VA's $27.8M Sole-Source Contract for VBA Medical Exams Raises Concerns Over Competition and Value

Contract Overview

Contract Amount: $27,813,551 ($27.8M)

Contractor: Medical Support LOS Angeles, a Medical Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-01-13

End Date: 2019-06-20

Contract Duration: 888 days

Daily Burn Rate: $31.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VBA MEDICAL DISABILITY EXAMINATIONS (SOLE SOURCE BRIDGE CONTRACT) AS AUTHORIZED UNDER PUBLIC LAW 104-275 | THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO ACCOMPLISH THE DELIVERABLES DESCRIBED IN THE PERFORMANCE WORK STATEMENT (PWS), EXCEPT AS MAY OTHERWISE BE SPECIFIED. THE CONTRACTOR IS TO LOCATE, SUBCONTRACT, AND TRAIN MEDICAL PROFESSIONALS IN PERFORMING MEDICAL DISABILITY EXAMINATIONS FOR VETERANS WITHIN IDENTIFIED GEOGRAPHIC REGIONS AS IDENTIFIED IN SUBSEQUENT TASK ORDERS. | IGF::OT::IGF

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91106

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.8 million to MEDICAL SUPPORT LOS ANGELES, A MEDICAL CORPORATION for work described as: VBA MEDICAL DISABILITY EXAMINATIONS (SOLE SOURCE BRIDGE CONTRACT) AS AUTHORIZED UNDER PUBLIC LAW 104-275 | THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO ACCOMPLISH THE DELIVERABLES DESCRIBED IN THE PERFORMANCE WORK STATEMENT (PWS), EXCEPT AS MAY OTHERWISE BE SPECIFIED. … Key points: 1. The contract, valued at $27.8 million, was awarded on a sole-source basis, limiting competitive bidding. 2. The primary contractor, Medical Support Los Angeles, is responsible for providing medical disability examinations for veterans. 3. The lack of competition raises questions about whether the government secured the best possible price and value. 4. The sector is healthcare services, specifically medical examinations for veterans, a critical but potentially high-cost area.

Value Assessment

Rating: questionable

The contract's value of $27.8 million for medical disability examinations lacks a clear benchmark due to its sole-source nature. Without competitive bids, it's difficult to assess if this pricing is optimal compared to similar services procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as sole-source, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The sole-source award may result in taxpayers paying more than necessary for these essential veteran medical examinations.

Public Impact

Veterans may experience delays or inconsistencies in receiving necessary medical disability examinations. Taxpayer funds may not have been utilized in the most cost-effective manner due to the lack of competition. The Department of Veterans Affairs' reliance on sole-source contracts could indicate systemic issues in procurement planning or market analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Provides essential services to veterans
Contract awarded to a specialized medical provider

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical examinations for veterans. Benchmarking spending in this area is challenging without competitive data, but the VA's overall healthcare spending is substantial.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this sole-source contract. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the VA is obtaining fair value and that such awards are justified and not a result of poor planning. Accountability for the procurement process is crucial.

Related Government Programs

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

Risk Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in price discovery
Risk of suboptimal value for taxpayer dollars
Requires strong oversight to ensure quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.8 million to MEDICAL SUPPORT LOS ANGELES, A MEDICAL CORPORATION. VBA MEDICAL DISABILITY EXAMINATIONS (SOLE SOURCE BRIDGE CONTRACT) AS AUTHORIZED UNDER PUBLIC LAW 104-275 | THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO ACCOMPLISH THE DELIVERABLES DESCRIBED IN THE PERFORMANCE WORK STATEMENT (PWS), EXCEPT AS MAY OTHERWISE BE SPECIFIED. THE CONTRACTOR IS TO LOCATE, SUBCONTRACT, AND TRAIN MEDICAL PROFESSIONALS IN PERFORMING MEDICAL DISABILITY EXAMINATIONS FOR VETERANS WITHIN IDENTIFIED GEOGRAPHIC REGIONS AS IDENTIFIED IN SUBSEQUENT TASK ORDERS. | IGF::

Who is the contractor on this award?

The obligated recipient is MEDICAL SUPPORT LOS ANGELES, A MEDICAL CORPORATION.

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 $27.8 million.

What is the period of performance?

Start: 2017-01-13. End: 2019-06-20.

What was the justification for awarding this contract as sole-source, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific statutory authority. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible by the Department of Veterans Affairs.

How does the per-unit cost of these medical disability examinations compare to similar services procured competitively by the VA or other federal agencies?

Direct comparison of per-unit costs is difficult without access to specific task order details and competitive benchmarks. However, sole-source contracts inherently lack the price reduction pressures of competition. Therefore, it is probable that the per-unit cost is higher than what might be achieved through a fully competed contract, representing a potential risk to taxpayer value.

What mechanisms are in place to ensure the quality and effectiveness of the medical disability examinations provided under this contract, given the lack of competitive pressure?

Quality assurance and performance monitoring are critical for sole-source contracts. The VA should have robust mechanisms in place, such as performance metrics outlined in the PWS, regular reviews, and feedback channels, to ensure the contractor meets quality standards and provides effective services. Oversight is key to mitigating risks associated with non-competitive awards.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1294 E COLORADO BLVD, PASADENA, CA, 91106

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

Financial Breakdown

Contract Ceiling: $2,399,900,000

Exercised Options: $38,813,551

Current Obligation: $27,813,551

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A17D0010

IDV Type: IDC

Timeline