VA awards $71.4M for medical disability exams, extending services for veterans across multiple regions

Contract Overview

Contract Amount: $71,394,233 ($71.4M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-10-18

End Date: 2018-08-10

Contract Duration: 661 days

Daily Burn Rate: $108.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275). EXERCISE THREE MONTH EXTENSION OF SERVICES UNDER THE AUTHORITY OF CONTRACT CLAUSE 52.217-8. 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 THE FOLLOWING GEOGRAPHIC AREAS: ATLANTA, GA, COLUMBIA, SC, JACKSON, MS, PHILADELPHIA, PA, ROANOKE, VA, ST PETERSBURG, FL, HOUSTON, TX, MUSKOGEE, OK, PROVIDENCE, RI, SALT LAKE CITY, UT, SEATTLE, WA, AND WINSTON-SALEM, NC REGIONAL OFFICES. 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 $71.4 million to QTC MEDICAL SERVICES INC for work described as: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275). EXERCISE THREE MONTH EXTENSION OF SERVICES UNDER THE AUTHORITY OF CONTRACT CLAUSE 52.217-8. THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO ACC… Key points: 1. Contract focuses on essential medical disability examinations for veterans, ensuring timely assessments. 2. Services are distributed across 12 key geographic regions, indicating broad national reach. 3. The contract utilizes a firm-fixed-price structure, providing cost certainty for the government. 4. Extension of services suggests a continued need and satisfactory performance under the original contract. 5. The scope includes locating, subcontracting, and training medical professionals, indicating a complex operational requirement. 6. This award falls under the broader category of physician services, supporting healthcare delivery.

Value Assessment

Rating: good

The total award amount of $71.4 million over its duration appears reasonable for the extensive geographic coverage and the specialized nature of medical disability examinations. Benchmarking against similar contracts for nationwide veteran disability assessments would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost overruns, but the ultimate value depends on the quality and efficiency of the examinations provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process where multiple qualified vendors were considered. The specific details of the number of bidders and the evaluation process are not provided, but this procurement method generally promotes price discovery and encourages competitive pricing among offerors.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Veterans requiring disability evaluations to determine eligibility for benefits will receive timely and comprehensive assessments. The contract supports medical professionals by providing opportunities for specialized examination work. Services are delivered across 12 distinct geographic regions, ensuring accessibility for veterans nationwide. The contract contributes to the operational capacity of the Department of Veterans Affairs in processing disability claims.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent quality of examinations across different subcontracted medical professionals.
Ensuring adequate and timely training for a distributed network of medical professionals can be challenging.
Geographic dispersion may lead to logistical complexities and potential delays in service delivery.

Positive Signals

The extension of services suggests satisfaction with the contractor's performance and reliability.
The firm-fixed-price contract provides budget predictability for the VA.
The broad geographic coverage ensures access to services for a large number of veterans.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically focusing on medical assessments for disability claims. The market for such services is driven by government demand, particularly from agencies like the VA. Comparable spending benchmarks would involve analyzing other large-scale contracts for medical examination services or outsourced healthcare support for federal agencies. The industry is characterized by specialized medical providers and a need for robust quality control.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, given the scale and specialized nature of medical disability examinations, it is possible that QTC Medical Services Inc. may utilize small businesses for certain support functions or subcontracting opportunities, though this is not confirmed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The Performance Work Statement (PWS) would outline specific deliverables and quality standards. Inspector General oversight from the VA's Office of Inspector General (OIG) is also a standard mechanism for reviewing contract performance and identifying potential fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration Services
Medical Examination Services
Disability Claims Processing Support
Outsourced Healthcare Services

Risk Flags

Potential for inconsistent quality of examinations due to subcontracting.
Ensuring timely availability of qualified medical professionals across 12 diverse regions.
Logistical challenges in coordinating services across a wide geographic spread.
Dependence on a single contractor for a critical veteran service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $71.4 million to QTC MEDICAL SERVICES INC. MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275). EXERCISE THREE MONTH EXTENSION OF SERVICES UNDER THE AUTHORITY OF CONTRACT CLAUSE 52.217-8. 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

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 $71.4 million.

What is the period of performance?

Start: 2016-10-18. End: 2018-08-10.

What is the historical spending trend for QTC Medical Services Inc. with the Department of Veterans Affairs for similar medical examination contracts?

Analyzing historical spending data for QTC Medical Services Inc. with the VA is crucial for understanding the contractor's track record and the sustained demand for their services. A review of past contract awards, including their value, duration, and scope, would reveal if this $71.4 million award represents a significant increase or a continuation of a long-standing relationship. Trends in spending can indicate the VA's reliance on QTC for medical disability examinations and whether the agency has consistently found their services to be cost-effective and reliable over time. Examining past performance evaluations and any documented issues or successes would provide further context on the contractor's capabilities and the VA's satisfaction levels.

How does the per-examination cost under this contract compare to industry benchmarks for similar medical disability evaluations?

To assess the value for money, a comparison of the per-examination cost under this contract against industry benchmarks is essential. This involves calculating the average cost per medical disability examination by dividing the total contract value by the estimated number of examinations to be performed. These figures would then be benchmarked against data from other government agencies (like the Social Security Administration) or private sector providers offering similar services. Factors such as the complexity of examinations, required specialties, and geographic location can influence costs. If the per-examination cost is significantly higher than benchmarks, it may indicate potential overpricing or inefficiencies, warranting further investigation into the contract's pricing structure and the contractor's cost-efficiency.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has QTC Medical Services Inc. performed against them?

The success of this contract hinges on meeting specific Key Performance Indicators (KPIs) outlined in the Performance Work Statement (PWS). These KPIs likely include metrics such as turnaround time for examinations, accuracy and completeness of reports, veteran satisfaction rates, and the availability of qualified medical professionals across the specified regions. Performance against these KPIs is critical for ensuring veterans receive timely and accurate disability assessments. Analyzing QTC's historical performance data against these metrics would reveal their reliability and effectiveness. Any consistent failure to meet KPIs could signal risks to service delivery and necessitate corrective actions or a re-evaluation of the contract.

What is the potential impact of this contract extension on the VA's overall budget for veteran disability services?

The three-month extension of services under this contract, valued at approximately $17.85 million ($71.4M / 2 years * 0.25 years), represents a direct addition to the VA's budget for veteran disability services during that period. While an extension typically implies satisfactory performance, it also means that funds allocated for these examinations will continue to flow to QTC Medical Services Inc. The impact on the overall budget depends on whether this extension was anticipated and planned for, or if it represents an unforeseen expenditure. Understanding the VA's total budget for disability examinations and how this extended contract fits within that allocation is key to assessing its fiscal impact. It also raises questions about the long-term strategy for these services and whether a new, comprehensive contract is being pursued.

Are there any identified risks associated with QTC Medical Services Inc.'s ability to manage a contract of this magnitude and geographic scope?

Managing a contract of this magnitude, involving nationwide medical disability examinations, presents inherent risks. Key risks for QTC Medical Services Inc. could include maintaining consistent quality of care across a large network of providers, ensuring timely scheduling and completion of examinations, managing subcontractor performance, and adapting to evolving VA requirements. Geographic dispersion can exacerbate logistical challenges and increase the potential for service gaps in certain regions. The VA's oversight mechanisms, including performance monitoring and audits, are designed to mitigate these risks. However, a thorough risk assessment would examine QTC's past performance in managing similar large-scale contracts, their internal quality control processes, and their contingency plans for addressing potential disruptions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $175,378,767

Exercised Options: $172,885,284

Current Obligation: $71,394,233

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A16D0059

IDV Type: IDC

Timeline