VA awards $41.9M IDIQ for medical disability exams in Regions 1-4 to Loyal Source Government Services

Contract Overview

Contract Amount: $41,888,559 ($41.9M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-08-31

Contract Duration: 242 days

Daily Burn Rate: $173.1K/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 $41.9 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. Full and open competition suggests a robust market for these services. 3. Fixed-price contract type helps control costs and provides predictability. 4. The contract duration of 242 days indicates a focused, short-term need. 5. Geographic scope covers key regions, potentially impacting a large veteran population. 6. This award is part of the VA's ongoing efforts to modernize its claims processing.

Value Assessment

Rating: good

The contract value of $41.9 million for a 242-day period is substantial, reflecting the demand for medical disability examinations. Benchmarking against similar IDIQ contracts for medical services requires access to a broader dataset of VA and DoD procurements. However, the firm-fixed-price structure is generally favorable for the government, ensuring cost certainty. The number of bids received, if available, would further inform the 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 approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and potential for competitive pricing.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services by allowing a wider pool of qualified contractors to participate.

Public Impact

Veterans in Regions 1-4 will benefit from timely and potentially more accurate medical disability examinations, aiding their benefit claims. The services delivered are critical for the VA's adjudication process for disability benefits. The geographic impact is significant, covering multiple regions within the United States. This contract supports healthcare professionals and administrative staff involved in conducting and processing these examinations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to subcontract services, requiring oversight to ensure quality and compliance.
Dependence on a single IDIQ awardee for a critical service could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potential for good value.
The contract is for essential services supporting veteran benefits.

Sector Analysis

The healthcare services sector, particularly within government contracting, is characterized by specialized needs and stringent regulatory requirements. This contract falls under the medical services sub-sector, focusing on diagnostic and evaluative services. The market for medical disability examinations is driven by government agencies like the VA and DoD, which require objective assessments to determine eligibility for benefits. Spending in this area is consistent with the VA's mission to support its veteran population.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside for this contract. Therefore, the primary focus is on the overall competition. While there's no explicit small business set-aside, the prime contractor may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs, specifically the Veterans Benefits Administration (VBA) and its Medical Disability Examination Office (MDEO). Accountability measures would be embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Disability Examination Services
VA Veterans Health Administration Contracts
DoD Medical Examination Services
Federal Healthcare Services Contracts

Risk Flags

Short contract duration may limit long-term planning and contractor investment.
Potential for performance issues given the scale and scope of services required.
Dependence on a single IDIQ awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.9 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 $41.9 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-08-31.

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

Analyzing historical spending for medical disability examination services by the VA in Regions 1-4 would involve examining past IDIQ contracts and individual delivery orders issued for similar services over several fiscal years. This would reveal trends in contract values, the number of awards, and the types of contractors utilized. For instance, if previous spending has been consistently high and awarded to a few key providers, it might indicate a stable but potentially concentrated market. Conversely, fluctuating spending could suggest changes in demand, policy, or contracting strategies. Understanding these patterns helps contextualize the current $41.9 million award, assessing whether it represents an increase, decrease, or continuation of previous investment levels and identifying any shifts in the VA's approach to procuring these critical services.

How does the per-unit cost of these examinations compare to industry benchmarks or similar government contracts?

Determining the per-unit cost benchmark for these medical disability examinations requires detailed data on the specific types of examinations performed and their associated costs, which are not fully detailed in the provided summary. However, if we assume a standard examination cost, comparing it to industry benchmarks from private healthcare providers or similar contracts awarded by other federal agencies (like the DoD) would be crucial. For example, if the average cost per examination under this VA contract significantly exceeds benchmarks for comparable services, it could indicate potential issues with pricing or efficiency. Conversely, costs falling within or below the benchmark range would suggest good value for money. Without specific unit cost data and a breakdown of examination types, a precise comparison is challenging, but the firm-fixed-price nature of the contract provides a basis for future analysis once delivery orders are executed and costs are aggregated.

What is the track record of Loyal Source Government Services LLC in performing similar government contracts?

Loyal Source Government Services LLC has a history of performing various government contracts, including those within the healthcare and professional services sectors. A thorough assessment of their track record would involve reviewing past performance evaluations (e.g., CPARS reports), the types and complexity of contracts they have previously managed, and their success in meeting performance metrics and delivery schedules. Specifically for medical services, understanding their experience with large-scale examination programs, their ability to manage a network of providers, and their compliance with healthcare regulations would be key. Positive past performance indicators, such as consistently high ratings and successful contract completions, would suggest a lower risk for this new IDIQ. Conversely, any history of performance issues, contract disputes, or significant delays would raise concerns about their capacity to fulfill this substantial award effectively.

What are the potential risks associated with a 242-day contract duration for essential medical disability examinations?

A contract duration of 242 days (approximately 8 months) for essential medical disability examinations presents several potential risks. Firstly, it suggests a short-term, potentially urgent need, which might indicate that the VA did not have a long-term solution in place or faced an unexpected surge in demand. This short timeframe could limit the contractor's ability to fully staff and resource the program, potentially leading to rushed examinations or delays if unforeseen issues arise. Secondly, it raises questions about the sustainability of the services provided; if the need extends beyond this period, the VA would need to rapidly procure follow-on services, potentially at a higher cost or with less competitive pricing due to urgency. Finally, a short duration might not allow for comprehensive performance evaluation, making it harder to assess the contractor's long-term suitability and value.

How does the geographic scope (Regions 1-4) impact the potential number of veterans served and the logistical complexity?

The designation of Regions 1-4 for medical disability examinations significantly broadens the contract's reach, implying that a substantial portion of the veteran population requiring these services will be covered. Regions 1-4 typically encompass a large number of states and a high concentration of veterans, suggesting that Loyal Source Government Services will need to manage a complex network of healthcare providers and facilities across diverse geographic areas. This increased scope heightens logistical complexity, requiring robust systems for scheduling, provider credentialing, quality assurance, and data management to ensure consistent service delivery and timely reporting. The potential number of veterans served could be in the tens of thousands or more, making efficient operations and effective communication critical for success and for meeting the VA's objectives in processing disability claims efficiently.

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: $41,888,559

Exercised Options: $41,888,559

Current Obligation: $41,888,559

Actual Outlays: $41,888,559

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline