VA awards $22.7M contract for healthcare policy transformation to APTIVE HTG LLC

Contract Overview

Contract Amount: $22,706,378 ($22.7M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-11-30

End Date: 2024-11-29

Contract Duration: 1,460 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER - VHA POLICY TRANSFORMATION

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 $22.7 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER - VHA POLICY TRANSFORMATION Key points: 1. Contract focuses on administrative management and general management consulting services. 2. The contract is a delivery order under a larger contract vehicle. 3. It has a duration of 1460 days, spanning approximately four years. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. Awarded by the Department of Veterans Affairs, highlighting a focus on healthcare policy. 6. The task order was competed after exclusion of sources, suggesting a specific rationale. 7. The base contract has seen 3 delivery orders issued against it.

Value Assessment

Rating: good

The contract value of $22.7 million for a four-year period for administrative management and general management consulting services appears reasonable for a federal agency like the VA. Benchmarking against similar large-scale policy transformation contracts is difficult without more specific service details. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which can be advantageous for budget predictability. The number of delivery orders against the base contract (3) indicates ongoing utilization and potential for further task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial contract vehicle may have been broadly competed, this specific task order had a limited competition approach. The exclusion of sources suggests a specific justification was provided, potentially related to specialized expertise or the nature of the task. The limited competition may result in less aggressive pricing compared to full and open competition.

Taxpayer Impact: The limited competition for this task order means taxpayers may not have benefited from the full range of potential cost savings that could arise from a broader bidding process. However, the exclusion of sources might be justified if it ensures the most qualified contractor is selected for a critical policy transformation effort.

Public Impact

Veterans will benefit from improved healthcare policies and administrative processes. The services delivered will focus on transforming and enhancing VHA's healthcare policy framework. The contract is geographically focused on the District of Columbia, where the VA headquarters is located. The contract supports the VHA's mission to provide comprehensive healthcare services to veterans. This initiative aims to modernize and streamline healthcare delivery through policy enhancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of cost-saving innovation.
The 'exclusion of sources' justification needs thorough review to ensure it was appropriate and not restrictive.
Reliance on a single contractor for policy transformation could create vendor lock-in.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract duration allows for sustained focus on complex policy issues.
Award to APTIVE HTG LLC suggests they possess the required expertise for VHA's needs.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a broad category encompassing strategic planning, policy development, and operational efficiency improvements. The federal government is a significant consumer of these services, particularly within large agencies like the Department of Veterans Affairs, which constantly seeks to optimize its complex healthcare system. The market for such services is competitive, with numerous firms offering specialized expertise. The $22.7 million value positions this as a substantial engagement within the consulting sector for the VA.

Small Business Impact

The data indicates 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. The primary contractor, APTIVE HTG LLC, is not specified as a small business in the provided data. Analysis of subcontracting plans would be necessary to determine if small businesses are involved in fulfilling parts of this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency would be facilitated through contract award databases and potentially through VA's internal reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VHA Healthcare Services
Federal Management Consulting Services
VA Policy Development Initiatives
Healthcare Administration Modernization

Risk Flags

Limited competition justification requires scrutiny.
Potential for cost overruns if scope is not tightly managed.
Performance risk associated with long-term policy transformation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.7 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER - VHA POLICY TRANSFORMATION

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 $22.7 million.

What is the period of performance?

Start: 2020-11-30. End: 2024-11-29.

What is the specific nature of the 'policy transformation' being undertaken by APTIVE HTG LLC for the VHA?

The provided data indicates the contract is for 'VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) TASK ORDER - VHA POLICY TRANSFORMATION' and falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the exact details of the policy transformation are not specified, it likely involves a comprehensive review, analysis, and redesign of existing VHA healthcare policies. This could encompass areas such as patient access, care delivery models, administrative procedures, data management, and regulatory compliance. The goal is typically to improve efficiency, effectiveness, veteran satisfaction, and alignment with evolving healthcare standards and legislative mandates. The 'exclusion of sources' suggests a highly specialized or critical nature to this transformation effort, requiring specific expertise that APTIVE HTG LLC is believed to possess.

How does the $22.7 million contract value compare to similar VHA policy transformation or consulting contracts?

Directly comparing the $22.7 million value to similar VHA policy transformation contracts is challenging without access to a comprehensive database of historical VA consulting awards with detailed scope descriptions. However, for large federal agencies undertaking significant strategic initiatives, consulting contracts in the tens of millions of dollars are not uncommon, especially when spanning multiple years and involving complex system-wide changes. The VHA manages a vast healthcare network, and initiatives aimed at transforming its policy framework are inherently large in scope and cost. The firm-fixed-price nature of this contract suggests that the $22.7 million represents the total anticipated cost for the defined services over the contract's four-year duration, providing a degree of cost certainty.

What are the potential risks associated with awarding this contract under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices and less innovation compared to a truly open competition. The 'exclusion of sources' implies that only a limited number of pre-selected contractors were considered, or that certain potential bidders were deliberately excluded. This necessitates a strong justification from the agency to ensure that the exclusion was necessary and in the government's best interest, such as when only a few contractors possess the unique capabilities required. If the justification is weak, taxpayers may not receive the best value. There's also a risk that the chosen contractor may not perform as expected, and the limited pool of alternatives could make re-competition or finding a replacement more difficult.

What is APTIVE HTG LLC's track record with the Department of Veterans Affairs or similar healthcare consulting projects?

The provided data identifies APTIVE HTG LLC as the contractor but does not offer details on their specific track record with the VA or other healthcare consulting projects. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any publicly available information on their project portfolio. A strong track record with the VA, particularly on similar policy or transformation initiatives, would increase confidence in their ability to successfully execute this contract. Conversely, a history of poor performance or disputes could be a significant concern.

How does the duration of this contract (1460 days) impact the assessment of its value and effectiveness?

The contract duration of 1460 days (approximately four years) is substantial and suggests that the VHA policy transformation is a long-term, complex undertaking. This extended period allows for in-depth analysis, development, implementation, and refinement of new policies. From a value perspective, a longer duration can sometimes lead to better economies of scale and more consistent application of expertise, potentially reducing overall costs compared to multiple short-term contracts. However, it also increases the risk of the contractor's approach becoming outdated or misaligned with evolving needs if not managed proactively. Effective oversight and regular performance reviews are crucial throughout the contract's life to ensure continued alignment with VHA goals and to maximize its effectiveness.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract being a 'Delivery Order' (aw: DELIVERY ORDER) signifies that it is a specific task or order placed against a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract vehicle. This implies that the underlying contract vehicle itself likely underwent a broader competition. The 'Delivery Order' mechanism allows the agency to procure specific services or supplies as needed, up to a certain ceiling, without needing to re-compete the entire requirement each time. For this specific task order, the competition was 'after exclusion of sources,' indicating a limited competition for this particular delivery. This structure can streamline procurement but requires careful management of the base contract and individual task orders to ensure overall value and compliance.

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: 3

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: $22,706,378

Exercised Options: $22,706,378

Current Obligation: $22,706,378

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $10,427,180

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