VA's $35.8M Medical Appointment Scheduling Solution contract awarded to Leidos SMS Inc. shows mixed value and competition

Contract Overview

Contract Amount: $35,844,994 ($35.8M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-06-15

End Date: 2021-03-08

Contract Duration: 1,362 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - THIS IS AN ID/IQ CONTRACT FOR THE MEDICAL APPOINTMENT SCHEDULING SOLUTION PROGRAM, KNOWN AS MASS, VA118-15-D-0129. PILOT SITE TASK ORDER

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.8 million to LEIDOS SMS INC for work described as: IGF::OT::IGF - THIS IS AN ID/IQ CONTRACT FOR THE MEDICAL APPOINTMENT SCHEDULING SOLUTION PROGRAM, KNOWN AS MASS, VA118-15-D-0129. PILOT SITE TASK ORDER Key points: 1. The contract's value for money appears fair, with a per-unit cost benchmark that is not explicitly detailed but implied to be within a reasonable range given the service type. 2. Competition dynamics indicate a full and open process, suggesting a healthy market response, though the specific number of bidders is not provided. 3. Risk indicators are moderate, with a long performance period and a firm-fixed-price contract type mitigating some financial risks. 4. Performance context shows a delivery order under an IDIQ, indicating a phased approach to a larger program. 5. Sector positioning places this contract within IT services, specifically computer systems design, a common area for federal IT procurement.

Value Assessment

Rating: fair

The total award amount of $35.8 million over a period of approximately 3.7 years suggests a significant investment in IT services for the VA. Benchmarking against similar IT service contracts for scheduling systems is difficult without more granular data on specific features and user numbers. However, the firm-fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, which typically implies that all responsible sources were permitted to submit offers. This approach is generally favored for maximizing competition and achieving the best possible pricing and quality. The specific number of bids received is not detailed, but the designation suggests a robust bidding environment.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it encourages multiple vendors to compete, driving down prices and fostering innovation, ultimately leading to more efficient use of public funds.

Public Impact

Veterans benefit from improved access to medical appointments through a modernized scheduling system. The contract delivers computer systems design services to enhance the VA's IT infrastructure. The primary geographic impact is within the VA healthcare system, potentially affecting facilities nationwide where the MASS program is implemented. Workforce implications include potential needs for IT support and training related to the new scheduling solution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 3 years) could lead to scope creep or evolving technological needs not fully captured in the initial award.
Lack of specific performance metrics or outcome data makes it difficult to fully assess the effectiveness and efficiency of the implemented solution.
The IDIQ structure, while flexible, can sometimes lead to less predictable spending patterns if not managed carefully.

Positive Signals

The use of a firm-fixed-price contract type provides cost control and predictability for the government.
Awarding under full and open competition suggests a commitment to leveraging market competition for best value.
The contract addresses a critical need for improving veteran healthcare access through technology.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design. The federal IT market is substantial, with agencies consistently investing in modernizing systems to improve service delivery and operational efficiency. Comparable spending benchmarks for similar large-scale IT system development and integration projects within government can range widely, but this award appears to be a significant investment for a specialized solution.

Small Business Impact

The data indicates that 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 prime contractor, Leidos SMS Inc., is a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under an IDIQ, the initial contract vehicle likely underwent significant review. Specific oversight mechanisms would include regular performance reviews, financial audits, and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA Medical Appointment Scheduling Systems
Federal IT Services Procurement
IDIQ Contract Vehicles
Computer Systems Design Services

Risk Flags

Potential for scope creep due to long contract duration.
Lack of detailed performance metrics in award data.
IDIQ structure requires careful task order management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.8 million to LEIDOS SMS INC. IGF::OT::IGF - THIS IS AN ID/IQ CONTRACT FOR THE MEDICAL APPOINTMENT SCHEDULING SOLUTION PROGRAM, KNOWN AS MASS, VA118-15-D-0129. PILOT SITE TASK ORDER

Who is the contractor on this award?

The obligated recipient is LEIDOS SMS 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 $35.8 million.

What is the period of performance?

Start: 2017-06-15. End: 2021-03-08.

What is the track record of Leidos SMS Inc. in delivering similar IT solutions for federal agencies, particularly within the healthcare sector?

Leidos SMS Inc., as part of the larger Leidos enterprise, has a substantial track record in providing IT services and solutions to various federal agencies, including the Department of Veterans Affairs. Their experience often spans areas like health IT, data analytics, and systems integration. For the VA specifically, Leidos has been involved in numerous projects aimed at modernizing healthcare systems, improving data management, and enhancing patient care delivery. While specific details on past performance for the MASS program are not provided in this data snippet, Leidos's general profile suggests they possess the capabilities to handle complex IT projects. A deeper dive into past performance evaluations and contract close-outs for similar VA IT contracts would offer more precise insights into their reliability and effectiveness in delivering comparable solutions.

How does the total award amount of $35.8 million compare to other federal contracts for medical appointment scheduling systems?

Comparing the $35.8 million award for the VA's Medical Appointment Scheduling Solution (MASS) program requires context regarding the scope, duration, and complexity of the system. Federal contracts for IT solutions, especially those involving large-scale system development, integration, and deployment across a major agency like the VA, can vary significantly. Smaller, off-the-shelf scheduling software licenses might cost hundreds of thousands or a few million dollars. However, custom-developed, enterprise-wide solutions like MASS, which likely involve significant integration with existing VA health IT infrastructure (like EHR systems), can easily reach tens of millions of dollars over their lifecycle. Without specific details on the number of users, facilities supported, and the full suite of functionalities, a direct comparison is challenging. However, for a comprehensive, agency-wide system, $35.8 million over approximately 3.7 years appears to be within a plausible range for such a critical IT undertaking.

What are the primary risks associated with a firm-fixed-price delivery order under an IDIQ for a system like MASS?

The primary risks associated with a firm-fixed-price (FFP) delivery order under an IDIQ for a system like MASS primarily revolve around scope definition and potential for change orders. For the government, the risk is that the FFP might not adequately account for unforeseen technical challenges or evolving requirements that emerge during development and implementation. If the scope is not precisely defined upfront, the contractor might be incentivized to deliver the minimum required, or significant change requests could lead to costly modifications. For the contractor (Leidos SMS Inc.), the risk is that they underestimate the effort or encounter unexpected technical hurdles, potentially eroding their profit margin. The IDIQ structure itself introduces a risk of less predictable spending if task orders are not strategically managed. However, FFP contracts are generally favored for their cost certainty for the government.

How effective has the MASS program been in improving veteran access to healthcare appointments based on available performance data?

The provided data snippet focuses on the contract award details and does not include specific performance metrics or outcome data for the MASS program. Therefore, it is not possible to assess the program's effectiveness in improving veteran access to healthcare appointments based solely on this information. To evaluate effectiveness, one would need access to post-award performance reports, user satisfaction surveys, data on appointment wait times, scheduling efficiency metrics, and potentially Inspector General reports related to the program's implementation and impact. Such data would typically be found in internal VA performance reviews, public reports on VA IT initiatives, or congressional oversight documents.

What has been the historical spending pattern for medical appointment scheduling solutions at the VA prior to this contract?

The provided data focuses on a single contract award (VA118-15-D-0129) and does not offer historical spending patterns for medical appointment scheduling solutions at the VA. To understand historical spending, one would need to analyze procurement data for previous scheduling systems, maintenance contracts, and related IT services over several fiscal years. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts awarded by the VA related to 'appointment scheduling,' 'patient scheduling,' 'scheduling software,' and similar keywords. Analyzing these historical expenditures would reveal trends in investment, the types of solutions procured (e.g., commercial off-the-shelf vs. custom development), and the average costs associated with such systems over time.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 149 NORTHERN CONCOURSE, SYRACUSE, NY, 13212

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,566,077

Exercised Options: $35,844,994

Current Obligation: $35,844,994

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $9,899,301

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11815D0129

IDV Type: IDC

Timeline