VA Awards $362M for Medical Disability Exams to OptumServe in FY26

Contract Overview

Contract Amount: $362,240,799 ($362.2M)

Contractor: Optumserve Health 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: $995.2K/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $362.2 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Significant contract value of $362.2 million for essential medical disability examinations. 2. OptumServe Health Services, Inc. is the sole awardee for this delivery order. 3. The contract is for a firm-fixed-price delivery order under a larger contract. 4. This spending supports the Department of Veterans Affairs' mission to assess veteran disability. 5. The North American Industry Classification System (NAICS) code is 621111 (Offices of Physicians).

Value Assessment

Rating: good

The $362.2 million award for FY26 appears reasonable given the scope of medical disability examinations. Benchmarking against similar large-scale contracts for healthcare services would provide a more precise assessment of value.

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. This method is generally expected to yield fair pricing and good value for the government.

Taxpayer Impact: Taxpayer funds are being used to ensure veterans receive necessary medical disability examinations, supporting their benefits and healthcare access.

Public Impact

Ensures timely and accurate medical disability examinations for veterans. Supports the Department of Veterans Affairs' commitment to veteran healthcare and benefits. Potential impact on veterans awaiting disability claims processing. Highlights the role of private contractors in delivering government healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is 364 days, potentially leading to follow-on contracts.
Award is a delivery order, implying an existing contract vehicle.
No specific small business set-aside mentioned.

Positive Signals

Full and open competition utilized.
Firm-fixed-price contract type helps control costs.
Supports critical veteran services.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on physician services for disability evaluations. Spending benchmarks for similar government medical examination contracts would be relevant for comparison.

Small Business Impact

The provided data does not indicate any specific small business participation or set-aside for this particular delivery order. Further analysis would be needed to determine the extent of small business involvement in the overall contract vehicle.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure the quality of examinations and the efficient use of taxpayer funds.

Related Government Programs

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

Risk Flags

Reliance on a single contractor for a significant portion of services.
Potential for increased workload on the contractor impacting quality.
Need for ongoing monitoring of contract performance.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $362.2 million to OPTUMSERVE HEALTH SERVICES, INC.. FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE HEALTH 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 $362.2 million.

What is the period of performance?

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

What is the historical performance of OptumServe Health Services, Inc. in delivering medical disability examinations for the VA?

Historical performance data for OptumServe Health Services, Inc. in delivering medical disability examinations is critical for assessing future reliability and quality. Reviewing past contract performance, including any quality issues, timeliness, and veteran satisfaction metrics, would provide valuable insights into their capabilities and potential risks associated with this award.

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

A detailed per-unit cost analysis is essential to determine if this contract represents good value. Comparing these costs against established industry benchmarks for similar medical services and against the VA's own historical pricing for disability examinations will reveal potential cost savings or overspending. This comparison is key to ensuring taxpayer dollars are used efficiently.

What mechanisms are in place to ensure the quality and accuracy of the medical disability examinations provided?

Ensuring the quality and accuracy of medical disability examinations is paramount for fair veteran benefits. The VA must have robust quality assurance processes, including regular audits, performance monitoring, and clear protocols for examiners. Effective oversight mechanisms are necessary to identify and rectify any deficiencies promptly, safeguarding both veteran interests and program integrity.

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

Parent Company: Unitedhealth Group Incorporated

Address: 328 FRONT ST S, LA CROSSE, WI, 54601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $362,240,799

Exercised Options: $362,240,799

Current Obligation: $362,240,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0002

IDV Type: IDC

Timeline