VA awards $52.8M for healthcare transformation program management, with APTIVE HTG LLC as contractor

Contract Overview

Contract Amount: $52,765,259 ($52.8M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-21

End Date: 2024-07-31

Contract Duration: 1,409 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER 0007- OFFICE OF HEALTHCARE TRANSFORMATION (OHT) PROGRAM MANAGEMENT IMPLEMENTATION SUPPORT

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 $52.8 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER 0007- OFFICE OF HEALTHCARE TRANSFORMATION (OHT) PROGRAM MANAGEMENT IMPLEMENTATION SUPPORT Key points: 1. Contract provides essential program management support for the VHA Integrated Healthcare Transformation initiative. 2. The task order was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 3 years) indicates a significant, ongoing need for these services. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 5. The primary service category is management consulting, aligning with the program's transformation goals. 6. The award value is substantial, reflecting the complexity and importance of the healthcare transformation effort.

Value Assessment

Rating: good

The contract value of approximately $52.8 million over nearly four years for program management support appears reasonable given the scope of the VHA Integrated Healthcare Transformation initiative. Benchmarking against similar large-scale federal program management contracts suggests that costs for specialized consulting services can range significantly, but this award falls within expected parameters for complex transformation efforts. The labor hour contract type allows for flexibility in resource allocation, which is beneficial for evolving program needs. However, diligent oversight is crucial to ensure efficient use of labor and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and allows the government to select the best value offering. The 'after exclusion of sources' clause might suggest a prior limited competition or a specific justification for excluding certain vendors, which warrants further investigation into the procurement history.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery through market forces.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and the veterans it serves, through improved healthcare delivery and system efficiencies. The services delivered include program management implementation support, crucial for the successful execution of the VHA Integrated Healthcare Transformation (IHT) program. The geographic impact is national, as the VHA IHT program aims to improve healthcare services across all VA facilities. Workforce implications include the potential for skilled program managers and consultants to contribute to the VA's operational improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contract type requires vigilant monitoring to ensure efficient use of consultant time and prevent scope creep.
The 'after exclusion of sources' clause in the competition type warrants a review to understand any potential limitations on full market participation.
The long contract duration necessitates robust performance management to ensure sustained quality and value.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contract supports a critical VA initiative focused on improving healthcare delivery.
The contractor, APTIVE HTG LLC, is tasked with providing essential program management expertise.

Sector Analysis

This contract falls within the management and professional services sector, specifically administrative and general management consulting. This sector is vital for government operations, providing expertise to manage complex programs, implement strategic initiatives, and improve efficiency. The market for these services is competitive, with numerous firms offering specialized consulting capabilities. The VA's significant spending in this area reflects its ongoing efforts to modernize and optimize its vast healthcare system, making this contract a key component of its broader transformation strategy.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, APTIVE HTG LLC, may choose to subcontract portions of this work to small businesses as part of their business strategy, which could offer opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs, specifically the Office of Healthcare Transformation (OHT) which is the recipient of the program management implementation support. Accountability measures would be embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. While specific Inspector General (IG) jurisdiction isn't detailed here, the VA OIG would likely have oversight responsibilities for programs of this magnitude and importance.

Related Government Programs

VHA Integrated Healthcare Transformation (IHT)
Office of Healthcare Transformation (OHT) Program Management
Federal Management Consulting Services
Department of Veterans Affairs Healthcare Modernization Programs

Risk Flags

Potential for cost overruns due to labor-hour contract type.
Need for robust oversight to manage scope creep and ensure efficient labor utilization.
Dependence on contractor performance for critical healthcare transformation milestones.
Complexity of managing a national healthcare transformation program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $52.8 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER 0007- OFFICE OF HEALTHCARE TRANSFORMATION (OHT) PROGRAM MANAGEMENT IMPLEMENTATION SUPPORT

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 $52.8 million.

What is the period of performance?

Start: 2020-09-21. End: 2024-07-31.

What is the track record of APTIVE HTG LLC in performing similar large-scale federal program management contracts, particularly within the healthcare sector?

Assessing APTIVE HTG LLC's track record requires a deeper dive into their past performance on federal contracts. While this award indicates they were selected for a significant role in the VHA Integrated Healthcare Transformation (IHT) program, their history with similar initiatives is crucial. Federal procurement data (e.g., through SAM.gov or FPDS) would reveal previous contracts, their values, and performance ratings, if available. Specifically, looking for experience with large-scale IT implementations, healthcare system modernization, or complex program management within agencies like the VA or HHS would provide valuable context. A strong history of successful delivery on comparable projects would increase confidence in their ability to execute this task order effectively. Conversely, a lack of relevant experience or past performance issues could signal potential risks.

How does the awarded value of $52.8 million compare to the estimated cost of similar program management support services for large federal healthcare transformation initiatives?

The awarded value of approximately $52.8 million for nearly four years of program management support for the VHA Integrated Healthcare Transformation (IHT) task order needs to be benchmarked against comparable federal contracts. Large-scale transformation programs within agencies like the VA, HHS, or DoD often require extensive program management, IT integration, and strategic consulting services. Costs can vary widely based on the complexity, duration, and specific expertise required. Contracts for similar initiatives, especially those involving system-wide modernization or significant process re-engineering in healthcare, can range from tens to hundreds of millions of dollars. The labor-hour contract type allows for flexibility but necessitates careful tracking of hours to ensure cost-effectiveness. Without specific details on the scope of work and the number of personnel assigned, a precise comparison is difficult, but the award appears to be within a reasonable range for a program of this national significance and duration.

What are the key performance indicators (KPIs) used to measure the success of APTIVE HTG LLC's program management implementation support for the IHT program?

The success of APTIVE HTG LLC's program management implementation support for the VHA Integrated Healthcare Transformation (IHT) program would typically be measured through a set of Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). These KPIs are designed to ensure the contractor meets the government's objectives efficiently and effectively. Common KPIs for such contracts include adherence to project timelines and milestones, budget management and cost control, quality of deliverables (e.g., reports, plans, analyses), stakeholder satisfaction (measured through surveys or feedback), risk mitigation effectiveness, and successful integration of program components. For the IHT program, specific KPIs might relate to the progress of specific transformation initiatives, the efficiency gains realized, or the successful rollout of new healthcare processes or technologies. Regular performance reviews and reporting would track progress against these KPIs.

What is the historical spending pattern for program management support services within the VHA Integrated Healthcare Transformation (IHT) program or similar initiatives?

Analyzing historical spending patterns for program management support within the VHA Integrated Healthcare Transformation (IHT) program, or similar large-scale healthcare transformation initiatives at the VA, is crucial for understanding cost trends and budget allocation. Federal procurement data (e.g., FPDS) can reveal prior task orders or contracts awarded for program management, consulting, or system implementation related to IHT or comparable VA modernization efforts. This analysis would show the total amount spent over time, the types of services procured, the contractors involved, and the average duration and value of these contracts. Understanding these historical patterns helps in assessing whether the current $52.8 million award is consistent with past investments, if it represents an increase or decrease in spending, and if the VA is achieving better value over time. It also highlights the sustained commitment and investment required for such complex, long-term transformation programs.

What specific risks are associated with a labor-hour contract type for a program management support task order of this magnitude and duration?

The primary risks associated with a labor-hour contract type for a program management support task order valued at $52.8 million over nearly four years revolve around cost control and scope management. Unlike fixed-price contracts, labor-hour contracts pay for the actual time and labor expended by the contractor. This can lead to cost overruns if the contractor's efficiency is low, if the scope of work expands without proper controls (scope creep), or if billing rates are higher than anticipated. For the government, it requires diligent oversight to monitor the hours worked, ensure the work performed is necessary and productive, and verify that the labor categories and rates are appropriate. Without strong government oversight and clear task definitions, there's a risk of paying for inefficient or unnecessary work, potentially leading to a lower value for taxpayer money compared to a well-defined fixed-price contract.

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

Solicitation ID: 36C10X20R0043

Offers Received: 6

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: $52,897,954

Exercised Options: $52,765,259

Current Obligation: $52,765,259

Subaward Activity

Number of Subawards: 161

Total Subaward Amount: $80,959,214

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