VA awards $3.17M contract for outpatient care, with 87% of spending benchmarked against similar contracts

Contract Overview

Contract Amount: $3,165,224 ($3.2M)

Contractor: STG International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2026-01-31

Contract Duration: 364 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MOUNTAIN HOME COMMUNITY BASED OUTPATIENT CLINIC (CBOC) - MODIFICATION TO UPDATE VACCINATION REQUIREMENTS

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to STG INTERNATIONAL, INC. for work described as: MOUNTAIN HOME COMMUNITY BASED OUTPATIENT CLINIC (CBOC) - MODIFICATION TO UPDATE VACCINATION REQUIREMENTS Key points: 1. Value for money appears strong, with 86.96% of the contract value falling within the expected range for similar services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. The contract supports outpatient care services, aligning with the Department of Veterans Affairs' mission. 5. This contract falls within the Outpatient Care Centers sector. 6. The contractor, STG INTERNATIONAL, INC., has a track record that warrants further investigation. 7. The contract duration is one year, with a firm fixed price structure.

Value Assessment

Rating: good

The contract value of approximately $3.17 million is benchmarked against similar contracts, with 86.96% of the value falling within the expected range. This indicates a potentially good value for the services rendered. The firm fixed price contract type helps to control costs and provides predictability for the VA. Without more granular data on the specific services and their market rates, a definitive assessment of cost-effectiveness is challenging, but the benchmark suggests reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using a 'full and open competition' method, which typically involves soliciting bids from all responsible prospective contractors. This approach generally leads to a wider pool of bidders and can foster better price discovery. The data does not specify the number of bids received, which would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is designed to yield the most competitive pricing by allowing all qualified vendors to participate.

Public Impact

Veterans in Arkansas will benefit from continued access to outpatient care services. The contract ensures the provision of essential healthcare services through the Mountain Home Community Based Outpatient Clinic (CBOC). The geographic impact is focused on Arkansas, serving the veteran population in that region. The contract supports healthcare professionals and administrative staff employed by the contractor, contributing to the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The provided data does not detail the specific scope of 'All Other Outpatient Care Centers' services, potentially leading to ambiguity.
Further investigation into STG INTERNATIONAL, INC.'s past performance and any prior issues with VA contracts would be beneficial.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust selection process.
The firm fixed price contract type provides cost certainty for the government.
The contract duration of one year allows for regular re-evaluation of needs and contractor performance.

Sector Analysis

The healthcare sector, specifically outpatient care services, is a significant area of federal spending, particularly for the Department of Veterans Affairs. This contract for an Outpatient Care Center (NAICS 621498) fits within the broader landscape of healthcare delivery. Comparable spending benchmarks in this sector are crucial for assessing value, and the provided data indicates that this contract's value is largely in line with expectations for similar services. The market for such services is competitive, driven by the VA's continuous need to provide accessible healthcare to veterans.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor, STG INTERNATIONAL, INC., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, information not available here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are typically embedded in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

VA Community Care Network (CCN)
VA Medical Care Programs
Outpatient Services Contracts

Risk Flags

Contractor Past Performance
Scope of Services Clarity
Performance Metrics Availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to STG INTERNATIONAL, INC.. MOUNTAIN HOME COMMUNITY BASED OUTPATIENT CLINIC (CBOC) - MODIFICATION TO UPDATE VACCINATION REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is STG INTERNATIONAL, 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 $3.2 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-01-31.

What is the track record of STG INTERNATIONAL, INC. with the Department of Veterans Affairs?

A thorough review of STG INTERNATIONAL, INC.'s track record with the Department of Veterans Affairs would involve examining their past contract awards, performance evaluations, and any documented issues or successes. This includes looking at the types of services they have provided, the value of those contracts, and their adherence to contract terms and conditions. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be essential. Without access to these specific databases for STG INTERNATIONAL, INC., it is difficult to provide a detailed assessment of their track record. However, their ability to secure this current contract suggests they have met the VA's basic eligibility and performance requirements at some level.

How does the pricing of this contract compare to other similar outpatient care contracts awarded by the VA?

The provided data indicates that 86.96% of this contract's value falls within the benchmarked range for similar contracts. This suggests that the pricing is likely competitive and falls within expected market rates for outpatient care services. To conduct a more precise comparison, one would need to analyze the specific services included in this contract (e.g., types of medical consultations, procedures, diagnostic tests) and compare their unit costs or overall package pricing against other VA contracts for comparable CBOCs or outpatient clinics in similar geographic regions. Factors such as facility size, staffing levels, and the complexity of care offered would also need to be considered for a robust benchmark.

What are the primary risk indicators associated with this contract?

Based on the limited data provided, there are no explicit high-level risk indicators immediately apparent. The contract is firm fixed price, which generally mitigates cost overrun risks for the government. It was awarded through full and open competition, suggesting a competitive process that can reduce risks associated with sole-sourcing or limited competition. The contractor, STG INTERNATIONAL, INC., is a known entity in federal contracting. However, potential risks could emerge from factors not detailed here, such as the contractor's past performance history, the specific complexity of the services required, potential staffing shortages, or unforeseen changes in healthcare regulations. A deeper dive into contractor past performance and the detailed statement of work would be necessary for a comprehensive risk assessment.

How effective is the Mountain Home CBOC in meeting the healthcare needs of veterans in its service area?

The effectiveness of the Mountain Home Community Based Outpatient Clinic (CBOC) in meeting the healthcare needs of veterans cannot be determined solely from the contract modification data. Effectiveness would be measured by metrics such as patient wait times, patient satisfaction scores, the range and quality of services provided, health outcomes for veteran patients, and the clinic's capacity to serve the veteran population in its designated geographic area. These performance metrics are typically tracked by the Department of Veterans Affairs through various reporting mechanisms and patient surveys. This contract ensures the continued operation and funding of the clinic, but its actual effectiveness relies on the quality of care delivered by STG INTERNATIONAL, INC. and the VA's oversight.

What has been the historical spending pattern for outpatient care services at the Mountain Home CBOC?

The provided data only reflects a single contract modification with a value of $3,165,223.66 for the period of February 1, 2025, to January 31, 2026. To understand the historical spending pattern for the Mountain Home CBOC, one would need to access historical contract data for this specific clinic or for the services provided by STG INTERNATIONAL, INC. at this location over previous years. This would involve querying federal procurement databases for all contracts associated with the Mountain Home CBOC, identifying the total amounts awarded annually, and analyzing trends in spending. Without this historical context, it is impossible to determine if the current spending level represents an increase, decrease, or stable expenditure compared to previous periods.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 888, ARLINGTON, VA, 22206

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

Financial Breakdown

Contract Ceiling: $3,165,224

Exercised Options: $3,165,224

Current Obligation: $3,165,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25622D0018

IDV Type: IDC

Timeline