represents a substantial increase over historical spending for similar services, it might necessitate adjustments in other areas of the VA's budget or indicate a shift in service provision strategy. Understanding the baseline spending for physician services in Texas and the specific objectives of this task order is key to assessing its budgetary impact.

Are there any known risks or challenges associated with VETERANS EVALUATION SERVICES, INC or the nature of these physician services?

Potential risks associated with this contract could include challenges in recruiting and retaining qualified physicians, especially in high-demand areas or specialties. Given the large dollar amount, there's also a risk related to the contractor's capacity to manage such a significant operation effectively and ensure consistent quality of care across all services provided. Furthermore, changes in healthcare regulations, evolving medical practices, or unforeseen public health emergencies could impact service delivery and costs. The VA's risk mitigation strategies would likely involve robust contract oversight, performance monitoring, and contingency planning. Reviewing any past performance issues or known challenges with VETERANS EVALUATION SERVICES, INC, as well as the specific complexities of the physician services required, would provide a more comprehensive risk assessment.

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 STE 1000, HOUSTON, TX, 77008

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $131,679,112

Exercised Options: $131,679,112

Current Obligation: $131,679,112

Actual Outlays: $100,443,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0008

IDV Type: IDC

Timeline