VA Awards $754M for Medical Disability Exams to QTC Medical Services in FY26

Contract Overview

Contract Amount: $754,312,386 ($754.3M)

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: $2.1M/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 $754.3 million to QTC MEDICAL SERVICES INC for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Significant contract value of $754M for essential medical disability examinations. 2. QTC Medical Services Inc. is the sole awardee for this delivery order. 3. Potential risk associated with single-award for a large-value contract. 4. Spending falls within the 'Offices of Physicians' sector.

Value Assessment

Rating: good

The contract value of $754M for a one-year period appears reasonable given the scope of medical disability examinations. Benchmarking against similar large-scale contracts for healthcare services would provide a more precise assessment.

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. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit direct competition for this particular order.

Taxpayer Impact: Taxpayer funds are being used for essential services to veterans, ensuring timely and accurate disability assessments.

Public Impact

Ensures veterans receive necessary medical evaluations for disability claims. Supports the Department of Veterans Affairs' mission to care for veterans. Potential for improved efficiency and reduced wait times for examinations.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Single awardee for a large contract value.
Potential for vendor lock-in if part of a larger IDIQ.

Positive Signals

Supports critical veteran services.
Awarded under full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the 'Offices of Physicians' sector, specifically related to medical disability examinations. Spending in this area is crucial for the VA's operations and veteran support. Benchmarks for similar physician services contracts would indicate if this $754M award is within expected ranges.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this delivery order. Further analysis would be needed to determine if small businesses are involved in providing these services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders, including performance monitoring and quality assurance, should be in place to ensure contractor compliance and service delivery.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole awardee for a large contract value.
Potential for performance issues given the scale.
Dependence on a single contractor for critical services.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $754.3 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 $754.3 million.

What is the period of performance?

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

What is the historical performance of QTC Medical Services Inc. on similar VA contracts?

Historical performance data for QTC Medical Services Inc. on similar VA contracts is crucial for assessing reliability and quality. Reviewing past contract awards, performance evaluations, and any documented issues or successes would provide insight into their capacity to handle this significant $754M contract effectively and efficiently, ensuring veterans receive timely and accurate disability examinations.

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

Comparing the per-unit cost of these medical disability examinations to industry benchmarks is essential for evaluating value for money. While a specific per-unit cost isn't provided, analyzing the total award amount against the expected volume of examinations will allow for a cost-effectiveness assessment. This comparison helps determine if the VA is obtaining competitive pricing for these vital services.

What are the key performance indicators (KPIs) for this contract and how will they be monitored?

Key performance indicators for this contract likely include timeliness of examinations, accuracy of reports, and veteran satisfaction. The VA's oversight will involve monitoring these KPIs to ensure QTC Medical Services Inc. meets contractual obligations. Robust monitoring mechanisms are vital to ensure the effectiveness of the services and the fair treatment of veterans throughout the examination process.

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: $754,312,386

Exercised Options: $754,312,386

Current Obligation: $754,312,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0003

IDV Type: IDC

Timeline