VA awards $3.15M contract for outpatient care, modifying vaccination requirements for clinic services

Contract Overview

Contract Amount: $3,150,454 ($3.2M)

Contractor: STG International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2027-01-31

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. Contract value appears reasonable for a multi-year outpatient care service agreement. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include service disruption if vaccination requirements are not met. 4. Performance context is a community-based outpatient clinic serving veterans. 5. Sector positioning is within healthcare services, specifically outpatient care centers.

Value Assessment

Rating: good

The contract value of approximately $3.15 million over its term is within a reasonable range for a community-based outpatient clinic. Benchmarking against similar VA CBOC contracts of comparable scope and duration would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, but the ultimate value depends on the quality and efficiency of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this method generally fosters competitive pricing and encourages a wider pool of qualified contractors. The VA's use of full and open competition suggests confidence in the market's ability to provide these essential services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a greater selection of qualified providers, maximizing the value of federal dollars spent.

Public Impact

Veterans in the Mountain Home, Arkansas area will benefit from continued access to outpatient medical services. The contract ensures the provision of essential healthcare services, including vaccinations, as updated. Geographic impact is localized to the service area of the Mountain Home Community Based Outpatient Clinic. Workforce implications include the potential employment of healthcare professionals and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor fails to meet updated vaccination requirements.
Reliance on a single contractor for essential community-based outpatient care.
Ensuring consistent quality of care across all services provided under the contract.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps manage cost certainty.
Contract modification indicates proactive management of evolving health requirements (vaccinations).

Sector Analysis

The healthcare services sector, particularly outpatient care, is a significant area of federal spending, especially within the Department of Veterans Affairs. Community-Based Outpatient Clinics (CBOCs) are crucial for extending healthcare access to veterans in underserved or remote areas. This contract fits within the broader VA strategy to provide comprehensive medical services, leveraging private sector providers to supplement government-run facilities. Comparable spending benchmarks would involve analyzing other VA CBOC contracts and similar healthcare service agreements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. As the contract was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight mechanisms for this modification would depend on VA internal procedures.

Related Government Programs

VA Community Care Network
VA Medical Services Contracts
Outpatient Healthcare Services

Risk Flags

Potential for cost increases if new vaccination requirements are substantial.
Ensuring contractor compliance with updated health and safety mandates.
Dependence on contractor performance for essential veteran healthcare services.

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: 2026-02-01. End: 2027-01-31.

What is the historical spending pattern for this specific Mountain Home CBOC contract, and how does this modification compare to previous funding levels?

The provided data indicates a current award value of $3,150,453.60 with a duration from February 1, 2026, to January 31, 2027. To assess historical spending, one would need to access historical contract data for this specific CBOC. This would involve looking at previous contract awards, modifications, and actual expenditures for this location. Comparing the current award to previous years would reveal trends in funding, identify any significant increases or decreases, and help determine if the current modification represents a substantial shift in investment or is consistent with past spending. Without historical data, it's difficult to provide a comparative analysis of spending patterns.

How does the per-unit cost of services under this contract benchmark against other VA CBOCs or similar outpatient facilities?

Benchmarking the per-unit cost of services for this contract requires detailed service delivery data and corresponding costs, which are not fully provided. The contract is for 'All Other Outpatient Care Centers' (NAICS 621498) and has a firm fixed price. To perform a benchmark, one would need to identify specific services rendered (e.g., patient visits, specific procedures, vaccination administration) and their associated costs under this contract. This data would then be compared to similar metrics from other VA CBOCs or comparable healthcare providers, ideally those also operating under firm fixed-price agreements. Factors like geographic location, patient demographics, and scope of services significantly influence per-unit costs, making direct comparisons challenging without granular data and normalization.

What specific vaccination requirements were modified, and what is the rationale behind these changes?

The data indicates a 'MODIFICATION TO UPDATE VACCINATION REQUIREMENTS' but does not specify the exact nature of the changes. Typically, such modifications by the VA are driven by evolving public health guidance, new scientific understanding of infectious diseases, or changes in federal mandates related to healthcare worker or patient safety. The rationale would likely stem from directives issued by the CDC, OSHA, or internal VA health policy updates aimed at mitigating disease transmission within healthcare settings and ensuring the safety of both veterans and staff. A detailed review of the modification document itself would be necessary to ascertain the precise vaccination requirements that were altered and the official justification provided by the VA.

What is the track record of STG INTERNATIONAL, INC. in performing similar VA healthcare contracts, particularly regarding compliance and quality of service?

Assessing the track record of STG INTERNATIONAL, INC. requires accessing contract performance databases, such as the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System). These systems would provide ratings and feedback on past performance for contracts awarded to STG INTERNATIONAL, INC. by the VA or other federal agencies. Key areas to examine would include on-time delivery, quality of services, cost control, management, and overall customer satisfaction. A review of their past performance on similar outpatient care or CBOC contracts would indicate their reliability, experience, and ability to meet the VA's stringent requirements, including adherence to health and safety protocols like vaccination policies.

What are the potential risks associated with the firm fixed-price contract type in the context of evolving healthcare needs like vaccination requirements?

A firm fixed-price (FFP) contract provides cost certainty for the government but can introduce risks if the scope of work or associated costs change significantly. In the context of evolving vaccination requirements, the primary risk is that the contractor may incur additional costs to comply with new mandates (e.g., procuring specific vaccines, additional training, or administrative overhead for tracking compliance) that were not anticipated in the original pricing. If these costs are substantial and not covered by the contract's flexibility or contingency, the contractor might seek equitable adjustments, potentially leading to increased costs for the VA. Conversely, if the contractor fails to meet updated requirements due to cost concerns, it could lead to performance issues or contract disputes. The VA's modification process aims to mitigate this by formally updating requirements.

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: $3,150,454

Exercised Options: $3,150,454

Current Obligation: $3,150,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25622D0018

IDV Type: IDC

Timeline