VA awards $15.35M outpatient care contract to Potomac Valor Healthcare 2, LLC for Texas services

Contract Overview

Contract Amount: $15,351,131 ($15.4M)

Contractor: Potomac Valor Healthcare 2, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-12

End Date: 2025-08-11

Contract Duration: 364 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BASE YEAR TASK ORDER

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.4 million to POTOMAC VALOR HEALTHCARE 2, LLC for work described as: BASE YEAR TASK ORDER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Base year value is substantial, indicating significant service requirements. 4. The contractor, Potomac Valor Healthcare 2, LLC, is a key player in this service area. 5. Services are categorized under 'All Other Outpatient Care Centers', a broad healthcare segment. 6. The contract duration is one year, with potential for extensions. 7. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The base year value of $15.35 million for outpatient care services appears reasonable given the scope of 'All Other Outpatient Care Centers'. Benchmarking against similar contracts for comprehensive outpatient services in Texas would provide a clearer picture of value for money. The firm fixed-price structure helps mitigate cost overrun risks for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating that while the competition was open, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the 'full and open' nature suggests a robust competitive environment was intended, which typically aids in price discovery and achieving fair market value.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

Veterans in Texas will benefit from a range of outpatient care services. The contract supports the delivery of essential healthcare services, potentially including diagnostic, therapeutic, and preventive care. Geographic impact is focused on Texas, serving the veteran population within the state. The contract likely supports healthcare professionals and administrative staff, contributing to the local healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited transparency if 'exclusion of sources' was not well-justified.
Dependence on a single delivery order for a significant portion of services could pose a risk if the contractor underperforms.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps control costs.
Contract supports essential healthcare services for veterans.

Sector Analysis

The healthcare sector, particularly outpatient care, is a significant area of federal spending. This contract falls under the 'All Other Outpatient Care Centers' NAICS code (621498), which encompasses a wide array of non-hospital-based outpatient services. Federal agencies like the VA are major purchasers of healthcare services, with spending often benchmarked against Medicare rates and private insurance reimbursements. The market for these services is competitive, with numerous providers vying for government contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As the contract was awarded under 'full and open competition', it does not appear to be a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract's scope.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases, though specific performance metrics and detailed spending breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Community Care Network (CCN)
TRICARE
Medicare
Medicaid

Risk Flags

Contract awarded under 'Full and Open Competition After Exclusion of Sources' - requires justification for exclusions.
Potential for performance issues impacting veteran care.
Fixed-price contract may incentivize cost-cutting over quality if not monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.4 million to POTOMAC VALOR HEALTHCARE 2, LLC. BASE YEAR TASK ORDER

Who is the contractor on this award?

The obligated recipient is POTOMAC VALOR HEALTHCARE 2, 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 $15.4 million.

What is the period of performance?

Start: 2024-08-12. End: 2025-08-11.

What is the track record of Potomac Valor Healthcare 2, LLC with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Potomac Valor Healthcare 2, LLC's track record with the VA. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Understanding their past performance, particularly on similar outpatient care contracts, is crucial for evaluating the risk associated with this new award. Without specific historical data, it's difficult to definitively state their reliability, but the award itself suggests they met the VA's initial criteria.

How does the $15.35 million base year cost compare to similar VA outpatient care contracts in Texas?

To benchmark the $15.35 million base year cost, a detailed analysis of comparable VA outpatient care contracts awarded in Texas over the past 2-3 years would be required. This comparison should consider the scope of services, patient volume, contract duration, and specific healthcare services provided (e.g., primary care, specialty clinics, mental health). Factors such as the complexity of care, geographic service area, and prevailing market rates for healthcare professionals in Texas would also need to be factored in. Without this comparative data, it is challenging to definitively assess if this contract represents excellent, good, or fair value for money.

What are the primary risks associated with this contract for the VA?

Key risks for the VA include potential contractor underperformance, leading to gaps in veteran healthcare access or quality issues. Given the firm fixed-price nature, there's a risk that the contractor might cut corners to maintain profitability, impacting service quality. Another risk is the potential for cost increases if the base year is extended or if modifications are required, despite the fixed-price structure. Dependence on a single contractor for a significant service area also poses a risk if the contractor faces financial instability or operational challenges. Finally, ensuring compliance with VA healthcare regulations and patient privacy (HIPAA) is an ongoing risk.

What is the expected effectiveness of the services delivered under this contract?

The effectiveness of services hinges on the contractor's ability to meet or exceed the performance standards outlined in the contract. Assuming Potomac Valor Healthcare 2, LLC delivers services as specified, the contract should effectively expand access to outpatient care for veterans in Texas, potentially reducing wait times and improving health outcomes. The specific metrics for effectiveness would be tied to performance work statements, including patient satisfaction, clinical quality indicators, and adherence to appointment scheduling. The VA's oversight will be critical in ensuring these services are delivered effectively and meet the healthcare needs of the veteran population.

How has VA spending on outpatient care in Texas trended over the last five years?

Analyzing VA spending on outpatient care in Texas over the last five years would reveal trends in demand, service mix, and contractor utilization. This would involve aggregating data from various VA contracts for outpatient services within the state. An increasing trend might indicate growing veteran populations or expanding healthcare needs, while a decreasing trend could suggest shifts in VA's direct care provision or contracting strategies. Understanding these historical patterns provides context for the current $15.35 million award and helps forecast future spending requirements.

What is the significance of the NAICS code 621498 ('All Other Outpatient Care Centers') for this contract?

The NAICS code 621498 signifies that the contract covers a broad spectrum of outpatient healthcare services not specifically classified under other more specialized NAICS codes (like physician offices or dialysis centers). This could encompass services such as urgent care, specialized clinics (e.g., physical therapy, mental health counseling), diagnostic imaging centers, or other community-based health facilities. The breadth of this code means the specific services rendered under this contract could be diverse, requiring careful monitoring by the VA to ensure they align with the intended scope and meet veteran needs effectively.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25722R0015

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2239 TACKETTS MILL DR # B, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,351,131

Exercised Options: $15,351,131

Current Obligation: $15,351,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25724D0016

IDV Type: IDC

Timeline