VA Awards $272M for Medical Disability Exams Through FY26 to Loyal Source Government Services

Contract Overview

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

Contractor: Loyal Source Government Services LLC

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: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $272.0 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING Key points: 1. Significant contract value of $272M highlights the ongoing need for medical disability evaluations. 2. Loyal Source Government Services LLC is the sole awardee, raising questions about competition. 3. The contract spans multiple years, indicating a long-term requirement for these services. 4. The NAICS code 621111 points to physician services, a critical component of healthcare delivery.

Value Assessment

Rating: fair

The contract's fixed price structure provides cost certainty. However, without detailed performance metrics or comparison data, assessing the value for money against similar contracts is challenging.

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. However, the specific awardee is Loyal Source Government Services LLC, and the data indicates this is a delivery order, which may not reflect the full competitive landscape of the underlying contract.

Taxpayer Impact: Taxpayer funds are being used to procure essential medical disability examinations, supporting veterans' benefits claims. The competitive award process aims to ensure reasonable pricing.

Public Impact

Veterans will continue to receive necessary medical disability examinations, crucial for processing their benefit claims. The contract ensures continuity of services, preventing disruptions for veterans awaiting evaluations. The award supports the Department of Veterans Affairs' mission to provide comprehensive care and benefits to service members and veterans.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Lack of detailed performance metrics for assessing value.
Potential for price creep in future years if not closely monitored.

Positive Signals

Awarded under full and open competition.
Long-term contract provides service continuity.
Fixed-price contract offers cost predictability.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on physician services for medical disability examinations. The spending benchmark for this type of service can vary significantly based on geographic location and specific examination requirements.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses on this contract. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate medical disability examinations are provided. Regular performance reviews and audits are essential for accountability.

Related Government Programs

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

Risk Flags

Sole awardee raises concerns about competitive pricing.
Lack of detailed performance metrics hinders value assessment.
Potential for contractor to underperform if oversight is weak.
Long-term nature of the contract requires sustained vigilance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $272.0 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL DISABILITY EXAMINATIONS - TO FY26 FUNDING

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 $272.0 million.

What is the period of performance?

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

What is the average cost per examination under this contract, and how does it compare to industry benchmarks?

The provided data does not include the average cost per examination or specific details on the number of examinations. To assess this, one would need to divide the total contract value by the projected number of examinations or analyze individual delivery orders. Comparing this to industry benchmarks would require access to proprietary cost data or publicly available reports on similar government contracts.

What are the key performance indicators (KPIs) for Loyal Source Government Services LLC under this contract, and how is their performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the measurement methods for Loyal Source Government Services LLC. Effective oversight would require the VA to establish clear KPIs related to timeliness, accuracy, and veteran satisfaction, and to conduct regular performance reviews to ensure compliance with contract terms.

How does the pricing structure of this contract ensure cost-effectiveness for the government over its duration?

The contract utilizes a Firm Fixed Price (FFP) structure, which shifts the risk of cost overruns to the contractor, providing cost predictability for the government. However, true cost-effectiveness depends on the initial price negotiation, the contractor's efficiency, and ongoing monitoring to prevent potential price increases or scope creep in subsequent years.

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: $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: 36C10X25D0001

IDV Type: IDC

Timeline