VA awards $348.7M for medical disability exams through FY26, with LOYAL SOURCE GOVERNMENT SERVICES LLC as prime

Contract Overview

Contract Amount: $348,691,285 ($348.7M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $957.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $348.7 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING Key points: 1. Contract value represents significant investment in veteran healthcare services. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Contract duration extends to the end of FY26, ensuring continuity. 5. Geographic focus on Florida (ST, SN) indicates regional service delivery. 6. The award is for delivery orders, implying a flexible service model.

Value Assessment

Rating: good

The total award amount of $348.7 million over its period of performance is substantial, reflecting the VA's commitment to veteran health. Benchmarking against similar large-scale medical examination contracts is difficult without more specific service details. However, the firm fixed-price nature of the contract suggests that the VA has negotiated a set price for the services, which can be advantageous. The contract's value should be assessed against the volume and complexity of examinations required.

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 bids. The presence of 4 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is generally favorable for ensuring value for money.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives down costs and encourages innovation among contractors vying for the award.

Public Impact

Veterans requiring medical disability examinations will benefit from these services. The contract ensures the delivery of essential healthcare assessments for disability claims processing. Services are primarily focused on Florida, impacting veterans in that state. The contract supports a workforce of medical professionals and administrative staff involved in examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased workload on existing VA resources if contractor performance falters.
Ensuring consistent quality of examinations across all delivery orders is crucial.
Geographic concentration in Florida might limit accessibility for veterans in other regions without further contract modifications or separate awards.

Positive Signals

Award to a single prime contractor (LOYAL SOURCE GOVERNMENT SERVICES LLC) can streamline management and oversight.
Firm fixed-price contract provides budget predictability.
Long-term contract (through FY26) offers stability in service provision for veterans.

Sector Analysis

The healthcare services sector, particularly within government contracting, is a significant market. This contract falls under the 'Offices of Physicians' NAICS code (621111), which includes a wide range of medical examination services. The VA is a major purchaser of healthcare services, and contracts for disability examinations are critical to its operations. Comparable spending benchmarks would depend on the specific types and volumes of examinations procured.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this prime contract. While the prime contractor is not a small business, there may be subcontracting opportunities for small businesses within the scope of this award. Further analysis would be needed to determine the extent of small business utilization in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Care Programs
VA Disability Compensation Program
TRICARE Medical Services
DoD Medical Examination Services

Risk Flags

Contract duration extends to end of FY26, requiring ongoing monitoring.
Performance quality of medical examinations is critical for veteran claims.
Geographic concentration in Florida may require careful management for broader reach if needed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $348.7 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

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 $348.7 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical spending trend for medical disability examinations by the VA?

Analyzing historical spending for VA medical disability examinations requires access to detailed budget and contract data over multiple fiscal years. Typically, such spending can fluctuate based on veteran population growth, changes in disability criteria, and overall VA budget allocations. A consistent upward trend might indicate increasing demand for services or inflation, while significant year-over-year changes could signal policy shifts or program adjustments. Without specific historical data for this contract vehicle or similar ones, it's challenging to provide precise figures. However, the VA's overall budget for healthcare services has generally seen increases over the past decade, reflecting its commitment to veteran care.

How does the per-unit cost of these disability examinations compare to industry benchmarks?

Determining a precise per-unit cost benchmark for these medical disability examinations is complex without knowing the specific types of examinations (e.g., orthopedic, neurological, mental health) and their associated complexities. The contract is a firm fixed-price award for delivery orders, suggesting that pricing is established for various service types. To benchmark, one would need to compare the negotiated rates for specific examination types against similar contracts awarded by the VA or other federal agencies, as well as private sector rates for comparable services. Factors like geographic location, provider qualifications, and required reporting detail significantly influence per-unit costs. The VA aims to secure competitive pricing through its procurement processes.

What are the key performance indicators (KPIs) for LOYAL SOURCE GOVERNMENT SERVICES LLC under this contract?

Key Performance Indicators (KPIs) for this contract would be defined in the Performance Work Statement (PWS) and are crucial for ensuring the quality and timeliness of medical disability examinations. Common KPIs in such contracts include examination completion rates within specified timeframes (e.g., 30-60 days from request), accuracy and completeness of medical reports, patient satisfaction scores, and adherence to VA examination protocols. The VA would likely monitor these KPIs closely to assess contractor performance and ensure that veterans receive timely and accurate assessments necessary for their disability claims. Failure to meet KPIs could result in contract remedies or penalties.

What is the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC in performing similar VA contracts?

LOYAL SOURCE GOVERNMENT SERVICES LLC has a history of performing government contracts, including those with the Department of Veterans Affairs. Assessing their specific track record for medical disability examinations requires reviewing past performance evaluations and contract histories. This includes examining the successful completion of previous VA contracts, any performance issues or disputes, and their overall reputation within the federal contracting community. Information on past performance is often available through federal procurement data systems and can be a significant factor in award decisions. A review of their prior engagements would indicate their experience and capability in managing large-scale healthcare service contracts.

What is the potential impact of this contract on the overall VA backlog for disability claims?

This contract is specifically designed to address the need for medical disability examinations, which are a critical component of processing veteran disability claims. By awarding a substantial contract like this, the VA aims to increase the capacity for conducting these examinations, thereby potentially reducing any existing backlog. The efficiency and effectiveness of LOYAL SOURCE GOVERNMENT SERVICES LLC in delivering these services will directly influence the speed at which claims can be processed. A well-executed contract can help streamline the examination process, leading to faster claim resolutions for veterans and alleviating pressure on the VA's internal resources.

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: 12612 CHALLENGER PKWY STE 365, ORLANDO, FL, 32826

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $348,691,285

Exercised Options: $348,691,285

Current Obligation: $348,691,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline