VA awards $56.8M for medical disability exams, with $193.7M total potential funding

Contract Overview

Contract Amount: $143,978,164 ($144.0M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-12-31

End Date: 2014-12-30

Contract Duration: 364 days

Daily Burn Rate: $395.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275. MODIFICATION TO EXERCISE OPTION YEAR 3. TOTAL FUNDING AVAILABLE IS $193,759,829.00; HOWEVER, DUE TO THE FY14 CONTINUING RESOLUTION, ONLY 29.32% OF THIS AMOUNT IS AVAILABLE TO OBLIGATE AGAINST THE CONTRACT. THEREFORE, THE TOTAL AMOUNT OBLIGATED IS $56,810,381.86. | IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $144.0 million to QTC MEDICAL SERVICES INC for work described as: MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275. MODIFICATION TO EXERCISE OPTION YEAR 3. TOTAL FUNDING AVAILABLE IS $193,759,829.00; HOWEVER, DUE TO THE FY14 CONTINUING RESOLUTION, ONLY 29.32% OF THIS AMOUNT IS AVAILABLE TO OBLIGATE AGAINST THE CONTRACT. THEREFORE, THE TOTAL AMO… Key points: 1. Contract awarded to QTC Medical Services Inc. for medical disability examinations. 2. Significant portion of total contract value remains unfunded due to Continuing Resolution. 3. Contract type is Firm Fixed Price, indicating predictable costs for services. 4. Delivery Order issued under a contract with a 364-day duration. 5. Services are categorized under Offices of Physicians, excluding mental health specialists. 6. The contract is for services within California, with potential for broader application. 7. Awarded through Full and Open Competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The total obligated amount of $56.8 million for medical disability examinations appears reasonable given the scope of services. While the total potential funding is $193.7 million, the current obligation reflects the constraints of a Continuing Resolution. Benchmarking against similar contracts for disability evaluations would provide a clearer picture of value for money, but the firm-fixed-price structure suggests cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and ensure fair market value for the services rendered. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment, which typically leads to more cost-effective pricing and better service quality.

Public Impact

Veterans will benefit from timely and accurate medical disability examinations. Services provided are essential for determining eligibility for VA benefits. The contract has a geographic focus on California, impacting veterans in that state. The contract supports the healthcare sector by engaging medical professionals for examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Uncertainty in full contract execution due to Continuing Resolution impacting long-term service availability.
Potential for increased workload on QTC Medical Services Inc. if full funding becomes available.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost certainty for the obligated amount.
Clear delineation of services under Offices of Physicians (except Mental Health Specialists).

Sector Analysis

The healthcare services sector, specifically the provision of medical examinations for disability claims, is a critical component of government healthcare support. This contract falls under the broader category of professional medical services. Comparable spending in this area can vary significantly based on the number of examinations required and the geographic reach. The market for these services is competitive, with several established providers.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. Further analysis would be needed to determine if small businesses were involved in fulfilling this contract or if there were specific subcontracting goals set.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Inspector General reviews may occur to ensure compliance and prevent fraud, waste, and abuse. Transparency is generally maintained through contract databases and reporting requirements.

Related Government Programs

Veterans Health Administration Services
Disability Benefits Determination
Medical Examination Services
Federal Procurement Contracts

Risk Flags

Partial Funding
Continuing Resolution Impact
Contract Duration Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $144.0 million to QTC MEDICAL SERVICES INC. MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275. MODIFICATION TO EXERCISE OPTION YEAR 3. TOTAL FUNDING AVAILABLE IS $193,759,829.00; HOWEVER, DUE TO THE FY14 CONTINUING RESOLUTION, ONLY 29.32% OF THIS AMOUNT IS AVAILABLE TO OBLIGATE AGAINST THE CONTRACT. THEREFORE, THE TOTAL AMOUNT OBLIGATED IS $56,810,381.86. | IGF::OT::IGF FOR OTHER FUNCTIONS

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 $144.0 million.

What is the period of performance?

Start: 2013-12-31. End: 2014-12-30.

What is the historical spending pattern for medical disability examinations by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has a long-standing requirement for medical disability examinations to support its benefits programs. Historically, the VA has contracted with various entities, including private medical groups and specialized examination providers, to conduct these evaluations. Spending in this area has generally trended upwards over the years, reflecting an increasing veteran population and evolving healthcare needs. For instance, in fiscal years prior to 2014, the VA obligated hundreds of millions of dollars annually for these services. The specific amount obligated can fluctuate based on legislative changes, budget appropriations, and the number of claims processed. The current contract's total potential value of $193.7 million suggests a significant ongoing need, even if only a portion is currently funded.

How does the per-unit cost of these medical disability examinations compare to market rates or similar VA contracts?

Determining the precise per-unit cost for these medical disability examinations requires detailed service breakdown and pricing information not fully available in the provided data. The contract is a Delivery Order under a larger contract, and the $56.8 million obligation covers a 364-day period. To benchmark effectively, one would need to know the exact number and types of examinations performed within that period and compare the average cost per examination to industry standards or other VA contracts for similar services. Factors like geographic location, complexity of the examination, and required specialist involvement significantly influence per-unit costs. Without this granular data, a direct comparison is challenging, but the firm-fixed-price nature suggests an attempt to standardize pricing.

What is the track record of QTC Medical Services Inc. in providing similar government contracts?

QTC Medical Services Inc. is a well-established provider of medical examination services for government agencies, particularly the Department of Veterans Affairs. They have a significant history of performing medical disability evaluations, pre-separation physicals, and other health assessments. Their track record generally includes experience with large-scale contracts and a broad network of healthcare providers. While specific performance metrics for this particular contract are not detailed, QTC has been a frequent awardee of similar contracts, indicating a level of confidence from contracting agencies in their ability to meet requirements. Past performance reviews and contract databases would offer more detailed insights into their specific performance history, including any past issues or commendations.

What are the potential risks associated with this contract, particularly given the partial funding?

The primary risk associated with this contract is the partial funding due to the FY14 Continuing Resolution. This means that only $56.8 million of the potential $193.7 million is currently available for obligation. This could lead to service disruptions or limitations if the full funding is not eventually appropriated. There's also a risk that the contractor, QTC Medical Services Inc., may face challenges in resource allocation or staffing if they anticipate the full contract value being realized but are only guaranteed a portion. Furthermore, if the contract duration is extended or modified due to funding uncertainties, it could impact the overall cost and efficiency of the program. The reliance on a single contractor for a critical service also presents a risk if performance issues arise.

How does the current contract award compare to previous awards for similar medical disability examination services?

Comparing this specific award requires knowledge of prior contract values and scopes for medical disability examinations. The total potential value of $193.7 million is substantial, indicating a significant ongoing need for these services. However, the current obligated amount of $56.8 million is a more immediate indicator of the current operational scale. Previous awards might have been for different durations, geographic areas, or included different service components. For a comprehensive comparison, one would need to examine the VA's contracting history for disability exams over the past several years, looking at award amounts, contractor performance, and the specific requirements outlined in those solicitations. The fact that this is a Delivery Order under a larger contract suggests a pre-existing relationship and framework.

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: 1

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: $143,978,164

Exercised Options: $143,978,164

Current Obligation: $143,978,164

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79811D0003

IDV Type: IDC

Timeline