VA awards $137M annual exam contract to Loyal Source Government Services for physician services in Florida

Contract Overview

Contract Amount: $137,336,546 ($137.3M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $377.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANNUAL TASK ORDER FOR EXAMS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $137.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: ANNUAL TASK ORDER FOR EXAMS Key points: 1. Contract value represents significant annual investment in physician services for veterans. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs, but requires careful scope management. 4. Contract duration of one year with options indicates a need for ongoing evaluation. 5. Geographic focus on Florida highlights a specific regional demand for these services. 6. The award to a single vendor warrants scrutiny of performance and pricing over time.

Value Assessment

Rating: good

The contract's value of approximately $137 million annually for physician services is substantial. Benchmarking against similar contracts for medical staffing or physician support within the VA or other agencies would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests an effort to establish predictable costs. The award amount, relative to the scope of services (annual task order for exams), appears reasonable on its face, but detailed performance metrics and comparison to market rates for physician services in Florida would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the use of this procurement method suggests that multiple entities likely vied for the contract, allowing the agency to select the best value proposal.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service quality that can arise from a competitive bidding process. Full and open competition increases the likelihood that the government is obtaining services at a fair market price.

Public Impact

Veterans in Florida will benefit from access to necessary medical examinations and physician services. The contract supports the delivery of essential healthcare services within the Department of Veterans Affairs network. The geographic focus on Florida means the primary impact will be on veterans residing in or seeking care within that state. This contract likely supports a workforce of physicians and potentially administrative staff involved in delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in annual task orders if not tightly managed.
Reliance on a single vendor for a significant portion of physician services in a region.
Ensuring consistent quality of care across all contracted physicians.
Monitoring contractor performance to ensure adherence to service level agreements.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type helps in budget predictability.
Focus on a specific geographic area allows for tailored service delivery.
Contract duration allows for sustained provision of critical services.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on physician services. The North American Industry Classification System (NAICS) code 621111, 'Offices of Physicians (except Mental Health Specialists),' indicates the nature of the services. The federal government, particularly the Department of Veterans Affairs, is a major purchaser of healthcare services. Spending in this category is driven by the need to provide medical care to eligible beneficiaries, including veterans. Comparable spending benchmarks would involve analyzing other VA contracts for physician staffing and services, as well as contracts awarded by other federal health agencies like the Department of Defense.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this particular award. While the primary contractor, LOYAL SOURCE GOVERNMENT SERVICES LLC, is not explicitly identified as a small business in this data, the contract does not appear to have been set aside for small businesses. This means that larger businesses were eligible to compete and win. Subcontracting opportunities for small businesses may exist if the prime contractor chooses to utilize them, but there is no explicit requirement indicated in the provided data. The impact on the small business ecosystem is neutral to potentially negative if small businesses were excluded from direct competition.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

VA Medical Services Contracts
Physician Staffing Contracts
Healthcare Services for Veterans
Federal Healthcare Procurement
Department of Veterans Affairs Medical Services

Risk Flags

Potential for service disruption if contractor fails to perform.
Risk of price increases in future renewals if competition diminishes.
Ensuring consistent quality of care across all contracted physicians.
Dependency on a single vendor for critical healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $137.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. ANNUAL TASK ORDER FOR EXAMS

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

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 $137.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for physician services under this specific contract vehicle or similar contracts awarded by the VA to LOYAL SOURCE GOVERNMENT SERVICES LLC?

Analyzing historical spending requires access to detailed contract data beyond the current award. If this is a new contract, there is no prior spending to analyze. If it is a renewal or task order under an existing contract, historical data would reveal trends in annual spending, potential increases or decreases, and consistency in service utilization. For LOYAL SOURCE GOVERNMENT SERVICES LLC, examining their past performance on similar VA contracts would indicate their track record in delivering services and managing costs. Without specific historical data for this vehicle or contractor, it's difficult to establish a baseline or identify significant deviations in spending patterns.

How does the per-unit cost or overall pricing of this contract compare to market rates for similar physician services in the Florida region?

A comprehensive comparison of pricing requires detailed knowledge of the specific services rendered (e.g., types of exams, physician specialties, volume of services) and access to market data for physician compensation and practice costs in Florida. The firm fixed-price nature of this contract suggests the price was determined during negotiation. Benchmarking would involve comparing the contracted rates for specific physician hours or services against industry surveys (e.g., from MGMA, AMGA) or rates paid under other comparable federal contracts. If the VA utilized a competitive process with multiple bids, it implies that the pricing was considered fair and reasonable relative to the offers received. However, without the specific service breakdown and market data, a definitive assessment is challenging.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is contractor performance being monitored?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would likely include metrics related to appointment availability, wait times for exams, physician qualifications and licensing, documentation timeliness, patient satisfaction, and compliance with VA clinical protocols. Contractor performance is generally monitored through regular progress reports submitted by the contractor, site visits by VA personnel, quality assurance surveillance plans (QASPs), and potentially through performance evaluation meetings. The VA contracting officer's representative (COR) plays a crucial role in overseeing day-to-day performance and ensuring adherence to the contract's requirements.

What is the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC in delivering similar healthcare or physician services to the federal government, particularly the VA?

Assessing the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC requires reviewing their past performance on federal contracts. Information on past performance, including customer satisfaction surveys, past performance evaluations, and any history of contract disputes or terminations, is often available through federal procurement databases or through specific past performance questionnaires completed during the bidding process. A positive track record would indicate successful delivery of similar services, adherence to schedules and budgets, and positive feedback from previous government clients. Conversely, a history of performance issues could raise concerns about the contractor's ability to meet the requirements of this new, substantial contract.

What is the potential risk associated with relying on a single vendor for such a significant annual requirement for physician services in Florida?

The primary risk associated with relying on a single vendor for a large contract like this is reduced leverage for the government if performance issues arise or if pricing needs to be renegotiated. If LOYAL SOURCE GOVERNMENT SERVICES LLC underperforms, experiences financial instability, or faces staffing shortages, it could disrupt the delivery of critical physician services to veterans in Florida. The government's options for recourse might be limited without the immediate availability of alternative providers. While full and open competition was used for the award, the ongoing reliance on one entity for the duration of the contract necessitates robust oversight and contingency planning to mitigate potential disruptions.

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

Address: 12612 CHALLENGER PKWY STE 365, ORLANDO, FL, 32826

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $137,336,546

Exercised Options: $137,336,546

Current Obligation: $137,336,546

Actual Outlays: $124,292,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0011

IDV Type: IDC

Timeline