VA extends medical disability exam contracts worth $13B
Gettyimages.com/Robert Alexander / Contributor
By
Nick Wakeman
Four incumbents keep their spots on the vehicle that exceeded its $6.8 billion ceiling as PACT Act claims drives a surge in veteran claims.
The Veterans Affairs Department has essentially extended the contracts of four companies providing medical disability exams for veterans.
VA first awarded the work in 2018, but the passage of the Promise to Address Comprehensive Toxics Act in 2022 led to a surge in applications. The MDE contract reached its ceiling several years early.
The new contract runs for another two years and stays with incumbents Maximus, Leidos, UnitedHealthcare and Loyal Source Healthcare.
The contract covers over 9 million exams and has a ceiling of $13.2 billion, according to a VA spokesman.
The original contract had a ceiling of $6.8 billion. But according to GovTribe data, $12 billion has been obligated through the vehicle.
Leidos has captured the largest share of the task order spend at $5.1 billion, through its QTC Medical Services subsidiary.
Maximus’ business Veterans Evaluation Services has taken $3.7 billion. United Healthcare and its Optumserve Health Services has been obligated $3.4 billion.
Vetfed Resources won a spot on the contract in 2018, but doesn’t appear to have captured anything beyond $25 million.
Vetfed appears to have stopped doing business with the federal government after 2019, the last year USASpending lists any revenue for the company. Its website is also no longer active.
Loyal Source won its place on the contract in August 2022. According to USASpending, the company has captured more than $500 million in VA work over the past 12 months.