VA awards $330M task order for medical disability exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $330,000,000 ($330.0M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-01

End Date: 2022-03-30

Contract Duration: 363 days

Daily Burn Rate: $909.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR MEDICAL DISABILITY EXAMINATIONS DISTRICT 6/ NATIONAL MISSION- SERVICES

Place of Performance

Location: DIAMOND BAR, LOS ANGELES County, CALIFORNIA, 91765

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $330.0 million to QTC MEDICAL SERVICES INC for work described as: TASK ORDER FOR MEDICAL DISABILITY EXAMINATIONS DISTRICT 6/ NATIONAL MISSION- SERVICES Key points: 1. Contract value represents a significant investment in veteran healthcare services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the task order is approximately one year, indicating a need for ongoing services. 5. The North American Industry Classification System (NAICS) code 621111 points to physician services, specifically offices of physicians. 6. The contract is a delivery order, a common mechanism for procuring services under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $330 million for medical disability examinations is substantial. Benchmarking against similar contracts for nationwide disability examination services is challenging without more specific service details and geographic scope. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award to a single contractor, QTC Medical Services Inc., implies they were selected based on competitive factors, but a direct value-for-money assessment requires comparison with other potential bidders' proposals and the quality of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally expected to yield competitive pricing and ensure the government receives the best value by considering multiple qualified offerors.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices through market forces and encourages a wider pool of contractors to vie for government business, leading to potentially lower overall spending.

Public Impact

Veterans in District 6 and potentially nationwide will benefit from timely and accurate medical disability examinations. The services delivered are crucial for determining eligibility and benefit levels for veterans. The geographic impact is specified as District 6, but the national mission aspect suggests broader applicability. The contract supports the healthcare sector workforce, including physicians, nurses, and administrative staff involved in examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service delivery bottlenecks if contractor capacity is exceeded.
Ensuring consistent quality of examinations across all providers and locations.
Monitoring contractor performance to ensure adherence to examination protocols and timelines.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost overruns.
Focus on a critical service area for veteran benefits.

Sector Analysis

The healthcare services sector, particularly the provision of specialized medical examinations, is a significant area of federal spending. This contract falls under the broader category of healthcare support services. The market for medical disability examinations is competitive, with several established providers vying for government contracts. The size of this award suggests QTC Medical Services Inc. is a major player in this niche.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) fields are false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, unless QTC Medical Services Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring QTC Medical Services Inc. to deliver services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Care Programs
VA Disability Compensation
Veteran Readiness and Employment (VR&E)
TRICARE Medical Services

Risk Flags

Potential for service delivery delays
Quality assurance of examinations
Contractor capacity management

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $330.0 million to QTC MEDICAL SERVICES INC. TASK ORDER FOR MEDICAL DISABILITY EXAMINATIONS DISTRICT 6/ NATIONAL MISSION- SERVICES

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 $330.0 million.

What is the period of performance?

Start: 2021-04-01. End: 2022-03-30.

What is the historical spending trend for medical disability examinations by the VA?

Analyzing historical spending trends for medical disability examinations by the Department of Veterans Affairs (VA) is crucial for understanding the scale and consistency of this service procurement. While specific historical data for this exact task order is not provided, the VA consistently allocates significant resources to veteran healthcare and benefits administration. This includes funding for medical evaluations necessary to process disability claims. Over the past decade, federal spending on healthcare services, including those contracted out, has generally increased due to factors such as an aging veteran population, expanding healthcare access, and evolving medical understanding of service-related conditions. The $330 million award to QTC Medical Services Inc. for a one-year period suggests a substantial, ongoing need for these examinations, aligning with broader trends of increased demand for veteran healthcare support services.

How does the pricing of this contract compare to similar medical disability examination contracts?

Directly comparing the pricing of this $330 million task order to similar medical disability examination contracts is challenging without detailed service level agreements, geographic scope, and specific examination types. However, the contract's firm fixed-price (FFP) structure is a key indicator of pricing strategy. FFP contracts aim to establish a ceiling price, shifting cost risk to the contractor. The value of $330 million for a one-year duration suggests a high volume of examinations or complex cases. Benchmarking would ideally involve comparing the per-examination cost or cost per clinician hour against other VA or Department of Defense contracts for similar services. Given that QTC Medical Services Inc. is a known provider in this space, their pricing is likely competitive within the established market rates for such specialized services, especially considering it was awarded under full and open competition.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract for the VA revolve around service delivery and quality assurance. A significant risk is the potential for contractor underperformance, leading to delays in processing disability claims, which can negatively impact veterans awaiting benefits. Ensuring the consistent quality and accuracy of medical examinations across potentially numerous providers and locations is another critical risk. If the contractor fails to meet performance standards or maintain adequate staffing levels, the VA may face disruptions in service. Furthermore, there's a risk of cost escalation if the fixed-price contract doesn't adequately account for unforeseen circumstances, although the FFP structure aims to mitigate this. Reputational risk also exists if the public perceives the examinations as inadequate or biased.

What is the track record of QTC Medical Services Inc. in performing similar government contracts?

QTC Medical Services Inc. has a well-established track record of performing medical examination services for government agencies, particularly the Department of Veterans Affairs (VA) and the Department of Defense. They are a significant contractor in the field of veteran disability evaluations and have held numerous contracts over many years. Their experience typically includes conducting a high volume of examinations, managing a network of healthcare providers, and adhering to specific government protocols for reporting. While specific performance metrics for past contracts are not detailed here, their continued success in winning large-scale contracts like this $330 million task order suggests a generally positive performance history and capability to meet the demanding requirements of federal healthcare service provision.

How does this contract contribute to the VA's overall mission of serving veterans?

This contract is directly aligned with the VA's core mission of serving veterans by ensuring they receive timely and accurate medical disability examinations. These examinations are a critical component of the disability claims process, enabling the VA to assess the extent of service-connected conditions and determine appropriate compensation and benefits. By outsourcing a significant portion of these examinations to a specialized provider like QTC Medical Services Inc., the VA can manage workload effectively, reduce internal backlogs, and potentially improve the speed at which claims are processed. This contributes to the VA's goal of providing comprehensive care and support to veterans, recognizing their service and addressing their healthcare needs.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

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: $330,000,000

Exercised Options: $330,000,000

Current Obligation: $330,000,000

Actual Outlays: $321,298,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA119A16D0038

IDV Type: IDC

Timeline