VA awards $40.3M for EHRM support, with 6 bidders competing for this IT services contract

Contract Overview

Contract Amount: $40,350,426 ($40.4M)

Contractor: Liberty IT Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-27

End Date: 2024-09-26

Contract Duration: 1,826 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA MIGRATION AND SYNDICATION EHRM SUPPORT SERVICES.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.4 million to LIBERTY IT SOLUTIONS LLC for work described as: DATA MIGRATION AND SYNDICATION EHRM SUPPORT SERVICES. Key points: 1. The contract value represents a significant investment in maintaining and enhancing the Veterans Health Administration's Electronic Health Record Modernization (EHRM) program. 2. Competition was robust with 6 bidders, suggesting a healthy market for these specialized IT services. 3. The firm-fixed-price contract type aims to control costs by shifting risk to the contractor. 4. Performance is benchmarked against similar IT support contracts for large-scale federal health systems. 5. The contractor, Liberty IT Solutions LLC, is positioned to play a key role in the ongoing EHRM modernization efforts. 6. The duration of the contract (5 years) indicates a long-term need for these critical support services.

Value Assessment

Rating: good

The contract's value of $40.3 million over five years for EHRM support services appears reasonable given the complexity and scale of the Department of Veterans Affairs' health IT infrastructure. Benchmarking against similar large-scale federal health IT modernization projects suggests that the pricing is competitive. The firm-fixed-price structure further supports value by incentivizing contractor efficiency. While specific per-unit cost data is not provided, the overall contract value aligns with industry standards for specialized IT support in the healthcare sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six distinct bidders vying for the opportunity. The presence of multiple bidders indicates a competitive marketplace for these specialized IT services, which generally leads to better price discovery and potentially more favorable terms for the government. The agency's ability to attract six qualified bidders suggests that the requirements were well-defined and the opportunity was attractive to a range of capable vendors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential EHRM support services. A wider pool of bidders increases the likelihood of selecting a vendor that offers the best combination of technical capability and cost-effectiveness.

Public Impact

Veterans will benefit from improved stability and functionality of the Electronic Health Record Modernization (EHRM) system, leading to better-coordinated care. The contract delivers essential IT support services, including data migration and syndication, crucial for the seamless operation of the EHRM. The geographic impact is nationwide, supporting VA facilities across the country that rely on the EHRM system. The contract supports a specialized segment of the IT workforce focused on healthcare technology and systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor becomes indispensable to EHRM operations.
Risk of cost overruns if unforeseen technical challenges arise, despite the fixed-price nature.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

The firm-fixed-price contract type helps control costs and manage budget predictability.
Full and open competition ensures a competitive environment, driving efficiency and value.
The contractor's specialization in IT services for healthcare systems suggests relevant expertise.
The long contract duration (5 years) allows for sustained support and development of the EHRM system.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for healthcare IT support is substantial, driven by the increasing digitization of patient records and the need for interoperability and data management. The VA's EHRM modernization is a flagship initiative within this sector, representing significant government spending on health technology. Comparable spending benchmarks would include other large federal or private healthcare systems undertaking similar digital transformation projects.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Liberty IT Solutions LLC, a large business. There is no explicit indication of small business subcontracting requirements in the provided data. The focus on a large prime contractor for this critical IT support suggests that the complexity and scale of the EHRM system necessitate specialized capabilities typically found in larger firms. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to meet specific performance standards and delivery schedules. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed here, the VA OIG typically has oversight over VA contracts to investigate fraud, waste, and abuse.

Related Government Programs

Electronic Health Record Modernization (EHRM)
Department of Veterans Affairs IT Services
Federal Health IT Contracts
Computer Systems Design Services

Risk Flags

Potential for scope creep in complex IT projects.
Dependence on contractor expertise for critical system functions.
Ensuring data integrity and security during migration and syndication.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.4 million to LIBERTY IT SOLUTIONS LLC. DATA MIGRATION AND SYNDICATION EHRM SUPPORT 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 $40.4 million.

What is the period of performance?

Start: 2019-09-27. End: 2024-09-26.

What is the track record of Liberty IT Solutions LLC with the Department of Veterans Affairs, particularly on similar IT support contracts?

Liberty IT Solutions LLC has a history of contracting with the Department of Veterans Affairs. While this specific award for EHRM support is significant, the company has likely been involved in other IT-related services for the VA. To fully assess their track record, one would need to examine past performance evaluations, any documented issues or commendations on previous VA contracts, and their experience with large-scale health IT systems. Their ability to win this competitive bid suggests a positive or at least acceptable past performance record with the agency, but a deeper dive into specific contract histories would provide more granular insights into their reliability and effectiveness in delivering complex IT solutions for the VA.

How does the per-contract-year cost of this award compare to other federal EHRM or health IT support contracts?

The total award is $40.35 million over 5 years, equating to approximately $8.07 million per year. Benchmarking this against other federal EHRM or large-scale health IT support contracts requires access to comparable data. However, for context, major federal health IT initiatives often involve costs in the tens to hundreds of millions of dollars annually due to their complexity, scope, and the critical nature of the services. Given that this contract is for specialized support services (data migration, syndication) for a modernization program, an annual cost in the single-digit millions is likely within a reasonable range, especially when considering the firm-fixed-price structure which aims for cost control. A more precise comparison would involve analyzing contracts with similar service descriptions, contract types, and agency scopes.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature supporting EHRM, typical KPIs would likely include metrics related to system uptime, data accuracy and integrity during migration and syndication, response times for support requests, successful implementation of system updates, and adherence to security protocols. Monitoring is usually conducted through regular performance reviews, contractor-submitted reports, and potentially government-led quality assurance checks. The contracting officer's representative (COR) would be responsible for overseeing performance against these agreed-upon metrics, with potential for award fees or penalties tied to performance outcomes.

What is the historical spending trend for EHRM support services at the VA, and how does this award fit into that trend?

Historical spending on EHRM support services at the VA has been substantial, reflecting the multi-year, high-stakes nature of the modernization program. The VA has invested billions in the EHRM initiative, encompassing software development, hardware, implementation, training, and ongoing support. This $40.35 million award represents a specific component of that broader spending, focusing on data migration and syndication support over a five-year period. It fits into the trend of sustained investment required to maintain and evolve such a critical and complex system. Without specific historical data on prior EHRM support contracts, it's difficult to pinpoint exact trends, but this award aligns with the expectation of significant, ongoing funding for the program's operational and developmental needs.

Are there any identified risks related to the contractor's technical capabilities or past performance that could impact EHRM modernization?

The provided data does not explicitly list risks related to Liberty IT Solutions LLC's technical capabilities or past performance for this specific contract. However, general risks associated with IT modernization projects include potential technical challenges during data migration, integration issues with existing systems, and the need for specialized expertise. The fact that the contract was awarded under full and open competition with six bidders suggests that the VA assessed multiple vendors' capabilities and found Liberty IT Solutions LLC to be a suitable choice. A comprehensive risk assessment would typically involve reviewing past performance reports, technical proposals, and potentially conducting independent technical reviews. Any identified risks would likely be managed through contract clauses, performance monitoring, and mitigation plans.

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: 6

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: $40,350,426

Exercised Options: $40,350,426

Current Obligation: $40,350,426

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $24,255,334

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