VA awards $22.4M contract for CBOC services to Valor Healthcare Inc

Contract Overview

Contract Amount: $22,407,730 ($22.4M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-12-01

End Date: 2021-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF CBOC SERVICES.

Place of Performance

Location: SALEM, SALEM County, VIRGINIA, 24153

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.4 million to VALOR HEALTHCARE INC for work described as: IGF::OT::IGF CBOC SERVICES. Key points: 1. Contract awarded to a single vendor, Valor Healthcare Inc. 2. The contract spans five years, indicating a long-term service commitment. 3. Services fall under Outpatient Care Centers, a critical healthcare sector. 4. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $22.4 million over five years suggests a significant investment in outpatient care. Benchmarking against similar contracts for CBOC services would be necessary for a precise value assessment, but the fixed-price nature offers some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The existence of two offers indicates some level of market interest and price discovery.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential healthcare services.

Public Impact

Ensures continued access to vital outpatient care services for veterans. Supports the operational capacity of the Department of Veterans Affairs healthcare system. Provides stable employment for staff within Valor Healthcare Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a 5-year contract.
Reliance on a single provider for critical services.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides budget predictability.

Sector Analysis

This contract falls within the healthcare sector, specifically outpatient care centers. Spending in this area is crucial for meeting veteran healthcare needs. Benchmarks for similar contracts would depend on geographic location and specific service scope.

Small Business Impact

The data does not indicate any specific provisions or subcontracting opportunities for small businesses within this contract. Further analysis would be needed to determine if small businesses were involved or could have been.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting oversight by agency procurement and program management officials. The fixed-price nature may simplify some aspects of financial oversight.

Related Government Programs

All Other Outpatient Care Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long-term contract duration may limit future flexibility.
Potential for service disruption if vendor faces financial or operational issues.
Lack of specific performance metrics in the provided data.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.4 million to VALOR HEALTHCARE INC. IGF::OT::IGF CBOC SERVICES.

Who is the contractor on this award?

The obligated recipient is VALOR HEALTHCARE 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 $22.4 million.

What is the period of performance?

Start: 2016-12-01. End: 2021-11-30.

What was the competitive landscape like during the bidding process, and did the two offers significantly drive down costs compared to a sole-source scenario?

The contract was awarded under full and open competition with two offers received. While this suggests some price discovery, the exact impact on cost reduction compared to a sole-source award is not detailed in the provided data. A deeper dive into the bid analysis would be required to quantify the savings achieved through competition.

What are the key performance indicators (KPIs) for this contract, and how is Valor Healthcare Inc.'s performance being monitored to mitigate risks associated with service delivery?

The provided data does not specify the key performance indicators (KPIs) or the detailed monitoring mechanisms for this contract. Effective oversight would typically involve regular performance reviews, quality assessments, and adherence to service level agreements to ensure the VA receives the contracted services effectively.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar outpatient care centers, and does this represent good value for taxpayer money?

A per-unit cost benchmark is not available in the provided data. To assess value, a detailed comparison of the services rendered and their associated costs against market rates for comparable outpatient care centers would be necessary. The firm fixed price offers cost certainty, but the underlying price must be competitive.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA246-15-R-0557

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Humana Inc.

Address: 5000 SPECTRUM DR, STE 1200 W, ADDISON, TX, 75001

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

Financial Breakdown

Contract Ceiling: $42,759,453

Exercised Options: $22,408,230

Current Obligation: $22,407,730

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline