VA awards $109.5M contract for integrated veteran care scheduling to V3GATE, LLC

Contract Overview

Contract Amount: $109,499,612 ($109.5M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-22

End Date: 2026-09-21

Contract Duration: 1,095 days

Daily Burn Rate: $100.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED VETERAN CARE EXTERNAL PROVIDER SCHEDULING

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $109.5 million to V3GATE, LLC for work described as: INTEGRATED VETERAN CARE EXTERNAL PROVIDER SCHEDULING Key points: 1. Contract value of $109.5 million over three years indicates significant investment in veteran healthcare IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a robust market for these services. 3. The fixed-price contract type aims to control costs and provide predictable spending for the VA. 4. The North American Industry Classification System (NAICS) code 541519 points to a focus on specialized IT services. 5. The contract's duration of 1095 days aligns with typical IT service delivery cycles. 6. The award to V3GATE, LLC, suggests a competitive landscape where established providers can secure large federal contracts.

Value Assessment

Rating: good

The contract value of $109.5 million for three years, averaging approximately $36.5 million annually, appears reasonable for a comprehensive IT scheduling system supporting integrated veteran care. Benchmarking against similar large-scale IT service contracts for healthcare providers, this figure falls within expected ranges. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs, mitigating the risk of cost overruns often associated with IT projects. Further analysis would require comparing specific service deliverables and performance metrics against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple qualified vendors were allowed to bid. The fact that there were two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process would provide a clearer picture of the competition's intensity. A competitive process generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely drove down costs and ensured the VA received a strong value proposition for its investment in veteran care scheduling technology.

Public Impact

Veterans will benefit from improved scheduling efficiency and access to integrated care services. The contract supports the delivery of critical IT infrastructure for the Department of Veterans Affairs' healthcare system. The geographic impact is nationwide, as the VA serves veterans across the United States. This contract may have implications for IT professionals and support staff within the contractor's organization and potentially within the VA's IT department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary and difficult to integrate with other VA systems.
Dependence on a single vendor for a critical IT function could pose risks if the vendor experiences financial instability or operational issues.
Ensuring data security and privacy for sensitive veteran health information will be paramount.

Positive Signals

The use of full and open competition suggests a healthy market and potential for innovation.
The firm fixed-price contract type provides cost predictability for the government.
The contract duration allows for stable service delivery and system development.

Sector Analysis

The IT services sector, particularly within healthcare, is a significant area of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a broad range of IT support and development. The market for such services is large and competitive, with numerous companies vying for government contracts. The VA's investment in scheduling systems is crucial for modernizing its healthcare operations and improving patient experience, aligning with broader trends in digital transformation within the public sector.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, the direct impact on small businesses is likely limited unless V3GATE, LLC, plans to subcontract a portion of the work to small businesses. The agency's subcontracting plans, if any, will be crucial in determining the extent to which small businesses participate in fulfilling this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through federal procurement databases like FPDS.gov, where contract awards are publicly reported. The VA's Office of Inspector General may also conduct audits or investigations related to the contract's performance and financial integrity.

Related Government Programs

Veterans Health Administration IT Modernization
Electronic Health Record Systems
Healthcare Information Systems
Federal IT Services Procurement

Risk Flags

Potential for performance issues impacting critical veteran services.
Data security and privacy risks associated with sensitive health information.
Dependence on a single vendor for essential IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $109.5 million to V3GATE, LLC. INTEGRATED VETERAN CARE EXTERNAL PROVIDER SCHEDULING

Who is the contractor on this award?

The obligated recipient is V3GATE, 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 $109.5 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-09-21.

What is V3GATE, LLC's track record with the Department of Veterans Affairs and other federal agencies?

V3GATE, LLC has a history of receiving federal contracts, primarily with the Department of Veterans Affairs. While specific details on past performance metrics for this particular type of service require deeper analysis of contract performance reports, their ability to secure a contract of this magnitude suggests a demonstrated capacity to meet federal requirements. Examining past contract awards, any reported performance issues, and client feedback would provide a more comprehensive understanding of their track record. It is important to note that contract awards do not always equate to flawless performance, and a review of past performance evaluations is recommended for a complete picture.

How does the $109.5 million contract value compare to similar IT scheduling systems for large healthcare providers?

The $109.5 million contract value over three years, averaging approximately $36.5 million annually, appears to be within the expected range for a large-scale IT system supporting integrated care scheduling for a federal agency like the VA. Benchmarking requires comparing the scope of services, number of users, complexity of integration, and specific functionalities against similar contracts awarded to other large healthcare organizations or federal agencies. Without detailed service level agreements and technical specifications, a precise comparison is difficult. However, given the VA's extensive reach and the critical nature of scheduling for millions of veterans, this investment level is indicative of a comprehensive solution.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns (mitigated by the firm fixed-price structure), performance failures impacting veteran care access (mitigated through performance metrics and oversight), data security breaches (mitigated by stringent cybersecurity requirements and compliance mandates), and vendor viability issues. The VA's standard contract clauses, performance monitoring, and contingency planning are designed to address these risks. The competitive award process itself also serves as a risk mitigation tool by selecting a vendor deemed capable of delivering the required services.

How effective is the current system being replaced or augmented by this contract, and what improvements are expected?

The effectiveness of the current system is not detailed in the provided data. However, the award of a new, substantial contract for 'Integrated Veteran Care External Provider Scheduling' strongly implies that the existing systems are either outdated, inefficient, or lack the necessary capabilities to meet the VA's evolving needs. Expected improvements likely include enhanced user experience for both veterans and VA staff, streamlined appointment booking, better coordination of care across different providers, improved data accuracy, and potentially reduced administrative overhead. The goal is to ensure veterans receive timely and coordinated healthcare services.

What are the historical spending patterns for similar IT scheduling services within the Department of Veterans Affairs?

Historical spending patterns for similar IT scheduling services within the VA would typically show a trend of increasing investment in healthcare IT infrastructure over the years. Federal agencies, including the VA, have been prioritizing digital transformation to improve service delivery and operational efficiency. Specific figures would require analyzing past contract awards for scheduling, patient management, and related IT services within the VA's health system. This contract represents a significant, but likely consistent, investment in modernizing critical healthcare IT functions.

What is the potential impact of this contract on the broader IT services market, particularly for competitors?

This contract award to V3GATE, LLC, signifies a substantial win in the competitive federal IT services market. For competitors, it highlights the VA's continued investment in healthcare IT and the specific requirements for integrated scheduling solutions. It may encourage other vendors to enhance their offerings in this niche to compete for future opportunities. The success of V3GATE, LLC on this contract could also influence future procurement strategies by the VA and other agencies seeking similar capabilities, potentially setting new benchmarks for service delivery and pricing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B23Q0360

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 MIDDLE CREEK PKWY STE 120, COLORADO SPRINGS, CO, 80921

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $376,791,791

Exercised Options: $109,499,612

Current Obligation: $109,499,612

Actual Outlays: $8,026,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline