VA awards $27.9M for physician services, with 4 bidders competing for a firm-fixed-price delivery order

Contract Overview

Contract Amount: $27,913,226 ($27.9M)

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: $287.8K/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 $27.9 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: FY25 Q4 AND FY26 Q1 ADDITIONAL EXAMS Key points: 1. The contract value represents a significant investment in physician services for the VA. 2. Competition dynamics indicate a healthy market for these specialized medical services. 3. The firm-fixed-price structure aims to control costs and provide budget certainty. 4. Performance is expected to align with established standards for medical examinations. 5. This contract falls within the broader healthcare sector, specifically physician services. 6. The duration of the order suggests a focused, short-term need for these services.

Value Assessment

Rating: good

The award of $27.9 million for physician services appears reasonable given the scope and duration. While direct comparisons to identical contracts are difficult without more specific service details, the number of bidders (4) suggests a competitive environment that likely drove a fair price. The firm-fixed-price nature of the contract provides cost predictability for the VA. Benchmarking against similar contracts for physician staffing or examination services would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of four bidders suggests a reasonable level of competition for these specialized physician services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The VA's approach here is consistent with maximizing competition.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to secure the best possible pricing and quality for the required physician services, ensuring efficient use of federal funds.

Public Impact

Veterans will benefit from the provision of necessary medical examinations and physician services. The services delivered will support the VA's mission to provide healthcare to veterans. The geographic impact is focused on Florida, where the services will be rendered. The contract supports the employment of physicians and potentially other medical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'additional exams' is not clearly delineated.
Dependence on a limited number of contractors for critical physician services.
Risk of physician burnout if workload is not managed effectively over the contract period.

Positive Signals

Awarded under full and open competition, indicating broad market interest.
Firm-fixed-price contract type helps manage cost certainty.
Clear performance period (97 days) allows for focused evaluation.

Sector Analysis

This contract falls within the healthcare sector, specifically the provision of physician services. The North American Industry Classification System (NAICS) code 621111, Offices of Physicians (except Mental Health Specialists), encompasses a broad range of medical practices. The market for physician services is substantial, driven by demand from government agencies like the VA, as well as private healthcare providers. This award represents a portion of the VA's overall spending on medical personnel to fulfill its healthcare obligations to veterans.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct subcontracting information provided, the nature of physician services often involves direct employment or contracting with individual practitioners rather than extensive subcontracting networks. The absence of a small business set-aside means that larger firms were eligible to compete, and the focus was on securing the best overall offer.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and program officials. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Services Contracts
Physician Staffing Contracts
Healthcare Services for Veterans
Federal Medical Examination Services

Risk Flags

Lack of specific service details in contract description
Short contract duration may impact cost and continuity
Need for detailed performance metrics to assess value

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.9 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 $27.9 million.

What is the period of performance?

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

What is the historical spending pattern of the VA for physician services under NAICS code 621111?

Analyzing the VA's historical spending for physician services (NAICS 621111) would provide crucial context for this $27.9 million award. This involves examining contract data over several fiscal years to identify trends in contract values, number of awards, and average contract durations. Understanding if this award is an outlier, a continuation of a trend, or a significant increase/decrease in spending can reveal insights into the VA's evolving needs and budget allocation for physician staffing. For instance, a consistent pattern of large awards might indicate a persistent shortage or a strategic decision to outsource a significant portion of physician services. Conversely, a sudden spike could signal an urgent, temporary need or a shift in contracting strategy. Benchmarking this award against historical averages would also help assess its reasonableness in terms of cost and scale.

How does the per-unit cost of these physician services compare to market rates or similar VA contracts?

Determining the per-unit cost for these physician services is essential for assessing value for money, but requires further definition of 'unit.' If a 'unit' is defined as a specific type of examination or a physician hour, then a benchmark can be established. Comparing this to the average rates paid by the VA for similar examinations or physician hours under other contracts, or to prevailing market rates in Florida, would be informative. For example, if the contract is for a specific number of examinations, dividing the total award by the number of exams would yield a per-exam cost. This figure can then be compared to industry benchmarks or rates from other VA facilities. A significantly higher per-unit cost might indicate potential inefficiencies or a lack of competitive pricing, while a lower cost could suggest good value or potentially a more limited scope of service than anticipated.

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

Investigating the track record of LOYAL SOURCE GOVERNMENT SERVICES LLC is critical for understanding the risk associated with this contract. This involves reviewing their past performance on VA contracts, specifically those involving healthcare services and physician staffing. Key areas to examine include on-time delivery, quality of service, adherence to contract terms, and any history of disputes, contract modifications, or performance issues. Databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) can provide valuable insights. A history of successful contract performance suggests a lower risk of execution issues, while past problems might warrant closer scrutiny of their current capabilities and management approach for this specific award. Understanding their experience with firm-fixed-price contracts is also relevant.

What specific types of physician services are included in the 'ADDITIONAL EXAMS' and what is the expected volume?

The description 'FY25 Q4 AND FY26 Q1 ADDITIONAL EXAMS' is quite broad and lacks specificity regarding the exact types of physician services required. To properly assess the value and performance risks, a detailed breakdown is needed. Are these routine physicals, specialized diagnostic exams, disability evaluations, or something else? The volume of these exams is also crucial; knowing the expected number of examinations or physician hours allows for a more accurate calculation of per-unit costs and workload assessment. Without this granular detail, it is difficult to benchmark pricing effectively or gauge the contractor's capacity to meet demand. Clarification on the scope of work and anticipated volume is essential for a comprehensive analysis of this contract's effectiveness and efficiency.

What are the potential risks associated with a short contract duration (97 days) for physician services?

A short contract duration of 97 days (approximately three months) for physician services presents several potential risks. Firstly, it may lead to a higher per-diem or per-hour rate as contractors factor in the administrative costs and potential inefficiencies of mobilizing and demobilizing staff for a limited period. Secondly, it could result in a less stable workforce, as physicians may be less inclined to commit to short-term assignments, potentially impacting the continuity and quality of care. Thirdly, the VA might face challenges in ensuring consistent service delivery if the contractor struggles to find and onboard qualified personnel within the tight timeframe. Finally, the short duration might not allow sufficient time to fully assess the contractor's performance, making it difficult to determine if they are a reliable long-term partner for future needs.

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: $27,913,226

Exercised Options: $27,913,226

Current Obligation: $27,913,226

Actual Outlays: $22,109,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0001

IDV Type: IDC

Timeline