VA's $8.75M IHT Contract with APTIVE HTG LLC Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $8,751,466 ($8.8M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-14

End Date: 2025-06-30

Contract Duration: 1,750 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT Key points: 1. The contract awarded to APTIVE HTG LLC for Integrated Healthcare Transformation (IHT) totals $8.75 million. 2. Competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of true market engagement. 3. The primary service is Administrative Management and General Management Consulting Services (NAICS 541611). 4. The contract duration is 1750 days, ending June 30, 2025. 5. The contract type is 'LABOR HOURS', which can sometimes lead to cost overruns if not managed tightly.

Value Assessment

Rating: questionable

The contract's value of $8.75 million for consulting services needs further benchmarking against similar large-scale transformation projects. Without detailed performance metrics and cost breakdowns, assessing its value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the process was open, specific sources may have been excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The ultimate taxpayer impact depends on the effectiveness and efficiency of the transformation services delivered, which are not yet fully quantifiable.

Public Impact

Veterans may experience changes in healthcare delivery and access due to the IHT project. The contract's success or failure could impact the VA's ability to modernize its healthcare systems. Transparency in how taxpayer funds are utilized for this transformation is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details
Potential for cost overruns with 'LABOR HOURS' contract type
Lack of clear performance metrics for value assessment

Positive Signals

Contract aims to improve healthcare transformation
Awarded by a major federal agency (Department of Veterans Affairs)

Sector Analysis

The IT and Healthcare sectors are increasingly reliant on consulting services for modernization and transformation. Benchmarks for similar large-scale IT/Healthcare consulting contracts vary widely based on scope and complexity.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract, suggesting limited direct impact on the small business sector.

Oversight & Accountability

Oversight will be critical to ensure the IHT project meets its objectives efficiently and effectively, with regular reporting and performance reviews by the Department of Veterans Affairs.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Ambiguity in competition details
Potential for cost escalation due to 'LABOR HOURS' contract
Lack of clearly defined performance metrics for value assessment
Need for strong oversight to ensure project success

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT

Who is the contractor on this award?

The obligated recipient is APTIVE HTG 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 $8.8 million.

What is the period of performance?

Start: 2020-09-14. End: 2025-06-30.

What specific metrics define the success of the Integrated Healthcare Transformation (IHT) project, and how will APTIVE HTG LLC's performance be measured against these metrics?

The success of the IHT project should be defined by measurable improvements in veteran healthcare access, quality, and efficiency. Key metrics could include reduced wait times, improved patient outcomes, enhanced system interoperability, and cost savings. APTIVE HTG LLC's performance should be evaluated against these specific, pre-defined KPIs, with regular progress reports and independent verification.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method ensure optimal value and mitigate risks compared to a truly unrestricted full and open competition?

This method, while open, allows for the exclusion of certain sources, which can limit the pool of potential bidders. This exclusion might be based on specific capabilities or past performance requirements. However, it risks reducing competition, potentially leading to higher prices or less innovative solutions than a fully unrestricted competition. The justification for excluding sources needs to be robust to ensure value and mitigate risks.

What is the projected return on investment (ROI) for the VA's $8.75 million expenditure on the IHT contract, and how will this ROI be tracked and reported?

The projected ROI for the IHT contract should be clearly articulated, outlining expected benefits such as improved operational efficiency, enhanced patient care, and potential long-term cost reductions. This ROI should be quantified through specific financial and operational targets. A robust tracking mechanism, involving regular financial audits and performance analysis, is necessary to monitor progress and report on the actual ROI achieved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 421 KING ST STE 200, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,751,466

Exercised Options: $8,751,466

Current Obligation: $8,751,466

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,079,017

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X20D0002

IDV Type: IDC

Timeline