VA awards $62M IDIQ for medical disability exams in Regions 1-4 to Loyal Source Government Services

Contract Overview

Contract Amount: $61,977,248 ($62.0M)

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: $190.1K/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 $62.0 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. Full and open competition suggests a robust bidding process and potential for competitive pricing. 4. The contract duration of 326 days indicates a focused, short-term need for these services. 5. Firm-fixed-price terms shift cost risk to the contractor, promoting budget predictability. 6. Geographic scope covers Regions 1-4, indicating a significant portion of the veteran population. 7. The North American Industry Classification System (NAICS) code 621111 points to physician services.

Value Assessment

Rating: good

This contract's value of approximately $62 million for a one-year period for medical disability examinations appears reasonable given the scope. While direct comparisons are difficult without knowing the exact volume of exams anticipated, the firm-fixed-price structure suggests that the VA has negotiated rates that are intended to be cost-effective. The competitive nature of the award further supports the likelihood of fair pricing. Benchmarking against similar large-scale IDIQ contracts for medical services would provide a more precise value assessment.

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 suggests a competitive environment where multiple bidders likely vied for the contract. The number of bidders is not specified, but the open competition generally leads to better price discovery and a wider range of potential solutions for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a greater likelihood that the government is receiving the best value for its investment in veteran disability examinations.

Public Impact

Veterans in Regions 1-4 will benefit from timely and accurate medical disability examinations, crucial for determining benefits. The contract supports the Department of Veterans Affairs' mission to provide comprehensive care and benefits to veterans. The services delivered are essential for the adjudication process of disability claims. This contract may indirectly impact healthcare professionals and administrative staff involved in conducting these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to prioritize higher-margin exams if not carefully managed.
Ensuring consistent quality of examination across all contracted providers.
Managing the administrative burden of multiple delivery orders under the IDIQ.

Positive Signals

Full and open competition likely drove competitive pricing.
Firm-fixed-price contract provides cost certainty for the VA.
IDIQ structure offers flexibility to meet fluctuating demand for exams.
Focus on specific geographic regions allows for targeted service delivery.

Sector Analysis

The healthcare services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Offices of Physicians' category, serving a critical government function. The market for medical disability examinations is substantial, driven by the needs of agencies like the VA. Comparable spending benchmarks would involve looking at other large IDIQ contracts for similar medical services awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Loyal Source Government Services LLC, will be responsible for fulfilling the contract requirements. The absence of a small business set-aside means opportunities for small business participation would likely depend on the prime contractor's own subcontracting strategy.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, specifically the Veterans Benefits Administration (VBA) and its Medical Disability Examination Office (MDEO). Accountability measures are inherent in the firm-fixed-price contract terms, requiring the contractor to deliver services at the agreed-upon price. Transparency is facilitated through the contract award process, and any specific oversight mechanisms or inspector general jurisdiction would be detailed within the contract's terms and conditions.

Related Government Programs

VA Medical Care Programs
VA Disability Compensation
TRICARE Medical Services
DoD Medical Readiness Contracts

Risk Flags

Contractor performance risk
Geographic coverage complexity
Quality assurance of examinations
Provider network management

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62.0 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 $62.0 million.

What is the period of performance?

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

What is the historical spending pattern for medical disability examinations by the VA in these regions?

Analyzing historical spending for medical disability examinations by the VA in Regions 1-4 is crucial for context. While specific historical data for this exact IDIQ is not provided, the VA consistently spends billions annually on healthcare services, including examinations. Past contracts for similar services would reveal trends in volume, cost per exam, and contractor performance. Understanding these patterns helps assess whether the current $62 million award for 2025 is an increase, decrease, or stable level of investment. It also informs whether previous contractors met performance expectations and if pricing has evolved significantly. Without prior contract details, a precise historical comparison is limited, but the VA's overall commitment to veteran healthcare suggests a sustained need for these examination services.

How does Loyal Source Government Services LLC's track record compare for similar government contracts?

Loyal Source Government Services LLC has a track record of performing various government contracts, including those within the healthcare and professional services sectors. To assess their suitability for this specific $62 million IDIQ for medical disability examinations, a review of their past performance on similar contracts is necessary. This would involve examining contract awards, performance evaluations (e.g., CPARS reports), and any history of disputes or contract modifications. A positive track record with timely delivery, quality service, and adherence to budget on comparable contracts would indicate a lower risk for this new award. Conversely, any past issues with performance, cost overruns, or quality control on similar medical service contracts would raise concerns about their ability to meet the VA's requirements effectively.

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

Key Performance Indicators (KPIs) for this medical disability examination contract are critical for ensuring the VA receives high-quality services. While not explicitly detailed in the provided data, typical KPIs for such contracts include timeliness of examination completion (e.g., turnaround time from request to report), accuracy and completeness of examination reports, adherence to VA examination protocols and guidelines, and veteran satisfaction scores. Measurement would likely involve regular reporting by Loyal Source Government Services LLC, data analysis by the VA contracting officer's representative (COR), and potentially periodic audits or reviews. Failure to meet these KPIs could result in contract remedies, including financial penalties or termination, underscoring the importance of robust performance monitoring.

What is the potential impact of the firm-fixed-price (FFP) contract type on service quality and cost?

The firm-fixed-price (FFP) contract type for this $62 million IDIQ significantly impacts both service quality and cost. For cost, FFP places the primary risk on the contractor, Loyal Source Government Services LLC. They are obligated to perform the work for the agreed-upon price, regardless of their actual costs. This incentivizes efficient operations and cost control by the contractor. For service quality, FFP can sometimes lead contractors to cut corners to maintain profitability if not carefully managed and monitored. However, in a competitive environment with strong performance metrics and oversight from the VA, the FFP structure can drive quality by ensuring the contractor is motivated to deliver the required services effectively to secure future work and avoid penalties. The VA benefits from budget certainty, but must maintain vigilant oversight to ensure quality standards are met.

How does the geographic scope (Regions 1-4) influence the contract's complexity and potential risks?

The geographic scope covering Regions 1-4 for this $62 million IDIQ introduces significant complexity and potential risks. These regions likely encompass a large number of veterans, requiring the contractor to establish and manage a network of healthcare providers and facilities across potentially multiple states. Risks include logistical challenges in scheduling exams, ensuring provider availability and credentialing across diverse areas, managing travel costs if applicable, and maintaining consistent service quality across a wide operational footprint. The VA must ensure the contractor has robust management systems to handle this scale. Successful execution depends on the contractor's ability to effectively recruit, train, and manage personnel and resources across these extensive regions, potentially requiring regional operational hubs.

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: $61,977,248

Exercised Options: $61,977,248

Current Obligation: $61,977,248

Actual Outlays: $61,428,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline