VA awards $28.5M contract to Medical Evaluation Specialists, LLC for physician services

Contract Overview

Contract Amount: $28,499,412 ($28.5M)

Contractor: Medical Evaluation Specialists, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-11-02

End Date: 2013-05-22

Contract Duration: 932 days

Daily Burn Rate: $30.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MDES

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.5 million to MEDICAL EVALUATION SPECIALISTS, LLC for work described as: MDES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 932 days suggests a significant, ongoing need for services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The contract was awarded to a single entity, raising questions about market reach. 5. The North American Industry Classification System (NAICS) code 621111 points to general physician services. 6. The contract's value is substantial, indicating a significant investment in healthcare support.

Value Assessment

Rating: fair

The contract value of $28.5 million over approximately 2.5 years for physician services appears to be within a reasonable range for a sole-source award of this nature. However, without direct comparisons to similar sole-source contracts for physician services within the VA or other agencies, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost predictability for the government. Benchmarking against market rates for similar physician services would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed on the open market. This approach is typically used when only one responsible source is available or capable of meeting the government's needs. The lack of competition means that the government did not benefit from the potential for lower prices or innovative solutions that a competitive bidding process might have yielded. The justification for sole-source procurement should be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as they bypass the competitive pressure that drives down prices. This limits the government's ability to secure the best possible value.

Public Impact

Veterans will benefit from the physician services provided under this contract. The contract supports the delivery of essential medical evaluation services. The geographic impact is likely focused on the regions served by the Department of Veterans Affairs facilities where these services are rendered. The contract supports healthcare professionals, potentially including physicians and administrative staff, within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value.
Lack of competition may reduce opportunities for innovative solutions.
Fixed-price contract could lead to contractor profit if costs are lower than anticipated.

Positive Signals

Contract provides essential physician services to support veterans' healthcare.
Fixed-price contract offers budget certainty for the government.
Contract duration suggests a stable, ongoing need being met.

Sector Analysis

The healthcare sector, specifically physician services, is a critical component of the federal budget, particularly for agencies like the Department of Veterans Affairs. This contract falls under the broader category of healthcare services, which is a large and complex market. Benchmarking this contract's value would ideally involve comparing it to other VA contracts for similar physician services or to private sector benchmarks for medical evaluation services, though direct comparisons can be difficult due to varying service scopes and contract structures.

Small Business Impact

This contract was awarded to Medical Evaluation Specialists, LLC, and there is no indication of a small business set-aside. The contract details do not specify any subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, though the justification for sole-source awards can sometimes limit public understanding of the procurement process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Services Contracts
Physician Services Contracts
Healthcare Services Procurement

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for contractor profit maximization under fixed-price terms.
Limited transparency inherent in sole-source justifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.5 million to MEDICAL EVALUATION SPECIALISTS, LLC. MDES

Who is the contractor on this award?

The obligated recipient is MEDICAL EVALUATION SPECIALISTS, LLC.

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 $28.5 million.

What is the period of performance?

Start: 2010-11-02. End: 2013-05-22.

What is the track record of Medical Evaluation Specialists, LLC with federal contracts?

Based on the provided data, Medical Evaluation Specialists, LLC was awarded this specific contract by the Department of Veterans Affairs. Further investigation into federal procurement databases would be necessary to determine the full extent of their federal contracting history, including other agencies they may have served, the types of services provided, and their performance history on those contracts. Understanding their past performance, including any awards, past performance evaluations, or disputes, is crucial for assessing their reliability and capability in fulfilling this current contract.

How does the value of this contract compare to similar physician services contracts awarded by the VA?

The contract value of $28.5 million for physician services over approximately 932 days (about 2.5 years) is a significant award. To benchmark this value effectively, one would need to compare it against other VA contracts for similar medical evaluation or physician services, considering factors like the specific specialties, volume of services, and contract duration. Without access to a broader dataset of comparable VA contracts, it's difficult to definitively state whether this represents a high, low, or average value. The sole-source nature of this award also complicates direct comparisons with competitively procured contracts.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include potential overpayment due to the lack of competitive pricing, limited incentive for the contractor to innovate or improve efficiency beyond contractual requirements, and a potential lack of transparency in the procurement process. There's also a risk that the government may not be receiving the best possible value compared to what could have been achieved through a competitive bidding process. Ensuring robust performance monitoring and clear deliverables is critical to mitigate these risks.

How effective is the fixed-price contract type in managing costs for this type of service?

The Firm Fixed Price (FFP) contract type is generally preferred by the government as it shifts the risk of cost overruns to the contractor, providing budget certainty. For services like physician evaluations, where the scope of work can be relatively well-defined, FFP can be effective. However, if the scope is highly variable or unforeseen complexities arise, the contractor might seek change orders, potentially increasing costs. The effectiveness also depends on the accuracy of the initial price negotiation and the contractor's ability to manage their internal costs efficiently.

What is the historical spending pattern for physician services by the Department of Veterans Affairs?

The Department of Veterans Affairs is a major purchaser of healthcare services, including physician services, to support its mission of caring for veterans. Historical spending patterns indicate a consistent and substantial investment in these services, reflecting the large veteran population and the comprehensive healthcare needs they present. Spending in this category can fluctuate based on policy changes, healthcare demand, and the agency's budget allocations. Analyzing historical data would reveal trends in contract values, types of services procured, and the distribution of spending across different healthcare providers and specialties.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Examworks Group Inc. (UEI: 964999978)

Address: 5700 E 11 MILE RD, WARREN, MI, 10

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

Financial Breakdown

Contract Ceiling: $28,499,412

Exercised Options: $28,499,412

Current Obligation: $28,499,412

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79811D0008

IDV Type: IDC

Timeline