VA awards $25.9M for Medical Disability Exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $25,902,746 ($25.9M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-01

End Date: 2017-06-30

Contract Duration: 364 days

Daily Burn Rate: $71.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275; 38 U.S.C. 5101), DISTRICT 6 (NATIONAL MISSION); IGF::OT::IGF

Place of Performance

Location: DIAMOND BAR, LOS ANGELES County, CALIFORNIA, 91765

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.9 million to QTC MEDICAL SERVICES INC for work described as: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275; 38 U.S.C. 5101), DISTRICT 6 (NATIONAL MISSION); IGF::OT::IGF Key points: 1. Contract awarded to QTC Medical Services Inc. for $25.9M. 2. Services are for Medical Disability Examinations under specific VA legislation. 3. Competition was full and open, indicating potential for competitive pricing. 4. The sector is healthcare services, specifically physician offices. 5. Risk appears moderate given the fixed-price contract type and established provider.

Value Assessment

Rating: good

The contract value of $25.9M for a one-year period suggests a significant volume of services. Benchmarking against similar large-scale disability examination contracts would be necessary for a precise pricing assessment, but the fixed-price structure provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and encourages competitive pricing. The use of a delivery order under an existing contract structure implies a streamlined procurement process.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the services rendered, as multiple vendors had the opportunity to bid.

Public Impact

Veterans will receive essential medical disability examinations to support their benefit claims. The contract ensures continuity of services for a critical veteran support function. The award to QTC Medical Services Inc. impacts the healthcare services sector, particularly for companies specializing in veteran evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if examination requirements are not clearly defined.
Reliance on a single vendor for a large volume of critical services.

Positive Signals

Full and open competition promotes cost-effectiveness.
Fixed-price contract limits cost overruns.
Services directly support veteran benefit claims processing.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on physician services for disability evaluations. Spending benchmarks for similar large-scale veteran examination contracts would provide further context on the efficiency of this award.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award was made under full and open competition, suggesting that large businesses were likely the primary bidders.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing the delivery of these medical disability examinations. Accountability would be managed through contract performance metrics and quality assurance processes.

Related Government Programs

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

Risk Flags

Potential for service quality variations among examiners.
Dependence on a single contractor for a critical function.
Risk of delays in report submission impacting veteran claims.
Need for robust VA oversight to ensure compliance and accuracy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.9 million to QTC MEDICAL SERVICES INC. MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275; 38 U.S.C. 5101), DISTRICT 6 (NATIONAL MISSION); IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is QTC MEDICAL 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 $25.9 million.

What is the period of performance?

Start: 2016-07-01. End: 2017-06-30.

What is the average cost per examination, and how does it compare to industry benchmarks?

The provided data does not allow for a precise calculation of the cost per examination as the total contract value and duration are given, but not the number of examinations. To assess value, this figure would need to be compared against established benchmarks for similar medical disability evaluations, considering factors like complexity and geographic location.

What are the key performance indicators (KPIs) for QTC Medical Services Inc. under this contract?

Key performance indicators would likely include timeliness of examination reports, accuracy of findings, veteran satisfaction, and adherence to VA guidelines. Robust oversight and regular performance reviews are crucial to ensure QTC meets these KPIs and provides high-quality services.

How does the pricing structure compare to other contracts for similar services awarded through different procurement methods?

A firm fixed-price contract, especially under full and open competition, generally aims for competitive pricing. Comparing this contract's unit costs (if derivable) to those from sole-source or other competition types would reveal potential savings or differences in market dynamics.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 21700 COPLEY DR STE 200, DIAMOND BAR, CA, 91765

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

Financial Breakdown

Contract Ceiling: $25,902,746

Exercised Options: $25,902,746

Current Obligation: $25,902,746

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A16D0038

IDV Type: IDC

Timeline