VA awards $176M contract for medical disability exams to QTC Medical Services Inc

Contract Overview

Contract Amount: $176,124,851 ($176.1M)

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: $483.9K/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 4 (PACIFIC) - 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 $176.1 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 4 (PACIFIC) - MODIFICATION TO EXERCISE OPTION 4. Key points: 1. The Department of Veterans Affairs (VA) awarded a significant contract for medical disability examinations. 2. QTC Medical Services Inc. is the sole recipient of this delivery order. 3. The contract falls under the broad category of physician offices, specifically for services related to veterans' benefits. 4. This award represents a substantial investment in ensuring veterans receive necessary medical evaluations.

Value Assessment

Rating: good

The contract value of $176M for a one-year period suggests a high volume of services. Benchmarking against similar large-scale medical examination contracts would be necessary for a precise pricing assessment, but the scale indicates significant demand.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives value for its investment.

Taxpayer Impact: Taxpayer funds are being used to ensure veterans receive timely and accurate medical disability examinations, which is crucial for their benefits and well-being.

Public Impact

Veterans will benefit from continued access to essential medical disability examinations. The contract supports the VA's mission to provide comprehensive care and benefits to service members. This award ensures the continuity of critical health assessment services for a large veteran population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in future modifications.
Dependence on a single vendor for a critical service.

Positive Signals

Awarded through full and open competition.
Supports a vital government function for veterans.

Sector Analysis

This contract falls within the Healthcare sector, specifically related to medical services and administrative support for healthcare delivery. Spending benchmarks for similar large-scale examination contracts would typically be in the tens to hundreds of millions of dollars annually.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this particular award. Larger contracts of this nature often involve prime contractors who may then subcontract portions to smaller entities, but this is not explicitly stated.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms, including performance monitoring and compliance checks, would be in place to ensure the contractor meets service level agreements and quality standards.

Related Government Programs

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

Risk Flags

Vendor lock-in potential.
Quality control of examinations.
Timeliness of service delivery.
Cost-effectiveness over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $176.1 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 4 (PACIFIC) - 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 $176.1 million.

What is the period of performance?

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

What is the historical performance of QTC Medical Services Inc. on similar VA contracts?

Historical performance data for QTC Medical Services Inc. on similar VA contracts is crucial for assessing reliability and quality. Reviewing past contract awards, performance reviews, and any documented issues or successes would provide insight into their capabilities and adherence to contractual obligations. This information helps predict future performance and identify potential risks.

How does the per-service cost compare to industry benchmarks for medical disability examinations?

Comparing the per-service cost to industry benchmarks is essential for determining value. If the cost per examination is significantly higher than comparable services offered by other providers or through different contract vehicles, it could indicate potential overpricing or inefficiencies. Conversely, a cost below benchmarks might suggest aggressive pricing or potential quality compromises.

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

Robust quality assurance and performance monitoring mechanisms are vital. This includes regular audits of examination reports, patient satisfaction surveys, and tracking of key performance indicators such as turnaround times for reports. The VA should have clear protocols for addressing any deficiencies identified in the contractor's performance to ensure veterans receive accurate and timely assessments.

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: $176,124,851

Exercised Options: $176,124,851

Current Obligation: $176,124,851

Actual Outlays: $170,439,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0010

IDV Type: IDC

Timeline