VA awards $5.7M follow-on task order for healthcare transformation consulting to APTIVE HTG LLC

Contract Overview

Contract Amount: $5,724,042 ($5.7M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-03

End Date: 2024-09-30

Contract Duration: 455 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT FOLLOW-ON TASK ORDER

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22301

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.7 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT FOLLOW-ON TASK ORDER Key points: 1. Contract provides administrative and management consulting services to support the VHA Integrated Healthcare Transformation (IHT) program. 2. The task order is a follow-on to previous work, suggesting a need for continued expertise in healthcare transformation. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Awarded under full and open competition after exclusion of sources, indicating a competitive process with specific justifications. 5. The duration of 455 days suggests a focused scope of work for the specified period. 6. The contract value is relatively modest for a federal IT/Consulting service, but its impact on healthcare transformation is key.

Value Assessment

Rating: good

The contract value of $5.7 million for administrative and management consulting services appears reasonable for a task order supporting a significant program like VHA Integrated Healthcare Transformation. Benchmarking against similar consulting contracts within the Department of Veterans Affairs or other large federal agencies for program transformation support would provide a clearer picture of value. The firm fixed-price structure is generally favorable for cost control, assuming the scope is well-defined. Without specific comparable task order data, a definitive value-for-money assessment is challenging, but the follow-on nature suggests the prior work was satisfactory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded based on predefined criteria or justifications. The exact reasons for exclusion are not detailed here, but it suggests a more targeted competition than a purely open solicitation. The number of bidders is not specified, making it difficult to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: The 'limited' competition, even if justified, may mean taxpayers did not benefit from the widest possible pool of potential offerors, potentially impacting price competitiveness.

Public Impact

Veterans will benefit from improved healthcare delivery and administrative processes through the VHA Integrated Healthcare Transformation program. The contract supports the modernization and efficiency of healthcare services within the Veterans Health Administration. The geographic impact is national, as the VHA serves veterans across the United States. The contract likely involves a team of consultants, impacting the professional workforce in the administrative and healthcare consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'transformation' objectives are not tightly managed.
Reliance on a single contractor for critical transformation support could pose a risk if performance falters.
The 'exclusion of sources' in the competition method warrants further investigation to ensure fairness and optimal value.

Positive Signals

Follow-on nature suggests contractor performance has been satisfactory in previous engagements.
Firm Fixed Price contract structure aligns incentives for contractor efficiency and cost control.
Focus on healthcare transformation addresses a critical need within the VA system.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting, with a focus on healthcare. The federal government is a significant consumer of these services, particularly within large agencies like the Department of Veterans Affairs, which manages complex healthcare systems. The market for healthcare consulting is substantial, driven by ongoing needs for efficiency, modernization, and regulatory compliance. This task order represents a small but important component of the VA's broader strategy to improve healthcare delivery.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, APTIVE HTG LLC, is likely a mid-to-large-sized firm capable of handling this scope of work independently or with its own established partners.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Veterans Affairs program management office responsible for the Integrated Healthcare Transformation initiative. Accountability measures would be defined in the contract's statement of work, including performance metrics and deliverable requirements. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VHA Integrated Healthcare Transformation (IHT)
Department of Veterans Affairs Consulting Services
Federal Healthcare Modernization Programs
Administrative Management Consulting Contracts

Risk Flags

Limited competition method warrants scrutiny.
Potential for scope creep in transformation initiatives.
Dependence on contractor performance for critical program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.7 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT FOLLOW-ON 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 $5.7 million.

What is the period of performance?

Start: 2023-07-03. End: 2024-09-30.

What is the track record of APTIVE HTG LLC with the Department of Veterans Affairs, particularly on similar transformation projects?

APTIVE HTG LLC has a history of receiving contracts from the Department of Veterans Affairs. While this specific data does not detail their entire VA portfolio, the fact that this is a 'follow-on task order' suggests a prior successful engagement or a continuing need for their services on the VHA Integrated Healthcare Transformation (IHT) program. To fully assess their track record, a deeper dive into their past performance ratings, previous contract values, and the specific outcomes of their work with the VA on similar initiatives would be necessary. Examining past performance reviews and any documented successes or challenges would provide crucial context for their capabilities in healthcare transformation.

How does the $5.7 million value of this task order compare to other federal contracts for healthcare transformation consulting?

The $5.7 million value for this task order is within a common range for federal consulting services, particularly for specific task orders under larger IDIQ vehicles. However, 'healthcare transformation' can encompass a wide array of services, from IT system overhauls to process re-engineering and strategic planning. Compared to massive IT system implementation contracts, $5.7 million might seem modest. Conversely, for a focused, time-bound consulting engagement aimed at specific transformation goals, it can represent significant investment. Benchmarking requires comparing it to contracts with similar scope, duration, and specific objectives within the VA or other federal health agencies. Without more granular detail on the 'transformation' scope, a precise comparison is difficult, but it's not an unusually large or small figure in the federal consulting landscape.

What are the primary risks associated with this contract, given its nature as a follow-on task order for transformation?

Key risks include scope creep, where the objectives of the 'transformation' may expand beyond the initial intent, leading to cost overruns or schedule delays, despite the firm fixed-price structure. Another risk is the potential for contractor performance issues; while it's a follow-on, past satisfactory performance doesn't guarantee future success. Over-reliance on a single contractor for critical transformation efforts can also be a risk if their expertise or capacity becomes a bottleneck. Furthermore, the 'limited' competition method, even if justified, carries a risk that the VA may not have secured the absolute best value or most innovative solutions available in the market. Finally, ensuring the transformation efforts translate into tangible, measurable improvements for veteran healthcare is an inherent program risk.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply about the competition level and potential value for taxpayers?

This procurement method suggests a deliberate decision to limit the pool of potential bidders, even within a framework that started as 'full and open.' Reasons for excluding sources could include specific technical requirements, past performance issues with certain contractors, or strategic sourcing decisions. While it aims to ensure qualified bidders participate, it inherently reduces the breadth of competition compared to a truly unrestricted solicitation. For taxpayers, this means there's a potential risk that the government might not have received the lowest possible price or the most innovative solution that a wider field of competitors could have offered. The justification for excluding sources is critical to understanding whether this limitation was necessary and served the government's best interests.

How does this contract align with the Department of Veterans Affairs' broader strategic goals for healthcare modernization?

This contract directly aligns with the VA's overarching strategic goals to modernize and improve the efficiency and effectiveness of healthcare delivery to veterans. The 'VHA Integrated Healthcare Transformation (IHT)' program itself signifies a commitment to systemic improvements. Consulting services like those provided by APTIVE HTG LLC are essential for analyzing current processes, identifying areas for enhancement, developing strategic roadmaps, and potentially overseeing the implementation of new technologies or operational models. By engaging external expertise, the VA seeks to accelerate its transformation efforts, ensuring that veterans receive timely, high-quality, and coordinated care, which is a core mission objective.

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: 1

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: $5,724,042

Exercised Options: $5,724,042

Current Obligation: $5,724,042

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $5,246,333

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