VA's $153M sole-source contract for VBA medical disability exams awarded to Veterans Evaluation Services, Inc

Contract Overview

Contract Amount: $153,052,575 ($153.1M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-01-13

End Date: 2017-12-12

Contract Duration: 333 days

Daily Burn Rate: $459.6K/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: HOUSTON, HARRIS County, TEXAS, 77008

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $153.1 million to VETERANS EVALUATION 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 on a sole-source basis, limiting competitive opportunities. 2. Focuses on providing medical disability examinations for veterans. 3. Contractor is responsible for locating, subcontracting, and training medical professionals. 4. Performance period spans from January 2017 to December 2017. 5. Contract type is Firm Fixed Price, indicating a set price for services. 6. The contract is a bridge contract, suggesting a temporary solution. 7. Geographic focus includes identified regions within Texas. 8. The North American Industry Classification System (NAICS) code is 621111 (Offices of Physicians).

Value Assessment

Rating: fair

This contract's value of approximately $153 million for a one-year period for medical disability examinations appears substantial. Without comparable sole-source contracts or detailed performance metrics, a precise value-for-money assessment is challenging. However, sole-source awards often carry a premium due to the lack of competition. The firm fixed-price structure provides cost certainty for the government, but the overall value hinges on the quality and efficiency of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a higher price than they would have in a competitive environment. The absence of multiple bids limits the government's ability to negotiate the best possible terms and pricing.

Public Impact

Veterans are the primary beneficiaries, receiving necessary medical disability examinations. The services delivered are crucial for the VA's disability claims processing. Geographic impact is concentrated in identified regions within Texas. The contract necessitates the engagement and training of medical professionals, potentially impacting the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Bridge contract status suggests a potential gap in long-term planning or procurement.
Reliance on subcontracting for medical professionals introduces potential management and quality control challenges.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Focus on a critical veteran service area (medical disability exams).
Contractor is responsible for locating and training medical professionals, potentially ensuring a qualified pool.

Sector Analysis

The healthcare services sector, specifically the provision of medical examinations, is a significant area of federal spending. This contract falls under the 'Offices of Physicians' NAICS code, indicating a focus on direct medical services. The market for such services is competitive, but sole-source awards bypass this dynamic. Benchmarking would typically involve comparing costs for similar examination services across different providers or government contracts, which is difficult here due to the sole-source nature.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award, it was not designed to promote small business participation through competition. Subcontracting opportunities for small businesses may exist if Veterans Evaluation Services, Inc. utilizes them, but this is not guaranteed or mandated by the contract structure itself.

Oversight & Accountability

Oversight mechanisms would primarily involve the Department of Veterans Affairs contracting officers and program managers ensuring performance against the PWS. Accountability measures are tied to the firm fixed-price nature of the contract. Transparency is limited due to the sole-source award, with fewer public details available compared to competed contracts. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

VA Disability Compensation Program
VA Medical Care Services
Veteran Health Administration Contracts
Medical Examination Services Contracts

Risk Flags

Sole Source Justification
Bridge Contract
Potential for Increased Cost due to Lack of Competition
Contractor Performance Risk
Subcontracting Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $153.1 million to VETERANS EVALUATION 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 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 $153.1 million.

What is the period of performance?

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

What is the track record of Veterans Evaluation Services, Inc. in providing similar medical disability examinations?

Information regarding the specific track record of Veterans Evaluation Services, Inc. for this particular contract is limited due to its sole-source nature and the provided data. However, the contract's purpose is to provide medical disability examinations for veterans, a critical function for the VA. The success of such a contract hinges on the contractor's ability to recruit, vet, and manage a network of qualified medical professionals across various specialties and geographic locations. Without access to performance reports, quality metrics, or past performance reviews specifically for this contract, a detailed assessment of their track record is not possible from the given data. Future analysis could involve reviewing contract performance evaluations (if publicly available) or examining other contracts awarded to this entity.

How does the cost of this contract compare to similar services if it had been competed?

Direct comparison of the cost of this sole-source contract to a potentially competed scenario is inherently speculative. Sole-source awards often result in higher prices due to the absence of competitive pressure, which typically drives down costs and encourages efficiency. If this contract had been competed, multiple bidders would likely have submitted proposals, allowing the VA to select the most cost-effective option. The $153 million price tag for a one-year period for nationwide (or regionally focused) disability exams represents a significant investment. Benchmarking against other VA contracts for similar services, if available and comparable in scope and quality, could provide some context, but the lack of competition here suggests the price may not reflect the lowest achievable market rate.

What are the primary risks associated with a sole-source bridge contract for medical disability examinations?

The primary risks associated with a sole-source bridge contract for medical disability examinations include: 1. **Cost Overruns/Lack of Value:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to overpayment for services. 2. **Quality Concerns:** The sole-source nature might reduce pressure on the contractor to maintain high-quality standards if alternative providers are not readily available to the VA. 3. **Limited Innovation:** A lack of competitive bidding can stifle innovation in service delivery methods or technology adoption. 4. **Contractor Dependency:** The VA becomes reliant on a single provider, which can be problematic if the contractor experiences performance issues, financial instability, or faces challenges in meeting demand. 5. **Bridge Contract Instability:** As a bridge contract, it implies a temporary solution, potentially leading to uncertainty for both the contractor and the veterans relying on the services if a long-term solution is delayed.

What is the expected effectiveness of this contract in ensuring timely and accurate disability claim decisions for veterans?

The effectiveness of this contract in ensuring timely and accurate disability claim decisions for veterans is contingent upon several factors not fully detailed in the provided data. The contract's objective is to provide the necessary medical disability examinations, which are a critical input for the VA's adjudication process. If Veterans Evaluation Services, Inc. successfully recruits and deploys a sufficient number of qualified medical professionals, and if these professionals conduct thorough and accurate examinations, then the contract should contribute positively to the timeliness and accuracy of claims. However, the sole-source nature and the bridge contract status introduce potential risks. Delays in scheduling exams, issues with the quality of reports, or insufficient examiner capacity could negatively impact the effectiveness of the claims process. The VA's internal oversight and quality assurance processes will be crucial in mitigating these risks.

How does this contract's spending compare to historical VA spending on medical disability examinations?

The provided data indicates a single contract award of approximately $153 million for the period of January 13, 2017, to December 12, 2017. To compare this to historical VA spending on medical disability examinations, one would need access to historical VA budget documents and contract databases. This single contract represents a significant expenditure for a one-year period. Without broader historical data, it's difficult to ascertain if this amount is higher, lower, or consistent with previous years' spending on similar services. Factors influencing historical spending include changes in veteran population, claim volume, examination requirements, and the procurement strategies employed by the VA (e.g., competed vs. sole-source contracts). A comprehensive analysis would require examining VA's budget allocations and contract awards over multiple fiscal years.

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: 2707 NORTH LOOP W # 1000, HOUSTON, TX, 77008

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

Financial Breakdown

Contract Ceiling: $1,311,005,800

Exercised Options: $1,292,000,000

Current Obligation: $153,052,575

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A17D0012

IDV Type: IDC

Timeline