VA Awards $66.8M Task Order to OptumServe for Physician Services in Wisconsin

Contract Overview

Contract Amount: $66,808,629 ($66.8M)

Contractor: Optumserve Health Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-26

End Date: 2019-07-15

Contract Duration: 657 days

Daily Burn Rate: $101.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER AWARD | IGF::OT::IGF

Place of Performance

Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $66.8 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: TASK ORDER AWARD | IGF::OT::IGF Key points: 1. Significant contract value of $66.8 million awarded. 2. OptumServe Health Services, Inc. is the sole awardee. 3. Contract falls under the Offices of Physicians category. 4. Full and open competition was utilized for this award.

Value Assessment

Rating: good

The $66.8 million award for physician services appears reasonable given the contract duration of approximately two years. Benchmarking against similar physician service contracts would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of the award is likely to ensure taxpayer funds are used efficiently for essential physician services.

Public Impact

Ensures continued access to physician services for veterans in Wisconsin. Supports the Department of Veterans Affairs' mission to provide healthcare. Potential for improved patient outcomes through dedicated medical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may impact long-term service continuity.
Reliance on a single vendor for critical services.

Positive Signals

Awarded through full and open competition.
Clear task order for physician services.

Sector Analysis

This contract falls within the Healthcare sector, specifically physician services. Spending benchmarks for similar physician service contracts can vary widely based on specialty, location, and service level.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract (sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this task order. Accountability is maintained through contract performance monitoring and adherence to the firm fixed price structure.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single contractor for critical healthcare personnel.
Risk of cost overruns if scope creep occurs.
Ensuring consistent quality of care across all assigned physicians.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $66.8 million to OPTUMSERVE HEALTH SERVICES, INC.. TASK ORDER AWARD | IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE HEALTH 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 $66.8 million.

What is the period of performance?

Start: 2017-09-26. End: 2019-07-15.

What was the specific scope of services required under this task order, and how did it align with the awarded amount?

The task order was for physician services (NAICS 621111) in Wisconsin, awarded to OptumServe Health Services, Inc. for $66.8 million over approximately two years. The scope likely involved providing medical professionals to support VA facilities, ensuring continuity of care for veterans. The alignment of the amount with the scope depends on the number of physicians, specialties, and hours required, which are not detailed in the provided data.

What were the key evaluation criteria used during the full and open competition, and how did they mitigate potential risks?

While specific evaluation criteria are not provided, typical factors in full and open competition for healthcare services include technical approach, past performance, management capability, and price. These criteria help ensure the selected vendor can effectively deliver the required services, manage risks associated with staffing and operations, and provide value for taxpayer money. A thorough evaluation mitigates risks related to service quality and delivery.

How does the performance of OptumServe under this task order compare to industry benchmarks for physician staffing and service delivery?

Performance comparison requires access to OptumServe's specific performance metrics under this contract, which are not publicly available. Industry benchmarks for physician staffing focus on factors like physician-to-patient ratios, wait times, patient satisfaction, and cost per service. Evaluating OptumServe against these benchmarks would indicate the effectiveness of their service delivery and its value to the VA and veteran patients.

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: Unitedhealth Group Incorporated (UEI: 112871561)

Address: 328 FRONT ST S, LA CROSSE, WI, 54601

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

Financial Breakdown

Contract Ceiling: $6,799,908,629

Exercised Options: $76,808,629

Current Obligation: $66,808,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A16D0074

IDV Type: IDC

Timeline