VA awards $14.5M for primary care services, with 3 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $14,542,081 ($14.5M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-07-17

End Date: 2011-05-30

Contract Duration: 1,413 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PRIMARY CARE CBOC

Place of Performance

Location: SALEM, SALEM (CITY) County, VIRGINIA, 24153

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.5 million to VALOR HEALTHCARE INC for work described as: PRIMARY CARE CBOC Key points: 1. Contract value of $14.5 million over 4 years suggests a significant investment in primary care. 2. The presence of 3 bidders indicates a moderately competitive environment for this service. 3. Firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of 1413 days (approx. 3.8 years) provides a stable service period. 5. Services are delivered in Virginia, impacting local healthcare access for veterans. 6. The North American Industry Classification System (NAICS) code 621111 points to physician's offices.

Value Assessment

Rating: good

The total contract value of $14.5 million over approximately 3.8 years averages to about $3.8 million annually. This figure needs to be benchmarked against similar primary care contracts awarded by the VA or other federal agencies to fully assess value. Without specific per-patient or per-service cost data, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three distinct bidders vying for the opportunity. The presence of multiple bidders generally suggests a healthy level of market interest and competition, which can drive down prices and improve service quality. The specific number of bidders (3) indicates a moderate level of competition, sufficient to provide some price discovery but perhaps not as robust as if there were significantly more offers.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by encouraging providers to offer their best pricing and service terms to secure the contract.

Public Impact

Veterans in Virginia will benefit from continued access to primary care services. The contract ensures the provision of essential medical services, including physician consultations and treatments. Geographic impact is concentrated within the service area covered by the contract in Virginia. The contract supports healthcare professionals and administrative staff employed by the winning contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Dependence on a single contractor for a critical service area.
Ensuring consistent quality of care across the contract duration.

Positive Signals

Awarded through full and open competition, indicating market viability.
Firm-fixed-price contract provides cost predictability.
Contract duration offers stability in service provision.
Established contractor (VALOR HEALTHCARE INC) likely has experience in this domain.

Sector Analysis

The healthcare services sector, particularly within the federal government, is a substantial market. This contract falls under the 'Offices of Physicians (except Mental Health Specialists)' category (NAICS 621111), representing a core component of healthcare delivery. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for primary care services, as well as state and local government contracts for similar medical support, to gauge if the $14.5 million award is within expected ranges for the scope and duration.

Small Business Impact

There is no explicit indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to VALOR HEALTHCARE INC, a named entity, suggests it may be a larger firm or that small business participation was not a primary set-aside criterion for this specific procurement. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Community Care Network (CCN)
VA Medical Services Contracts
Federal Primary Care Services
Department of Veterans Affairs Healthcare Procurement

Risk Flags

Contract performance risk
Quality of care consistency
Potential for cost overruns (though mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.5 million to VALOR HEALTHCARE INC. PRIMARY CARE CBOC

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 $14.5 million.

What is the period of performance?

Start: 2007-07-17. End: 2011-05-30.

What is the historical spending pattern for primary care services by the Department of Veterans Affairs in Virginia?

Analyzing historical spending patterns for primary care services by the VA in Virginia requires access to detailed procurement data over multiple fiscal years. This would involve aggregating contract awards under relevant NAICS codes (like 621111) and service descriptions related to primary care. The goal would be to identify trends in contract values, number of awards, dominant contractors, and average contract durations. Such analysis could reveal if the $14.5 million award to Valor Healthcare Inc. is consistent with past investments, represents an increase or decrease in spending, or if there's a shift towards specific types of primary care providers or contract structures. Understanding these patterns helps contextualize the current contract's significance and potential future spending trajectories.

How does the per-patient cost of this contract compare to other VA primary care contracts?

To compare the per-patient cost, we would need to know the estimated number of unique patients served under this $14.5 million contract over its duration. Assuming an average contract duration of approximately 3.8 years, the annual value is roughly $3.8 million. If, for example, this contract serves 5,000 unique patients annually, the per-patient cost would be around $760 per year. Benchmarking this against other VA primary care contracts requires accessing similar data (total value, duration, patient volume) for comparable contracts, ideally those awarded through similar competitive processes and serving similar veteran populations. Without patient volume data, a direct per-patient cost comparison is not feasible, but we can analyze the overall contract value relative to its scope and duration against market rates for physician services.

What is Valor Healthcare Inc.'s track record with federal healthcare contracts?

Valor Healthcare Inc. has a history of securing and performing on federal healthcare contracts, particularly with the Department of Veterans Affairs. Their portfolio often includes providing primary care, specialty care, and other medical services to veterans. Examining their past performance ratings, any documented contract disputes or awards, and the types and values of previous contracts would provide insight into their reliability and capability. A review of their contract history would reveal if they have consistently met performance expectations, managed budgets effectively, and adhered to regulatory requirements. This information is crucial for assessing the risk associated with the current $14.5 million award and understanding their established position within the federal healthcare contracting landscape.

What are the key performance indicators (KPIs) used to measure the success of this primary care contract?

Key Performance Indicators (KPIs) for a primary care contract like this typically focus on clinical quality, patient access, patient satisfaction, and operational efficiency. Examples of KPIs could include: average wait times for appointments, percentage of patients seen within a specified timeframe (e.g., 7 days for routine appointments), patient adherence to treatment plans, rates of preventable hospitalizations or emergency room visits, patient satisfaction survey scores, and timely completion of medical records. The contract's Service Level Agreement (SLA) would detail these KPIs, along with acceptable performance thresholds and potential remedies for non-compliance. The VA would monitor these metrics to ensure the contractor is delivering high-quality, accessible, and cost-effective care.

How does the level of competition (3 bidders) impact the pricing and quality of services received?

A competition involving three bidders generally strikes a balance between encouraging market participation and ensuring a focused evaluation process. With three bidders, there is sufficient competition to likely drive down prices compared to a sole-source or limited competition scenario, as contractors are motivated to offer competitive bids to win the award. It also suggests that the market has at least a few capable providers interested in this type of contract. However, the quality aspect is influenced not just by the number of bidders but also by the evaluation criteria used. If the evaluation heavily favors the lowest price, there might be a risk of compromising on quality. Conversely, if technical capabilities and past performance are weighted significantly, the competition among three bidders can lead to both competitive pricing and high-quality service selection. The VA's evaluation methodology is key here.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4315 50TH ST NW STE 50, WASHINGTON, DC, 98

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

Financial Breakdown

Contract Ceiling: $14,542,081

Exercised Options: $14,542,081

Current Obligation: $14,542,081

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline