VA awards $63.5M for healthcare transformation support, with APTIVE HTG LLC as prime

Contract Overview

Contract Amount: $63,466,228 ($63.5M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2025-02-25

Contract Duration: 1,609 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) HIGH RELIABILITY ORGANIZATION SUPPORT IDIQ TASK ORDER

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 $63.5 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) HIGH RELIABILITY ORGANIZATION SUPPORT IDIQ TASK ORDER Key points: 1. Contract focuses on administrative and management consulting for healthcare transformation. 2. High reliability organization support is a key component of the services. 3. The contract duration extends over multiple fiscal years, indicating a long-term need. 4. Firm-fixed-price contract type suggests predictable costs for the government. 5. The award was made under full and open competition, indicating a broad search for qualified contractors. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: good

The contract value of $63.5 million over approximately five years suggests a significant investment in healthcare transformation. Benchmarking against similar large-scale consulting contracts within the federal government is challenging without more granular data on specific deliverables. However, the firm-fixed-price structure is generally favorable for cost control. The award to APTIVE HTG LLC, a single entity, implies a focused relationship for these specific services.

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 the Department of Veterans Affairs sought a wide range of potential bidders. While the specific number of bidders is not provided, this procurement method generally fosters competitive pricing and allows the government to select the best value offering. The exclusion of sources clause might indicate specific requirements that narrowed the field from initial broad outreach.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is intended to drive down prices through market forces and ensure the government receives the most advantageous terms.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, aiming to improve its integrated healthcare system. Services delivered are expected to enhance the reliability and efficiency of healthcare operations. The contract's impact is likely national, given the VA's widespread healthcare network. Workforce implications may include the need for specialized consulting expertise to support transformation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if transformation goals are not clearly defined and managed.
Reliance on a single contractor for critical transformation support could pose a risk if performance falters.
Ensuring effective knowledge transfer from the contractor to VA personnel is crucial for long-term sustainability.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The long-term nature of the contract allows for sustained focus on complex transformation goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal market for such services is substantial, with agencies frequently engaging consultants to address complex operational challenges, strategic planning, and system modernization. The VA's focus on healthcare transformation aligns with broader government trends towards improving service delivery and operational efficiency through expert guidance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, APTIVE HTG LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, which could represent missed opportunities for small business participation in supporting this significant federal contract.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price contract type, which ties payment to performance and delivery. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

VHA Integrated Healthcare Transformation
High Reliability Organization Initiatives
Management and Consulting Services
Veterans Health Administration Support Contracts

Risk Flags

Potential for scope creep in transformation initiatives.
Reliance on a single contractor for critical support.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $63.5 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) HIGH RELIABILITY ORGANIZATION SUPPORT IDIQ TASK ORDER

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 $63.5 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-02-25.

What specific transformation initiatives are encompassed by this contract, and what are the key performance indicators (KPIs) for success?

The provided data identifies the contract as 'VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) HIGH RELIABILITY ORGANIZATION SUPPORT IDIQ TASK ORDER,' suggesting a focus on improving the VA's healthcare system's reliability and efficiency. Specific transformation initiatives likely include process improvements, cultural change management, and the implementation of best practices associated with High Reliability Organizations (HROs). Key performance indicators would typically be defined in the task order itself and could include metrics related to patient safety, operational efficiency, staff engagement, and the reduction of medical errors. Without access to the specific task order details, precise KPIs cannot be enumerated, but they would be designed to measure progress towards a more reliable and effective healthcare delivery system for veterans.

How does the awarded amount of $63.5 million compare to historical spending on similar healthcare transformation or HRO support contracts within the VA or other federal agencies?

The $63.5 million award for VHA Integrated Healthcare Transformation (IHT) High Reliability Organization Support over its period of performance (estimated 1609 days, roughly 4.4 years) represents a substantial investment. Comparing this to historical spending requires access to detailed contract databases and analysis of similar scope and duration. However, large-scale transformation and consulting efforts within major federal agencies like the VA often run into tens or hundreds of millions of dollars, especially when they involve system-wide changes and extensive support services. The firm-fixed-price nature suggests a defined scope, which can help in cost management compared to cost-plus contracts. Benchmarking would ideally involve looking at other large IDIQ task orders for management consulting focused on healthcare or organizational transformation within HHS, DoD, or other large civilian agencies.

What is APTIVE HTG LLC's track record with the Department of Veterans Affairs and in providing High Reliability Organization support?

Information regarding APTIVE HTG LLC's specific track record with the Department of Veterans Affairs and their expertise in High Reliability Organization (HRO) support is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance on federal contracts, including any previous work with the VA, client satisfaction ratings, and any documented successes or challenges. Their ability to secure a significant contract like this suggests they possess the necessary qualifications and experience. Further investigation into their contract history, including past performance evaluations and any awards or protests, would be necessary to fully evaluate their track record in this specialized area.

What are the potential risks associated with a firm-fixed-price contract for a complex initiative like healthcare transformation?

While firm-fixed-price (FFP) contracts offer cost certainty, they can introduce risks for complex initiatives like healthcare transformation. If the scope of work is not meticulously defined and understood by both parties from the outset, the contractor may face unforeseen challenges or increased costs, potentially leading to requests for change orders or a reduction in the quality or scope of deliverables to maintain profitability. Conversely, if the government's requirements evolve significantly, the FFP structure might make it difficult or costly to adapt the contract. For the VA, the risk lies in ensuring that the defined scope adequately addresses the multifaceted nature of healthcare transformation and HRO principles, and that APTIVE HTG LLC has the flexibility and incentive to deliver high-quality outcomes within the fixed price.

How does the geographic location of the contract performance (District of Columbia) influence the nature of the services and potential costs?

The contract performance location is listed as 'DC' (District of Columbia). This suggests that the primary activities under this task order may be centered around the VA headquarters or facilities in the Washington D.C. metropolitan area. Performing services in a high-cost-of-living area like D.C. can influence personnel costs, as consultants may require higher salaries to offset living expenses. It could also imply closer proximity to key VA decision-makers and stakeholders, potentially facilitating communication and collaboration. However, it might also limit the direct, on-the-ground impact on VA healthcare facilities located in other regions unless the D.C.-based team is coordinating or overseeing broader, geographically dispersed initiatives.

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: FIRM FIXED PRICE (J)

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: $63,466,228

Exercised Options: $63,466,228

Current Obligation: $63,466,228

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $22,245,354

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