VA awards $146M for Medical Disability Exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $145,870,979 ($145.9M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-12-31

End Date: 2014-07-02

Contract Duration: 914 days

Daily Burn Rate: $159.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275

Place of Performance

Location: DIAMOND BAR, LOS ANGELES County, CALIFORNIA, 91765, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $145.9 million to QTC MEDICAL SERVICES INC for work described as: MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275 Key points: 1. Significant contract value of $145.9M awarded to a single vendor. 2. Competition was full and open, suggesting potential for price discovery. 3. Contract duration of 914 days (approx. 2.5 years) indicates a substantial, ongoing need. 4. The sector is healthcare services, specifically physician offices.

Value Assessment

Rating: good

The contract value of $145.9M over approximately 2.5 years suggests a significant volume of services. Benchmarking against similar large-scale medical examination contracts would be necessary for a precise assessment, but the scale implies substantial resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for a broad range of potential bidders and can lead to competitive pricing. The award to QTC Medical Services Inc. indicates they were the most advantageous offer.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received fair value for the services rendered, as multiple vendors had the opportunity to bid.

Public Impact

Veterans receive essential medical disability examinations crucial for benefit claims. The contract supports a large network of medical professionals and administrative staff. Timely and accurate examinations impact the efficiency of the VA's claims processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if QTC's performance is exceptionally good.
Dependence on a single vendor for a critical service.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type can provide cost certainty.
Awarded to a known entity in the field.

Sector Analysis

This contract falls within the Healthcare sector, specifically medical examination services. Spending in this area is driven by veteran healthcare needs and claims processing requirements. Benchmarks would focus on per-examination costs and overall contract values for similar services.

Small Business Impact

The data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses were involved in fulfilling this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices would apply to ensure performance and accountability.

Related Government Programs

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

Risk Flags

High contract value concentrated with one vendor.
Long contract duration.
Potential for service disruption if vendor fails.
Dependence on external medical providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $145.9 million to QTC MEDICAL SERVICES INC. MEDICAL DISABILITY EXAMINATIONS UNDER PL 104-275

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 $145.9 million.

What is the period of performance?

Start: 2011-12-31. End: 2014-07-02.

What was the average cost per examination under this contract, and how does it compare to industry benchmarks?

The total contract value was $145,870,979.21 over approximately 914 days. Without the total number of examinations performed, a precise per-unit cost cannot be calculated. However, if we assume a high volume, the average cost per examination would need to be benchmarked against similar services provided by other entities to assess value for money.

What were the key performance indicators (KPIs) for QTC Medical Services Inc., and how was their performance measured?

Specific KPIs are not detailed in the provided data. Typically, for medical examination contracts, KPIs would include turnaround time for reports, accuracy of examinations, veteran satisfaction, and compliance with VA protocols. Performance would be monitored through regular reporting and potentially site visits by VA contract officers.

How effectively did the full and open competition process ensure the best possible pricing and service quality for the VA?

Full and open competition generally promotes competitive pricing by allowing multiple qualified vendors to bid. The effectiveness in ensuring best pricing and quality depends on the clarity of the solicitation, the number and capability of bidders, and the evaluation criteria used by the VA. The award to QTC suggests they met or exceeded the requirements at a competitive price.

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: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

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: $145,870,979

Exercised Options: $145,870,979

Current Obligation: $145,870,979

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79811D0003

IDV Type: IDC

Timeline