VA awards $38.8M for backup support services to OptumHealth Care Solutions, LLC
Contract Overview
Contract Amount: $38,852,640 ($38.9M)
Contractor: Optumhealth Care Solutions, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-05-16
End Date: 2023-06-28
Contract Duration: 1,138 days
Daily Burn Rate: $34.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE CONTRACT IN PLACE IN ORDER TO PROVIDE BACK UP SUPPORT FOR THE LATE
Place of Performance
Location: EDEN PRAIRIE, HENNEPIN County, MINNESOTA, 55344
Plain-Language Summary
Department of Veterans Affairs obligated $38.9 million to OPTUMHEALTH CARE SOLUTIONS, LLC for work described as: THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE CONTRACT IN PLACE IN ORDER TO PROVIDE BACK UP SUPPORT FOR THE LATE Key points: 1. The contract is for backup support services, with a significant value of $38.8 million. 2. OptumHealth Care Solutions, LLC is the sole awardee, indicating a lack of competition. 3. The contract duration is over three years, ending in June 2023. 4. The service category is 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: questionable
The contract value of $38.8 million for backup support services appears high given the lack of competition and the broad service description. Benchmarking is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this size raises concerns about whether taxpayers received the best possible value.
Public Impact
Veterans may not be receiving the most cost-effective support due to the sole-source nature of the contract. The broad service category makes it difficult to assess the specific impact on veteran care. Lack of transparency in the procurement process could erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Broad service description
Positive Signals
- Contract in place to ensure backup support
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' category is broad and can encompass a wide range of activities. Without more specific details on the services provided, it's challenging to benchmark against industry standards or government spending in similar areas.
Small Business Impact
The contract was awarded to OptumHealth Care Solutions, LLC, a firm. There is no indication that small businesses were involved in providing these services, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants further review by oversight bodies to ensure proper justification and taxpayer value.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Broad service description hinders analysis
- Limited transparency in procurement
Tags
all-other-professional-scientific-and-te, department-of-veterans-affairs, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $38.9 million to OPTUMHEALTH CARE SOLUTIONS, LLC. THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE CONTRACT IN PLACE IN ORDER TO PROVIDE BACK UP SUPPORT FOR THE LATE
Who is the contractor on this award?
The obligated recipient is OPTUMHEALTH CARE SOLUTIONS, LLC.
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 $38.9 million.
What is the period of performance?
Start: 2020-05-16. End: 2023-06-28.
What specific backup support services were provided under this contract, and how do they align with the 'All Other Professional, Scientific, and Technical Services' NAICS code?
The provided data lacks specific details on the services rendered. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a catch-all category. To assess value, a breakdown of the services, such as technical consultation, research support, or specialized analysis, would be necessary to compare against market rates and ensure appropriate use of funds.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive approaches considered?
The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. A thorough justification for this approach, detailing why a competitive process was not feasible or advantageous, is crucial. Without this justification, it's difficult to assess the risk of inflated pricing and ensure that taxpayer funds were used efficiently and effectively.
How does the $38.8 million contract value compare to similar backup support service contracts within the VA or other federal agencies, particularly those awarded competitively?
Benchmarking this contract's value is challenging due to the broad service description and sole-source award. If similar, specific backup support services were procured competitively, those contract values would serve as a better comparison. The absence of competition for this significant award raises concerns about potential overpayment and the need for greater transparency in future procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NAL
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 11000 OPTUM CIRCLE, EDEN PRAIRIE, MN, 55344
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,852,640
Exercised Options: $38,852,640
Current Obligation: $38,852,640
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-16
Current End Date: 2023-06-28
Potential End Date: 2023-06-28 00:00:00
Last Modified: 2023-06-30
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