STG International Keeps VA’s $127 Million Outpatient Contract

Valor Healthcare Inc. didn’t demonstrate that the U.S. Department of Veterans Affairs erred by awarding STG International Inc. a nearly $127 million contract to support five community-based outpatient clinics in California, the GAO said in a decision released Tuesday.

Valor, which submitted a nearly $160 million bid despite an independent government cost estimate of $131 million, didn’t show that the VA improperly concluded that its price was unreasonable, the Government Accountability Office said.

Valor also argued that STG couldn’t perform at its proposed price because it was too low, but that isn’t a valid basis for protest in the context ...