VA awards $436.6M contract for medical disability exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $436,626,628 ($436.6M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.2M/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) - MODIFICATION TO EXERCISED OPTION 4.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $436.6 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) - MODIFICATION TO EXERCISED OPTION 4. Key points: 1. The contract focuses on medical disability examinations for veterans in Region 2 (Southeast). 2. QTC Medical Services Inc. is the sole awardee for this modification. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. This spending falls under the 'Offices of Physicians' sector.

Value Assessment

Rating: good

The contract value of $436.6 million over one year appears substantial for medical disability exams. Benchmarking against similar large-scale contracts for veteran healthcare services would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being used to ensure veterans receive necessary medical disability examinations, supporting their benefits claims.

Public Impact

Ensures timely and accurate medical evaluations for veterans seeking disability benefits. Supports the Department of Veterans Affairs' mission to provide comprehensive care. Impacts veterans in the Southeast region (Region 2) directly. Contributes to the operational capacity of QTC Medical Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is one year, requiring potential re-competition soon.
Modification to an existing option, details of prior performance are key.
Geographic focus on Region 2 may limit broader national reach if issues arise.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type offers cost certainty.
Supports a critical veteran service.

Sector Analysis

This contract falls within the healthcare services sector, specifically related to physician services for examinations. Spending benchmarks for similar large-scale veteran healthcare contracts would provide context for this award's scale.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract modification. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices would apply to ensure performance and accountability.

Related Government Programs

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

Risk Flags

Potential for cost creep if not managed tightly.
Dependence on a single contractor for a critical service.
Need for ongoing performance monitoring.
Ensuring equitable access across the specified region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $436.6 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) - MODIFICATION TO EXERCISED OPTION 4.

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 $436.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What was the competitive landscape during the initial full and open competition for this contract vehicle?

While this modification was awarded under full and open competition, understanding the initial bidding environment for the base contract is crucial. Information on the number of bidders, their qualifications, and the range of proposed prices would offer insight into the initial price discovery and the government's ability to secure competitive terms.

How does the per-unit cost of these medical disability examinations compare to industry benchmarks or previous VA contracts?

A detailed analysis of the per-unit cost for specific examination types is essential for assessing value. Comparing these costs against similar contracts awarded by the VA or other federal agencies, as well as private sector benchmarks for comparable services, would reveal potential cost efficiencies or areas of overspending.

What performance metrics are in place to ensure the effectiveness and quality of the medical disability examinations provided by QTC Medical Services Inc.?

Effective oversight requires robust performance metrics. The VA should have established Key Performance Indicators (KPIs) related to timeliness, accuracy, completeness of reports, and veteran satisfaction. Regular performance reviews and audits are necessary to ensure QTC Medical Services Inc. is meeting these standards and delivering high-quality examinations.

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: $436,626,628

Exercised Options: $436,626,628

Current Obligation: $436,626,628

Actual Outlays: $424,443,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0005

IDV Type: IDC

Timeline