VA awards $2.9M contract for outpatient care in North Dakota to Valor Healthcare Inc

Contract Overview

Contract Amount: $2,930,040 ($2.9M)

Contractor: Valor Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2027-01-31

Contract Duration: 364 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WILLISTON AND DICKINSON CBOC

Place of Performance

Location: WILLISTON, WILLIAMS County, NORTH DAKOTA, 58801

State: North Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to VALOR HEALTHCARE INC for work described as: WILLISTON AND DICKINSON CBOC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is one year, with a potential for renewal. 3. The service falls under 'All Other Outpatient Care Centers', indicating a broad scope of services. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, which allows for flexibility. 5. The firm fixed-price contract type aims to provide cost certainty for the government. 6. The awardee, Valor Healthcare Inc., is a known provider in the healthcare sector.

Value Assessment

Rating: good

The contract value of $2.9 million for a one-year period for outpatient care services appears reasonable given the scope. Benchmarking against similar contracts for community-based outpatient clinics (CBOCs) managed by the VA would provide a more precise assessment of value for money. However, the firm fixed-price structure helps control costs. The specific services delivered will be key to determining the overall value.

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 a bid. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The VA's use of this procurement method suggests they sought the best value from a range of potential providers.

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

Public Impact

Veterans in the Williston and Dickinson areas of North Dakota will benefit from accessible outpatient care services. The contract ensures the continued provision of essential healthcare services, potentially including primary care, mental health, and specialty consultations. The geographic impact is focused on rural North Dakota, addressing healthcare access challenges in these regions. The contract supports the healthcare workforce by creating or maintaining jobs for medical professionals and support staff at the awarded facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if the awarded contractor faces operational challenges.
Ensuring consistent quality of care across all services provided under the contract.
Monitoring contractor performance to ensure adherence to VA standards and patient satisfaction.

Positive Signals

Award through full and open competition suggests a robust selection process.
Firm fixed-price contract provides cost predictability.
Contract duration of one year with potential for renewal allows for stable service provision.

Sector Analysis

The healthcare sector, particularly government contracting for medical services, is a significant market. The Department of Veterans Affairs is a major purchaser of healthcare, often utilizing community-based clinics to supplement its own facilities. This contract fits within the broader strategy of leveraging private sector providers to extend healthcare access to veterans, especially in underserved areas. Comparable spending benchmarks would involve analyzing the cost per veteran served or cost per procedure across similar VA CBOC contracts.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation. If Valor Healthcare Inc. is a large business, the absence of specific small business provisions could limit opportunities for smaller entities in this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Performance will be monitored against the terms and conditions of the delivery order, including service level agreements and quality standards. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for service disruption if contractor performance falters.
Ensuring consistent quality of care across all services.
Monitoring contractor adherence to VA standards and patient satisfaction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to VALOR HEALTHCARE INC. WILLISTON AND DICKINSON CBOC

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 $2.9 million.

What is the period of performance?

Start: 2026-02-01. End: 2027-01-31.

What is the track record of Valor Healthcare Inc. with the Department of Veterans Affairs?

Valor Healthcare Inc. has a history of contracting with the Department of Veterans Affairs to provide community-based outpatient services. They operate several clinics across the country, often in partnership with the VA to serve veterans in areas where VA facilities may be distant or capacity is limited. Their performance history with the VA would typically be assessed through past performance evaluations during the bidding process. This includes reviewing their ability to meet performance standards, manage costs, and provide quality care in previous contracts. A detailed review of their contract history, including any awards, penalties, or disputes, would offer a comprehensive understanding of their reliability and effectiveness as a VA contractor.

How does the awarded amount compare to similar VA outpatient care contracts?

The awarded amount of $2.9 million for a one-year contract for outpatient care services in North Dakota needs to be benchmarked against similar contracts to assess value. Factors such as the number of veterans served, the scope of services offered (e.g., primary care, mental health, specialty services), and the geographic location significantly influence contract costs. Contracts for VA Community-Based Outpatient Clinics (CBOCs) can vary widely. For instance, a contract serving a larger veteran population or offering a broader range of specialized services would naturally command a higher price. Without specific details on the expected patient volume and service mix for this particular contract, a precise comparison is difficult. However, the firm fixed-price nature suggests a defined scope and budget, which aids in cost control.

What are the primary risks associated with this contract?

Key risks associated with this contract include potential variations in veteran patient demand that may exceed or fall short of projections, impacting resource allocation and potentially service efficiency. There's also a risk related to the quality and consistency of care delivered by Valor Healthcare Inc., necessitating robust monitoring by the VA to ensure adherence to clinical standards and patient satisfaction. Contractor performance issues, such as staffing shortages or administrative inefficiencies, could lead to disruptions in service delivery. Furthermore, unforeseen changes in healthcare regulations or reimbursement policies could affect the contractor's operational costs and the overall value proposition of the contract. Finally, ensuring seamless integration with the broader VA healthcare system for referrals and record-keeping is crucial to avoid fragmented care.

How effective is the VA in leveraging community-based clinics like this one?

The VA's strategy of utilizing community-based clinics, such as the one awarded to Valor Healthcare Inc., is generally considered effective in expanding healthcare access for veterans, particularly those in rural or remote areas. These clinics help alleviate pressure on overburdened VA medical centers and offer veterans more convenient options for routine care. The effectiveness hinges on several factors: the VA's ability to select capable providers through competitive processes, establish clear performance expectations, and actively monitor contract performance. When managed well, this model can improve veteran satisfaction, reduce wait times, and provide specialized services closer to home. However, challenges can arise in ensuring consistent quality of care, seamless data sharing between community providers and VA facilities, and managing costs effectively across a diverse network of contractors.

What are the historical spending patterns for similar outpatient care services by the VA?

The Department of Veterans Affairs has consistently allocated significant funding towards outpatient care services, both through its internal facilities and external community providers. Spending on community care, including services like those covered by this contract, has seen a notable increase in recent years, driven by legislative mandates aimed at improving veteran access and choice. Historical data shows a trend of the VA expanding its use of the Veterans Community Care Program (VCCP) and related initiatives to supplement its direct care capabilities. This includes contracts for primary care, specialty care, mental health services, and ancillary services delivered in community settings. Analyzing aggregate spending data for 'Outpatient Care Centers' or specific NAICS codes related to medical services procured by the VA would reveal trends in contract values, award volumes, and the distribution of funds across different types of providers and geographic regions.

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, 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: $2,930,040

Exercised Options: $2,930,040

Current Obligation: $2,930,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26324D0009

IDV Type: IDC

Timeline