VA Awards $145M for Physician Services to OptumServe, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $145,138,105 ($145.1M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-06-05
End Date: 2025-08-31
Contract Duration: 87 days
Daily Burn Rate: $1.7M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY25 Q3 EXAMS R2
Place of Performance
Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Veterans Affairs obligated $145.1 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY25 Q3 EXAMS R2 Key points: 1. Significant contract value of $145M for physician services. 2. OptumServe Health Services, Inc. is the sole awardee. 3. Contract utilizes a firm fixed price structure. 4. Focus on physician offices, excluding mental health specialists.
Value Assessment
Rating: good
The $145M award for physician services appears reasonable given the scope and duration. Benchmarking against similar contracts for medical staffing and administrative support would provide a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The firm fixed price contract provides cost certainty for taxpayers, protecting against cost overruns for the defined services.
Public Impact
Veterans will receive essential physician services, improving access to care. The award supports healthcare infrastructure within the VA system. Potential for improved efficiency in healthcare delivery through specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Ensuring consistent quality of care across all delivered services.
Positive Signals
- Firm fixed price provides budget predictability.
- Full and open competition suggests a competitive award process.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on physician services. Spending in this area is critical for meeting healthcare demands, and benchmarks often relate to per-member-per-month costs or contract values for similar staffing and administrative support.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this full and open competition.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. Ensuring performance metrics are met and that the services align with veteran needs will be key accountability measures.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for service quality variations.
- Dependence on a single contractor for critical services.
- Need for robust performance monitoring.
- Ensuring fair pricing over the contract duration.
Tags
offices-of-physicians-except-mental-heal, department-of-veterans-affairs, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $145.1 million to OPTUMSERVE HEALTH SERVICES, INC.. FY25 Q3 EXAMS R2
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE HEALTH 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 $145.1 million.
What is the period of performance?
Start: 2025-06-05. End: 2025-08-31.
What is the expected impact of this contract on veteran wait times for physician appointments?
This contract aims to bolster the availability of physician services, which should positively impact veteran wait times. By ensuring adequate staffing and support, the VA can potentially reduce appointment backlogs and improve timely access to necessary medical consultations. The effectiveness will depend on the efficient deployment of resources and the quality of services provided by OptumServe.
What are the key performance indicators (KPIs) for this contract to ensure value for money?
Key performance indicators should focus on timely access to care, patient satisfaction scores, adherence to clinical quality standards, and efficient resource utilization. The VA should track metrics related to appointment availability, reduction in wait times, and positive feedback from veteran patients. Regular performance reviews with OptumServe will be crucial to ensure these KPIs are met and value is realized.
How does this contract align with the VA's broader strategy for healthcare delivery and modernization?
This contract aligns with the VA's strategy by addressing critical needs for physician services, potentially enhancing capacity and efficiency. It supports the goal of providing timely and quality healthcare to veterans. The use of a firm fixed price and full competition suggests a focus on cost-effectiveness and leveraging external expertise to meet demand, contributing to the overall modernization of VA healthcare delivery.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 328 FRONT ST S, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $145,138,105
Exercised Options: $145,138,105
Current Obligation: $145,138,105
Actual Outlays: $138,769,191
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X25D0002
IDV Type: IDC
Timeline
Start Date: 2025-06-05
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2026-04-01
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