Contract - Helpful or Harmful

FOR IMMEDIATE RELEASE
January 30, 2008

VA Awards Contract for Disability Benefits Studies
Virginia Company Awarded Contract

WASHINGTON – The Department of Veterans Affairs (VA) has awarded a $3.2 million contract to Economic Systems Inc. of Falls Church, Va., to develop information relating to possible changes in the composition of disability payments to disabled veterans.

“This contract is further evidence of VA’s commitment to review the full range of benefits and programs to ensure today’s disabled veterans receive the help they have earned,” said Secretary of Veterans Affairs Dr. James B. Peake.

The contact is based upon recommendations of the Dole-Shalala Commission, which issued its final report in July 2007, and the October 2007 final report of the Veterans Disability Benefits Commission.

The contractor will provide its findings in August. Economic Systems Inc. will address three basic research questions in two studies. One study will examine the nature and feasibility of making “long-term transition payments” to service members separated from the military due to disability while those veterans undergo rehabilitation.

A second study will provide information on the appropriate levels of compensation necessary to compensate for any loss in earnings capacity caused by service-incurred or service-aggravated conditions. It will also provide information on potential “quality of life” payments called for by both studies.