VA awards $230M contract for Midwest medical disability exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $229,886,904 ($229.9M)

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: $631.6K/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 3 (MIDWEST) - MODIFICATION TO EXERCISE 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 $229.9 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 3 (MIDWEST) - MODIFICATION TO EXERCISE OPTION 4. Key points: 1. The contract is a modification to exercise Option 4, indicating a continuation of services. 2. QTC Medical Services Inc. is the incumbent provider for these services. 3. The contract value is substantial at $229.9 million. 4. The services fall under the Offices of Physicians category.

Value Assessment

Rating: good

The contract value of $229.9 million for a one-year period suggests a significant investment. Benchmarking against similar large-scale medical examination contracts 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, which typically promotes competitive pricing. However, this specific award is a modification to exercise an option, suggesting the initial competition may have occurred previously.

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 disability examinations for veterans in the Midwest region. Supports the Department of Veterans Affairs' mission to provide benefits and healthcare to veterans. Maintains continuity of essential services for a large veteran population. Potentially impacts the workload and revenue for QTC Medical Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Warning Flags

Potential for vendor lock-in if competition was limited in prior phases.
Ensuring quality of service delivery over the contract duration.

Positive Signals

Awarded under full and open competition.
Continuation of essential services for veterans.
Experienced incumbent provider.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical examinations for disability claims. Spending in this area is critical for the VA's operational capacity to process claims efficiently.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability would involve monitoring service delivery, quality, and adherence to contract terms to ensure taxpayer funds are used effectively.

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 in subsequent option years.
Dependence on a single provider for a critical service.
Ensuring equitable access to examinations across the Midwest region.
Data privacy and security of veteran medical information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $229.9 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 3 (MIDWEST) - MODIFICATION TO EXERCISE 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 $229.9 million.

What is the period of performance?

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

What was the original contract award value and competition details for the base contract?

The provided data is for a modification exercising Option 4, with a value of $229.9 million for a 364-day period. Information on the original contract's award value, competition method, and pricing structure is not included here. Understanding the initial procurement is crucial for a comprehensive assessment of the overall value and competitive landscape over the contract's lifecycle.

How does the per-unit cost of these disability exams compare to industry benchmarks?

A precise per-unit cost benchmark is not available from the provided data. To assess value, a detailed breakdown of examination types and their associated costs would be needed. Comparing these costs against similar contracts awarded by the VA or other federal agencies, or against private sector pricing for comparable services, would reveal potential cost efficiencies or overspending.

What mechanisms are in place to ensure the quality and timeliness of examinations under this contract?

The Department of Veterans Affairs is responsible for contract oversight, which should include performance monitoring and quality assurance processes. Mechanisms likely involve service level agreements, regular performance reviews, and potentially site visits or audits. Ensuring timely and accurate examinations is critical for veterans' benefits claims processing and overall satisfaction with VA services.

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: $229,886,904

Exercised Options: $229,886,904

Current Obligation: $229,886,904

Actual Outlays: $222,806,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0008

IDV Type: IDC

Timeline