VA Awards $754M for Medical Disability Exams to Loyal Source Through FY26

Contract Overview

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

Contractor: Loyal Source Government Services LLC

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: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $754.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING Key points: 1. Significant contract value of $754.3M underscores the scale of VA's disability examination needs. 2. Loyal Source Government Services LLC is the sole awardee, raising questions about competition. 3. The contract's duration through FY26 suggests a long-term commitment to these services. 4. The 'Offices of Physicians' NAICS code indicates a focus on core medical assessment services.

Value Assessment

Rating: fair

The contract's firm fixed price structure provides cost certainty. However, without benchmark data for similar large-scale disability examination contracts, assessing the pricing's overall value is challenging.

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, the single award to Loyal Source Government Services LLC warrants further investigation into the number of bids received and the evaluation process.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the total value of $754.3M over its term represents a substantial taxpayer investment in veteran healthcare services.

Public Impact

Ensures continued medical disability examinations for veterans, crucial for benefit claims. Supports the Department of Veterans Affairs' mission to provide comprehensive care. Potential impact on the healthcare services market, particularly for physician-based examinations. The contract's success hinges on the quality and timeliness of examinations provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation.
Potential for cost overruns if scope expands beyond initial estimates.
Dependence on a single contractor for critical services.

Positive Signals

Clear contract duration and end date.
Firm fixed price contract offers cost predictability.
Awarded to a single entity for streamlined service delivery.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on physician services for disability evaluations. Spending benchmarks for similar large-scale contracts are difficult to ascertain without more specific service details, but the $754M value is substantial.

Small Business Impact

The data indicates this contract was awarded under full and open competition, but does not specify if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be measured by the contractor's adherence to performance standards, quality of examinations, and timely delivery of services.

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 robust competition.
Contract duration may lead to complacency.
Dependence on a single provider for critical services.
Quality control of examinations needs close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $754.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

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 was the competitive landscape like for this contract, and were there specific reasons for a single award despite full and open competition?

While the contract was advertised as full and open, the award to a single vendor, Loyal Source Government Services LLC, suggests that either only one bid was received, or the evaluation criteria heavily favored this specific offer. Further details on the bidding process and the number of proposals submitted would clarify the extent of actual competition and its impact on price discovery.

How does the per-unit cost of these medical disability examinations compare to industry benchmarks or previous VA contracts for similar services?

The provided data does not include per-unit cost breakdowns or specific service metrics, making a direct comparison to industry benchmarks or historical VA contracts impossible. To assess value for money, a detailed analysis of the cost per examination, considering factors like complexity and physician time, would be necessary.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure the effectiveness and quality of the medical disability examinations provided?

The contract details do not specify the key performance indicators (KPIs) or the exact methodology for measuring effectiveness and quality. Typically, such contracts would include metrics related to examination turnaround time, accuracy of diagnoses, completeness of reports, and veteran satisfaction. The VA's oversight would involve regular performance reviews against these undefined metrics.

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: 12612 CHALLENGER PKWY STE 365, ORLANDO, FL, 32826

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, 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: 36C10X25D0001

IDV Type: IDC

Timeline