VA awards $268M task order to QTC Medical Services for physician services in California

Contract Overview

Contract Amount: $268,311,778 ($268.3M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $735.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY24 FUNDING TASK ORDER.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $268.3 million to QTC MEDICAL SERVICES INC for work described as: FY24 FUNDING TASK ORDER. Key points: 1. Contract value represents a significant investment in healthcare services for veterans. 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 predictable spending. 4. This task order falls within the 'Offices of Physicians' NAICS code, indicating specialized medical care. 5. The contract duration aligns with the fiscal year, ensuring continuous service delivery. 6. The awardee, QTC Medical Services, is a known provider of healthcare services to government agencies.

Value Assessment

Rating: good

The $268.3 million task order for physician services is substantial. While direct comparisons to similar sole-source contracts are not possible due to the full and open competition, the pricing appears to be benchmarked against market rates for specialized medical services. The firm fixed-price structure suggests an effort to ensure value for money by capping potential cost overruns. The award to QTC Medical Services, a frequent contractor in this space, indicates a level of established performance and pricing expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the competitive nature of the award suggests that multiple companies vied for this contract. This process is designed to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs through market forces, leading to a more efficient use of public funds.

Public Impact

Veterans in California will benefit from access to essential physician services. The contract supports the delivery of medical evaluations and consultations. Services are geographically focused within California, impacting veterans in that state. The contract likely supports a workforce of physicians and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on QTC Medical Services' resources given the contract size.
Ensuring consistent quality of care across all delivered services is crucial.
Monitoring contract performance to ensure adherence to service level agreements.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type helps manage cost predictability.
Contract duration aligns with the fiscal year for seamless service provision.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of physician services. The NAICS code 621111, 'Offices of Physicians (except Mental Health Specialists),' covers a broad range of medical practices. The federal government, particularly the Department of Veterans Affairs, is a significant purchaser of healthcare services to support its beneficiaries. Benchmarking this contract's value would require comparison to other large-scale physician service contracts awarded by federal or state agencies, or large private healthcare systems.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. As a large task order, it is possible that QTC Medical Services may engage small businesses for subcontracting opportunities, but this is not explicitly stated. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Performance monitoring, quality assurance reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of internal oversight processes are not publicly detailed.

Related Government Programs

VA Medical Care Programs
Veteran Health Administration Services
Medical Evaluation Board Services
Compensation and Pension Medical Exams

Risk Flags

Potential for performance variability in service delivery.
Ensuring data security and privacy of veteran health information.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $268.3 million to QTC MEDICAL SERVICES INC. FY24 FUNDING TASK ORDER.

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 $268.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern of the Department of Veterans Affairs with QTC Medical Services for physician services?

Analyzing the historical spending between the Department of Veterans Affairs (VA) and QTC Medical Services Inc. reveals a consistent and significant relationship, particularly for medical examination and evaluation services. QTC Medical Services has been a primary contractor for the VA for many years, handling a large volume of claims-related medical services. For instance, in previous fiscal years, the VA has awarded multi-year, multi-billion dollar contracts to QTC for similar services across various regions. This $268 million task order for FY24 in California is substantial but aligns with the scale of previous awards, indicating a continued reliance on QTC for fulfilling its healthcare service obligations to veterans. The VA's spending with QTC is driven by the need to process a high volume of disability claims, requiring timely and comprehensive medical evaluations.

How does the per-unit cost of services under this task order compare to similar contracts or market rates?

Determining the precise per-unit cost for this task order is challenging without specific service line item details (e.g., cost per physical exam, cost per specialist consultation). However, given that QTC Medical Services is a major provider for the VA and this contract was awarded under full and open competition, it suggests that the pricing has been vetted against market competitiveness. The firm fixed-price nature of the contract implies that QTC bid a price they believed was competitive and profitable. To benchmark accurately, one would need access to the bid proposals and the specific services rendered, comparing them against similar contracts awarded by the VA or other federal agencies to different providers, or against prevailing rates charged by private healthcare providers for comparable services in the California region.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this task order?

While the specific KPIs and SLAs are not detailed in the provided summary data, task orders of this magnitude for physician services typically include stringent performance metrics. These often revolve around timeliness of service delivery (e.g., appointment scheduling within a certain number of days, report generation within a specified timeframe after the exam), quality of medical documentation (accuracy, completeness, adherence to VA guidelines), and patient satisfaction. The Department of Veterans Affairs relies heavily on these metrics to ensure veterans receive timely and appropriate care. Failure to meet these KPIs could result in penalties, reduced payments, or even contract termination, underscoring their importance for both the contractor and the veteran population served.

What is the potential impact of this contract on the overall VA healthcare system's capacity and efficiency?

This $268 million task order significantly bolsters the VA's capacity to deliver essential physician services in California, particularly for veterans undergoing claims-related evaluations. By outsourcing a substantial portion of these services to a specialized provider like QTC Medical Services, the VA can potentially alleviate strain on its internal medical staff and facilities, allowing them to focus on direct patient care and complex medical cases. This division of labor can enhance overall efficiency by leveraging QTC's established infrastructure and expertise in processing high volumes of evaluations. However, it also introduces a reliance on an external entity, making the VA's system efficiency partially dependent on QTC's performance and responsiveness.

Are there any identified risks or concerns regarding QTC Medical Services' past performance or financial stability that could affect this contract?

QTC Medical Services has a long-standing relationship with the VA and other government agencies, indicating a generally established track record. However, as with any large-scale government contractor, potential risks can exist. These might include past performance issues related to appointment wait times, documentation quality, or data security incidents, although no specific major red flags are immediately apparent from the summary data. Financial stability is also a consideration, but QTC's continued success in securing large VA contracts suggests they maintain adequate financial health. A thorough review of past performance evaluations, any contract disputes, and financial health assessments would be necessary for a comprehensive risk assessment beyond the scope of this summary.

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: $268,311,778

Exercised Options: $268,311,778

Current Obligation: $268,311,778

Actual Outlays: $236,717,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0010

IDV Type: IDC

Timeline