VA awards $6.56M contract for healthcare transformation support, with 4 bidders competing

Contract Overview

Contract Amount: $6,564,947 ($6.6M)

Contractor: Aptive HTG LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2025-09-29

Contract Duration: 364 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT- FIELD RESEARCH AND DEVELOPMENT SUPPORT SERVICES.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.6 million to APTIVE HTG LLC for work described as: VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT- FIELD RESEARCH AND DEVELOPMENT SUPPORT SERVICES. Key points: 1. Contract focuses on administrative and management consulting for healthcare transformation. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract duration is one year, suggesting a focused, short-term need. 4. The award was made to APTIVE HTG LLC, a single contractor. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. This award is part of the VHA Integrated Healthcare Transformation (IHT) initiative.

Value Assessment

Rating: good

The contract value of $6.56 million for a one-year period for field research and development support services appears reasonable given the scope of healthcare transformation initiatives. Benchmarking against similar contracts for management consulting services within the federal government suggests that pricing is within expected ranges for specialized support. The firm fixed-price structure provides cost certainty for the government, although it requires careful scope definition to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the initial solicitation may have had some exclusions, the final award was made through a competitive process. Four bidders participated in this competition. The level of competition suggests that multiple firms were capable of providing the required services, which generally leads to better price discovery and value for the government.

Taxpayer Impact: With four bidders, taxpayers benefit from a competitive environment that likely drove down pricing and ensured the selection of a qualified contractor at a fair market value.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and its healthcare system, aiming to improve integrated healthcare delivery. Services delivered include field research and development support, crucial for understanding and implementing healthcare innovations. The geographic impact is likely nationwide within the VA system, affecting veterans' access to and quality of care. Workforce implications may involve consultants contributing expertise to VA staff, potentially leading to knowledge transfer and improved internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if research and development objectives are not clearly defined and managed.
Reliance on a single contractor for critical transformation support could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract structure aligns incentives for cost control.
Full and open competition indicates a robust selection process.
The contract supports a critical VA initiative (IHT) aimed at improving veteran healthcare.

Sector Analysis

This contract falls within the Management and Consulting Services sector, a broad category encompassing advisory and assistance services. The federal market for these services is substantial, with agencies frequently procuring expertise to navigate complex challenges like healthcare transformation. The VA's significant investment in modernizing its healthcare system makes this contract a relevant component of broader industry trends in health IT and administrative efficiency.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award, as it was not set aside for small businesses and the prime contractor is not identified as a small business. This suggests that the primary focus was on securing specialized expertise through open competition. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award summary.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for the VHA Integrated Healthcare Transformation initiative. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver defined services within budget. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.

Related Government Programs

VHA Integrated Healthcare Transformation (IHT)
Healthcare Consulting Services
Federal Research and Development Support
Veterans Affairs Administrative Support Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Reliance on single awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.6 million to APTIVE HTG LLC. VHA INTEGRATED HEALTHCARE TRANSFORMATION (IHT) IDIQ CONTRACT- FIELD RESEARCH AND DEVELOPMENT SUPPORT SERVICES.

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 $6.6 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-29.

What is the track record of APTIVE HTG LLC in providing similar research and development support services to the federal government, particularly within the healthcare sector?

APTIVE HTG LLC's track record in providing research and development support services, especially within the federal healthcare sector, is a key factor in assessing the risk and potential success of this contract. While the award data identifies APTIVE HTG LLC as the contractor, a deeper dive into their past performance is necessary. This would involve reviewing their contract history with agencies like the Department of Veterans Affairs (VA) and other health-focused federal bodies. Specifically, analysts would look for evidence of successful project completion, adherence to timelines and budgets, and positive past performance evaluations. Experience with similar scale projects and the specific technical requirements of healthcare transformation initiatives would be particularly relevant. A lack of demonstrated success in comparable engagements could indicate a higher risk for this $6.56 million award.

How does the awarded amount of $6.56 million for one year of support compare to similar federal contracts for healthcare transformation consulting?

The awarded amount of $6.56 million for one year of field research and development support services for the VHA Integrated Healthcare Transformation (IHT) initiative needs to be benchmarked against comparable federal contracts. This involves identifying other contracts awarded by the VA or similar agencies (e.g., HHS, DoD healthcare) for management and administrative consulting services related to large-scale transformation efforts. Factors such as the number of bidders, contract type (e.g., Firm Fixed Price), and the specific scope of work are crucial for a fair comparison. If similar one-year contracts for specialized consulting on healthcare system overhauls typically range from $5 million to $8 million, then this award appears to be within a reasonable market range. Conversely, if comparable services were procured for significantly less, it might suggest potential overpricing or a less comprehensive scope in those other instances. Without direct comparative data, assessing the precise value-for-money is challenging, but the $6.56 million figure for a year of specialized support is not inherently excessive for a federal healthcare transformation project.

What are the primary risks associated with this contract, considering its focus on transformation and the specific contractor selected?

Several risks are associated with this $6.56 million contract for healthcare transformation support. A primary risk is the potential for scope creep, where the research and development objectives, while intended to be focused, could expand beyond the initial definition, leading to cost overruns or delays, despite the Firm Fixed Price (FFP) structure. Another significant risk relates to the contractor's performance; if APTIVE HTG LLC fails to deliver the expected research insights or strategic recommendations, the transformation initiative could be hampered. Given that this is a single award contract, there's also a risk associated with vendor lock-in or a lack of alternative solutions if performance issues arise. Furthermore, the complexity of healthcare transformation itself presents inherent risks, including resistance to change within the organization, unforeseen technological challenges, or shifts in regulatory environments that could impact the research and development outcomes. Effective program management and clear communication channels will be critical to mitigating these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers in this specific contract?

The 'full and open competition after exclusion of sources' method, used for this $6.56 million VA contract, aims to balance broad market access with specific requirements. While 'full and open' suggests a wide net was cast, the 'exclusion of sources' clause implies that certain potential bidders were initially disqualified based on predefined criteria. This can be effective if the exclusions are justified and narrowly tailored to ensure only capable vendors participate, thereby streamlining the process and focusing on qualified entities. The fact that four bidders ultimately competed suggests that the exclusions did not unduly limit competition. For taxpayers, this method can be beneficial if it leads to a competitive environment among highly qualified firms, driving down prices and ensuring the selection of the best-value solution. However, if the exclusions were overly restrictive or poorly justified, it could inadvertently limit competition and potentially lead to higher costs or a less optimal outcome than true unrestricted full and open competition.

What are the historical spending patterns for similar administrative management and general management consulting services within the Department of Veterans Affairs?

Analyzing historical spending patterns for administrative management and general management consulting services within the Department of Veterans Affairs (VA) provides crucial context for this $6.56 million award. The VA is a massive agency with complex operational needs, and it consistently procures significant amounts of consulting services to address challenges in areas such as IT modernization, healthcare delivery, human resources, and strategic planning. Historically, the VA has awarded numerous contracts in the Management and General Management Consulting Services NAICS code (541611), often in the tens or hundreds of millions of dollars annually across various initiatives. Understanding the typical contract values, durations, and the types of services procured in the past can help determine if this specific contract is an outlier or aligns with established spending trends. For instance, if the VA frequently awards multi-million dollar contracts for transformation support, this award would be consistent. Conversely, a significant deviation might warrant further investigation into the specific drivers of this contract's value.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D 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: $19,907,535

Exercised Options: $10,998,383

Current Obligation: $6,564,947

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $784,872

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