VA's FY26 Medical Disability Exams: $272M Contract Awarded to QTC Medical Services Inc

Contract Overview

Contract Amount: $272,017,423 ($272.0M)

Contractor: QTC Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $747.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $272.0 million to QTC MEDICAL SERVICES INC for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Significant contract value for essential medical disability examinations. 2. QTC Medical Services Inc. is the sole awardee for this delivery order. 3. Potential risk associated with single-vendor reliance for critical services. 4. Spending aligns with the healthcare sector's need for specialized medical services.

Value Assessment

Rating: good

The contract value of $272M for a one-year period appears reasonable given the scope of medical disability examinations. Benchmarking against similar large-scale contracts for healthcare services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where initial competition occurred.

Taxpayer Impact: Taxpayer funds are being utilized for essential services to veterans, ensuring timely and accurate disability assessments.

Public Impact

Ensures timely processing of disability claims for veterans. Supports veterans in receiving necessary medical evaluations. Maintains the integrity of the disability determination process. Potential for improved veteran satisfaction with healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Reliance on a single vendor for a critical service.
Potential for price increases in future contract renewals.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for veteran services.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on medical services for disability evaluations. Spending benchmarks for similar large-scale medical service contracts can vary widely based on geographic scope and service complexity.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this particular delivery order. Further analysis would be needed to determine if small businesses are involved in the broader IDIQ contract, if applicable.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure service quality, adherence to timelines, and appropriate utilization of funds.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole awardee for this delivery order.
Potential for service disruption if vendor fails.
Need for robust quality assurance.
Long-term reliance on a single vendor could stifle future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $272.0 million to QTC MEDICAL SERVICES INC. FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS

Who is the contractor on this award?

The obligated recipient is QTC MEDICAL 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 $272.0 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical performance of QTC Medical Services Inc. in delivering similar medical disability examination services?

Historical performance data for QTC Medical Services Inc. is crucial for assessing their reliability and quality in delivering medical disability examinations. Past contract performance, including on-time completion rates, accuracy of reports, and client satisfaction, provides valuable insights into their capabilities and potential risks associated with this award. A review of past performance evaluations would inform whether this vendor has a proven track record of meeting or exceeding expectations for similar services.

How does the per-unit cost of these examinations compare to industry benchmarks and previous VA contracts?

Comparing the per-unit cost of these examinations to industry benchmarks and previous VA contracts is essential for evaluating cost-effectiveness. If the current costs are significantly higher, it could indicate potential inefficiencies or a lack of competitive pressure. Conversely, if costs are in line or lower, it suggests good value for taxpayer money. Understanding this comparison helps determine if the VA is achieving competitive pricing for these vital veteran services.

What mechanisms are in place to ensure the quality and accuracy of the medical disability examinations provided under this contract?

Mechanisms for ensuring quality and accuracy are paramount for disability determinations. This includes clear performance standards, regular quality assurance reviews, independent audits of examination reports, and a process for addressing any deficiencies identified. The VA's oversight framework should detail how they will monitor QTC's adherence to medical standards, reporting requirements, and veteran care protocols to guarantee the integrity of the examination process.

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: Leidos Holdings, Inc.

Address: 4400 NW LOOP 410, SAN ANTONIO, TX, 78229

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $272,017,423

Exercised Options: $272,017,423

Current Obligation: $272,017,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X25D0003

IDV Type: IDC

Timeline