VA awards $307.5M task order to OptumServe for physician services in FY24

Contract Overview

Contract Amount: $307,478,565 ($307.5M)

Contractor: Optumserve Health 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: $842.4K/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $307.5 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY24 FUNDING TASK ORDER. Key points: 1. The contract is for physician services, a critical area for healthcare delivery. 2. OptumServe is a significant player in government health contracting. 3. The firm fixed-price contract type helps control costs. 4. The award is a delivery order under an existing contract.

Value Assessment

Rating: good

The $307.5 million award for one year appears reasonable given the scope of physician services. Benchmarking against similar large-scale healthcare service contracts would provide further validation.

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 typically leads to better price discovery and value for the government.

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

Public Impact

Ensures continued access to physician services for veterans. Supports the Department of Veterans Affairs' mission to provide healthcare. Impacts the healthcare services sector through a large contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract
Delivery order under existing contract

Sector Analysis

This award falls within the healthcare sector, specifically physician services. Spending benchmarks for similar physician staffing contracts can vary widely based on specialty and location.

Small Business Impact

The data does not indicate if small businesses were involved in this specific task order, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure performance and value. The use of a delivery order under an existing contract implies prior oversight.

Related Government Programs

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

Risk Flags

Potential for scope creep if services are not clearly defined.
Reliance on a single contractor for critical physician services.
Need for ongoing performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $307.5 million to OPTUMSERVE HEALTH SERVICES, INC.. FY24 FUNDING TASK ORDER.

Who is the contractor on this award?

The obligated recipient is OPTUMSERVE HEALTH 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 $307.5 million.

What is the period of performance?

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

What is the specific breakdown of physician services required under this task order?

The provided data does not detail the specific physician services. This information would typically be found in the contract's statement of work. Understanding the specialties and volume of services is crucial for assessing the true value and necessity of the $307.5 million award.

What was the competitive landscape during the bidding process for this task order?

While awarded under full and open competition, the number of bidders and their respective proposals are not detailed. A robust competitive landscape with multiple qualified bidders generally leads to more favorable pricing and service terms for the government.

How does the performance of OptumServe on previous contracts compare to this award?

Performance history is a key indicator of future success. Reviewing OptumServe's past performance ratings, particularly on similar VA contracts, would provide insight into their reliability and the potential effectiveness of this award in meeting VA's needs.

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: Unitedhealth Group Incorporated

Address: 328 FRONT ST S, LA CROSSE, WI, 54601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $307,478,565

Exercised Options: $307,478,565

Current Obligation: $307,478,565

Actual Outlays: $266,717,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0007

IDV Type: IDC

Timeline