VA awards $2M outpatient clinic contract to Valor Healthcare Inc. for Texas community care

Contract Overview

Contract Amount: $2,015,287 ($2.0M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTION YEAR 1 TASK ORDER - SOUTHWEST SAN ANTONIO TEXAS COMMUNITY OUTPATIENT CLINIC

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78239

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to VALOR HEALTHCARE INC for work described as: OPTION YEAR 1 TASK ORDER - SOUTHWEST SAN ANTONIO TEXAS COMMUNITY OUTPATIENT CLINIC Key points: 1. Contract focuses on community outpatient care, indicating a strategy to leverage external providers for healthcare services. 2. The award is a delivery order under a larger contract, suggesting potential for follow-on work and sustained vendor relationships. 3. The fixed-price contract type aims to control costs by establishing a set price for services rendered. 4. The contract duration of one year aligns with typical budgeting cycles and allows for periodic reassessment of needs. 5. The specific service category, 'All Other Outpatient Care Centers,' suggests a broad scope of potential healthcare needs addressed. 6. The award is not set aside for small businesses, which may limit opportunities for smaller entities in this contract's execution.

Value Assessment

Rating: good

The contract value of approximately $2 million for one year of outpatient care services appears reasonable when benchmarked against similar community-based healthcare contracts. The Department of Veterans Affairs often utilizes such agreements to supplement its direct care capabilities. Without specific per-service data, a precise value-for-money assessment is challenging, but the fixed-price nature provides cost certainty for this period. The award to Valor Healthcare Inc. suggests they met the performance and pricing requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The VA's decision to use full and open competition suggests confidence in the market's ability to provide suitable options for this healthcare need.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially driving down costs and improving the quality of services received by veterans.

Public Impact

Veterans in Southwest San Antonio, Texas, will benefit from accessible community-based outpatient care services. The contract supports the delivery of various outpatient healthcare services, potentially reducing wait times and improving convenience for beneficiaries. The geographic impact is focused on the San Antonio area, addressing local healthcare needs within the veteran community. This contract may indirectly support local healthcare jobs through Valor Healthcare Inc.'s operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'All Other Outpatient Care Centers' category is interpreted broadly without clear performance metrics.
Dependence on a single contractor for a specific service area could pose a risk if performance issues arise.
Ensuring consistent quality of care across different outpatient settings requires robust oversight.

Positive Signals

The use of full and open competition suggests a robust vetting process for potential awardees.
The fixed-price contract type provides cost predictability for the VA.
The award to an established entity like Valor Healthcare Inc. may indicate a track record of successful service delivery.

Sector Analysis

The healthcare sector, particularly outpatient care, is a significant area of federal spending. The Department of Veterans Affairs is a major player, increasingly utilizing community care networks to supplement its own facilities. This contract fits within the broader trend of outsourcing specific healthcare services to private providers to manage capacity and reach veterans in diverse geographic locations. Benchmarks for similar outpatient clinic contracts vary widely based on scope, location, and specific services, but a $2 million annual award for a community clinic is within a common range.

Small Business Impact

This contract was not awarded as a small business set-aside. Therefore, there are no direct subcontracting requirements mandated for small businesses under this specific award. The absence of a set-aside means that larger businesses were eligible to compete and potentially win, which could limit direct opportunities for small businesses to participate in this particular contract's execution.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract's performance standards and service level agreements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Veterans Affairs Community Care Programs
VA Medical Care Programs
Outpatient Healthcare Services Contracts
Federal Healthcare Procurement

Risk Flags

Broad Service Category
Potential for Performance Monitoring Challenges
Dependence on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to VALOR HEALTHCARE INC. OPTION YEAR 1 TASK ORDER - SOUTHWEST SAN ANTONIO TEXAS COMMUNITY OUTPATIENT CLINIC

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 $2.0 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

What is Valor Healthcare Inc.'s track record with the Department of Veterans Affairs or other federal agencies?

Valor Healthcare Inc. has a history of contracting with the Department of Veterans Affairs, particularly for community-based outpatient services. Publicly available data indicates they have received multiple awards for similar services in various locations. Analyzing their past performance reviews, any documented issues, and the overall value of previous contracts would provide a clearer picture of their reliability and effectiveness. A review of their federal contract history, including any past performance evaluations or disputes, is crucial for assessing their suitability for this ongoing award. Their experience suggests familiarity with VA requirements and operational procedures.

How does the per-patient cost of this contract compare to VA-owned facilities or other community care providers?

Determining the precise per-patient cost requires detailed service utilization data and patient volume, which is not directly available from the award abstract. However, the total contract value of approximately $2 million for one year suggests an operational budget for serving a specific veteran population in the San Antonio area. Benchmarking this against VA-owned facilities is complex, as VA facilities often have different cost structures and overheads. Comparing it to other community care providers would involve analyzing their pricing models for similar outpatient services. Generally, community care is intended to be cost-effective by leveraging existing private infrastructure, but actual savings depend on negotiated rates and efficient service delivery.

What are the specific performance metrics and quality standards Valor Healthcare Inc. must meet under this contract?

The contract abstract does not detail the specific performance metrics or quality standards. However, as a delivery order under a larger contract, these are typically outlined in the base contract's Performance Work Statement (PWS). For community outpatient clinics, these metrics often include patient access timeliness (e.g., appointment wait times), patient satisfaction scores, adherence to clinical protocols, and appropriate documentation. The VA's Office of Community Care and its oversight bodies are responsible for monitoring these metrics. Failure to meet established standards could lead to corrective actions or contract termination.

What is the historical spending trend for similar outpatient care services in the San Antonio region by the VA?

Analyzing historical spending for similar outpatient care services in the San Antonio region by the VA would require a detailed search of federal procurement databases, filtering by agency, location, and service category over several fiscal years. This contract represents a specific award for Option Year 1, Task Order, indicating it's part of a potentially larger, multi-year effort. Understanding the trend would involve looking at the total value of all VA outpatient care contracts in that geographic area over time to identify patterns of growth, reduction, or shifts in procurement strategy, such as increased reliance on community providers versus VA-operated clinics.

What is the potential risk associated with the 'All Other Outpatient Care Centers' classification, and how is it mitigated?

The classification 'All Other Outpatient Care Centers' (NAICS code 621498) is broad and can encompass a wide range of services beyond primary care, potentially including specialized outpatient treatments. The primary risk is a lack of specificity, which could lead to ambiguity in service delivery or difficulty in performance monitoring if not clearly defined in the Performance Work Statement (PWS). Mitigation strategies typically involve a detailed PWS that explicitly lists the services to be provided, defines service standards, and outlines reporting requirements. Robust contract management and oversight by the VA are essential to ensure that the services delivered align with veteran needs and contractual obligations.

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: $2,015,287

Exercised Options: $2,015,287

Current Obligation: $2,015,287

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25722D0063

IDV Type: IDC

Timeline