VA awards $1.59M task order for medical disability exams, with full $5.42M potential funding

Contract Overview

Contract Amount: $28,245,985 ($28.2M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-01-01

End Date: 2014-12-31

Contract Duration: 364 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMININATIONS AS AUTHORIZED UNDER PUBLIC LAW 108-183 | VA CONTRACT NUMBER VA798-13-D-0002 | THE PURPOSE OF THIS MODIFICATION IS TO AWARD A TASK ORDER FOR OPTION YEAR 1 OF THE CONTRACT. THE TOTAL AMOUNT OF FUNDING AVAILABLE IS $5,417,953.13; HOWEVER, DUE TO THE FY14 CONTINUING RESOLUTION, ONLY 29.32% OF THE FUNDING IS AVAILABLE AT THIS TIME. THEREFORE, THIS CONTRACT ACTION IS BEING OBLIGATED IN THE AMOUNT OF $1,588,543.86 | IGF::OT::IGF

Place of Performance

Location: SPRING, MONTGOMERY County, TEXAS, 77380, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.2 million to VETERANS EVALUATION SERVICES, INC for work described as: MEDICAL DISABILITY EXAMININATIONS AS AUTHORIZED UNDER PUBLIC LAW 108-183 | VA CONTRACT NUMBER VA798-13-D-0002 | THE PURPOSE OF THIS MODIFICATION IS TO AWARD A TASK ORDER FOR OPTION YEAR 1 OF THE CONTRACT. THE TOTAL AMOUNT OF FUNDING AVAILABLE IS $5,417,953.13; HOWEVER, DUE TO TH… Key points: 1. Contract supports essential medical disability examinations for veterans. 2. Funding is subject to continuing resolution, impacting immediate availability. 3. Task order is for option year 1, indicating ongoing need. 4. Contractor, Veterans Evaluation Services, Inc., has a significant award history. 5. Services are categorized under Offices of Physicians, a broad healthcare sector. 6. Contract type is Firm Fixed Price, providing cost certainty. 7. Geographic scope includes Texas, suggesting regional focus.

Value Assessment

Rating: good

The awarded amount of $1.59M for option year 1 represents a portion of the total $5.42M available funding. Benchmarking this specific task order against similar medical disability examination contracts is challenging without more granular data on the scope of services per examination. However, the firm fixed-price nature suggests a degree of cost control. The total potential value of the contract over its duration will be a key factor in assessing overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically benefits price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the relative strengths of the proposals are not detailed here.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive marketplace. The government can leverage multiple bids to secure services at a more advantageous cost.

Public Impact

Veterans will benefit from timely and accurate medical disability examinations. Services are crucial for determining eligibility for VA benefits. The contract supports the operational capacity of the Department of Veterans Affairs. Workforce implications include potential support for physicians and administrative staff involved in examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Funding availability is contingent on the FY14 Continuing Resolution, creating potential budget uncertainty.
The specific breakdown of services within the $5.42M total potential funding is not detailed, making it hard to assess cost-effectiveness per service.
The duration of the task order (364 days) is standard, but the overall contract duration and subsequent option years are not fully specified.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost predictability.
The contractor, Veterans Evaluation Services, Inc., has a history of performing similar services.
The contract directly supports the mission of the Department of Veterans Affairs in serving veterans.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of medical services. The North American Industry Classification System (NAICS) code 621111, Offices of Physicians (except Mental Health Specialists), indicates a focus on general medical examinations. The market for medical disability examinations is significant, driven by government agencies like the VA and Department of Defense, as well as private insurance companies. Spending in this area is consistent with the ongoing need to assess veteran health status for benefit determination.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, the primary focus was likely on the best overall value rather than specific small business participation goals. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Veterans Affairs contracting officers and program managers. The Inspector General's office of the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics are often internal.

Related Government Programs

VA Medical Services Contracts
Disability Evaluation Services
Healthcare Services for Veterans
Public Law 108-183 Services

Risk Flags

Funding Uncertainty due to Continuing Resolution
Potential for Unspecified Scope of Services within Total Funding
Lack of Detailed Performance Metrics in Public Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.2 million to VETERANS EVALUATION SERVICES, INC. MEDICAL DISABILITY EXAMININATIONS AS AUTHORIZED UNDER PUBLIC LAW 108-183 | VA CONTRACT NUMBER VA798-13-D-0002 | THE PURPOSE OF THIS MODIFICATION IS TO AWARD A TASK ORDER FOR OPTION YEAR 1 OF THE CONTRACT. THE TOTAL AMOUNT OF FUNDING AVAILABLE IS $5,417,953.13; HOWEVER, DUE TO THE FY14 CONTINUING RESOLUTION, ONLY 29.32% OF THE FUNDING IS AVAILABLE AT THIS TIME. THEREFORE, THIS CONTRACT ACTION IS BEING OBLIGATED IN THE AMOUNT OF $1,588,543.86 | IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is VETERANS EVALUATION 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 $28.2 million.

What is the period of performance?

Start: 2014-01-01. End: 2014-12-31.

What is the historical spending pattern for this specific contract vehicle (VA798-13-D-0002) prior to this modification?

The provided data indicates this is a modification to award Option Year 1. The total potential value of the contract is $5,417,953.13. The current modification obligates $1,588,543.86. Without access to prior task orders or modifications under this contract vehicle, a detailed historical spending pattern cannot be established. However, the structure suggests a base contract with potential for multiple task orders or option years. The total potential value indicates a significant program. Further investigation into the contract's award date and previous modifications would be necessary to understand the full spending history and how it aligns with the initial contract scope and budget.

How does the per-examination cost for Veterans Evaluation Services, Inc. compare to industry benchmarks for similar disability evaluations?

The provided data does not include the number of examinations to be performed under this task order, making a direct per-unit cost calculation impossible. To benchmark the per-examination cost, one would need to know the total number of examinations anticipated within the $5.42 million potential funding or the $1.59 million obligated amount. Industry benchmarks for disability examinations can vary significantly based on the complexity of the examination, the specialty of the physician, and geographic location. Without these specifics, a meaningful comparison to market rates or similar contracts cannot be made. This information would typically be found in the task order details or performance statements.

What are the key performance indicators (KPIs) used to evaluate the performance of Veterans Evaluation Services, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for medical disability examination contracts, KPIs would focus on aspects such as timeliness of reports (e.g., turnaround time from examination to report submission), accuracy and completeness of examinations and reports, veteran satisfaction, and adherence to examination protocols. The Department of Veterans Affairs would have established specific metrics within the Performance Work Statement (PWS) to monitor the contractor's performance. These KPIs are crucial for ensuring the quality and efficiency of the services provided and for making decisions regarding future contract awards or renewals.

What is the risk associated with the funding being tied to a Continuing Resolution (CR)?

The primary risk associated with funding being tied to a Continuing Resolution (CR) is budget uncertainty and potential disruption to services. A CR typically funds government operations at the previous year's level and can be short-term, leading to stop-gap measures. This can delay the full obligation of funds, potentially impacting the contractor's cash flow and resource allocation. For this contract, it means only 29.32% of the available funding is immediately accessible. If the CR is not resolved into a full appropriations bill, or if future CRs are enacted, the full $5.42 million may not be realized, or its availability could be postponed, potentially affecting the scope or duration of services if not managed carefully by the agency.

How does the number of bidders (3) in this full and open competition impact the government's negotiating position?

Having three bidders in a full and open competition generally indicates a healthy level of competition, which is favorable for the government. With multiple interested parties, the government has a stronger negotiating position as vendors are aware that they are competing against others. This typically drives down prices and encourages vendors to offer their best terms and conditions to win the contract. While three bidders are better than one or two, a larger number of bidders could potentially lead to even more competitive pricing. The specific details of the bids received (e.g., price points, technical proposals) would further inform the extent to which the government secured optimal value.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9400 GROGANS MILL RD STE 305, THE WOODLANDS, TX, 77380

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

Financial Breakdown

Contract Ceiling: $28,245,985

Exercised Options: $28,245,985

Current Obligation: $28,245,985

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79813D0002

IDV Type: IDC

Timeline