VA Awards $307M Medical Exam Contract to Veterans Evaluation Services, Inc. for VBA MDEO

Contract Overview

Contract Amount: $306,914,738 ($306.9M)

Contractor: Veterans Evaluation 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: $843.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTION 1 TASK ORDER (JANUARY 1, 2026 - DECEMBER 31, 2026) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO)"

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $306.9 million to VETERANS EVALUATION SERVICES, INC for work described as: OPTION 1 TASK ORDER (JANUARY 1, 2026 - DECEMBER 31, 2026) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO)" Key points: 1. Contract awarded to a single vendor, Veterans Evaluation Services, Inc. 2. The contract is for medical disability examinations for the Veterans Benefits Administration. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract value is substantial at over $300 million for one year.

Value Assessment

Rating: good

The contract value of $307 million for a one-year period for medical disability examinations appears reasonable given the scope of services required by the VA's Veterans Benefits Administration. Benchmarking against similar large-scale examination contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential medical disability examinations to support veterans' benefits claims. The competitive nature of the award suggests an effort to secure value for money.

Public Impact

Veterans will continue to receive necessary medical disability examinations to process their benefits claims. The contract ensures continuity of services for the VBA's Medical Disability Examination Office. The use of a single vendor for this large contract may streamline operations but also concentrates risk.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Concentration of service delivery to a single vendor.
Potential for vendor performance issues impacting a large number of veterans.
Significant annual expenditure requires ongoing monitoring.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type provides cost certainty.
Contract duration is one year, allowing for periodic reassessment.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical evaluations for benefits claims. Spending in this area is critical for supporting veterans and can be subject to significant government oversight due to its impact and cost.

Small Business Impact

While the contract was awarded through full and open competition, there is no specific mention of small business participation or subcontracting goals in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the significant value and impact, robust oversight mechanisms, including performance monitoring and quality assurance, are crucial to ensure effective service delivery and accountability.

Related Government Programs

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

Risk Flags

Vendor lock-in potential
Performance degradation risk
Budgetary overruns
Data security and privacy concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $306.9 million to VETERANS EVALUATION SERVICES, INC. OPTION 1 TASK ORDER (JANUARY 1, 2026 - DECEMBER 31, 2026) FOR DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO)"

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 $306.9 million.

What is the period of performance?

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

What is the historical performance of Veterans Evaluation Services, Inc. on similar VA contracts?

Assessing the past performance of Veterans Evaluation Services, Inc. is crucial. Reviewing their track record on previous VA contracts, particularly those involving medical disability examinations, can reveal insights into their reliability, quality of service, and ability to meet deadlines. This historical data is a key indicator of future performance and potential risks associated with this new award.

How does the per-examination cost compare to industry benchmarks for similar services?

Benchmarking the per-examination cost against industry standards is essential for evaluating value for money. If the cost per exam is significantly higher than comparable services provided by other entities or through different contract vehicles, it could indicate potential overpricing or inefficiencies. Conversely, a cost below benchmarks might suggest aggressive pricing or potential quality compromises.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in this contract?

Understanding the specific KPIs and SLAs is vital for assessing contract effectiveness and accountability. These metrics define the expected quality, timeliness, and scope of services. Robust KPIs and SLAs allow the VA to objectively measure vendor performance, identify deficiencies early, and ensure that veterans receive timely and accurate medical disability examinations.

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: $306,914,738

Exercised Options: $306,914,738

Current Obligation: $306,914,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0004

IDV Type: IDC

Timeline