VA Awards $388.5M for Medical Disability Exams in FY26 to Veterans Evaluation Services, Inc

Contract Overview

Contract Amount: $388,506,331 ($388.5M)

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: $1.1M/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 $388.5 million to VETERANS EVALUATION SERVICES, INC for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Significant contract value for essential medical disability examinations. 2. Sole incumbent provider, VETERANS EVALUATION SERVICES, INC, raises potential competition concerns. 3. Risk of service disruption if incumbent faces challenges. 4. Healthcare sector spending on veteran services is substantial and growing.

Value Assessment

Rating: good

The contract value of $388.5M for FY26 appears reasonable given the scope of medical disability examinations required for veterans. Benchmarking against similar large-scale healthcare service contracts would provide further validation.

Cost Per Unit: $1,067,325 (average per delivery order)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the data indicates this is a delivery order against a potential larger contract, and the specific competition for this order needs further review.

Taxpayer Impact: Taxpayer funds are being utilized for a critical service supporting veteran benefits, ensuring fair and accurate disability assessments.

Public Impact

Ensures timely and accurate medical evaluations for veterans seeking disability benefits. Supports the Department of Veterans Affairs' mission to care for its service members. Potential impact on veteran wait times and benefit processing efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a sole-source follow-on.
Dependence on a single provider for critical services.
Geographic concentration in Texas may limit national reach.

Positive Signals

Clear contract duration and defined scope of work.
Awarded under full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical evaluations for disability claims. Spending in this area is driven by veteran population size and healthcare needs, with significant government investment.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis is needed to determine if small businesses had an opportunity to participate in this contract or its subcontracting opportunities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure service quality, adherence to timelines, and proper utilization of funds.

Related Government Programs

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

Risk Flags

Potential lack of competition if this is a sole-source follow-on.
Dependence on a single provider for critical veteran services.
Geographic concentration of services in Texas.
Need to verify historical performance and quality of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $388.5 million to VETERANS EVALUATION SERVICES, INC. FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

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 $388.5 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 contracts with the VA?

Assessing the historical performance of VETERANS EVALUATION SERVICES, INC is crucial for understanding their reliability and quality of service. Past performance data, including on-time delivery, accuracy of evaluations, and client satisfaction, can inform future contract decisions and identify potential risks associated with incumbent providers.

How does the per-unit cost benchmark compare to industry standards for similar medical disability examinations?

Comparing the per-unit cost benchmark of approximately $1.07 million per delivery order to industry standards is essential for value assessment. This analysis will reveal if the VA is receiving competitive pricing for these critical services. Significant deviations could indicate overspending or potential inefficiencies in the contract.

What mechanisms are in place to ensure the quality and timeliness of examinations provided under this contract?

Ensuring quality and timeliness requires clear performance metrics, regular reporting, and potential penalties for non-compliance. The VA should have established quality assurance processes and regular reviews to monitor the contractor's adherence to standards and identify any service delivery issues promptly.

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: $388,506,331

Exercised Options: $388,506,331

Current Obligation: $388,506,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0004

IDV Type: IDC

Timeline