VA contract for medical disability exams awarded to Veterans Evaluation Services, Inc. for over $24.3 million

Contract Overview

Contract Amount: $24,310,450 ($24.3M)

Contractor: Veterans Evaluation Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-01-08

End Date: 2013-12-31

Contract Duration: 357 days

Daily Burn Rate: $68.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER #0001 (BASE PERIOD OF PERFORMANCE); THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO LOCATE, SUBCONTRACT, AND TRAIN MEDICAL PROFESSIONALS IN PERFORMING MEDICAL DISABILITY EXAMINIATIONS, AS AUTHORIZED UNDER PUBLIC LAW 108-183, FOR VETERANS WHO HAVE FILED A CLAIM FOR DISABILITY COMPENSATION OR PENSION BENEFITS. THE FOLLOWING VETERANS AFFAIRS REGIONAL OFFICES, WHICH INCLUDE ALL COUNTIES UNDER THE JURISDICTION OF EACH, REQUIRE VENDOR ASSISTANCE IN CONDUCTING DISABILITY EXAMINATIONS: CLEVELAND, OHIO; INDIANAPOLIS, INDIANA; LINCOLN, NEBRASKA; DES MOINES, IOWA; ST. LOUIS, MISSOURI; WACO, TEXAS; DENVER, COLORADO AND HONOLULU, HAWAII. IGF::OT::IGF

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77098

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.3 million to VETERANS EVALUATION SERVICES, INC for work described as: TASK ORDER #0001 (BASE PERIOD OF PERFORMANCE); THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO LOCATE, SUBCONTRACT, AND TRAIN MEDICAL PROFESSIONALS IN PERFORMING MEDICAL DISABILITY EXAMINIATIONS, AS AUTHORIZED UNDER PUBLIC LAW 108-183, FOR VETERANS WHO HAVE FILED A CLAIM … Key points: 1. Contract focuses on locating, subcontracting, and training medical professionals for veteran disability examinations. 2. Services are authorized under Public Law 108-183, supporting veterans' disability compensation claims. 3. The contract covers multiple Veterans Affairs regional offices across several states, indicating a broad geographic scope. 4. The performance period spans nearly a full year, suggesting a need for sustained support. 5. The contract is a firm-fixed-price type, which can help control costs if the scope is well-defined. 6. The North American Industry Classification System (NAICS) code 621111 points to physician services, aligning with the contract's purpose.

Value Assessment

Rating: good

The contract value of over $24.3 million for a base period of performance of approximately one year appears reasonable for the scope of services. It involves a complex logistical undertaking of sourcing and managing medical professionals across multiple regional offices. Benchmarking this specific service is challenging without more granular data on the number of exams performed and the average cost per exam. However, the firm-fixed-price structure suggests an attempt to manage costs proactively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair pricing and good value for the government. The data indicates there were 3 bidders, suggesting a moderate level of competition for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation among potential contractors.

Public Impact

Veterans filing for disability compensation or pension benefits are the primary beneficiaries, receiving timely and accessible medical examinations. The contract ensures the availability of medical professionals to conduct essential disability examinations. Services are delivered to veterans in eight specific VA regional office jurisdictions, including states like Ohio, Indiana, Nebraska, Iowa, Missouri, Texas, Colorado, and Hawaii. The contract supports a network of medical professionals, potentially creating work opportunities for physicians and other healthcare providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent quality of medical examinations across different subcontractors if not rigorously managed.
Ensuring timely scheduling of appointments for all eligible veterans across a wide geographic area could be a challenge.
Reliance on subcontractors introduces a layer of risk regarding performance and compliance.

Positive Signals

The contract aims to improve the efficiency of the disability claims process for veterans.
Full and open competition suggests a robust selection process for the contractor.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically related to medical services. The NAICS code 621111, Offices of Physicians (except Mental Health Specialists), highlights the nature of the services. The market for providing specialized medical evaluations, particularly for government agencies like the VA, is significant. This contract represents a portion of the VA's broader efforts to manage its healthcare services and claims processing efficiently.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals. However, given the nature of the work, it is possible that the prime contractor may utilize small businesses for certain subcontracting opportunities, such as administrative support or specialized medical services, depending on their subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The Inspector General's office for the VA would also have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, though detailed performance metrics are not publicly available.

Related Government Programs

Veterans Affairs Disability Compensation Program
Veterans Affairs Pension Program
Medical Examination Services Contracts
Healthcare Provider Network Management

Risk Flags

Potential for inconsistent quality of subcontractor performance.
Logistical challenges in coordinating services across multiple states and time zones.
Ensuring timely appointment scheduling for a large veteran population.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.3 million to VETERANS EVALUATION SERVICES, INC. TASK ORDER #0001 (BASE PERIOD OF PERFORMANCE); THE CONTRACTOR SHALL PROVIDE ALL RESOURCES NECESSARY TO LOCATE, SUBCONTRACT, AND TRAIN MEDICAL PROFESSIONALS IN PERFORMING MEDICAL DISABILITY EXAMINIATIONS, AS AUTHORIZED UNDER PUBLIC LAW 108-183, FOR VETERANS WHO HAVE FILED A CLAIM FOR DISABILITY COMPENSATION OR PENSION BENEFITS. THE FOLLOWING VETERANS AFFAIRS REGIONAL OFFICES, WHICH INCLUDE ALL COUNTIES UNDER THE JURISDICTION OF EACH, REQUIRE VENDOR ASSISTANCE IN CONDUCTING DISABILITY EXAMINATION

Who is the contractor on this award?

The obligated recipient is VETERANS EVALUATION 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 $24.3 million.

What is the period of performance?

Start: 2013-01-08. End: 2013-12-31.

What is the historical spending pattern for similar medical disability examination contracts by the VA?

Historical spending on similar medical disability examination contracts by the VA can vary significantly based on the number of regional offices served, the duration of the contract, and the specific services required. Contracts of this nature are often awarded through competitive bidding processes. While specific historical dollar amounts for comparable contracts are not provided in this data snippet, the VA consistently allocates substantial resources to ensure veterans receive timely and accurate disability evaluations. Analyzing past contract awards for services like 'medical disability examinations' or 'veteran evaluation services' within the VA's procurement history would reveal trends in contract values, durations, and the number of awarded contracts over time. This would help contextualize the $24.3 million award as part of a larger, ongoing commitment to veteran healthcare services.

How does the per-exam cost under this contract compare to industry benchmarks or other VA contracts?

Determining the precise per-exam cost under this contract requires knowing the total number of exams performed during the contract period. The provided data only gives the total contract value ($24.3 million) and the performance period (approximately one year). Without the volume of exams, a direct per-exam cost comparison is impossible. Industry benchmarks for disability examinations can vary widely based on the complexity of the medical specialty required, the geographic location, and the specific requirements of the evaluating agency. If the VA's average per-exam cost is significantly higher or lower than comparable contracts or private sector benchmarks, it could indicate issues with pricing, efficiency, or the scope of services. Further analysis would necessitate obtaining the actual number of exams conducted under this contract.

What is the track record of Veterans Evaluation Services, Inc. in performing similar government contracts?

Veterans Evaluation Services, Inc. (VES) has a significant track record in providing medical disability examination services, particularly to the Department of Veterans Affairs. As indicated by this contract award, VES is a key player in this specialized field. A thorough assessment of their track record would involve reviewing their performance on past VA contracts, including their ability to meet performance metrics, manage subcontractors effectively, and adhere to quality standards. Information on past performance, including any awards, penalties, or contract terminations, would be available through federal procurement databases and performance assessment reports. Their continued engagement with the VA suggests a generally positive performance history, though a deeper dive into specific contract outcomes would be necessary for a comprehensive evaluation.

What are the potential risks associated with subcontracting medical professionals for these examinations?

Subcontracting medical professionals for disability examinations introduces several potential risks. Firstly, there's a risk of inconsistent quality of examinations if subcontractors are not adequately vetted, trained, or monitored. This can lead to appeals and delays in benefits for veterans. Secondly, managing a network of subcontractors across a wide geographic area presents logistical challenges, potentially impacting appointment scheduling and turnaround times. Thirdly, ensuring compliance with VA regulations, privacy laws (like HIPAA), and ethical standards across all subcontractors requires robust oversight. Finally, the prime contractor bears the ultimate responsibility for subcontractor performance, meaning any failures by a subcontractor can reflect negatively on the prime and potentially lead to contract disputes or penalties.

How does the geographic scope of this contract (8 VA regional offices) impact its complexity and cost?

The geographic scope of this contract, covering eight distinct Veterans Affairs regional offices across multiple states (Ohio, Indiana, Nebraska, Iowa, Missouri, Texas, Colorado, and Hawaii), significantly increases its complexity and likely its cost. Managing medical professionals and coordinating examinations across such a wide and dispersed area requires sophisticated logistical planning, robust communication networks, and potentially higher administrative overhead. The contractor must establish and maintain relationships with healthcare providers in diverse markets, navigate varying state regulations, and ensure consistent service delivery regardless of location. This broad reach necessitates a strong infrastructure for recruitment, credentialing, scheduling, and quality assurance, all of which contribute to the overall contract value.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9400 GROGANS MILL RD STE 305, THE WOODLANDS, TX, 77380

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

Financial Breakdown

Contract Ceiling: $24,310,450

Exercised Options: $24,310,450

Current Obligation: $24,310,450

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79813D0002

IDV Type: IDC

Timeline