VA awards $392.7M for medical disability exams through FY26, with LOYAL SOURCE GOVERNMENT SERVICES LLC as prime

Contract Overview

Contract Amount: $392,676,748 ($392.7M)

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: $1.1M/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 $392.7 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING Key points: 1. Contract value represents significant investment in veteran healthcare support services. 2. The contract is structured as Firm Fixed Price, indicating predictable cost outcomes. 3. A 364-day duration for the delivery order suggests a focused, short-term service requirement. 4. The award was made under full and open competition, implying a robust bidding process. 5. Geographic focus on Florida (ST, SN) highlights regional service delivery.

Value Assessment

Rating: good

The total contract value of $392.7 million over its period is substantial for medical disability examinations. Benchmarking against similar large-scale contracts for these services is difficult without more specific service delivery details. However, the Firm Fixed Price structure suggests that the VA has negotiated a set price for the services, which can be advantageous for budget predictability. The value appears aligned with the scale of services typically required for a national healthcare system supporting veterans.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids (no: 4) suggests a competitive environment, though the exact number of bidders does not always correlate directly with the intensity of competition. This method generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it encourages multiple companies to bid, driving down prices and improving service quality through selection of the best overall offer.

Public Impact

Veterans requiring medical disability examinations will benefit from timely and efficient service delivery. The services provided are crucial for determining eligibility for VA benefits and healthcare. The contract's geographic focus on Florida indicates a concentration of services in that state. The contract supports healthcare professionals and administrative staff involved in conducting these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service delivery gaps if contractor performance falters within the short delivery order duration.
Dependence on a single contractor for a critical veteran service raises concerns about continuity if issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
Firm Fixed Price contract type provides cost certainty for the VA and taxpayers.
Clear end date (2026-12-31) for the delivery order allows for future re-evaluation of needs and contractor performance.

Sector Analysis

The healthcare services sector, specifically within government contracting, is characterized by significant demand for specialized medical services. This contract for medical disability examinations falls under the broader category of healthcare support services. The market for these services is substantial, driven by the needs of federal agencies like the VA. Comparable spending benchmarks would typically involve analyzing other large contracts for similar examination services across different federal agencies or within the VA's own historical spending.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is not immediately clear from the provided data, and it is unknown if small businesses will be involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under a larger contract, oversight may be integrated into existing VA structures. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA Medical Care Programs
VA Disability Compensation
TRICARE Medical Services
DoD Medical Examinations

Risk Flags

Contract duration for delivery order is short (364 days), requiring efficient ramp-up and execution.
Dependence on a single awardee for a critical service necessitates close performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $392.7 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 $392.7 million.

What is the period of performance?

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

What is the historical spending pattern for medical disability examinations by the VA?

Analyzing historical spending for medical disability examinations by the VA is crucial for understanding trends and justifying current award values. While specific historical data for this exact contract line item is not provided, the VA consistently allocates significant funds towards veteran healthcare services, including disability evaluations. Past awards for similar services would likely show fluctuations based on veteran population needs, policy changes, and the competitive landscape. A review of previous fiscal years' spending on contracted medical disability exams would reveal if this $392.7 million award represents an increase, decrease, or stable investment compared to prior periods. Understanding these patterns helps assess whether the current funding level is consistent with long-term program requirements or indicative of a new trend.

How does the pricing of this contract compare to similar medical disability examination contracts awarded by other federal agencies?

Benchmarking the pricing of this $392.7 million VA contract against similar medical disability examination contracts awarded by other federal agencies, such as the Department of Defense or the Social Security Administration, is essential for value assessment. Without specific per-examination costs or detailed service scopes, a direct price comparison is challenging. However, if data on average cost per exam, turnaround times, and geographic coverage were available for comparable contracts, we could determine if LOYAL SOURCE GOVERNMENT SERVICES LLC's pricing is competitive. A higher cost per exam compared to benchmarks might indicate less efficient service delivery or a less competitive bidding environment, while a lower cost could suggest better value for taxpayers. The Firm Fixed Price nature provides cost certainty but requires careful negotiation to ensure fair market value.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The success of this $392.7 million contract for medical disability examinations hinges on the effective measurement of key performance indicators (KPIs). While not detailed in the provided data, typical KPIs for such services would likely include metrics related to timeliness of appointments and report generation, accuracy and completeness of examination reports, veteran satisfaction scores, and compliance with VA examination protocols. The VA would establish specific targets for these KPIs, and contractor performance would be evaluated against them. Failure to meet these KPIs could result in corrective actions, contract modifications, or impact future award decisions. Robust oversight and clear performance standards are critical for ensuring the quality and efficiency of these vital veteran services.

What is the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC in performing similar government contracts?

Evaluating the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC is crucial for assessing the risk associated with this $392.7 million contract. Information on their past performance, particularly on contracts involving medical services, disability examinations, or large-scale healthcare support, would provide insight into their capabilities and reliability. Key aspects to review include their history of meeting contract requirements, on-time delivery, quality of service, and any past performance issues or disputes. A strong track record suggests a lower risk of performance failure, while a history of challenges might warrant closer monitoring or specific contractual safeguards. The VA likely considered the contractor's past performance during the source selection process.

What is the potential impact of this contract on the overall VA budget for veteran healthcare?

This $392.7 million contract represents a significant allocation within the VA's budget for medical disability examinations, a critical component of veteran healthcare and benefits administration. The funding is earmarked through FY26, indicating a planned expenditure over a defined period. The impact on the overall VA budget depends on how this spending aligns with projected needs and other healthcare priorities. If these examinations are essential for processing claims and determining benefit eligibility, this investment is directly tied to the VA's core mission. However, such a substantial award necessitates careful budget management to ensure it does not detract from other critical healthcare services or lead to budget shortfalls in other areas. Its fixed-price nature offers budget predictability for this specific service.

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: $392,676,748

Exercised Options: $392,676,748

Current Obligation: $392,676,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline