VA's $274M Medical Disability Exams Contract Awarded to QTC Medical Services Inc. for Region 2

Contract Overview

Contract Amount: $273,759,683 ($273.8M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $752.1K/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 $273.8 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 contract supports medical disability examinations for veterans, a critical service. 2. QTC Medical Services Inc. is a significant player in the government health services sector. 3. Potential risks include service quality variations and timely processing of claims. 4. The sector involves healthcare services, with a focus on diagnostic and evaluative procedures.

Value Assessment

Rating: good

The contract value of $273.8 million over one year appears reasonable given the scope of medical disability examinations required. Benchmarking against similar large-scale contracts for healthcare services suggests this pricing is within expected ranges, though specific per-exam costs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive favorable pricing and ensure the government receives the best value for its investment in medical disability examinations.

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

Public Impact

Ensures veterans receive necessary medical evaluations for disability claims. Supports timely processing of veteran benefits. Contributes to the operational capacity of the Department of Veterans Affairs healthcare system. Impacts veterans across Region 2 (Southeast) by providing access to specialized examinations.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for service delivery delays impacting veteran claims.
Ensuring consistent quality of examinations across all providers.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for veteran disability assessments.
Contract duration allows for sustained service delivery.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical examinations for disability claims. Spending in this area is substantial, driven by the need to assess veteran health conditions accurately and efficiently.

Small Business Impact

The provided data does not indicate specific subcontracting goals or performance related to small businesses for this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing the performance of QTC Medical Services Inc. to ensure the quality and timeliness of examinations, as well as adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for service quality inconsistencies.
Risk of delays in examination scheduling and report generation.
Dependence on a single contractor for a large region.
Ensuring data security and privacy of veteran health information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $273.8 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 $273.8 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

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

The provided data does not specify the average cost per examination. To assess value effectively, a breakdown of the total contract value by the estimated number of examinations would be necessary. Comparing this per-unit cost to similar contracts or industry standards would reveal potential cost efficiencies or overspending.

What are the key performance indicators (KPIs) for QTC Medical Services Inc., and how is their performance being monitored?

Key performance indicators likely include timeliness of appointment scheduling, turnaround time for reports, accuracy of examinations, and veteran satisfaction. The VA's contract management team would monitor these KPIs through regular reporting, site visits, and potentially through feedback mechanisms from veterans.

How does the quality of examinations provided by QTC Medical Services Inc. compare to other contractors or internal VA services?

A comprehensive quality comparison would require access to historical performance data, quality audit results, and potentially veteran feedback surveys for QTC and other providers. Without this comparative data, it is difficult to definitively assess the quality of services rendered under this specific contract.

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: $273,759,683

Exercised Options: $273,759,683

Current Obligation: $273,759,683

Actual Outlays: $265,192,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0005

IDV Type: IDC

Timeline