VA Awards $107.5M Task Order to OptumServe for Physician Services in Wisconsin
Contract Overview
Contract Amount: $107,499,684 ($107.5M)
Contractor: Optumserve Health 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: $295.3K/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Veterans Affairs obligated $107.5 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY25 FUNDING TASK ORDER Key points: 1. Significant contract value of $107.5 million for physician services. 2. OptumServe Health Services, Inc. is the sole awardee. 3. The contract is for a duration of 364 days. 4. This falls under the Offices of Physicians (except Mental Health Specialists) NAICS code. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The $107.5 million award for physician services appears reasonable given the scope and duration. Benchmarking against similar contracts for specialized medical staffing would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and good value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price.
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.
Sector Analysis
This contract falls within the healthcare sector, specifically for physician services. Spending benchmarks for physician staffing contracts can vary widely based on specialty, location, and duration.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as OptumServe Health Services, Inc. is a large business. 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 to ensure performance and adherence to terms. Robust oversight is crucial for managing large healthcare service contracts.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single contractor for critical physician services.
- Risk of physician shortages impacting service delivery.
- Ensuring consistent quality of care across all provided services.
Tags
offices-of-physicians-except-mental-heal, department-of-veterans-affairs, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $107.5 million to OPTUMSERVE HEALTH SERVICES, INC.. FY25 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 $107.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the specific scope of physician services required under this task order?
The task order likely covers a range of physician services essential for veteran care within the specified region. This could include primary care, specialist consultations, or support for specific medical programs. Detailed statements of work would clarify the exact services and specialties required.
How does the awarded price compare to historical spending for similar physician services within the VA or other federal agencies?
Benchmarking the $107.5 million award against historical data for comparable physician services is crucial for assessing value. Factors like inflation, specific medical specialties, and geographic location significantly influence pricing. A detailed comparison would reveal if this contract represents a fair market price.
What mechanisms are in place to ensure the quality and effectiveness of the physician services provided by OptumServe?
The VA typically employs performance metrics, quality assurance reviews, and regular progress meetings to monitor contractor performance. Ensuring adherence to clinical standards and patient satisfaction is paramount. The contract likely includes specific deliverables and reporting requirements to track 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: $107,499,684
Exercised Options: $107,499,684
Current Obligation: $107,499,684
Actual Outlays: $97,784,639
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X19D0001
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-04-21
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