VA Awards $260M for Medical Disability Exams to OptumServe in FY26
Contract Overview
Contract Amount: $260,174,837 ($260.2M)
Contractor: Optumserve Health 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: $714.8K/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: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Veterans Affairs obligated $260.2 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS Key points: 1. Significant contract value of $260M for essential medical disability examinations. 2. OptumServe Health Services, Inc. is the sole awardee. 3. Potential risk associated with single-vendor reliance for critical services. 4. Focus on healthcare services sector, specifically physician services.
Value Assessment
Rating: good
The contract value of $260M for a one-year period appears reasonable given the scope of medical disability examinations. Benchmarking against similar large-scale healthcare service contracts 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 competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential services to veterans, ensuring timely and accurate disability assessments.
Public Impact
Ensures continued access to medical disability examinations for veterans. Supports the Department of Veterans Affairs' mission to care for veterans. Potential impact on veterans awaiting disability claims processing.
Waste & Efficiency Indicators
Waste Risk Score: 71 / 10
Warning Flags
- Single awardee for a critical service.
- Potential for vendor lock-in if performance is consistently good.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and start/end dates.
Sector Analysis
This contract falls within the healthcare services sector, specifically focusing on physician services for medical disability examinations. Spending benchmarks for similar services can vary widely based on geographic location and complexity of examinations.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger IDIQs or similar vehicles would apply.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Reliance on a single vendor for a critical service.
- Potential for cost overruns if scope expands or efficiencies are not realized.
- Need for robust performance monitoring to ensure quality and timeliness.
- Impact of potential service disruptions or quality issues on veterans.
Tags
offices-of-physicians-except-mental-heal, department-of-veterans-affairs, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $260.2 million to OPTUMSERVE HEALTH SERVICES, INC.. FY26 FUNDING MEDICAL DISABILITY EXAMINATIONS
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE HEALTH 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 $260.2 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the historical performance of OptumServe Health Services, Inc. in delivering medical disability examinations?
Historical performance data for OptumServe Health Services, Inc. in delivering medical disability examinations is crucial for assessing future reliability. Past performance reviews, contract termination history, and client feedback would provide insights into their capabilities, efficiency, and adherence to quality standards. This information helps determine if the company has a proven track record of meeting similar contract requirements.
How does the per-examination cost compare to industry averages or previous VA contracts for similar services?
Comparing the per-examination cost to industry averages and previous VA contracts is essential for value assessment. If this contract's unit costs are significantly higher, it could indicate potential overpricing or inefficiencies. Conversely, lower costs might suggest strong competition or efficient service delivery. A detailed cost-benefit analysis is needed.
What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how will they be monitored?
Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are vital for ensuring contract effectiveness and accountability. These metrics should cover aspects like turnaround time for examinations, accuracy of reports, and veteran satisfaction. Robust monitoring mechanisms and clear consequences for non-compliance are necessary to ensure the contractor meets expectations and taxpayer funds are used 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
Parent Company: Unitedhealth Group Incorporated
Address: 328 FRONT ST S, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $260,174,837
Exercised Options: $260,174,837
Current Obligation: $260,174,837
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X25D0002
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-04-01
More Contracts from Optumserve Health Services, Inc.
- FY26 Funding Medical Disability Examinations — $714.1M (Department of Veterans Affairs)
- FY24 Funding Task Order — $596.1M (Department of Veterans Affairs)
- Medical Disability Examinations (mdes) Under Section 504 of the Veterans Benefits Improvements ACT of 1996 (public LAW 104 275 38 U.S.C. 5101), Region 2 (southeast) - Option Year 4 Task Order — $365.3M (Department of Veterans Affairs)
- FY26 Funding Medical Disability Examinations — $362.2M (Department of Veterans Affairs)
- FY26 Funding Medical Disability Examinations — $356.6M (Department of Veterans Affairs)
View all Optumserve Health Services, Inc. federal contracts →
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