VA awards $348.7M for medical disability exams to QTC Medical Services, a significant contract for physician services

Contract Overview

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

Contractor: QTC Medical Services Inc

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: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $348.7 million to QTC MEDICAL SERVICES INC for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Contract value represents substantial investment in veteran healthcare support services. 2. QTC Medical Services is a key provider in this specialized healthcare niche. 3. The contract duration of one year suggests a focus on immediate service delivery needs. 4. Fixed-price contract type aims to control costs for the government. 5. The award is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The North American Industry Classification System (NAICS) code 621111 points to a focus on physician services.

Value Assessment

Rating: good

The contract value of $348.7 million for a one-year period for medical disability examinations is substantial. Benchmarking this against similar contracts for these services is challenging without access to a comprehensive database of all VA and DoD medical examination contracts. However, QTC Medical Services is a known large-scale provider in this space, suggesting the pricing may be competitive for the volume and scope of services required. The firm fixed-price nature of the contract provides cost certainty for the VA, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bidders (as indicated by 'no': 4) suggests a reasonably competitive environment for this significant contract. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers, potentially leading to better value.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among service providers.

Public Impact

Veterans requiring medical disability examinations will benefit from timely and efficient service delivery. The contract supports the VA's mission to provide comprehensive healthcare services to veterans. Services are likely delivered across various locations where QTC Medical Services operates, potentially impacting veterans nationwide. The contract supports employment within the healthcare sector, particularly for physicians and administrative staff involved in conducting these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service delivery bottlenecks if QTC's capacity is exceeded.
Ensuring consistent quality of examinations across all contracted providers.
Managing the administrative overhead associated with a large-scale contract.

Positive Signals

QTC's established presence and experience in providing these services.
The use of a firm fixed-price contract to manage costs.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically focusing on medical examinations for disability claims. The market for these services is significant, driven by government mandates and the need for objective medical assessments. QTC Medical Services is a major player in this niche, competing with other large healthcare providers and specialized examination companies. Spending in this area is crucial for the efficient processing of veteran benefits.

Small Business Impact

While this contract was awarded through full and open competition, there is no explicit indication of a small business set-aside. It is possible that QTC Medical Services, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific aspects of the contract. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms likely include performance monitoring, quality assurance reviews, and financial audits to ensure compliance with contract terms and service level agreements. The VA's Office of Inspector General (OIG) may also conduct audits or investigations related to contract performance and financial integrity.

Related Government Programs

Veterans Health Administration Medical Services
Disability Benefits Questionnaire (DBQ) Processing
TRICARE Medical Services Contracts
Federal Occupational Health Services

Risk Flags

Potential for delays in service delivery.
Ensuring consistent quality of medical evaluations.
Data security and privacy of veteran health information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $348.7 million to QTC MEDICAL SERVICES INC. FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

Who is the contractor on this award?

The obligated recipient is QTC MEDICAL 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 $348.7 million.

What is the period of performance?

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

What is QTC Medical Services' track record with the VA and other federal agencies for similar contracts?

QTC Medical Services has a long-standing relationship with the Department of Veterans Affairs (VA) and other federal agencies, including the Department of Defense, providing medical examination services. They are one of the largest providers of these services, often handling significant volumes of claims. Their history includes numerous contracts for pre-separation physicals, disability evaluations, and other specialized medical assessments. While generally considered experienced, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would be detailed in contract performance reports and agency oversight records. Their extensive experience suggests a deep understanding of the requirements for these types of evaluations.

How does the per-examination cost under this contract compare to historical VA contracts or industry benchmarks?

Determining the precise per-examination cost requires access to the detailed pricing structure within the contract, which is not publicly available in the provided data. However, given the contract's firm fixed-price nature and the scale of operations for QTC Medical Services, it is reasonable to assume the pricing is competitive for the volume. Historical VA contracts for similar services have varied significantly based on the type of examination, geographic location, and specific requirements. Industry benchmarks for independent medical examinations can range widely, from a few hundred to over a thousand dollars per exam, depending on complexity. Without specific unit pricing, a direct comparison is not feasible, but the competitive award process suggests an effort to achieve value.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential delays in examination scheduling and reporting, which could impact veterans' claims processing times. Ensuring the quality and consistency of medical evaluations across a large network of providers is another key risk. Furthermore, managing the administrative complexity and ensuring data security for sensitive veteran health information are critical. Mitigation strategies likely involve stringent performance metrics, quality assurance protocols, regular reporting requirements, and robust data security measures mandated by the VA. QTC's established infrastructure and experience are intended to mitigate these risks, but ongoing oversight is crucial.

How effective has QTC Medical Services been in meeting performance expectations on previous VA contracts for disability examinations?

QTC Medical Services has generally been considered an effective provider of medical disability examinations for the VA, given their repeated awards and significant role in the program. Performance data, often captured through Contractor Performance Assessment Reporting System (CPARS), would provide a more granular view. Agencies typically award contracts to contractors with a demonstrated history of meeting or exceeding performance expectations. However, the sheer volume of services provided means that occasional performance issues or areas for improvement are not uncommon. The VA's continued reliance on QTC suggests overall satisfaction with their performance, balanced against the need for continuous monitoring.

What is the historical spending trend for medical disability examinations by the VA, and how does this award fit within that trend?

The VA's spending on medical disability examinations has historically been substantial and has likely trended upwards due to increasing veteran populations and evolving healthcare needs. This $348.7 million award for FY26 represents a significant annual investment. Without historical spending data for this specific contract vehicle or category, it's difficult to place it precisely within a trend. However, it aligns with the VA's ongoing commitment to providing comprehensive healthcare and benefits support to veterans. Such large-scale contracts are typical for the services required to manage the volume of disability claims processed annually.

What is the potential impact of this contract on the availability and timeliness of disability examinations for veterans?

This contract is designed to ensure the availability and timeliness of medical disability examinations for veterans. By awarding a substantial contract to a large provider like QTC Medical Services, the VA aims to meet the demand for these crucial evaluations. The success of this contract in positively impacting availability and timeliness depends on QTC's operational efficiency, scheduling capabilities, and the adequacy of their provider network. Effective contract management and performance monitoring by the VA are essential to ensure that veterans receive timely appointments and that examination reports are processed promptly, thereby expediting their claims.

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

Parent Company: Leidos Holdings, Inc.

Address: 4400 NW LOOP 410, SAN ANTONIO, TX, 78229

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, 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: 36C10X25D0003

IDV Type: IDC

Timeline