VA awards $53.6M IDIQ for medical disability exams in Regions 1-4 to Loyal Source Government Services

Contract Overview

Contract Amount: $53,557,857 ($53.6M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-11-23

Contract Duration: 326 days

Daily Burn Rate: $164.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO) 2025 IDIQ FOR MEDICAL DISABILITY EXAMINATION SERVICES IN REGIONS 1-4.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $53.6 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO) 2025 IDIQ FOR MEDICAL DISABILITY EXAMINATION SERVICES IN REGIONS 1-4. Key points: 1. Contract aims to ensure timely and accurate medical disability examinations for veterans. 2. The IDIQ structure allows for multiple delivery orders, providing flexibility for VA needs. 3. Competition level is 'full and open', suggesting a robust bidding process. 4. The contract is firm-fixed-price, offering cost certainty for the government. 5. Performance is expected in Regions 1-4, covering a significant portion of the US. 6. The contract duration is 326 days, indicating a focused period of service delivery.

Value Assessment

Rating: good

This contract's value of $53.6 million for a 326-day period for medical disability examinations appears reasonable given the scope. While specific per-unit cost benchmarks for these services are not provided, the firm-fixed-price structure helps control costs. Comparing this to similar large-scale IDIQ contracts for medical services, the overall award value seems aligned with market rates for comprehensive examination services across multiple regions.

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 approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not detailed, but the 'full and open' designation suggests a healthy level of interest and potential for price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best value for its investment in essential veteran services.

Public Impact

Veterans in Regions 1-4 will benefit from timely and accurate medical disability examinations. The services provided are crucial for determining eligibility and benefit levels for veterans. The contract supports the Department of Veterans Affairs' mission to serve veterans. Geographic impact covers Regions 1-4, encompassing a substantial portion of the United States. The contract may indirectly support healthcare professionals and administrative staff involved in conducting these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased workload on existing VA medical staff if contractor performance is insufficient.
Dependence on contractor's ability to recruit and retain qualified medical professionals.
Risk of delays in examination scheduling if contractor faces operational challenges.

Positive Signals

Firm-fixed-price contract provides cost predictability for the VA.
IDIQ structure allows for flexible ordering based on demand.
Full and open competition suggests a competitive pricing environment.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically focusing on medical examinations for disability claims. The market for such services is substantial, driven by government agencies like the VA and Department of Defense. Comparable spending benchmarks would involve other large IDIQ contracts for medical services or examination providers, where pricing is influenced by the volume of services, geographic coverage, and required specialties.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business participation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans are mandated separately.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, specifically the Veterans Benefits Administration. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency is generally maintained through contract award notices and reporting requirements, though specific oversight mechanisms like performance reviews or Inspector General involvement are not detailed in this summary.

Related Government Programs

VA Medical Disability Examination Services
Veterans Health Administration Contracts
Department of Defense Medical Examination Contracts
Healthcare Services IDIQ Contracts

Risk Flags

Contractor performance history needs detailed review.
Specific per-unit cost benchmarks are not available for direct comparison.
Detailed KPIs and oversight mechanisms are not specified in the summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $53.6 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. DEPARTMENT OF VETERANS AFFAIRS (VA) VETERANS BENEFITS ADMINISTRATION (VBA) MEDICAL DISABILITY EXAMINATION OFFICE (MDEO) 2025 IDIQ FOR MEDICAL DISABILITY EXAMINATION SERVICES IN REGIONS 1-4.

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 $53.6 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-11-23.

What is the historical spending pattern for medical disability examination services by the VA?

Historical spending on medical disability examination services by the VA has been significant and generally increasing, reflecting the growing veteran population and the complexity of claims. The VA utilizes various contract vehicles, including IDIQs and specific task orders, to procure these services. Annual spending can fluctuate based on legislative changes, policy updates, and the volume of claims processed. For instance, in recent fiscal years, the VA has awarded billions of dollars in contracts related to healthcare services, a portion of which directly supports disability examinations. Understanding these patterns is crucial for budgeting and forecasting future needs, as well as for identifying trends in contractor performance and pricing over time.

How does the pricing of this contract compare to similar services provided by other agencies?

Direct comparison of pricing for this specific $53.6 million IDIQ is challenging without detailed task order data and per-unit costs. However, the firm-fixed-price structure suggests an attempt to establish predictable costs. When benchmarking against similar contracts, such as those awarded by the Department of Defense for medical evaluations, factors like the complexity of examinations, required medical specialties, geographic coverage, and turnaround times heavily influence pricing. The VA's extensive network and specific requirements may lead to different cost structures compared to other federal agencies. Generally, large-scale IDIQs with broad geographic coverage aim for economies of scale, but the ultimate value is realized through efficient task order management and competitive bidding on individual orders.

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

While specific KPIs are not detailed in the provided summary, typical performance indicators for medical disability examination contracts include timeliness of appointments and report generation, accuracy and completeness of examination reports, veteran satisfaction, and adherence to VA clinical guidelines. Monitoring these KPIs is crucial for ensuring the quality and efficiency of services. The VA contracting officer and contract specialists will likely conduct regular performance reviews, analyze contractor reports, and potentially utilize quality assurance surveillance plans (QASPs). Failure to meet KPIs could result in corrective actions, reduced payments, or even contract termination.

What is the track record of Loyal Source Government Services LLC in providing similar services?

Loyal Source Government Services LLC has a history of securing and performing on various government contracts, including those within the healthcare and professional services domains. Their experience often involves providing staffing, logistics, and technical support to federal agencies. For medical disability examinations, their track record would be assessed based on past performance on similar contracts, including their ability to meet deadlines, maintain quality standards, manage a network of qualified medical professionals, and comply with regulatory requirements. A review of their past performance evaluations and any reported issues or successes on prior VA or DoD contracts would provide a clearer picture of their capabilities in this specific area.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include contractor performance issues (e.g., delays, quality deficiencies), challenges in recruiting and retaining qualified medical personnel, and fluctuations in demand exceeding initial projections. Mitigation strategies often involve robust contract oversight, clear performance standards, defined remedies for non-performance, and the flexibility of the IDIQ structure to adjust task orders. The VA's established procedures for contract management, including regular performance reviews and communication channels with the contractor, are designed to identify and address risks proactively. Furthermore, the 'full and open' competition aims to select a contractor with a proven ability to manage such complexities.

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,557,857

Exercised Options: $53,557,857

Current Obligation: $53,557,857

Actual Outlays: $52,982,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline