VA awards $65M for physician services, with 4 bidders vying for this delivery order

Contract Overview

Contract Amount: $65,000,000 ($65.0M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-25

End Date: 2025-12-31

Contract Duration: 97 days

Daily Burn Rate: $670.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 Q4 AND FY26 Q1 ADDITIONAL EXAMS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.0 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: FY25 Q4 AND FY26 Q1 ADDITIONAL EXAMS Key points: 1. Value for money appears reasonable given the fixed-price nature and competitive bidding. 2. Strong competition dynamics with four bidders suggest potential for price discovery. 3. Risk indicators are moderate, with a defined scope and fixed-price contract. 4. Performance context is for essential physician services, critical for VA operations. 5. Sector positioning is within healthcare services, a core area for the VA. 6. The contract duration is relatively short, allowing for periodic reassessment of needs.

Value Assessment

Rating: good

This $65 million award for physician services represents a significant investment by the VA. The fixed-price contract type provides cost certainty. Benchmarking against similar contracts for physician staffing in the federal sector would be necessary for a definitive value assessment, but the presence of four bidders suggests a competitive environment that likely drove a fair price. The specific services and geographic location (Florida) will influence the exact market rate.

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 bids. With four bidders participating, the competition level is considered moderate to good. This level of competition generally fosters a more efficient price discovery process, as contractors are incentivized to offer competitive pricing to win the award. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price for essential physician services. The open competition reduces the risk of overpayment and encourages efficient resource allocation.

Public Impact

Veterans will benefit from the provision of essential physician services, improving access to care. The services delivered will include general medical examinations and consultations. The geographic impact is focused on Florida, where the services will be rendered. Workforce implications include the potential for employment of physicians through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for physician burnout due to high demand for services.
Ensuring consistent quality of care across all contracted physicians.
Managing contract scope creep to avoid cost overruns.

Positive Signals

Fixed-price contract provides cost predictability.
Competitive bidding process likely secured favorable pricing.
Clear contract duration limits long-term financial commitment.

Sector Analysis

The healthcare services sector is a critical component of federal spending, particularly for agencies like the Department of Veterans Affairs. This contract falls within the physician services sub-sector, which is characterized by a high demand for qualified medical professionals. The market size for federal healthcare services is substantial, with numerous private sector companies competing for government contracts. This specific award is a delivery order against a larger contract vehicle, indicating a structured approach to procuring ongoing medical support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While there is no direct set-aside, the competitive nature of the award means that small businesses could potentially participate as subcontractors to the prime contractor, Loyall Source Government Services LLC. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the delivery order.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Physician Staffing Contracts
Federal Healthcare Services Procurement
Medical Services Delivery Orders
Physician Services Contracts

Risk Flags

Potential for physician shortages impacting service delivery.
Ensuring consistent quality of care across multiple providers.
Contract performance monitoring and oversight effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.0 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. FY25 Q4 AND FY26 Q1 ADDITIONAL EXAMS

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 $65.0 million.

What is the period of performance?

Start: 2025-09-25. End: 2025-12-31.

What is the track record of Loyall Source Government Services LLC in delivering similar physician services to the federal government?

Loyall Source Government Services LLC has a history of securing federal contracts, including those related to healthcare staffing and support services. Analyzing their past performance on similar contracts, particularly with the Department of Veterans Affairs, would reveal their reliability, quality of service, and adherence to contract terms. Specific metrics such as past performance evaluations, any contract disputes, and the types of services previously rendered would provide a comprehensive understanding of their capabilities. It is important to review awards and task orders of comparable size and scope to assess their experience in managing large-scale physician service requirements.

How does the awarded price per physician compare to market rates for similar services in Florida?

Determining the precise per-unit cost requires more granular data on the specific physician specialties, experience levels, and hours of service included in this $65 million award. However, the presence of four bidders in a full and open competition suggests that the pricing is likely competitive within the Florida market. To conduct a thorough benchmark, one would compare the average hourly or daily rates paid under this contract against publicly available salary data for physicians in Florida, considering factors like specialty, years of experience, and geographic location within the state. Federal procurement data from similar VA or other agency contracts for physician services in the same region would also serve as a valuable comparison point.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks associated with this contract include potential shortages of qualified physicians, variations in physician performance, and the possibility of scope creep. Physician shortages could lead to delays in service delivery and impact veteran care. Variations in performance might necessitate additional oversight and training. Scope creep, where the services required expand beyond the original agreement, could lead to cost overruns, although the firm fixed-price nature of this contract offers some protection. Mitigation strategies likely include robust contractor vetting, clear performance standards outlined in the contract, regular performance reviews by the VA, and a defined process for managing any changes to the scope of work.

How effective is the VA in managing physician service contracts to ensure quality of care for veterans?

The effectiveness of the VA in managing physician service contracts is a subject of ongoing evaluation and can vary. The VA employs contracting officers and program managers to oversee these contracts, ensuring compliance with terms and performance standards. Mechanisms like performance metrics, site visits, and feedback from veteran patients are used to monitor quality. However, challenges such as physician shortages, administrative burdens, and the complexity of healthcare delivery can impact effectiveness. Inspector General reports and GAO reviews periodically assess the VA's contract management practices, providing insights into areas of success and opportunities for improvement in ensuring consistent, high-quality care.

What has been the historical spending trend for physician services by the Department of Veterans Affairs?

The Department of Veterans Affairs has consistently allocated significant portions of its budget to healthcare services, including physician staffing. Historical spending data reveals a generally upward trend in federal healthcare expenditures, driven by increasing veteran populations, evolving medical technologies, and the demand for specialized care. Analyzing VA's annual reports and budget justifications would provide specific figures on physician service expenditures over the past several fiscal years. This trend reflects the growing reliance on contracted services to supplement government-employed medical staff and meet the comprehensive healthcare needs of veterans.

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

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: $65,000,000

Exercised Options: $65,000,000

Current Obligation: $65,000,000

Actual Outlays: $47,330,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline