VA awards $112.7M IDIQ for medical disability exams, with Loyalsource as primary contractor

Contract Overview

Contract Amount: $112,656,963 ($112.7M)

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: $345.6K/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 $112.7 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 task orders, providing flexibility for VA needs. 3. Competition was full and open, suggesting a robust market for these services. 4. The contract is firm-fixed-price, offering cost certainty for the government. 5. Performance is concentrated in Florida, potentially indicating regional demand or contractor presence. 6. The contract duration is relatively short, suggesting a need for frequent re-evaluation of services.

Value Assessment

Rating: good

The contract value of $112.7 million over approximately one year appears reasonable for a large-scale IDIQ supporting medical disability examinations. Benchmarking against similar large IDIQ contracts for healthcare services suggests this is within expected ranges. The firm-fixed-price structure helps control costs, but the ultimate value-for-money will depend on the efficiency and quality of services delivered through individual task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and availability of capable contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive prices and promotes a wider pool of potential providers, reducing reliance on any single entity.

Public Impact

Veterans will benefit from timely and accurate medical disability examinations, crucial for benefit claims. The services delivered will support the Veterans Benefits Administration's mission to process disability claims. Geographic impact is primarily focused on Florida, where the contractor is based and services will likely be rendered. The contract supports a workforce of medical professionals and administrative staff required to conduct these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for task orders to exceed initial estimates if demand surges.
Ensuring consistent quality of examinations across all task orders will be critical.
Dependence on a single IDIQ awardee for a significant portion of services in specific regions.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
IDIQ structure allows for flexibility in meeting fluctuating demand.

Sector Analysis

This contract falls within the Healthcare Services sector, specifically focusing on medical examinations. The NAICS code 621111 (Offices of Physicians) indicates the nature of the services. The market for medical disability examinations is substantial, driven by government agencies like the VA and private insurance companies. This IDIQ represents a significant portion of spending for these specialized services within the VA's purview.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this IDIQ award (ss: false, sb: false). While the primary awardee is Loyalsource Government Services LLC, there is no explicit information on subcontracting plans for small businesses within this data. Future task orders may offer opportunities for small businesses to participate as subcontractors, but this is not guaranteed by the IDIQ structure itself.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs, specifically the Veterans Benefits Administration. Accountability measures will be tied to the performance metrics outlined in the individual task orders issued under this IDIQ. Transparency is generally maintained through federal procurement databases, but specific details of task order performance may be less public.

Related Government Programs

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

Risk Flags

Potential for quality degradation under fixed-price terms if cost pressures are high.
Dependence on contractor's ability to recruit and retain qualified medical professionals.
Ensuring consistent application of examination standards across all task orders.
Potential for task order scope to expand beyond initial expectations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $112.7 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 $112.7 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 substantial and generally increasing, reflecting the growing veteran population and the complexity of claims. Prior to this IDIQ, the VA likely utilized a mix of indefinite-delivery/indefinite-quantity (IDIQ) contracts, sole-source awards, and other contract vehicles to procure these essential services. Analyzing past spending trends can reveal patterns in demand, contractor performance, and the average cost per examination, providing a baseline for evaluating the current $112.7 million award. For instance, if previous years saw similar or higher spending for comparable service levels, this award might be considered in line with historical needs. Conversely, a significant deviation could warrant further investigation into the scope, duration, or pricing of the new contract.

How does the pricing structure of this contract compare to similar VA contracts for medical exams?

This contract is structured as Firm Fixed Price (FFP), which provides the government with cost certainty as the price is set regardless of the contractor's actual costs. Comparing FFP pricing for similar medical disability examination services across different VA regions or over time is crucial for assessing value. Without specific task order details or historical pricing data for comparable contracts, a direct price-per-examination benchmark is difficult. However, the full and open competition suggests that the pricing should be competitive. If similar contracts awarded through robust competition have shown lower per-unit costs for comparable services, it might indicate that this contract's pricing could be on the higher side, or that the scope of services is broader. Conversely, if market rates have increased due to inflation or demand, this contract's pricing might be considered fair.

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

Key performance indicators (KPIs) for a contract like this typically revolve around timeliness, accuracy, and quality of the medical disability examinations. Specific KPIs might include the average turnaround time from request to completion of an examination report, the percentage of reports meeting established quality standards (e.g., completeness, clarity, adherence to VA guidelines), and veteran satisfaction scores. Monitoring these KPIs would likely be the responsibility of the Contracting Officer's Representative (COR) within the VA's Veterans Benefits Administration. Regular performance reviews, audits of examination reports, and analysis of turnaround times would be employed. Failure to meet KPIs could result in corrective actions, reduced payments, or even termination of task orders, ensuring contractor accountability.

What is Loyalsource Government Services LLC's track record with the VA and similar contracts?

Loyalsource Government Services LLC's track record with the VA and similar government contracts is a critical factor in assessing the risk and potential success of this IDIQ. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would reveal their history of meeting cost, schedule, and performance requirements on previous contracts. Experience with large-scale IDIQ vehicles, particularly those involving healthcare services or medical evaluations, would be highly relevant. If Loyalsource has a history of successful contract execution, timely delivery, and high-quality service provision for the VA or other federal agencies, it suggests a lower risk profile for this new award. Conversely, a history of performance issues, cost overruns, or quality deficiencies would raise concerns about their ability to fulfill the requirements of this significant contract.

What are the potential risks associated with a firm-fixed-price IDIQ for medical disability exams?

While firm-fixed-price (FFP) contracts offer cost certainty, they can introduce risks, especially for complex service contracts like medical disability exams. One primary risk is that the contractor might cut corners on quality or thoroughness to maintain profitability if their initial cost estimates were too low or if unforeseen challenges arise. This could lead to inaccurate or incomplete examinations, impacting veterans' benefits. Another risk is scope creep; if the VA's needs evolve significantly beyond the initial understanding, managing changes under an FFP structure can become contentious or lead to disputes. Furthermore, if the market for qualified medical professionals fluctuates, Loyalsource might face challenges in staffing and retaining personnel, potentially impacting service delivery timelines and quality, even under an FFP agreement.

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: $112,656,963

Exercised Options: $112,656,963

Current Obligation: $112,656,963

Actual Outlays: $111,655,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline