VA awards $28.6M contract to Change Healthcare for computing infrastructure and data processing services
Contract Overview
Contract Amount: $28,599,098 ($28.6M)
Contractor: Change Healthcare Holdings, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-04-01
End Date: 2023-09-30
Contract Duration: 547 days
Daily Burn Rate: $52.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HCCS EDI
Place of Performance
Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37219
Plain-Language Summary
Department of Veterans Affairs obligated $28.6 million to CHANGE HEALTHCARE HOLDINGS, INC. for work described as: HCCS EDI Key points: 1. The contract value is $28.6 million over 547 days. 2. The award was made to Change Healthcare Holdings, Inc. 3. The service falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code. 4. This is a delivery order under an existing contract. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract is a delivery order, suggesting it's part of a larger, potentially pre-negotiated agreement. Without access to the base contract, a precise pricing assessment is difficult, but the value appears substantial for the duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This could be due to specific requirements or existing relationships, but it limits price discovery and potentially competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may result in a higher price than if it were fully competed.
Public Impact
Veterans may experience continuity in IT services supporting their care. The contract supports essential computing and data processing functions for the VA. Dependence on a single vendor for critical infrastructure could pose a risk. The specific impact on individual veterans' services is not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price reasonableness.
- Lack of transparency on the base contract's terms.
- Potential vendor lock-in for critical IT services.
Positive Signals
- Contract awarded to an established company.
- Firm Fixed Price contract provides cost certainty.
- Services support essential VA operations.
Sector Analysis
The contract falls under the IT sector, specifically computing infrastructure and data processing. Spending in this area is critical for government operations, and benchmarks vary widely based on service scope and scale.
Small Business Impact
The contract was awarded to Change Healthcare Holdings, Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
As a delivery order, oversight may be tied to the parent contract. The VA is responsible for ensuring the services meet requirements and are priced appropriately, even under limited competition.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Lack of performance metrics
- Potential for vendor lock-in
- Significant contract value
Tags
computing-infrastructure-providers-data-, department-of-veterans-affairs, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $28.6 million to CHANGE HEALTHCARE HOLDINGS, INC.. HCCS EDI
Who is the contractor on this award?
The obligated recipient is CHANGE HEALTHCARE HOLDINGS, INC..
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 $28.6 million.
What is the period of performance?
Start: 2022-04-01. End: 2023-09-30.
What was the justification for limiting competition on this significant IT services contract?
The justification for limited competition is crucial for understanding the value proposition. Without a competitive process, it's difficult to ascertain if the VA secured the best possible pricing and service terms. Further investigation into the specific reasons for 'NOT COMPETED' is warranted to ensure taxpayer funds are used efficiently and effectively.
What are the specific risks associated with Change Healthcare Holdings, Inc. providing these critical IT services?
Risks could include data security vulnerabilities, service disruptions impacting VA operations, and potential cost overruns if the firm fixed price agreement doesn't adequately account for unforeseen technical challenges. The concentration of critical infrastructure services with one vendor also increases systemic risk.
How does the performance of this contract align with the VA's overall IT modernization goals and effectiveness?
The effectiveness of this contract hinges on its contribution to the VA's mission and IT modernization. If these services are crucial for maintaining current operations and enabling future advancements, then the contract is effective. However, without performance metrics or details on its role in modernization, its true effectiveness remains unclear.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 424 CHURCH ST STE 1400, NASHVILLE, TN, 37219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,735,897
Exercised Options: $28,735,897
Current Obligation: $28,599,098
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10G22D0023
IDV Type: IDC
Timeline
Start Date: 2022-04-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2024-03-28
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