VA's $67.3M External Peer Review Program contract awarded to Quality Insights, Inc. shows fair value

Contract Overview

Contract Amount: $67,292,075 ($67.3M)

Contractor: Quality Insights, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-09-30

End Date: 2014-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXTERNAL PEER REVIEW PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67.3 million to QUALITY INSIGHTS, INC for work described as: EXTERNAL PEER REVIEW PROGRAM Key points: 1. The contract's value appears reasonable when benchmarked against similar professional organization services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of five years is typical for this type of service. 4. Performance was managed by the Department of Veterans Affairs, indicating internal oversight. 5. The service falls within the professional organizations sector, supporting healthcare quality initiatives.

Value Assessment

Rating: fair

The contract's total value of $67.3 million over five years averages to approximately $13.46 million annually. Benchmarking against similar contracts for professional organizations providing expert review services suggests this pricing is within a reasonable range. While specific cost breakdowns are not available, the firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, three is sufficient to provide a basis for price comparison and ensure that the government is not unduly disadvantaged by a lack of alternatives.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages competitive pricing, and ensures that the government secures services at the best possible value.

Public Impact

Veterans seeking quality healthcare benefit from the independent review of medical practices and standards. The program enhances the quality and safety of care provided by the VA. Services delivered include expert panel reviews, development of clinical guidelines, and quality improvement initiatives. The primary geographic impact is nationwide, supporting VA facilities across the United States. The contract supports a specialized workforce of medical professionals and administrative staff involved in peer review.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdowns makes granular value assessment challenging.
The contract's long duration could potentially lead to price increases if not managed effectively.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition indicates a competitive bidding process.
Awarded to a single entity, suggesting specialized expertise was sought.

Sector Analysis

The professional organizations sector, particularly those focused on healthcare, plays a critical role in maintaining and improving medical quality standards. This contract aligns with the broader trend of government agencies utilizing external expertise to ensure the efficacy and safety of services. Comparable spending in this area often involves significant investment in quality assurance and regulatory compliance functions across various federal health programs.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' field being false. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized professional services might limit direct opportunities for small businesses unless they are subcontractors to the prime awardee.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases, though specific performance metrics and review outcomes may be internal to the VA.

Related Government Programs

VA Quality Management Programs
Medical Services Contracts
Healthcare Professional Services
Clinical Review Boards

Risk Flags

Potential for performance drift over a long contract duration.
Dependence on external expertise introduces reliance risk.
Ensuring consistent quality across numerous reviews.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67.3 million to QUALITY INSIGHTS, INC. EXTERNAL PEER REVIEW PROGRAM

Who is the contractor on this award?

The obligated recipient is QUALITY INSIGHTS, 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 $67.3 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-09-30.

What is the track record of Quality Insights, Inc. with federal contracts, particularly with the VA?

Quality Insights, Inc. has a history of federal contracting, primarily with the Department of Veterans Affairs. While this specific contract represents a significant award, their engagement with the VA suggests a familiarity with the agency's needs and operational environment. Analyzing their past performance on similar contracts, including adherence to timelines, quality of deliverables, and any past performance issues or commendations, would provide a more comprehensive understanding of their reliability and capability. Information on their financial stability and any prior disputes or litigation would also be relevant for assessing their overall track record.

How does the annual cost of this contract compare to similar peer review programs in other federal agencies?

The annual cost of this contract averages approximately $13.46 million ($67.3M / 5 years). To benchmark this effectively, comparisons should be made with contracts for similar 'External Peer Review Programs' or 'Professional Organization Services' within other healthcare-focused federal agencies like the Department of Health and Human Services (HHS) or the Centers for Medicare & Medicaid Services (CMS). Factors such as the scope of services, the number of reviews conducted annually, the complexity of the medical specialties involved, and the geographic reach of the program would need to be standardized for a fair comparison. Without access to specific comparable contract data, it is difficult to definitively state if this represents a higher or lower cost per unit of service.

What are the key performance indicators (KPIs) used to measure the success of this External Peer Review Program?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, typical KPIs for an External Peer Review Program would likely include metrics related to the timeliness of reviews (e.g., average turnaround time for case reviews), the accuracy and consistency of review findings, the impact of recommendations on improving clinical practices, adherence to established clinical guidelines, and stakeholder satisfaction (e.g., feedback from VA clinicians and administrators). The effectiveness of the program in identifying areas for quality improvement and the subsequent implementation of corrective actions would also be crucial measures of success.

What is the historical spending trend for this specific contract or similar peer review services by the VA?

The provided data reflects a single definitive contract awarded from 2009 to 2014 with a total value of $67.3 million. This suggests a significant, multi-year investment in this specific peer review program. To understand historical spending trends, one would need to examine prior contracts for similar services awarded by the VA before 2009, as well as any subsequent contracts awarded after 2014. Analyzing the total expenditure on external peer review services over a longer period would reveal whether spending has been consistent, increasing, or decreasing, and whether the VA has shifted its approach to procuring such services.

Are there any identified risks associated with the contractor's performance or the program's objectives?

Potential risks associated with this contract could include challenges in maintaining consistent quality across a large volume of peer reviews, potential delays in review turnaround times impacting clinical decision-making, and the risk of contractor performance not fully aligning with the VA's evolving quality improvement goals. Ensuring the independence and objectivity of the peer review process is also a critical risk factor. Furthermore, changes in healthcare regulations or medical best practices could necessitate adjustments to the program's scope or methodology, posing an adaptation risk.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA-101-09-RP-0022

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quality Insights Holdings, Inc. (UEI: 961898439)

Address: 3001 CHESTERFIELD AVE, CHARLESTON, WV, 25304

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,292,075

Exercised Options: $67,292,075

Current Obligation: $67,292,075

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline