VA awards $491M for InterSystems software to support EHR and VISTA platforms

Contract Overview

Contract Amount: $491,391,043 ($491.4M)

Contractor: ALL Points Logistics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-01

End Date: 2022-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $269.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF PURCHASE OF INTERSYSTEMS CACHE' AND HEALTHSHARE SOFTWARE IN SUPPORT OF VETERANS INFORMATION SYSTEM AND TECHNOLOGY ARCHITECTURE (VISTA) PLATFORM AS WELL AS VA'S ELECTRONIC HEALTH RECORD (EHR) DATABASE.

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $491.4 million to ALL POINTS LOGISTICS, LLC for work described as: IGF::OT::IGF PURCHASE OF INTERSYSTEMS CACHE' AND HEALTHSHARE SOFTWARE IN SUPPORT OF VETERANS INFORMATION SYSTEM AND TECHNOLOGY ARCHITECTURE (VISTA) PLATFORM AS WELL AS VA'S ELECTRONIC HEALTH RECORD (EHR) DATABASE. Key points: 1. Contract awarded to ALL POINTS LOGISTICS, LLC for critical health IT infrastructure. 2. Significant investment in maintaining and enhancing the Veterans Health Administration's electronic health record system. 3. The contract duration spans five years, indicating a long-term commitment to the chosen software solutions. 4. The award was made under full and open competition, suggesting a robust market for these services. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. This spending supports the modernization of veteran healthcare data management.

Value Assessment

Rating: good

The total award of $491.4 million over five years represents a substantial investment in critical healthcare IT infrastructure. Benchmarking this against similar large-scale software and support contracts within the federal government is challenging without more granular data on specific software modules and support levels. However, the firm-fixed-price structure suggests an attempt to control costs. The value proposition hinges on the continued reliability and enhancement of the VISTA and EHR platforms, which are central to veteran healthcare delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive process, though the specific number of bidders can influence price discovery. A higher number of bidders generally leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for essential IT services.

Public Impact

Veterans will benefit from improved stability and functionality of their electronic health records. The Department of Veterans Affairs (VA) will receive essential software and support for its core health IT systems. The contract's impact is national, supporting healthcare delivery to veterans across the United States. IT professionals and support staff in New Jersey and potentially other locations will be involved in the contract's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not considered in the future.
Reliance on a single vendor for critical software could pose risks if the vendor faces financial or operational challenges.

Positive Signals

The firm-fixed-price contract provides budget certainty.
Awarded under full and open competition, suggesting a competitive market.
Long-term contract duration indicates a stable partnership for critical infrastructure.

Sector Analysis

This contract falls within the Health Information Technology sector, a critical area for federal agencies, particularly the Department of Veterans Affairs. The market for Electronic Health Record (EHR) software and related support services is substantial, with significant government spending allocated annually. This award represents a portion of the VA's overall IT budget dedicated to maintaining and upgrading its complex healthcare systems, aiming to ensure interoperability and data integrity.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The primary contractor, ALL POINTS LOGISTICS, LLC, is not identified as a small business. Therefore, the direct impact on the small business ecosystem appears limited, though the prime contractor may engage small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this significant expenditure. Transparency is facilitated through contract award databases like FPDS, though detailed performance metrics may not be publicly available.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization Programs
Electronic Health Record (EHR) Modernization Efforts
VISTA Platform Support Contracts
Healthcare IT Infrastructure Investments

Risk Flags

Potential for cost overruns if scope expands beyond initial estimates.
Risk of performance degradation if support levels are insufficient.
Dependency on a single vendor for critical health IT infrastructure.
Challenges in achieving seamless interoperability with external systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $491.4 million to ALL POINTS LOGISTICS, LLC. IGF::OT::IGF PURCHASE OF INTERSYSTEMS CACHE' AND HEALTHSHARE SOFTWARE IN SUPPORT OF VETERANS INFORMATION SYSTEM AND TECHNOLOGY ARCHITECTURE (VISTA) PLATFORM AS WELL AS VA'S ELECTRONIC HEALTH RECORD (EHR) DATABASE.

Who is the contractor on this award?

The obligated recipient is ALL POINTS LOGISTICS, 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 $491.4 million.

What is the period of performance?

Start: 2017-10-01. End: 2022-09-30.

What is the track record of ALL POINTS LOGISTICS, LLC with the Department of Veterans Affairs?

ALL POINTS LOGISTICS, LLC has a history of receiving contracts from the Department of Veterans Affairs. While this specific award is substantial, the company has likely been involved in various IT and logistics support services for the VA. A deeper analysis would involve reviewing their past performance ratings, any past performance issues or awards, and the types of services they have previously provided to the VA. Understanding their experience with similar scale and complexity projects is crucial for assessing their capability to execute this contract successfully. Their presence in contract award databases would provide a clearer picture of their engagement history and performance trends with the agency.

How does the per-unit cost of InterSystems software and support compare to market rates or similar federal contracts?

Determining a precise per-unit cost benchmark for this contract is difficult without knowing the specific quantities and types of InterSystems software licenses and support services procured. The total award of $491.4 million over five years covers a broad scope. To assess value, one would need to break down the costs by software module, user licenses, maintenance tiers, and support hours. Comparing these granular costs to publicly available pricing from InterSystems or similar federal contracts for comparable software suites and support packages would be necessary. Given the firm-fixed-price nature, the VA has likely negotiated these rates, but external benchmarking is key to validating the value for money.

What are the primary risks associated with relying on InterSystems software for the VA's EHR and VISTA platforms?

Key risks include potential vendor lock-in, where the VA becomes heavily dependent on InterSystems, making future transitions to alternative systems costly and complex. There's also the risk of the software's technology becoming outdated if not continuously updated and supported effectively, potentially impacting performance or security. Operational risks involve the possibility of service disruptions or performance degradation if support is inadequate. Furthermore, if InterSystems faces financial instability or strategic shifts, it could impact the long-term availability and development of the software critical to VA operations. Ensuring robust service level agreements and contingency plans is vital to mitigate these risks.

How effective has the VA been in managing its large-scale IT contracts, particularly in healthcare?

The VA has a mixed record in managing large-scale IT contracts. Historically, the agency has faced significant challenges with IT modernization projects, including cost overruns, schedule delays, and performance issues, notably with the initial EHR modernization efforts. However, there have also been successes. The VISTA platform itself, despite its age, has been a foundational system. The VA has been implementing reforms and improving its acquisition and program management processes. The effectiveness of managing this specific InterSystems contract will depend on strong program oversight, clear performance metrics, and proactive risk management, building on lessons learned from past initiatives.

What is the historical spending trend for VISTA and EHR support at the VA?

Spending on VISTA and EHR support at the VA has been substantial and consistent over many years, reflecting the critical nature of these systems. Prior to the current EHR modernization initiatives, significant funds were allocated annually to maintain and enhance the VISTA platform. The transition to a new EHR system involves a different spending profile, often characterized by large upfront investments in software, implementation, and training, followed by ongoing maintenance and support costs. This $491 million award represents a significant portion of the VA's ongoing investment in its health IT infrastructure, likely encompassing both maintenance of existing systems and support for the evolving EHR environment.

What is the potential impact of this contract on the interoperability of veteran health data with other federal or private healthcare systems?

The effectiveness of this contract in improving interoperability hinges on the capabilities of the InterSystems software and the VA's implementation strategy. InterSystems' HealthShare platform is designed to facilitate data exchange and integration. If leveraged effectively, this contract could enhance the VA's ability to share veteran health data with other federal agencies (like DoD) and potentially private healthcare providers through standardized interfaces (e.g., FHIR). However, achieving true interoperability requires not only the right technology but also standardized data formats, robust security protocols, and collaborative agreements with external entities. The success of this contract in driving interoperability will depend on these broader factors.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: VA11817Q2500

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 190 S SYKES CREEK PKWY STE 4, MERRITT ISLAND, FL, 32952

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $560,638,524

Exercised Options: $491,391,043

Current Obligation: $491,391,043

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC25B

IDV Type: GWAC

Timeline