VA awards $32.8M for physician services, with 4 bidders competing for this delivery order

Contract Overview

Contract Amount: $32,852,778 ($32.9M)

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: $338.7K/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 $32.9 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 competitive nature of the award. 2. Strong competition dynamics suggest fair pricing was achieved. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is for additional exams, indicating a need for supplemental services. 5. This contract fits within the broader healthcare services sector for the VA. 6. The fixed-price structure provides cost certainty for the government.

Value Assessment

Rating: good

The award of $32.8 million for physician services represents a significant investment by the VA. Benchmarking against similar contracts for physician services is challenging without more specific details on the scope of work and qualifications required. However, the presence of four bidders in a full and open competition suggests that the pricing is likely competitive and reflects market rates for such services. The firm fixed-price nature of the contract further supports the assessment of good value, as it caps the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four distinct bidders vying for the opportunity. The presence of multiple bidders is a positive sign, indicating a healthy level of interest and a potentially robust market for these services. This level of competition generally leads to better price discovery and ensures that the government receives offers from a range of qualified providers, increasing the likelihood of selecting the best value.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured that the government secured services at a fair market rate, maximizing the return on public funds.

Public Impact

Veterans will benefit from the additional physician exams provided under this contract. The services delivered will support the Department of Veterans Affairs' mission to provide healthcare. The geographic impact is focused on Florida, where the services will be rendered. The contract will likely support employment for physicians and administrative staff within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type provides cost certainty.
Multiple bidders (4) indicate a competitive market.
Contract duration is defined, allowing for clear performance period.

Sector Analysis

The healthcare services sector, particularly for government agencies like the VA, is a substantial market. This contract for physician services falls under the broader category of medical and health services. Spending in this area is consistently high due to the ongoing need for medical professionals to support healthcare delivery. Comparable spending benchmarks would typically involve analyzing the average cost per physician hour or per exam across similar VA contracts or other federal healthcare procurements.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus of competition was likely on larger, established providers. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is neutral to potentially negative if larger firms dominate the service provision without significant subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver services within the agreed-upon terms. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the execution of this contract.

Related Government Programs

Veterans Health Administration Medical Services
Physician Services Contracts
Healthcare Delivery Contracts
Federal Medical Personnel Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.9 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 $32.9 million.

What is the period of performance?

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

What is the historical spending pattern for physician services by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has a long-standing and substantial history of spending on physician services to meet the healthcare needs of veterans. This spending encompasses a wide range of specialties and service delivery models, including direct employment, contract physicians, and telehealth services. Historically, the VA has faced challenges in recruiting and retaining physicians, leading to a significant reliance on contract services to fill critical gaps. Annual spending on physician services can fluctuate based on demand, budget allocations, and specific program needs, but it consistently represents a major component of the VA's overall healthcare expenditure. Analyzing historical data reveals trends in pricing, competition levels, and the types of services most frequently contracted, providing context for current awards like the one for $32.8 million in Florida.

How does the per-unit cost of these physician services compare to similar contracts awarded by the VA or other federal agencies?

A precise per-unit cost comparison for these physician services is difficult without knowing the exact nature of the 'additional exams' and the specific qualifications of the physicians. However, the contract's firm fixed-price nature and the presence of four bidders suggest a competitive market rate was likely achieved. To perform a detailed comparison, one would need to analyze the contract's CLINs (Contract Line Item Numbers) to identify the specific services being procured (e.g., cost per exam, cost per hour of physician time). Benchmarking against similar VA contracts for general physician services or specific specialties in the same geographic region (Florida) would provide a more accurate assessment. If the average cost per exam or per physician hour falls within or below the established benchmarks for comparable services, it indicates good value for money.

What is the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC in performing federal contracts, particularly for healthcare services?

LOYAL SOURCE GOVERNMENT SERVICES LLC has a history of performing federal contracts, including those within the healthcare services domain. A thorough review of their past performance would involve examining contract databases (like SAM.gov or FPDS) for awards, performance evaluations (Contract Performance Assessment Reporting System - CPARS), and any reported issues or disputes. Their experience with the VA or other health-related agencies would be particularly relevant. Assessing their track record would involve looking at factors such as on-time delivery, quality of services rendered, adherence to contract terms, and overall customer satisfaction ratings. A positive performance history suggests a lower risk for this current award, while any significant past issues might warrant closer scrutiny of this new contract's execution.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include contractor performance issues (e.g., failure to provide qualified physicians, delays in service delivery), scope creep if the definition of 'additional exams' is not clearly managed, and potential cost overruns if the firm fixed-price model is not adequately monitored against the defined scope. Given that this is a delivery order under a larger contract vehicle, some risks may have been pre-vetted. Mitigation strategies typically involve robust contract administration by the VA, clear performance metrics, regular progress reviews, and defined procedures for addressing deviations. The competitive nature of the award also serves as a risk mitigation factor, as the contractor has an incentive to perform well to secure future work. The relatively short duration (ending Dec 31, 2025) also limits the long-term exposure to risk.

How does this contract align with the VA's overall strategy for providing healthcare services to veterans?

This contract aligns with the VA's ongoing strategy to ensure adequate healthcare access for veterans, particularly by supplementing existing medical staff capacity. The VA often utilizes contract physicians to address staffing shortages, manage patient backlogs, and provide specialized services that may not be available internally or in sufficient numbers. Awards like this, especially for 'additional exams,' indicate a proactive approach to meeting demand and ensuring timely care. The focus on Florida suggests a response to specific regional needs or capacity constraints within the VA's healthcare network in that state. By leveraging external providers through competitive contracting, the VA aims to maintain service levels and improve veteran health outcomes 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: 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: $32,852,778

Exercised Options: $32,852,778

Current Obligation: $32,852,778

Actual Outlays: $7,109,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline