VA awards $2.09M contract for EHRM CM services to Tesla Laboratories Inc

Contract Overview

Contract Amount: $208,852 ($208.9K)

Contractor: Tesla Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-18

End Date: 2025-09-17

Contract Duration: 730 days

Daily Burn Rate: $286/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SHERIDAN EHRM CM SERVICES

Place of Performance

Location: SHERIDAN, SHERIDAN County, WYOMING, 82801

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $208,851.52 to TESLA LABORATORIES INC. for work described as: SHERIDAN EHRM CM SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is 730 days, indicating a medium-term service requirement. 3. The fixed-price contract type aims to control costs for the government. 4. The award is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract is managed by the Department of Veterans Affairs. 7. The contractor, Tesla Laboratories Inc., is based in Wyoming.

Value Assessment

Rating: fair

The contract value of $2.09 million over two years for EHRM CM services appears to be within a reasonable range for specialized engineering support. Benchmarking against similar contracts is difficult without more specific service details and market data. However, the firm fixed-price structure suggests an effort to establish a predictable cost for the government. Further analysis would require comparing the specific deliverables and required expertise against industry standards and other VA contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The primary beneficiary of this contract is the Department of Veterans Affairs, which will receive engineering services related to Electronic Health Record Management (EHRM) Clinical Management (CM). The services delivered will support the VA's critical mission of providing healthcare to veterans. The geographic impact is primarily within the operational scope of the VA, potentially nationwide depending on the EHRM system's reach. The contract supports specialized engineering roles, contributing to the technical workforce within the IT and healthcare sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on Tesla Laboratories Inc.'s specific experience with EHRM CM services.
The contract is a delivery order, which may indicate it's part of a larger, potentially less scrutinized, IDIQ vehicle.
The specific nature of 'CM services' within EHRM could encompass a wide range of technical complexities not fully detailed.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
Firm fixed-price contract type helps manage cost certainty for the government.
The contractor is a US-based company operating within the specified industry.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the implementation and management of complex healthcare IT systems like Electronic Health Records. The market for such services is substantial, driven by ongoing digital transformation efforts in both government and private healthcare. The VA's significant investment in its EHRM system makes this a key area for specialized engineering and IT support. Comparable spending benchmarks would typically be found within IT services contracts for large federal agencies undertaking major system modernizations.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary contractor is not a small business, and there are no explicit requirements for subcontracting to small businesses mandated by this specific award. The impact on the small business ecosystem is neutral, as it was competed broadly, but it does not directly create opportunities for small business set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization
Federal Electronic Health Record Programs
Department of Veterans Affairs IT Services
Engineering and Technical Services Contracts

Risk Flags

Potential for performance issues if contractor lacks specialized EHRM CM expertise.
Risk of scope creep or unforeseen technical challenges impacting fixed-price contract.
Limited public information on contractor's specific experience in this niche.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $208,851.52 to TESLA LABORATORIES INC.. SHERIDAN EHRM CM SERVICES

Who is the contractor on this award?

The obligated recipient is TESLA LABORATORIES 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 $208,851.52.

What is the period of performance?

Start: 2023-09-18. End: 2025-09-17.

What is Tesla Laboratories Inc.'s specific track record with EHRM CM services for the VA or similar agencies?

Publicly available data on Tesla Laboratories Inc. indicates their primary NAICS code is 541330 (Engineering Services). While they are listed as a contractor for the Department of Veterans Affairs, specific details regarding their experience with Electronic Health Record Management Clinical Management (EHRM CM) services are not readily available in the provided data. Further investigation into their past performance reports, contract vehicles, and specific project descriptions would be necessary to fully assess their track record in this specialized area. Without this granular information, it's difficult to definitively gauge their expertise and past success in delivering similar EHRM CM solutions.

How does the $2.09 million contract value compare to similar EHRM CM service contracts awarded by the VA or other federal agencies?

Benchmarking the $2.09 million contract value for EHRM CM services requires comparing it against contracts with similar scope, duration, and complexity. Given the limited information on the specific 'CM services' within EHRM, a direct comparison is challenging. However, for large-scale IT system management and engineering support within federal healthcare, contract values can range from hundreds of thousands to tens of millions of dollars annually, depending on the breadth of services and the criticality of the system. The VA's EHRM initiative is a massive undertaking, and this contract's value appears moderate for specialized support over two years. A more precise comparison would necessitate analyzing the detailed statement of work and comparing it to other VA IT service contracts or similar health IT procurements across agencies like DoD or HHS.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential performance issues if Tesla Laboratories Inc. lacks deep expertise in EHRM CM, scope creep leading to cost overruns (though mitigated by fixed-price), and integration challenges with existing VA systems. Mitigation strategies likely involve robust oversight from the VA contracting officer and technical representatives, clear performance metrics defined in the contract, and regular progress reviews. The firm fixed-price nature itself is a risk mitigation tool against uncontrolled cost growth. Furthermore, the use of full and open competition with multiple bidders suggests a selection process that aimed to identify a capable contractor, thereby reducing performance risk.

How effective is the firm fixed-price contract type in ensuring value for money for this EHRM CM service?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For EHRM CM services, FFP incentivizes the contractor to perform efficiently and control costs, as any overruns are absorbed by Tesla Laboratories Inc. This shifts the cost risk from the government to the contractor. The VA benefits from cost certainty, making budgeting more predictable. However, if the scope is poorly defined or unforeseen technical challenges arise, an FFP contract could potentially limit flexibility or lead to the contractor cutting corners if not adequately monitored. Effective oversight is crucial to ensure the defined scope is met with quality.

What are the historical spending patterns for EHRM CM services by the Department of Veterans Affairs?

Historical spending patterns for EHRM CM services by the VA are likely substantial and have been increasing as the department invests heavily in its Electronic Health Record Modernization (EHRM) program. This program, aimed at replacing the legacy VistA system with a new commercial off-the-shelf (COTS) EHR, involves significant expenditure on software, hardware, implementation, training, and ongoing support services. Contracts for EHRM CM services would fall under this broader investment. While specific historical figures for 'CM services' alone are not provided, the overall EHRM initiative has been a multi-billion dollar effort over many years, indicating a consistent and significant allocation of resources towards managing and optimizing these complex systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

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: 2711 RICHMOND HWY STE 200, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $208,852

Exercised Options: $208,852

Current Obligation: $208,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0208S

IDV Type: FSS

Timeline