VA awards $145M contract for medical exams, with VETERANS EVALUATION SERVICES, INC. securing the deal

Contract Overview

Contract Amount: $145,138,105 ($145.1M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-03

End Date: 2025-08-31

Contract Duration: 89 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 Q3 EXAMS R2

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $145.1 million to VETERANS EVALUATION SERVICES, INC for work described as: FY25 Q3 EXAMS R2 Key points: 1. Contract value of $145.1M for a short duration suggests a high per-unit cost or significant volume. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The contract is for medical examination services, a critical component of veteran healthcare delivery. 4. The award to VETERANS EVALUATION SERVICES, INC. warrants a review of their past performance and capacity. 5. Fixed-price contract type aims to control costs, but requires careful scope management. 6. The relatively short performance period (89 days) may indicate an urgent need or a bridge contract.

Value Assessment

Rating: good

The contract value of $145.1M for a 89-day period is substantial. Without specific per-unit data or comparable contracts for similar services, a precise value-for-money assessment is challenging. However, the fixed-price nature suggests an attempt to cap costs. Benchmarking against historical VA contracts for similar examination services would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to more favorable pricing for the government. The VA's use of this procurement method indicates a commitment to exploring the market for the best value.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving service quality through market forces.

Public Impact

Veterans will benefit from timely and potentially improved access to medical evaluations necessary for their benefits and healthcare. The contract supports the delivery of essential medical examination services across various specialties. Services are likely to be delivered in Texas, based on the contractor's location. The contract may support a workforce of medical professionals and administrative staff involved in conducting these evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-unit costs given the contract value and short duration.
Need to verify contractor's capacity to handle the volume of evaluations within the tight timeframe.
Risk of scope creep or unforeseen issues impacting the fixed-price agreement.

Positive Signals

Awarded through full and open competition, indicating a potentially robust bidding process.
Fixed-price contract type helps in cost control and predictability.
Contract supports critical medical services for veterans.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical services and evaluations. The market for healthcare services, particularly those supporting government agencies like the VA, is substantial. This award represents a significant portion of spending within the medical examination sub-sector, likely competing with other providers of similar services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans, but large contracts often involve subcontracting opportunities, which could potentially benefit small businesses if included in the contractor's strategy.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Services Contracts
Veteran Healthcare Services
Medical Examination Services
Federal Healthcare Procurement

Risk Flags

High contract value with a very short performance period.
Need for detailed review of contractor's past performance and capacity.
Potential for high per-unit costs given the compressed timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $145.1 million to VETERANS EVALUATION SERVICES, INC. FY25 Q3 EXAMS R2

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 $145.1 million.

What is the period of performance?

Start: 2025-06-03. End: 2025-08-31.

What is the historical performance record of VETERANS EVALUATION SERVICES, INC. with the federal government, particularly with the Department of Veterans Affairs?

A review of federal procurement data (e.g., FPDS) would be necessary to assess VETERANS EVALUATION SERVICES, INC.'s historical performance. Key metrics to examine include past contract values, on-time delivery rates, quality of services rendered, and any past performance evaluations or disputes. Understanding their track record with the VA specifically is crucial, as it indicates their familiarity with VA requirements, processes, and patient populations. A history of successful, timely, and high-quality service delivery would be a positive indicator for this new award, while any significant past issues could represent a risk.

How does the estimated cost per examination compare to industry benchmarks or similar VA contracts?

To benchmark the cost per examination, we would need to divide the total contract value ($145,138,105.2) by the estimated number of examinations to be performed. This figure should then be compared against industry averages for similar medical evaluations and against historical VA contracts for comparable services. Factors such as the complexity of the examinations, geographic location, and the specific medical specialties involved will influence this comparison. A significantly higher per-unit cost than benchmarks could indicate potential overpricing or inefficiencies, while a lower cost might suggest strong value or aggressive bidding.

What are the specific risks associated with the short performance period (89 days) for a contract of this magnitude?

A short performance period of 89 days for a $145M contract presents several risks. Firstly, it implies an extremely high volume of work to be completed in a compressed timeframe, potentially straining the contractor's resources and leading to rushed services or quality issues. Secondly, it could indicate an urgent, unforeseen need or a temporary solution, raising questions about long-term planning and sustainability. Thirdly, the rapid ramp-up and execution required might increase the likelihood of errors, missed deadlines, or increased operational costs for the contractor, which could indirectly impact the government if not managed effectively. Finally, it limits the time for thorough oversight and performance correction.

What is the anticipated impact of this contract on the VA's ability to process veteran disability claims and healthcare appointments?

This contract is likely intended to expedite the processing of veteran disability claims and ensure timely access to necessary medical evaluations. By outsourcing a significant volume of examinations, the VA aims to reduce backlogs and improve the efficiency of its claims adjudication process. The successful execution of this contract should lead to faster determination of benefits eligibility and potentially quicker access to healthcare services for veterans. The geographic scope and capacity of VETERANS EVALUATION SERVICES, INC. will determine the extent of this impact, particularly in regions where demand for such evaluations is high.

Are there any known issues or concerns regarding VETERANS EVALUATION SERVICES, INC.'s capacity or past performance that could affect this contract?

Assessing potential issues requires a deep dive into VETERANS EVALUATION SERVICES, INC.'s past performance data. This includes reviewing any past performance evaluations, contract terminations, disputes, or significant quality control issues reported by government agencies. Furthermore, their financial stability and operational capacity to handle a contract of this size and urgency within 89 days should be scrutinized. If the company has a history of underperformance, resource limitations, or significant contractual problems, it could pose a substantial risk to the successful delivery of these critical medical examination services for veterans.

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: 4

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: $145,138,105

Exercised Options: $145,138,105

Current Obligation: $145,138,105

Actual Outlays: $123,367,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0004

IDV Type: IDC

Timeline