VA awards $180.6M contract to QTC Medical Services for physician services in California

Contract Overview

Contract Amount: $180,570,505 ($180.6M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $496.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEW 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 $180.6 million to QTC MEDICAL SERVICES INC for work described as: NEW TASK ORDER. Key points: 1. Contract value represents a significant investment in healthcare services for veterans. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance metrics will be key to assessing the value and effectiveness of services. 4. This contract aligns with the VA's ongoing efforts to expand healthcare access. 5. The fixed-price nature of the contract provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $180.6 million over one year for physician services is substantial. Benchmarking against similar VA contracts for medical services in California would provide a clearer picture of value for money. Given the fixed-price structure, the primary risk to value lies in the scope of services and the contractor's ability to deliver efficiently. Without specific performance data or comparable unit costs, a definitive value assessment is challenging, but the scale suggests a need for rigorous oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is designed to foster price discovery and encourage contractors to offer their best terms. The number of bidders and the specific evaluation criteria would further illuminate the intensity of the competition and its potential impact on the final award price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among potential providers.

Public Impact

Veterans in California will benefit from access to essential physician services. The contract supports the delivery of medical examinations and healthcare consultations. Services are geographically focused within California, impacting veterans in that state. This contract likely supports a significant number of healthcare professionals and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in task orders.
Ensuring consistent quality of care across all service locations.
Managing contractor performance to meet all contractual obligations.
Potential for increased demand impacting service delivery timelines.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract provides cost predictability.
Contract duration allows for sustained service delivery.
Focus on a specific geographic region can lead to efficient resource allocation.

Sector Analysis

The healthcare services sector, particularly within the federal government, is a large and complex market. This contract falls under the 'Offices of Physicians' NAICS code, indicating a focus on direct patient care. The VA is a major procurer of healthcare services, and contracts of this magnitude are common as the agency strives to meet the healthcare needs of its veteran population. Benchmarking against other large-scale physician service contracts within the federal government would be relevant.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. A full analysis would require details on whether small businesses were involved in the bidding process or are expected to be utilized as subcontractors, which is crucial for understanding the broader economic impact.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement, including service level agreements and quality standards. Transparency is typically facilitated through contract award databases and reporting requirements, though specific IG jurisdiction would depend on the nature of any potential issues.

Related Government Programs

VA Medical Care Contracts
Veteran Health Administration Services
Physician Services Contracts
Healthcare Services Procurement

Risk Flags

Potential for service delivery delays if contractor resources are overstretched.
Risk of inconsistent quality of care across different service locations.
Need for robust monitoring to ensure adherence to performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $180.6 million to QTC MEDICAL SERVICES INC. NEW 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 $180.6 million.

What is the period of performance?

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

What is the historical spending pattern of the VA with QTC Medical Services Inc. for similar physician services?

To assess the historical spending pattern, one would need to examine past contract awards between the Department of Veterans Affairs (VA) and QTC Medical Services Inc. This would involve searching federal procurement databases like FPDS or USASpending for previous contracts related to physician services, medical examinations, or similar healthcare support. Analyzing the total value, duration, and scope of these past contracts would reveal trends in the VA's reliance on QTC and the typical cost associated with their services. For instance, if QTC has consistently received large, multi-year contracts for similar services, it suggests a strong, established relationship and potentially a competitive advantage. Conversely, a history of smaller, less frequent awards might indicate a more competitive market or a more recent development of QTC's capabilities in serving the VA. Understanding this history provides context for the current $180.6 million award, helping to determine if it represents an increase, decrease, or continuation of previous spending levels.

How does the per-unit cost of services under this contract compare to industry benchmarks for physician services in California?

Determining the per-unit cost requires breaking down the total contract value by the expected volume of services. For example, if the contract is for a specific number of medical examinations, the total contract value divided by that number would yield a per-unit cost. This figure would then be compared against industry benchmarks for similar services in California. Resources like industry reports from healthcare consulting firms, data from professional medical associations, or even publicly available pricing for similar services from other healthcare providers can serve as benchmarks. If the contract's per-unit cost is significantly higher than benchmarks, it could indicate potential overpricing or a more complex scope of service. Conversely, a lower per-unit cost might suggest efficiency or a highly competitive bid. Without specific service volume data, a precise comparison is difficult, but the overall contract value provides a starting point for estimating potential cost-effectiveness.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key Performance Indicators (KPIs) for a contract of this nature typically revolve around the quality, timeliness, and accessibility of healthcare services provided. For physician services, KPIs might include metrics such as patient wait times for appointments, turnaround time for medical reports, patient satisfaction scores, adherence to clinical guidelines, and the accuracy of medical documentation. The contract's Performance Work Statement (PWS) would detail these specific KPIs and the methodology for measuring them. For example, patient satisfaction might be measured through surveys, while report turnaround times would be tracked through system logs. The VA would likely assign a Contracting Officer's Representative (COR) to monitor these KPIs regularly, ensuring QTC Medical Services Inc. meets the contractual obligations. Failure to meet KPIs could result in performance deductions, corrective action plans, or even contract termination.

What is the potential impact of this contract on the availability of physician services for other federal agencies or state governments?

A contract of this magnitude, awarded to QTC Medical Services Inc., could potentially impact the availability of physician services for other entities. If QTC dedicates a significant portion of its resources, including personnel and infrastructure, to fulfilling this VA contract, it might reduce its capacity to take on new contracts or serve existing clients elsewhere. This is particularly true if the contract requires specialized personnel or extensive logistical support. For other federal agencies or state governments seeking similar services, this could lead to increased competition for limited resources, potentially driving up prices or extending lead times. However, the extent of this impact depends on QTC's overall capacity, the number of other contracts they hold, and the specific nature of the services required. It's also possible that successful performance on this large contract could enhance QTC's reputation, making them a more attractive provider for others in the future.

Are there any known performance issues or past disputes associated with QTC Medical Services Inc. on previous VA contracts?

To determine if there are known performance issues or past disputes, a thorough review of past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any publicly available litigation records, or Inspector General (IG) reports related to QTC Medical Services Inc. and the VA would be necessary. CPARS data, if accessible, would provide a formal assessment of QTC's past performance on federal contracts, highlighting areas of strength and weakness. IG reports often investigate allegations of fraud, waste, or abuse, and could reveal significant issues. Past disputes might also be evident in contract modification histories or legal filings. Without access to these specific records, it's impossible to definitively state whether performance issues or disputes exist. However, the VA typically has processes in place to vet contractors and address performance deficiencies, which would be considered during the award of new contracts.

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: $180,570,505

Exercised Options: $180,570,505

Current Obligation: $180,570,505

Actual Outlays: $112,369,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0009

IDV Type: IDC

Timeline