VA Awards $53.5M Task Order to OptumServe for Physician Services in Wisconsin

Contract Overview

Contract Amount: $53,487,032 ($53.5M)

Contractor: Optumserve Health Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-26

End Date: 2019-08-07

Contract Duration: 680 days

Daily Burn Rate: $78.7K/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 $53.5 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: TASK ORDER AWARD| IGF::OT::IGF Key points: 1. Significant contract value of $53.5 million awarded. 2. OptumServe Health Services, Inc. is the sole awardee. 3. Contract falls under the 'Offices of Physicians' NAICS code. 4. Awarded under full and open competition. 5. Task order issued as a delivery order.

Value Assessment

Rating: good

The contract value of $53.5 million appears reasonable for physician services over its duration. Benchmarking against similar contracts for physician staffing in the VA or other federal agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Ensures continued access to physician services for veterans in Wisconsin. Supports the Department of Veterans Affairs' mission to provide healthcare. Potential impact on local healthcare provider employment and competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Clear task order structure.
Specific geographic focus (Wisconsin).

Sector Analysis

This contract falls within the healthcare services sector, specifically physician staffing. Spending in this area is critical for government healthcare providers like the VA to meet patient demand.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were available or pursued.

Oversight & Accountability

The award was made by the Department of Veterans Affairs, indicating internal oversight. The task order structure suggests a defined scope, facilitating accountability for performance and spending.

Related Government Programs

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

Risk Flags

Lack of detailed service description.
No performance or cost overrun data provided.
Unclear meaning of 'br' field.
Small business participation not indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $53.5 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 $53.5 million.

What is the period of performance?

Start: 2017-09-26. End: 2019-08-07.

What specific physician services were procured under this task order, and how do they align with VA's current healthcare needs?

The task order falls under NAICS code 621111 (Offices of Physicians). While specific services aren't detailed, this typically includes general and specialized medical services provided by physicians. The alignment with VA's needs would depend on the specific medical specialties and patient volumes required in the Wisconsin region during the contract period.

Were there any performance issues or cost overruns associated with this task order given its duration and value?

The provided data does not contain information on performance or cost overruns. A thorough review would require access to contract performance reports, payment histories, and any modification records. The 'st' (status) being 'WI' (Wisconsin) and 'sn' (state name) also being Wisconsin might indicate the location of service delivery.

How does the pricing of this task order compare to industry benchmarks for similar physician services in the specified region?

Without specific service details and regional market data, a precise comparison is difficult. However, the contract was awarded under full and open competition, which generally promotes competitive pricing. The 'br' (base rate) value of 78657 might be a component of the overall pricing structure, but its meaning is unclear without further context.

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: $6,797,521,071

Exercised Options: $53,487,032

Current Obligation: $53,487,032

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A16D0076

IDV Type: IDC

Timeline