VA awards $18.6M for outpatient care, with STG International Inc. securing the contract

Contract Overview

Contract Amount: $18,571,538 ($18.6M)

Contractor: STG International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMMUNITY BASED OUTPATIENT CLINICS - VA LOMA LINDA

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.6 million to STG INTERNATIONAL, INC. for work described as: COMMUNITY BASED OUTPATIENT CLINICS - VA LOMA LINDA Key points: 1. Contract value represents a significant investment in veteran healthcare services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance context is crucial for ensuring quality care delivery to veterans. 4. Sector positioning highlights the VA's ongoing commitment to community-based healthcare. 5. Risk indicators will be monitored through performance metrics and quality assurance.

Value Assessment

Rating: good

The contract value of $18.6 million for outpatient care services appears reasonable given the scope and duration. Benchmarking against similar VA community-based outpatient clinic (CBOC) contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government. However, a detailed review of the proposed costs against market rates for similar services in the Loma Linda area is necessary for a comprehensive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a robust competitive environment. This level of competition is expected to drive favorable pricing and encourage innovation from the participating companies.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services through market forces.

Public Impact

Veterans in the Loma Linda, California region will benefit from continued access to essential outpatient healthcare services. The contract ensures the provision of a range of outpatient care services, supporting the health and well-being of the veteran population. Geographic impact is focused on the service area of the VA Loma Linda Healthcare System. Workforce implications include potential job creation and retention within the healthcare sector supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of care across all services provided.
Monitoring contractor performance to meet or exceed established service level agreements.
Managing potential fluctuations in patient demand and resource allocation.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm fixed-price contract structure shifts cost risk to the contractor.
Long-term commitment to veteran healthcare services in the region.

Sector Analysis

The healthcare services sector, particularly outpatient care, is a significant area of federal spending. This contract falls within the broader category of healthcare services, specifically focusing on community-based outpatient clinics. The market for such services is competitive, with numerous providers vying for government contracts. Benchmarking this contract against other VA CBOC awards or similar civilian healthcare service contracts would provide further context on its scale and pricing.

Small Business Impact

While this contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. The prime contractor, STG INTERNATIONAL, INC., is a mid-sized business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract, which could contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs, with specific program managers responsible for monitoring performance, quality, and adherence to contract terms. Accountability measures are typically embedded within the contract through performance metrics and reporting requirements. Transparency is facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Community Based Outpatient Clinics
VA Healthcare Services
Outpatient Care Contracts
Veteran Health Administration Programs

Risk Flags

Performance Risk
Quality of Care Risk
Contractor Staffing Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.6 million to STG INTERNATIONAL, INC.. COMMUNITY BASED OUTPATIENT CLINICS - VA LOMA LINDA

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 $18.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for community-based outpatient clinics in the VA Loma Linda region?

Analyzing historical spending for community-based outpatient clinics (CBOCs) in the VA Loma Linda region requires access to detailed contract data over multiple fiscal years. Typically, the VA awards contracts for CBOC services through competitive processes, with values fluctuating based on service scope, patient volume, and contract duration. Spending patterns can indicate trends in healthcare demand, the effectiveness of competition in driving down costs, and the overall investment the VA is making in decentralized care. Without specific historical data for this region, it's difficult to provide precise figures, but generally, the VA aims for stable, predictable funding for essential services while seeking efficiencies through competitive contracting and performance management. Fluctuations might occur due to contract re-competition, changes in healthcare needs, or shifts in VA's strategic priorities regarding facility-based versus community-based care.

How does the awarded price compare to similar VA outpatient clinic contracts in other regions?

Comparing the awarded price of $18.6 million for the VA Loma Linda outpatient clinic to similar contracts in other regions requires a robust dataset of comparable contracts. Key comparison factors include the scope of services offered (e.g., primary care, specialty services, mental health), the number of veterans served, the geographic cost of living and labor, and the contract duration. Contracts awarded under full and open competition generally provide a better basis for comparison than sole-source awards. If this contract's per-patient cost or cost per service hour is significantly higher or lower than benchmarks derived from similar contracts, it could indicate either exceptional value or potential overpricing/underbidding. The firm fixed-price nature also means the contractor assumes cost risks, which can influence the initial bid price compared to cost-plus contracts.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored?

Key performance indicators (KPIs) for a contract like the VA's Community Based Outpatient Clinics (CBOCs) typically revolve around the quality, accessibility, and efficiency of care delivered. Common KPIs include patient wait times for appointments, patient satisfaction scores, adherence to clinical practice guidelines, medication error rates, and the availability of essential services. For this specific contract, the Department of Veterans Affairs will likely establish a detailed Performance Work Statement (PWS) outlining these KPIs and the acceptable performance thresholds. Monitoring is usually conducted through regular contractor reporting, site visits, patient surveys, and data analysis of electronic health records. Failure to meet KPIs can result in contractual remedies, such as performance improvement plans or financial penalties, ensuring accountability and driving high-quality veteran care.

What is STG INTERNATIONAL, INC.'s track record with the Department of Veterans Affairs and similar healthcare contracts?

STG INTERNATIONAL, INC. has a history of performing various services for government agencies, including the Department of Veterans Affairs (VA). Their track record with the VA would encompass a range of contract types and service areas, potentially including healthcare support, administrative services, and facility management. Assessing their performance on similar healthcare contracts, particularly those involving outpatient clinics or direct patient care support, is crucial. This involves reviewing past performance evaluations, any documented instances of contract disputes or awards, and their overall reputation within the federal contracting community. A positive track record with the VA suggests familiarity with their requirements, processes, and commitment to serving veterans, while any negative history would warrant closer scrutiny of this new award.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this $18.6 million outpatient clinic contract include service delivery disruptions, quality of care issues, cost overruns (though mitigated by fixed-price), and contractor performance deficiencies. For instance, staffing shortages at the contractor level could impact appointment availability or service quality. Ensuring adequate staffing and maintaining high clinical standards are critical. Mitigation strategies typically involve robust contract oversight by the VA, clearly defined performance standards in the Performance Work Statement (PWS), regular performance reviews, and contingency planning by the contractor. The firm fixed-price structure places the financial risk of cost overruns on STG INTERNATIONAL, INC., but the VA must still actively manage performance risks to ensure veterans receive uninterrupted, high-quality care. Background checks for personnel and adherence to VA clinical protocols are also key risk mitigation elements.

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,571,538

Exercised Options: $18,571,538

Current Obligation: $18,571,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26221D0002

IDV Type: IDC

Timeline