VA awards $2.6M for outpatient clinic services in Southeast San Antonio to Valor Healthcare Inc

Contract Overview

Contract Amount: $2,645,146 ($2.6M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-22

End Date: 2025-08-21

Contract Duration: 364 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTION YEAR 2 ORDER - SOUTHEAST SAN ANTONIO COMMUNITY-BASED OUTPATIENT CLINIC SERVICES.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78223

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to VALOR HEALTHCARE INC for work described as: OPTION YEAR 2 ORDER - SOUTHEAST SAN ANTONIO COMMUNITY-BASED OUTPATIENT CLINIC SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value represents a portion of the VA's broader healthcare spending. 3. Performance period of one year indicates a need for ongoing outpatient services. 4. The fixed-price contract type shifts cost risk to the contractor. 5. Valor Healthcare Inc. is the incumbent provider for these services. 6. The specific service code (621498) points to general outpatient care.

Value Assessment

Rating: good

The contract value of approximately $2.6 million for a one-year period for community-based outpatient clinic services appears reasonable given the scope. Benchmarking against similar VA contracts for outpatient care in other regions would provide a more precise value-for-money assessment. The firm fixed-price structure is standard for services where the scope is well-defined, which helps control costs for the government. However, without detailed service delivery metrics or comparison to private sector benchmarks for similar services in the San Antonio area, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The VA's approach here aligns with federal procurement regulations aimed at maximizing competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential healthcare services, reducing the likelihood of overpayment.

Public Impact

Veterans in Southeast San Antonio will continue to receive essential community-based outpatient clinic services. The contract supports the delivery of healthcare services, potentially improving health outcomes for beneficiaries. The geographic focus is on the Southeast San Antonio area, ensuring local access to care. Valor Healthcare Inc. will continue to provide staffing and operational support for the clinic. This contract contributes to the VA's mission of providing comprehensive healthcare to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters, though the fixed-price nature may incentivize stability.
Reliance on a single contractor for a year could limit flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract type provides cost certainty for the government.
Valor Healthcare Inc. is the incumbent, suggesting a degree of familiarity and potentially smoother transition/continuation of services.

Sector Analysis

The healthcare services sector, particularly outpatient care, is a significant area of federal spending, especially within the Department of Veterans Affairs. This contract falls under the broader category of healthcare services, which includes a wide array of medical, diagnostic, and treatment services provided outside of inpatient hospital settings. The market for such services is competitive, with numerous providers, including large healthcare systems and specialized clinics, capable of meeting government requirements. The VA's spending in this area is substantial, reflecting its commitment to providing healthcare to millions of veterans nationwide.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Valor Healthcare Inc., a single entity, suggests that the primary focus was on meeting the service requirements through the most competitive means available. Further analysis of the contractor's subcontracting plan, if applicable, would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include performance monitoring, quality assurance reviews, and financial audits to ensure compliance with contract terms and service level agreements. The contract's fixed-price nature provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly accessible.

Related Government Programs

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

Risk Flags

Contractor Performance Risk
Service Delivery Continuity Risk
Cost Overrun Risk (for contractor)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to VALOR HEALTHCARE INC. OPTION YEAR 2 ORDER - SOUTHEAST SAN ANTONIO COMMUNITY-BASED OUTPATIENT CLINIC 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 $2.6 million.

What is the period of performance?

Start: 2024-08-22. End: 2025-08-21.

What is Valor Healthcare Inc.'s track record with the VA for similar services?

Valor Healthcare Inc. has a history of contracting with the Department of Veterans Affairs, including providing community-based outpatient clinic services. As the incumbent for this specific contract, they have demonstrated prior capability to meet the VA's requirements in Southeast San Antonio. Analyzing their past performance reviews, any documented issues or commendations, and the duration of their previous contracts would provide a clearer picture of their reliability and effectiveness in delivering these services. Understanding their experience with similar patient populations and service scopes is crucial for assessing future performance.

How does the per-veteran cost of these services compare to other VA outpatient clinics?

To compare the per-veteran cost, we would need to know the estimated number of unique veterans served by this clinic over the contract period and the total contract value. Dividing the $2.6 million contract value by the projected number of patient encounters or unique individuals would yield a per-unit cost. Benchmarking this figure against the average per-veteran cost for similar community-based outpatient clinics managed by the VA across different regions would reveal if this contract represents a favorable or unfavorable price point. Factors like geographic cost of living, complexity of patient needs, and specific services offered can influence these costs.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

While the specific KPIs are not detailed in the provided data, typical performance indicators for VA outpatient clinic services include patient wait times for appointments, patient satisfaction scores, clinical quality metrics (e.g., adherence to treatment protocols, chronic disease management outcomes), and operational efficiency. Performance is likely measured through regular reporting by Valor Healthcare Inc., site visits by VA contracting officers' representatives (CORs), and potentially through patient surveys and feedback mechanisms. The VA's contract management system would track adherence to these KPIs, with deviations potentially leading to corrective actions or impacting future contract awards.

What is the historical spending trend for outpatient clinic services in this region by the VA?

Historical spending data for outpatient clinic services in the Southeast San Antonio region by the VA would provide context for the current $2.6 million award. Analyzing previous years' contract values for similar services, whether with Valor Healthcare Inc. or other providers, would reveal if spending has been consistent, increasing, or decreasing. This trend analysis helps identify potential shifts in demand, changes in service scope, or inflationary pressures. Understanding the historical budget allocation for this specific clinic or service line is essential for assessing the sustainability and appropriateness of the current funding level.

Are there any identified risks associated with Valor Healthcare Inc. as the contractor for these services?

Without specific performance reviews or known issues, assessing risks associated with Valor Healthcare Inc. is speculative. However, general risks for any healthcare service contract include potential disruptions in service delivery due to staffing shortages, unforeseen increases in patient volume, or challenges in maintaining quality standards. The firm fixed-price nature of the contract means that if costs exceed projections for the contractor, they might face financial strain, potentially impacting service quality if not managed effectively. The VA's oversight and performance monitoring are critical to mitigating these potential risks.

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: 14643 DALLAS PKWY STE 100, 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: $2,645,146

Exercised Options: $2,645,146

Current Obligation: $2,645,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25722D0012

IDV Type: IDC

Timeline