VA awards $3M for outpatient care to STG INTERNATIONAL, INC. in California

Contract Overview

Contract Amount: $3,001,020 ($3.0M)

Contractor: STG International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-09-30

Contract Duration: 272 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LANCASTER CBOC

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to STG INTERNATIONAL, INC. for work described as: LANCASTER CBOC Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract is for outpatient care services, supporting a critical healthcare need. 3. Delivery order under an existing contract suggests a streamlined procurement process. 4. The duration of 272 days points to a short-term operational requirement. 5. The award is not competed, raising questions about potential cost efficiencies. 6. The contractor, STG INTERNATIONAL, INC., is the sole awardee for this specific requirement.

Value Assessment

Rating: fair

Benchmarking the value of this delivery order is challenging without knowing the terms of the parent contract. However, the fixed-price nature provides some cost certainty. The per-day cost is approximately $11,033, which needs to be compared against similar outpatient care services provided by the VA or other federal agencies to determine true value for money. Without comparative data, it's difficult to definitively assess if this represents a competitive price.

Cost Per Unit: Approximately $11,033 per day (based on total award value and duration).

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor is uniquely qualified or when it's advantageous to use an existing contract vehicle. The lack of competition means there was no direct price comparison through bidding, potentially limiting the government's ability to secure the lowest possible price.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced opportunity to benefit from competitive pricing that could drive down costs. Oversight is crucial to ensure the price is fair and reasonable.

Public Impact

Veterans in California will benefit from continued access to outpatient care services. The contract supports the delivery of 'All Other Outpatient Care Centers' services. The geographic impact is focused on California, serving the local veteran population. The contract likely supports a workforce involved in providing healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a fully competed contract.
Sole-source awards require strong justification to ensure fair pricing.
Performance monitoring is critical to ensure service quality and value.
Dependence on a single contractor can create risks if performance falters.

Positive Signals

Awarded under an existing contract, potentially indicating a streamlined process.
Firm-fixed-price contract provides cost certainty for the government.
Supports essential outpatient care services for veterans.

Sector Analysis

The healthcare sector, particularly outpatient care, is a significant area of federal spending. This contract falls under the broader category of healthcare services, which includes a wide range of medical support. The North American Industry Classification System (NAICS) code 621498 covers 'All Other Outpatient Care Centers,' indicating specialized services beyond typical physician offices or hospitals. Federal spending in this area is driven by the need to provide comprehensive healthcare to beneficiaries, such as veterans.

Small Business Impact

This contract does not appear to have a small business set-aside. Information regarding subcontracting opportunities for small businesses is not provided in the data. Without specific set-aside goals or subcontracting plans, the direct impact on the small business ecosystem for this particular award is unclear.

Oversight & Accountability

As a delivery order under an existing contract, oversight would primarily be managed through the terms and conditions of that parent contract. The Department of Veterans Affairs is responsible for monitoring performance and ensuring compliance. Transparency regarding the justification for the sole-source award and ongoing performance metrics would be key accountability measures.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Outpatient Services Contracts
Healthcare Delivery Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs without competition.
Performance risk associated with single contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to STG INTERNATIONAL, INC.. LANCASTER CBOC

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 $3.0 million.

What is the period of performance?

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

What is the track record of STG INTERNATIONAL, INC. with the Department of Veterans Affairs?

To assess STG INTERNATIONAL, INC.'s track record, a review of their past performance on VA contracts would be necessary. This would involve examining contract history, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without access to this specific performance data, it's difficult to gauge their reliability and effectiveness in delivering similar services. A positive history with the VA would suggest a lower risk for this current contract, while a negative history would raise concerns about potential performance issues and the justification for a sole-source award.

How does the per-day cost of this contract compare to similar VA outpatient care contracts?

The per-day cost for this delivery order is approximately $11,033. To benchmark this value, we would need to compare it against the per-day costs of similar outpatient care contracts awarded by the VA or other federal health agencies. This comparison should ideally account for the specific services provided, the geographic location, and the contract type (e.g., firm-fixed-price). If comparable contracts show significantly lower per-day costs for similar services, it would indicate that this award may not be the most cost-effective. Conversely, if the costs are in line with or lower than benchmarks, it suggests fair pricing.

What are the primary risks associated with a sole-source award for outpatient care services?

The primary risks associated with a sole-source award for outpatient care services include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or improve efficiency, and a potential lack of transparency in the procurement process. Taxpayers may not receive the best possible value for their money. Furthermore, if the sole-source contractor experiences performance issues, the government may have limited options for recourse or finding an alternative provider quickly, potentially disrupting essential services for beneficiaries.

What is the expected effectiveness of the services provided under this contract?

The effectiveness of the services provided under this contract hinges on the contractor's ability to deliver high-quality outpatient care as defined by the contract's statement of work and performance standards. Given that this is a delivery order for 'All Other Outpatient Care Centers,' the services are expected to address specific healthcare needs of veterans that may not be met by traditional clinics or hospitals. The effectiveness will be measured by patient outcomes, patient satisfaction, adherence to clinical guidelines, and timely access to care. The VA's oversight and performance monitoring will be crucial in ensuring the intended effectiveness is achieved.

What has been the historical spending pattern for similar outpatient care services by the VA?

Historical spending patterns for similar outpatient care services by the VA are generally substantial, reflecting the ongoing need to provide comprehensive healthcare to a large veteran population. The VA consistently allocates significant portions of its budget to medical care, including outpatient services. Analyzing past spending on NAICS code 621498 or similar categories would reveal trends in contract values, the number of awards, and the types of services procured. This historical data is essential for understanding the scale of federal investment in this area and for setting realistic budget expectations and benchmarks for current contracts.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 888, ARLINGTON, VA, 22206

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $3,001,020

Exercised Options: $3,001,020

Current Obligation: $3,001,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26225D0042

IDV Type: IDC

Timeline