VA awards $20.95M for Computing Infrastructure to Change Healthcare Holdings, Inc

Contract Overview

Contract Amount: $20,952,019 ($21.0M)

Contractor: Change Healthcare Holdings, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-11-30

Contract Duration: 426 days

Daily Burn Rate: $49.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HCCH EDI

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37219

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.0 million to CHANGE HEALTHCARE HOLDINGS, INC. for work described as: HCCH EDI Key points: 1. Significant contract value of $20.95 million awarded. 2. Change Healthcare Holdings, Inc. is the sole awardee. 3. The contract falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code. 4. The award is a delivery order under a larger contract.

Value Assessment

Rating: questionable

The contract value is substantial. Without a competitive bidding process, it's difficult to assess if the pricing is optimal or reflects market rates for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether the government is receiving the best possible value for taxpayer dollars.

Public Impact

Ensures continued access to essential computing and data processing services for the VA. Potential for higher costs due to non-competitive award. Impact on small businesses is unclear as no small business set-aside was indicated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Ensures continuity of essential services

Sector Analysis

This contract is within the IT services sector, specifically focusing on computing infrastructure and data processing. Spending in this area is critical for government operations, but competitive procurement is key to cost efficiency.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure the services are delivered effectively and at a reasonable cost.

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

Sole-source award
Lack of competition
Potential for overpricing
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.0 million to CHANGE HEALTHCARE HOLDINGS, INC.. HCCH 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 $21.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-11-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's impossible to confirm the exact reason. However, such awards require rigorous justification to ensure they are in the government's best interest and do not circumvent fair competition principles.

How does the pricing compare to industry benchmarks for similar IT infrastructure services?

Without a competitive bidding process, it is challenging to establish a direct comparison to industry benchmarks. Sole-source contracts often lack the price transparency that competition provides. A thorough review of the contract's pricing structure against publicly available data for comparable services would be necessary to assess its reasonableness.

What are the potential risks associated with a sole-source IT infrastructure contract for the VA?

The primary risks include inflated costs due to the absence of competitive pressure, potential for vendor lock-in, and a reduced incentive for the vendor to innovate or provide superior service. There's also a risk that the VA may not be leveraging the most cost-effective or technologically advanced solutions available in the market.

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: MEDICAL SERVICES › GENERAL HEALTH CARE 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: $28,198,345

Exercised Options: $20,952,019

Current Obligation: $20,952,019

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