VA's Southeast Region Medical Disability Exams Contract Awarded to QTC Medical Services for $211.3M

Contract Overview

Contract Amount: $211,300,000 ($211.3M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $580.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST)

Place of Performance

Location: SAN DIMAS, LOS ANGELES County, CALIFORNIA, 91773

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $211.3 million to QTC MEDICAL SERVICES INC for work described as: MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST) Key points: 1. The Department of Veterans Affairs (VA) awarded a significant contract for medical disability examinations in Region 2. 2. QTC Medical Services Inc. secured the contract, indicating their competitive standing in providing these essential services. 3. The contract's focus on disability evaluations highlights a critical area of VA operations and potential risk if service quality falters. 4. The sector involves healthcare services, specifically physician offices, supporting veteran healthcare needs.

Value Assessment

Rating: good

The contract value of $211.3 million for a 364-day duration suggests a substantial but potentially reasonable price for comprehensive medical disability examinations across a large region. Benchmarking against similar large-scale examination contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary veteran services.

Public Impact

Veterans in the Southeast region will receive medical disability examinations crucial for determining benefit eligibility. The contract ensures continued access to essential healthcare evaluations for a large veteran population. Timely and accurate examinations are vital for veterans to receive the benefits they are entitled to.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service delivery delays if vendor capacity is strained.
Ensuring consistent quality of examinations across numerous providers.
Monitoring vendor performance to meet VA's service level agreements.

Positive Signals

Awarded through full and open competition, promoting market efficiency.
Addresses a critical need for veteran disability assessments.
Contract duration allows for stable service provision.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical examination services for veterans. Spending in this area is significant due to the large veteran population and the complexity of disability assessments.

Small Business Impact

The data indicates that QTC Medical Services Inc. is the primary awardee. Further analysis would be needed to determine the extent of small business subcontracting within this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate medical disability examinations are provided to veterans. Performance metrics and quality assurance processes are key oversight mechanisms.

Related Government Programs

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

Risk Flags

Vendor performance risk
Quality assurance of examinations
Timeliness of service delivery
Potential for service disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $211.3 million to QTC MEDICAL SERVICES INC. MEDICAL DISABILITY EXAMINATIONS (MDES) UNDER SECTION 504 OF THE VETERANS BENEFITS IMPROVEMENTS ACT OF 1996 (PUBLIC LAW 104 275 38 U.S.C. 5101), REGION 2 (SOUTHEAST)

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 $211.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

How does the per-exam cost compare to similar contracts awarded by the VA or other federal agencies?

Without specific per-exam cost data or benchmarks from comparable contracts, it is difficult to definitively assess the value. However, the total contract value of $211.3 million over approximately one year suggests a significant investment. A detailed cost-per-examination analysis against industry standards and historical VA data would be necessary for a precise valuation.

What are the key performance indicators (KPIs) for QTC Medical Services, and how are they monitored to mitigate risks related to examination quality and timeliness?

The VA likely employs several KPIs to monitor QTC's performance, focusing on metrics such as turnaround time for reports, accuracy of diagnoses, veteran satisfaction, and compliance with examination protocols. Regular performance reviews, data analysis of submitted claims, and potentially site visits would be part of the oversight process to identify and address any quality or timeliness issues proactively.

What is the projected impact of this contract on the efficiency and effectiveness of the VA's disability claims processing system?

This contract is intended to enhance the efficiency and effectiveness of the VA's disability claims processing by ensuring a steady supply of comprehensive medical disability examinations. By outsourcing these evaluations to a specialized provider like QTC, the VA aims to reduce internal backlogs, expedite claim decisions, and improve the accuracy of assessments, ultimately benefiting veterans through faster and more reliable outcomes.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 924 OVERLAND CT, SAN DIMAS, CA, 91773

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

Financial Breakdown

Contract Ceiling: $211,300,000

Exercised Options: $211,300,000

Current Obligation: $211,300,000

Actual Outlays: $196,565,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0005

IDV Type: IDC

Timeline