VA Awards $117M Sole Source Contract for Medical Disability Exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $117,332,904 ($117.3M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-01-13

End Date: 2017-04-12

Contract Duration: 89 days

Daily Burn Rate: $1.3M/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: DIAMOND BAR, LOS ANGELES County, CALIFORNIA, 91765

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $117.3 million to QTC MEDICAL SERVICES INC 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. Contract awarded to QTC Medical Services Inc. for $117.3M. 2. Sole source award for VBA medical disability examinations. 3. Contract duration is 89 days. 4. Focus on providing medical professionals for veteran disability assessments.

Value Assessment

Rating: questionable

The contract value of $117.3M for a 89-day period suggests a high per-diem cost. Without specific deliverables or unit costs, it's difficult to benchmark against similar contracts for medical disability examinations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, limiting competition. The justification for this approach is not provided, which raises concerns about price discovery and potential overpayment.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium due to the lack of competitive bidding.

Public Impact

Veterans may experience continuity in disability examination services. Potential for delays or disruptions if the contractor cannot scale adequately. Lack of competition could lead to higher costs for the VA and taxpayers. The short duration suggests a bridge contract, potentially masking larger systemic issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value for short duration
Lack of transparency in justification

Positive Signals

Ensures continued service for veterans
Potential for specialized medical expertise

Sector Analysis

The healthcare sector, particularly services related to veteran care, is a significant area of federal spending. This contract falls under medical services, specifically disability evaluations, which are crucial for the VA's operations.

Small Business Impact

There is no indication of small business participation in this sole-source award. The focus is on a single large contractor providing comprehensive services.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective service delivery. The VA's Inspector General should scrutinize the justification and performance.

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 lacks competition.
High cost for a short contract duration.
No clear justification for sole-source status.
Potential for overpayment due to lack of competitive pricing.
Limited transparency on performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $117.3 million to QTC MEDICAL SERVICES INC. 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 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 $117.3 million.

What is the period of performance?

Start: 2017-01-13. End: 2017-04-12.

What is the specific justification for awarding this contract sole-source, and why was it not competed?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances like urgent and compelling needs, or when only one responsible source can provide the required services. Without this information, it's impossible to assess the validity of the sole-source decision or its impact on price.

How does the per-unit cost of these disability examinations compare to industry benchmarks or previous VA contracts?

The data provides a total contract value and duration but lacks specific per-unit cost breakdowns for individual disability examinations. To assess value, a comparison of the average cost per examination against similar services procured competitively by the VA or other government agencies would be necessary. This information is not available in the provided dataset.

What is the expected impact on veterans' access to timely and accurate disability evaluations given this contract's structure?

The contract aims to ensure continued provision of medical disability examinations for veterans. However, the sole-source nature and high value for a short period raise questions about efficiency and potential bottlenecks. While continuity is likely, the lack of competition could indirectly affect the quality or timeliness if the contractor is not adequately resourced or incentivized.

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

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: $1,311,595,320

Exercised Options: $482,332,904

Current Obligation: $117,332,904

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A17D0011

IDV Type: IDC

Timeline