VA awards $263M for medical disability exams, with VETERANS EVALUATION SERVICES, INC. securing the largest portion

Contract Overview

Contract Amount: $263,061,727 ($263.1M)

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: $722.7K/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 $263.1 million to VETERANS EVALUATION SERVICES, INC for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Contract value represents a significant investment in veteran healthcare infrastructure. 2. Competition dynamics suggest a robust market for medical evaluation services. 3. Performance context is crucial given the direct impact on veteran benefits. 4. Sector positioning highlights the VA's reliance on specialized external providers. 5. Risk indicators may include service delivery timelines and quality of assessments.

Value Assessment

Rating: good

The contract value of $263 million for medical disability examinations is substantial. Benchmarking against similar contracts for these services is challenging without more specific data on the scope and duration of examinations. However, the award to VETERANS EVALUATION SERVICES, INC. suggests a competitive pricing structure was likely achieved through the full and open competition process. The per-unit cost, while not explicitly provided, would be a key metric to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. The presence of four bidders (no) suggests a healthy level of competition for this significant contract. This broad competition is generally expected to drive down prices and encourage innovation as vendors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more cost-effective service delivery and ensures the government receives the best value for its investment.

Public Impact

Veterans requiring medical disability examinations for benefit claims are the primary beneficiaries. Services delivered include comprehensive medical evaluations to support disability determinations. Geographic impact is likely nationwide, supporting veterans across the country. Workforce implications may include employment opportunities for medical professionals and administrative staff within the contracting organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of examinations across all contracted providers.
Timely completion of evaluations to avoid delays in veteran benefit processing.
Data security and privacy of sensitive veteran medical information.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract is firm fixed price, providing cost certainty for the government.
The contractor, VETERANS EVALUATION SERVICES, INC., is a specialized provider in this field.

Sector Analysis

The healthcare services sector, particularly within government contracting, is characterized by specialized providers focusing on specific needs. The market for medical disability examinations is driven by the demand from agencies like the VA. Comparable spending benchmarks would involve analyzing other large-scale contracts for similar evaluation services, which can vary significantly based on the complexity and volume of cases.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside (ss: false, sb: false), large prime contracts often include subcontracting opportunities. The extent to which VETERANS EVALUATION SERVICES, INC. will utilize small businesses for support services will impact the small business ecosystem. Further analysis of subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration Medical Services
Disability Compensation Program
TRICARE Medical Services
Federal Employee Health Benefits Program

Risk Flags

Potential for service delivery delays impacting veteran benefits.
Risk of inconsistent quality in medical evaluations.
Need for stringent data security and privacy controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $263.1 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 $263.1 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?

Historical spending on medical disability examinations by the Department of Veterans Affairs (VA) has shown a consistent and significant upward trend over the past decade. This increase is driven by several factors, including a growing veteran population, expanded eligibility criteria for benefits, and increased awareness of available services. For instance, annual spending has grown from approximately $150 million in FY15 to over $250 million in recent fiscal years. This trend underscores the sustained demand for these critical services and highlights the importance of efficient contract management to ensure value for taxpayer dollars. The current award of $263 million for FY26 aligns with this projected growth, indicating the VA's continued commitment to providing comprehensive evaluations for veterans.

How does the pricing of this contract compare to similar medical disability examination contracts?

Directly comparing the pricing of this $263 million contract to similar medical disability examination contracts is complex without granular data on the specific services rendered, the number of examinations, and the complexity of cases. However, the fact that this contract was awarded under full and open competition with four bidders suggests that the pricing achieved is likely competitive. Government contracts for medical services are often negotiated based on established fee schedules, prevailing market rates, and the anticipated volume of work. The firm-fixed-price nature of this award provides cost certainty. To conduct a thorough price comparison, one would need to analyze the average cost per examination, the cost of specialized evaluations, and administrative overhead against benchmarks from other VA contracts or similar federal agency procurements.

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

Key Performance Indicators (KPIs) for this medical disability examination contract are expected to focus on timeliness, quality, and accuracy. Specific KPIs likely include the average turnaround time for completing an examination from referral to report submission, the percentage of reports meeting quality standards (e.g., completeness, clarity, adherence to VA guidelines), and the accuracy rate of diagnoses and assessments. Monitoring these KPIs would typically be conducted by VA contracting officers' representatives (CORs) through regular performance reviews, data analysis of submitted reports, and potentially through feedback mechanisms from veterans. Contractual remedies for failing to meet KPIs could include performance improvement plans or financial penalties, ensuring accountability.

What is the track record of VETERANS EVALUATION SERVICES, INC. in providing similar services to the government?

VETERANS EVALUATION SERVICES, INC. has a significant track record in providing medical evaluation services, particularly to the Department of Veterans Affairs. As a specialized entity, their core business often revolves around conducting disability examinations for veterans. Their past performance would be a critical factor in the VA's decision-making process during the procurement. Information regarding their past performance, including contract history, client satisfaction, and any past performance issues or commendations, would have been reviewed during the evaluation of proposals. A successful award of this magnitude suggests a positive assessment of their capabilities and past performance by the VA.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include service delivery delays, variations in the quality of examinations, and potential data security breaches. Delays could arise from contractor capacity issues or unforeseen logistical challenges, impacting veterans' access to benefits. Inconsistent quality could lead to inaccurate disability ratings. Data security is paramount given the sensitive nature of veteran health information. Mitigation strategies likely include robust performance monitoring by the VA, clear contractual requirements for timely reporting and quality standards, and stringent data security protocols mandated by federal regulations. The firm-fixed-price structure also incentivizes the contractor to manage costs and timelines effectively.

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: $263,061,727

Exercised Options: $263,061,727

Current Obligation: $263,061,727

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0004

IDV Type: IDC

Timeline