VA awards $291M IT contract for electronic health records to Thunderyard Liberty JV LLC

Contract Overview

Contract Amount: $29,125,264 ($29.1M)

Contractor: Thunderyard Liberty JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-27

End Date: 2026-09-21

Contract Duration: 1,090 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM ELECTRONIC SOLUTION FOR HEALTH CARE AND OCCUPATIONAL RECORDKEEPING OF EMPLOYEES (ESHORE)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.1 million to THUNDERYARD LIBERTY JV LLC for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM ELECTRONIC SOLUTION FOR HEALTH CARE AND OCCUPATIONAL RECORDKEEPING OF EMPLOYEES (ESHORE) Key points: 1. Contract focuses on IT services for healthcare and occupational recordkeeping, aligning with VA's digital transformation goals. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The contract duration of approximately three years indicates a medium-term commitment for system support. 4. The firm-fixed-price structure aims to control costs and provide predictable spending. 5. This contract is part of a larger program, Transformation Twenty-One Total Technology (T4NG), indicating strategic IT investments. 6. The geographic focus is Washington D.C., potentially impacting local IT workforce and infrastructure.

Value Assessment

Rating: good

The contract value of $291.25 million over approximately three years for IT services related to electronic health and occupational records appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within the federal government, particularly those managed by the Department of Veterans Affairs (VA) under programs like T4NG, suggests this award falls within expected pricing ranges for comprehensive system design and support. The firm-fixed-price contract type helps mitigate cost overruns, contributing to value for money.

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 multiple vendors were likely solicited and evaluated. The specific details of the bidding process, such as the number of proposals received, are not provided, but the designation suggests a competitive environment. This approach generally leads to better price discovery and ensures that the government selects the most capable and cost-effective solution available in the market.

Taxpayer Impact: A competitive award process like this typically benefits taxpayers by driving down prices and ensuring that the government receives high-quality services at a fair market value. It reduces the risk of overpayment and encourages innovation among contractors.

Public Impact

Veterans will benefit from improved electronic health and occupational recordkeeping systems, leading to better continuity of care and access to their medical information. The contract delivers essential IT services for the management and modernization of critical healthcare data systems. The primary geographic impact is within Washington D.C., where the Department of Veterans Affairs operates significant facilities. This contract may have implications for the IT workforce in the D.C. area, potentially creating or sustaining jobs in computer systems design and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if system integration becomes overly complex.
Dependence on a single joint venture for critical healthcare IT infrastructure.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Award to a joint venture may foster small business participation through subcontracting opportunities.
The firm-fixed-price contract type provides cost certainty for the government.
The contract is part of the T4NG program, suggesting alignment with established VA IT strategy and infrastructure.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The federal IT market is substantial, with agencies like the VA investing heavily in modernizing healthcare systems to improve patient care and operational efficiency. This award is consistent with government-wide efforts to digitize records and enhance data management capabilities, particularly in sensitive areas like healthcare. Comparable spending benchmarks for large-scale IT support and system integration contracts within federal agencies often range in the hundreds of millions of dollars over several years.

Small Business Impact

While the contract is not explicitly a small business set-aside, the award to a joint venture (Thunderyard Liberty JV LLC) suggests potential for small business involvement. Joint ventures are often formed to combine capabilities and pursue larger contracts, frequently including small business partners. Further analysis would be needed to determine the specific small business participation goals or subcontracting plans associated with this award and its impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Transformation Twenty-One Total Technology (T4NG)
Veterans Health Administration (VHA) IT Modernization Efforts
Electronic Health Record Modernization (EHRM) Program
Department of Defense - VA Interagency Data Sharing Initiatives

Risk Flags

Potential for vendor lock-in
Dependence on joint venture performance
Complexity of healthcare IT systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.1 million to THUNDERYARD LIBERTY JV LLC. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM ELECTRONIC SOLUTION FOR HEALTH CARE AND OCCUPATIONAL RECORDKEEPING OF EMPLOYEES (ESHORE)

Who is the contractor on this award?

The obligated recipient is THUNDERYARD LIBERTY JV 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 $29.1 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-21.

What is the track record of Thunderyard Liberty JV LLC in delivering similar IT services to the federal government?

Information regarding the specific track record of Thunderyard Liberty JV LLC is limited as it appears to be a joint venture formed for this contract or similar large endeavors. Joint ventures often leverage the experience of their parent companies. A deeper dive into the individual entities comprising the joint venture would be necessary to assess their past performance, including their history with the Department of Veterans Affairs (VA) or other federal agencies, their success in managing complex IT projects, and their adherence to contract terms and delivery schedules. Without this specific data, assessing their past performance relies on the assumption that the joint venture partners possess the requisite expertise and experience.

How does the awarded value compare to similar IT support contracts for electronic health records within the federal government?

The awarded value of approximately $291 million for a three-year contract for electronic health and occupational recordkeeping IT services is substantial, reflecting the complexity and criticality of managing healthcare data. When compared to similar large-scale IT contracts within the federal government, particularly those managed by the Department of Veterans Affairs (VA) under programs like T4NG, this award appears to be within a reasonable range. For instance, other T4NG awards for comprehensive IT solutions have also reached hundreds of millions of dollars. The firm-fixed-price structure and the specific scope of services (computer systems design) are key factors in this valuation. Benchmarking against contracts with similar objectives, such as EHR implementation or maintenance, would provide further context.

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

Primary risks associated with this contract include potential technical challenges in integrating or maintaining complex electronic health record systems, the possibility of scope creep if requirements are not meticulously managed, and dependence on the contractor's performance. Mitigation strategies are likely embedded within the contract's structure and oversight. The firm-fixed-price (FFP) nature of the contract shifts some financial risk to the contractor, incentivizing them to manage costs effectively. The Department of Veterans Affairs (VA) will employ program management and technical oversight to monitor progress, manage scope, and ensure quality. Furthermore, the competitive award process suggests a selection of a vendor deemed capable of managing these risks. Contingency planning and clear performance metrics are also standard mitigation tools.

What is the expected effectiveness of this contract in improving the VA's electronic health record systems?

The effectiveness of this contract hinges on its ability to deliver robust, reliable, and user-friendly electronic health and occupational recordkeeping systems for the Department of Veterans Affairs (VA). By focusing on computer systems design services, the contract aims to enhance the underlying infrastructure and functionality of these critical systems. Improved systems are expected to lead to better data accuracy, enhanced interoperability, increased efficiency for healthcare providers, and ultimately, better patient care and outcomes for veterans. The success will be measured by the contractor's adherence to performance standards, the successful implementation of system upgrades or designs, and positive feedback from end-users within the VA.

How does this contract's spending pattern compare to historical VA IT investments in healthcare record systems?

This contract represents a significant investment, totaling approximately $291 million over roughly three years. Historical spending by the VA on IT, particularly for healthcare record systems, has been substantial and often involves multi-year, high-value contracts. The VA has been engaged in extensive efforts to modernize its IT infrastructure, including its electronic health record systems, through programs like the Transformation Twenty-One Total Technology (T4NG) vehicle. Spending on such initiatives often runs into hundreds of millions or even billions of dollars over the lifecycle of major programs. This specific award aligns with the VA's ongoing commitment to digital transformation in healthcare and reflects a continuation of substantial IT investments in this critical area.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 1382 W MELROSE DR, WESTLAKE, OH, 44145

Business Categories: Category Business, Limited Liability Corporation, 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: $41,545,689

Exercised Options: $29,125,264

Current Obligation: $29,125,264

Actual Outlays: $26,525,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B21D1036

IDV Type: IDC

Timeline