VA Awards $121.5M Task Order to OptumServe for Physician Services in FY25
Contract Overview
Contract Amount: $121,490,927 ($121.5M)
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: $333.8K/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Veterans Affairs obligated $121.5 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY25 FUNDING TASK ORDER Key points: 1. Significant contract value for physician services. 2. OptumServe is a major player in health IT and services. 3. Potential for cost overruns or scope creep exists. 4. Focus on healthcare sector, specifically physician staffing.
Value Assessment
Rating: good
The $121.5M award for a 364-day period suggests a competitive pricing strategy. Benchmarking against similar physician service contracts is needed for a definitive assessment, but the firm fixed-price structure is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award is expected to yield good value for taxpayers by ensuring fair market pricing for essential physician services.
Public Impact
Ensures continued access to physician services for veterans. Supports the Department of Veterans Affairs' mission to provide healthcare. Potential impact on local healthcare provider employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for a critical service.
- Potential for service quality degradation if not managed closely.
- Scope creep could increase costs beyond initial estimates.
Positive Signals
- Firm fixed-price contract limits cost uncertainty.
- Full and open competition suggests competitive pricing.
- Clear performance period (FY25).
Sector Analysis
This contract falls within the healthcare sector, specifically for physician staffing. Spending benchmarks for similar physician service contracts can vary widely based on specialty and location, but $121.5M for a year of services is substantial.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this award. 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 nature of the contract provides some cost control, but performance monitoring is crucial to ensure service quality and prevent scope creep.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- High contract value.
- Potential for vendor lock-in if not managed.
- Dependence on a single vendor for critical services.
- Need for rigorous performance monitoring.
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 $121.5 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 $121.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the specific breakdown of physician specialties and anticipated service hours covered by this task order?
The provided data does not detail the specific physician specialties or anticipated service hours. Understanding this breakdown is crucial for assessing the true value and necessity of the $121.5M award. It would allow for a more granular comparison against market rates for different medical professionals and their expected utilization.
How does OptumServe's proposed pricing compare to historical VA contracts for similar physician services, adjusted for inflation and scope?
A comprehensive comparison of OptumServe's pricing against historical VA contracts for similar physician services, adjusted for inflation and scope, is essential. While the firm fixed-price and full-and-open competition are positive indicators, a detailed analysis would reveal if this award represents a fair market price or if there are opportunities for cost savings in future procurements.
What performance metrics and quality assurance measures are in place to ensure the effectiveness of the physician services provided under this task order?
The effectiveness of the physician services hinges on robust performance metrics and quality assurance measures. While not detailed in the provided data, the VA must have established KPIs related to patient care, wait times, and provider qualifications. Regular performance reviews and adherence to these metrics are critical for ensuring taxpayer value and veteran well-being.
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: $121,490,927
Exercised Options: $121,490,927
Current Obligation: $121,490,927
Actual Outlays: $106,499,537
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X19D0007
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: 2025-05-08
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