VA Awards $2.48M for Medical Coding Services to Sierra7, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $2,483,371 ($2.5M)

Contractor: Sierra7, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-19

End Date: 2026-05-18

Contract Duration: 364 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MEDICAL CODING SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to SIERRA7, INC. for work described as: MEDICAL CODING SERVICES Key points: 1. Contract value of $2.48 million for medical coding services. 2. Awarded to Sierra7, Inc. through full and open competition. 3. Potential risk associated with custom computer programming services NAICS code. 4. Sector context: IT services within the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract value of $2.48 million appears reasonable for specialized medical coding services. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) would provide a more definitive assessment of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The use of full and open competition is expected to yield fair market value, maximizing taxpayer benefit for the services procured.

Public Impact

Ensures critical medical coding services for veterans' health records. Supports the Department of Veterans Affairs' operational efficiency. Potential for improved healthcare data accuracy and accessibility.

Waste & Efficiency Indicators

Waste Risk Score: 68 / 10

Warning Flags

NAICS code 541511 (Custom Computer Programming Services) may not perfectly align with pure medical coding, potentially leading to scope creep or misinterpretation of services.
Contract duration of 364 days with a single delivery order could limit long-term planning and continuity for critical services.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps control costs and provides budget certainty.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming, supporting the Department of Veterans Affairs' healthcare operations. Spending benchmarks for similar IT services contracts within federal agencies can vary widely based on complexity and scope.

Small Business Impact

The contract was awarded under full and open competition, and there is no indication that small businesses were specifically targeted or excluded. Further analysis would be needed to determine the extent of small business participation in the bidding process.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure performance and accountability.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential misalignment between service description and NAICS code.
Short contract duration (364 days) may impact service continuity.
Reliance on a single delivery order for a year-long service period.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to SIERRA7, INC.. MEDICAL CODING SERVICES

Who is the contractor on this award?

The obligated recipient is SIERRA7, INC..

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 $2.5 million.

What is the period of performance?

Start: 2025-05-19. End: 2026-05-18.

What is the specific breakdown of services included under 'Medical Coding Services' and how do they align with the 'Custom Computer Programming Services' NAICS code?

The specific breakdown of services is crucial to ensure alignment with the chosen NAICS code. Medical coding typically involves assigning standardized codes to diagnoses and procedures, while custom computer programming focuses on software development. If the contract includes significant software development related to coding, the NAICS code is appropriate. However, if it's purely manual or automated coding without custom software creation, a different NAICS code might be more precise, potentially impacting pricing benchmarks and vendor qualifications.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured to ensure effective service delivery?

Key performance indicators are essential for measuring the effectiveness of medical coding services. These might include accuracy rates (e.g., percentage of correctly coded claims), turnaround times for coding requests, compliance with coding standards (e.g., ICD-10, CPT), and reduction in claim denials due to coding errors. The VA's contract management team should have established metrics and regular reviews to monitor Sierra7, Inc.'s performance against these KPIs, ensuring the services meet the required quality and timeliness.

Given the firm-fixed-price structure, what mechanisms are in place to manage potential cost overruns or scope changes if unforeseen complexities arise in medical coding?

A firm-fixed-price contract aims to cap costs, but mechanisms for managing unforeseen complexities are still necessary. This typically involves a clear change order process defined in the contract. If significant scope changes or unforeseen issues arise that genuinely impact the cost or timeline, a formal modification to the contract would be required, subject to negotiation and approval. The government would need to carefully evaluate the necessity and cost implications of any proposed changes to maintain cost control.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR STE 930, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,489,804

Exercised Options: $2,483,371

Current Obligation: $2,483,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F235BA

IDV Type: FSS

Timeline