VA awards $31.1M contract for EHR modernization integration support to Accenture Federal Services

Contract Overview

Contract Amount: $31,131,793 ($31.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-17

End Date: 2027-05-16

Contract Duration: 545 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: VA ELECTRONIC HEALTH RECORD MODERNIZATION SYSTEM INTEGRATION SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: VA ELECTRONIC HEALTH RECORD MODERNIZATION SYSTEM INTEGRATION SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 545 days indicates a medium-term engagement for system integration. 3. Accenture Federal Services, a large established contractor, is tasked with critical IT support. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. This award is part of the broader VA Electronic Health Record modernization effort, a program with significant visibility and scrutiny. 6. The value of this specific award is a fraction of the total EHR modernization program budget, highlighting the phased approach. 7. The geographic location of the awardee's primary operations in Virginia may imply a concentration of work in that region.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed scope and deliverables. However, the $31.1 million award over approximately 1.5 years for system integration support within a large-scale IT modernization program appears within a reasonable range for specialized services. The Time and Materials pricing model, while flexible, necessitates robust oversight to ensure cost-effectiveness and prevent scope creep. Comparing this to similar integration support contracts within large federal IT projects would provide a clearer picture of value for money, but such data is not readily available.

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 offers. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing value and innovation, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open solicitation. This process aims to ensure the government receives the best value by allowing multiple qualified contractors to vie for the work, driving down costs through market forces.

Public Impact

Veterans will benefit from improved electronic health record systems through enhanced integration support. The Department of Veterans Affairs (VA) will receive critical IT services to advance its modernization goals. The primary geographic impact is likely within the VA's operational footprint, potentially nationwide. The contract supports IT professionals and potentially other roles involved in system integration and modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type poses a risk of cost overruns if not closely monitored.
The complexity of EHR modernization projects inherently carries execution risks.
Dependence on a single contractor for critical integration support could create vendor lock-in risks.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Accenture Federal Services is an experienced contractor with a track record in large IT projects.
The contract is part of a larger, strategic VA initiative aimed at improving veteran healthcare.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. The IT sector is characterized by rapid innovation, complex project management, and significant government spending. The market size for federal IT services is substantial, with agencies continually investing in modernization, cybersecurity, and data management. This contract specifically addresses the integration challenges inherent in large-scale IT system overhauls, such as the VA's EHR modernization, which is a high-priority, multi-billion dollar program.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors for specialized services, which would indirectly benefit the small business sector.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

VA Electronic Health Record (EHR) Modernization Program
Federal Health IT Services
IT System Integration Services
Department of Veterans Affairs IT Contracts
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Complexity of EHR modernization program introduces execution risks.
Need for robust oversight to ensure value for money with T&M pricing.
Dependence on contractor performance for successful integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.1 million to ACCENTURE FEDERAL SERVICES LLC. VA ELECTRONIC HEALTH RECORD MODERNIZATION SYSTEM INTEGRATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES 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 $31.1 million.

What is the period of performance?

Start: 2025-11-17. End: 2027-05-16.

What is Accenture Federal Services' track record with the VA, particularly on large IT modernization projects?

Accenture Federal Services has a significant history of working with the Department of Veterans Affairs (VA) and other federal agencies on large-scale IT initiatives. They have been involved in various aspects of the VA's IT infrastructure and modernization efforts. While specific details on their performance on the EHR modernization program prior to this award are not provided, their extensive experience in system integration, cloud migration, and digital transformation for government clients suggests a capacity to handle complex projects. However, like many large contractors, their performance history may include both successes and challenges, necessitating ongoing monitoring of their execution on this specific contract to ensure alignment with VA objectives and taxpayer value.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT integration services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, offering flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the actual labor hours and materials used. For IT integration services, where requirements can change rapidly, T&M can be advantageous. The key risk is ensuring diligent oversight, including labor hour limitations and detailed reporting, to prevent inefficiencies and uncontrolled cost escalation. Benchmarking against similar T&M contracts for IT integration would reveal if the proposed rates are competitive and if the estimated ceiling is appropriate for the anticipated work.

What are the primary risks associated with the VA's Electronic Health Record (EHR) modernization program, and how does this contract mitigate them?

The VA's EHR modernization program faces significant risks, including technical complexity, user adoption challenges, interoperability issues, and potential cost overruns. This specific contract for integration support aims to mitigate risks related to ensuring different IT systems communicate effectively and that the new EHR is seamlessly integrated into the VA's existing infrastructure. By engaging a contractor like Accenture Federal Services, the VA seeks to leverage specialized expertise in system integration to navigate these technical hurdles. However, the success of this mitigation depends heavily on the contractor's performance, the clarity of integration requirements, and the VA's own program management and oversight capabilities.

What is the historical spending trend for IT system integration services at the VA, and how does this award fit within that pattern?

The VA has historically allocated substantial funding towards IT modernization and system integration services, reflecting the complexity of managing a large, nationwide healthcare IT infrastructure. Spending in this category often fluctuates based on the lifecycle of major programs, such as the EHR modernization. This $31.1 million award for integration support appears to be a component of the ongoing, larger EHR modernization effort. Without access to detailed historical VA IT spending data broken down by service type and program, it's difficult to definitively state how this award fits a precise pattern. However, it aligns with the expectation of significant investment in specialized IT services required to implement and integrate a new core healthcare system.

How does the competition level (3 bidders) for this delivery order impact the potential value for money compared to contracts with more bidders?

A competition level of three bidders for this delivery order suggests a moderate degree of competition. While full and open competition theoretically allows for the maximum number of potential bidders, the actual number participating can vary based on the specific requirements, complexity, and perceived profitability of the task. Three bidders generally provide a reasonable basis for price discovery and comparison, increasing the likelihood of achieving fair market value. However, if the task were more standardized or less complex, a higher number of bidders might be expected, potentially leading to even more aggressive pricing. Conversely, for highly specialized services, three qualified bidders could represent a robust competitive landscape.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $439,275,829

Exercised Options: $111,688,705

Current Obligation: $31,131,793

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $670,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline