VA awards $67.6M contract for advanced medical cost management and financial services to Liberty IT Solutions

Contract Overview

Contract Amount: $67,620,481 ($67.6M)

Contractor: Liberty IT Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-26

End Date: 2024-12-24

Contract Duration: 1,916 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADVANCED MEDICAL COST MANAGEMENT SOLUTION (AMCMS)&HEALTHCARE FINANCIAL MANAGEMENT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67.6 million to LIBERTY IT SOLUTIONS LLC for work described as: ADVANCED MEDICAL COST MANAGEMENT SOLUTION (AMCMS)&HEALTHCARE FINANCIAL MANAGEMENT SERVICES Key points: 1. Contract provides critical financial management and cost control solutions for healthcare. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract duration of 1916 days indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. This award falls within the broad category of IT and computer systems design services. 6. The value of the contract is substantial, reflecting the complexity of healthcare finance.

Value Assessment

Rating: good

The contract value of $67.6 million over approximately five years appears reasonable for comprehensive healthcare financial management services. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this falls within expected ranges. The firm-fixed-price structure incentivizes contractor efficiency. Without specific per-unit cost data, a definitive value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of multiple bidders, though not explicitly detailed, is implied by the competition type. This broad competition is a positive sign for price discovery and achieving fair market value.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved efficiency driven by a competitive bidding process. Full and open competition increases the likelihood that the government is receiving services at a reasonable price.

Public Impact

Veterans will benefit from improved efficiency and cost management within the VA's healthcare system. The contract supports the delivery of essential healthcare financial management services. Services are likely to have a nationwide impact, supporting VA facilities across the country. The contract supports IT and professional services jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical financial systems could pose a risk if performance falters.
Ensuring data security and privacy for sensitive healthcare financial information is paramount.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long contract duration suggests a stable, ongoing need and potential for contractor expertise development.
Full and open competition indicates a robust market response and potential for competitive pricing.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal government is a significant consumer of such services, particularly within large agencies like the Department of Veterans Affairs, which manage vast amounts of data and complex financial operations. Comparable spending benchmarks for large IT service contracts within healthcare or financial management sectors would typically range in the tens to hundreds of millions of dollars over several years, depending on scope and complexity.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting goals explicitly stated in the provided data. The prime contractor, Liberty IT Solutions LLC, is likely a mid-to-large-sized business. The absence of set-aside provisions means opportunities for small businesses would primarily be through subcontracting, the extent of which is not detailed here. This could limit direct opportunities for small businesses to participate in this specific contract.

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, delivery tracking, and invoice review are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Financial Management Systems
Healthcare IT Services
Medical Cost Management Solutions
Federal Financial Systems Modernization
IT Professional Services

Risk Flags

Contract Duration
Vendor Lock-in Potential
Data Security Requirements
System Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67.6 million to LIBERTY IT SOLUTIONS LLC. ADVANCED MEDICAL COST MANAGEMENT SOLUTION (AMCMS)&HEALTHCARE FINANCIAL MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is LIBERTY IT SOLUTIONS 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 $67.6 million.

What is the period of performance?

Start: 2019-09-26. End: 2024-12-24.

What is the track record of Liberty IT Solutions LLC with the Department of Veterans Affairs and other federal agencies?

Liberty IT Solutions LLC has a history of performing contracts with the federal government, including the Department of Veterans Affairs. Their past performance data, often available through federal procurement databases like SAM.gov, would detail the types of services rendered, contract values, and performance ratings. Analyzing these records can provide insight into their reliability, technical capabilities, and ability to manage complex projects. Specific details on past VA contracts would be crucial for assessing their suitability for this current award, looking for successful delivery of similar IT and financial management solutions.

How does the awarded price compare to similar IT services contracts for healthcare financial management within the federal government?

Benchmarking this $67.6 million contract against similar full and open competition awards for IT services in healthcare financial management requires access to detailed contract data. Factors such as contract duration (1916 days), specific service requirements (AMCMS & HFMS), and the level of complexity significantly influence pricing. Generally, large-scale, multi-year IT service contracts for federal agencies can range from tens to hundreds of millions of dollars. The firm-fixed-price nature suggests the contractor bears cost overrun risk, which is often factored into the initial price. A comparative analysis would look at the average cost per day or per service unit for comparable contracts to assess if this award represents good value.

What are the primary risks associated with this contract for the VA?

Key risks for the VA include potential contractor underperformance, where Liberty IT Solutions LLC might fail to deliver the Advanced Medical Cost Management Solution (AMCMS) and Healthcare Financial Management Services (HFMS) to the required standards or within the specified timelines. Another risk is vendor lock-in, especially if the system becomes highly integrated and difficult to transition away from. Data security and privacy breaches related to sensitive financial and health information are critical risks that require robust mitigation strategies. Furthermore, cost overruns, despite the firm-fixed-price structure, could still occur if contract modifications are frequent or if unforeseen technical challenges arise, impacting the overall value.

How effective is the Advanced Medical Cost Management Solution (AMCMS) and Healthcare Financial Management Services (HFMS) likely to be in improving VA's financial operations?

The effectiveness of the AMCMS and HFMS hinges on the successful implementation and utilization of the solutions provided by Liberty IT Solutions LLC. These systems are designed to streamline financial processes, enhance cost tracking, improve billing accuracy, and provide better data for decision-making within the VA's vast healthcare network. If implemented effectively, they can lead to significant cost savings, reduced administrative burden, and improved financial transparency. The long contract duration suggests a commitment to realizing these benefits over time. However, actual effectiveness will depend on user adoption, system integration, and the contractor's ongoing support and innovation.

What has been the historical spending trend for similar IT and financial management services by the Department of Veterans Affairs?

The Department of Veterans Affairs, as one of the largest federal healthcare providers, consistently invests heavily in IT and financial management systems. Historical spending data would likely show a significant and potentially increasing trend in these areas, driven by the need to modernize aging infrastructure, improve patient care through technology, and manage complex financial operations efficiently. Spending on computer systems design services (NAICS 541512) and related IT support has been a substantial portion of the VA's budget. Analyzing past years' spending on similar contracts would reveal patterns of investment, identify key service areas, and provide context for the current $67.6 million award.

What is the potential impact of this contract on competition within the federal IT services market?

Awarding a $67.6 million contract under full and open competition to Liberty IT Solutions LLC signifies a significant opportunity for the prime contractor. For the broader federal IT services market, this award indicates continued demand for specialized healthcare financial management solutions. It reinforces the importance of capabilities in areas like cost management, financial systems integration, and data analytics. While this specific award goes to one company, the competitive process itself encourages other firms to maintain high standards and develop relevant expertise to compete for future, similar opportunities within the VA and other agencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 2303 DULLES STA BLVD STE 210, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $73,593,501

Exercised Options: $67,620,481

Current Obligation: $67,620,481

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $102,110,004

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1015

IDV Type: IDC

Timeline