VA Awards $6.1M for Pennsylvania CBOC Services to Valor Healthcare Inc

Contract Overview

Contract Amount: $6,100,541 ($6.1M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-03-31

Contract Duration: 181 days

Daily Burn Rate: $33.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WESTMORELAND PA CBOC SERVICES

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to VALOR HEALTHCARE INC for work described as: WESTMORELAND PA CBOC SERVICES Key points: 1. Contract awarded to Valor Healthcare Inc. for $6.1 million. 2. Services are for a Community Based Outpatient Clinic (CBOC) in Pennsylvania. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls under the Healthcare sector, specifically outpatient care centers.

Value Assessment

Rating: fair

The contract value of $6.1 million for 181 days of service appears high without competitive bidding. Benchmarking against similar CBOC contracts would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer funds negatively.

Public Impact

Veterans in Pennsylvania will receive outpatient care services. The award to Valor Healthcare Inc. ensures continuity of care for a defined period. Potential for higher costs due to non-competitive award affects taxpayer burden.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-day cost (estimated)
Short contract duration

Positive Signals

Ensures service delivery for veterans

Sector Analysis

This contract falls within the Healthcare sector, specifically for outpatient care centers. Spending on CBOCs is crucial for providing accessible healthcare to veterans, but competitive bidding is generally preferred to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract award, as it was not competed.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight is needed to ensure the services provided meet quality standards and that the pricing is reasonable despite the lack of competition.

Related Government Programs

All Other Outpatient Care Centers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for overpayment
Limited transparency in pricing
Short contract duration may indicate a stop-gap measure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to VALOR HEALTHCARE INC. WESTMORELAND PA CBOC SERVICES

Who is the contractor on this award?

The obligated recipient is VALOR HEALTHCARE 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 $6.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-03-31.

What is the benchmark cost for similar CBOC services in other regions or for other VA contracts?

Benchmarking similar CBOC services is critical. Without competitive bids, it's difficult to ascertain if $6.1 million for 181 days is cost-effective. A typical benchmark might involve comparing the cost per patient day or per service provided against historical VA contracts or industry standards for comparable facilities and service scopes.

What are the risks associated with awarding a contract of this size without competition?

The primary risk is paying a premium due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, a sole-source award might indicate a lack of available qualified vendors or a failure in the contracting process to solicit adequate competition, potentially limiting future options.

How effective will these services be in meeting the healthcare needs of veterans in this specific Pennsylvania region?

The effectiveness hinges on Valor Healthcare Inc.'s ability to deliver quality care and meet the specific needs of the veteran population in the service area. While the contract ensures service provision, its effectiveness in terms of patient outcomes, access, and satisfaction requires ongoing monitoring and evaluation by the VA.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14643 DALLAS PKWY, DALLAS, TX, 75254

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

Financial Breakdown

Contract Ceiling: $6,100,541

Exercised Options: $6,100,541

Current Obligation: $6,100,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24425D0001

IDV Type: IDC

Timeline