VA awards $6.5M outpatient clinic contract to Valor Healthcare Inc. in Texas

Contract Overview

Contract Amount: $6,529,435 ($6.5M)

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: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTION YEAR 2 ORDER, NEW BRAUNFELS, TX COMMUNITY BASED OUTPATIENT CLINIC (CBOC) SERVICES

Place of Performance

Location: NEW BRAUNFELS, COMAL County, TEXAS, 78130

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.5 million to VALOR HEALTHCARE INC for work described as: OPTION YEAR 2 ORDER, NEW BRAUNFELS, TX COMMUNITY BASED OUTPATIENT CLINIC (CBOC) SERVICES Key points: 1. Contract provides essential community-based outpatient clinic services, enhancing access for veterans. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration of one year indicates a focus on short-term service delivery. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award is for an option year, suggesting prior performance and satisfaction. 6. Geographic focus on New Braunfels, TX, addresses local veteran healthcare needs.

Value Assessment

Rating: good

The contract value of $6.53 million for one year of outpatient care services appears reasonable given the scope. Benchmarking against similar community-based outpatient clinic (CBOC) contracts would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps in cost control. However, without specific performance metrics or comparisons to other providers in the region, a definitive assessment of 'excellent' value is difficult.

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 bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The VA's use of this procurement method suggests they sought the best value through a broad market solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings and a wider range of service options.

Public Impact

Veterans in the New Braunfels, Texas area will benefit from accessible outpatient healthcare services. The contract ensures the continued provision of essential medical services, including primary care and potentially specialized outpatient treatments. The geographic impact is localized to the New Braunfels community, directly serving the veteran population in that region. The contract supports healthcare jobs within the community, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters, despite being an option year.
Reliance on a single contractor for a year of services could limit flexibility if needs change significantly.

Positive Signals

Awarding an option year suggests Valor Healthcare Inc. has met performance expectations in previous periods.
Fixed-price contract type provides cost predictability for the VA.
The contract addresses a critical need for veteran healthcare services in a specific geographic area.

Sector Analysis

The healthcare sector, particularly outpatient care services, is a significant area of federal spending, especially for the Department of Veterans Affairs. Community-Based Outpatient Clinics (CBOCs) are crucial for extending healthcare access to veterans in areas where VA medical centers may be distant. This contract fits within the broader VA strategy of leveraging community providers to supplement direct VA care. Spending benchmarks for similar CBOC contracts vary widely based on location, scope of services, and patient volume.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct analysis of small business set-aside implications. However, the prime contractor, Valor Healthcare Inc., may engage small businesses for subcontracting opportunities, though this is not detailed in the provided information. The impact on the small business ecosystem would depend on whether subcontracting goals are established and met.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

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

Risk Flags

Potential for service gaps if contractor performance declines.
Reliance on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.5 million to VALOR HEALTHCARE INC. OPTION YEAR 2 ORDER, NEW BRAUNFELS, TX COMMUNITY BASED OUTPATIENT CLINIC (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 $6.5 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 and other federal agencies?

Valor Healthcare Inc. has a history of contracting with the Department of Veterans Affairs, primarily for providing community-based outpatient clinic (CBOC) services. This specific contract is an option year, indicating a continuation of services previously rendered. Analyzing past performance evaluations, any contract disputes, or awards for similar services across different VA facilities or other federal agencies would provide a comprehensive view of their track record. Information on their performance metrics, such as patient wait times, patient satisfaction scores, and adherence to clinical standards, would be crucial for assessing their reliability and quality of service delivery.

How does the $6.53 million annual cost compare to similar VA CBOC contracts in Texas or other regions?

Benchmarking this $6.53 million contract against similar VA CBOC contracts requires detailed comparison data. Factors such as the number of veterans served, the scope of services offered (e.g., primary care, mental health, specialty outpatient), geographic location, and local cost of living significantly influence contract values. Contracts in high-cost-of-living areas or those with a broader service offering typically command higher prices. Without access to a database of comparable CBOC contracts with detailed service scopes and patient volumes, a precise comparison is challenging. However, the value appears to be within a plausible range for a year of comprehensive outpatient services for a defined veteran population.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential disruptions in service delivery if Valor Healthcare Inc. underperforms, leading to gaps in veteran care. Another risk is the potential for cost overruns if the fixed-price contract does not adequately account for unforeseen operational challenges, though this is less common with fixed-price agreements. Mitigation strategies typically involve robust performance monitoring by the VA, clear contract terms and conditions, defined service level agreements, and contingency planning. The VA's ability to exercise contract options also implies a level of confidence in the contractor's past performance, suggesting some risks have been managed effectively.

How effective is this CBOC in meeting the healthcare needs of veterans in the New Braunfels area?

The effectiveness of this CBOC is best measured by its impact on veteran health outcomes and access to care. Key performance indicators (KPIs) would include veteran satisfaction surveys, reduction in wait times for appointments, the range of services provided, and the successful management of chronic conditions. As this is an option year award, it suggests that the VA has found the services provided to be effective enough to warrant continuation. Further analysis would require access to specific performance data and patient feedback collected by the VA during the preceding contract period.

What has been the historical spending trend for CBOC services in this region or for this contractor?

Historical spending data for this specific contract would reveal if the $6.53 million represents an increase, decrease, or stable level of investment compared to previous option years or the base contract period. Analyzing spending trends for Valor Healthcare Inc. across all their VA contracts can indicate their growth and the VA's increasing reliance on their services. Understanding regional spending patterns for CBOCs in Texas can also provide context, highlighting whether this contract aligns with broader VA resource allocation strategies for community-based care in the state.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $6,529,435

Exercised Options: $6,529,435

Current Obligation: $6,529,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25722D0015

IDV Type: IDC

Timeline