VA awards $30.3M for claims processing IT support, with 3 bidders competing

Contract Overview

Contract Amount: $30,301,803 ($30.3M)

Contractor: Amida Technology Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-08-19

End Date: 2023-10-18

Contract Duration: 1,155 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VBA STATION 101, OFFICE OF COMPENSATION SERVICES, MODERN CLAIMS PROCESSING (MCP) PROGRAM SUPPORT SERVICE PURCHASE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.3 million to AMIDA TECHNOLOGY SOLUTIONS, INC. for work described as: VBA STATION 101, OFFICE OF COMPENSATION SERVICES, MODERN CLAIMS PROCESSING (MCP) PROGRAM SUPPORT SERVICE PURCHASE. Key points: 1. Contract provides crucial IT support for the VA's Modern Claims Processing program. 2. Competition was robust with three bidders, suggesting potential for competitive pricing. 3. The contract duration of nearly three years indicates a significant, ongoing need. 4. Fixed-price contract type helps manage cost certainty for the government. 5. Performance is located in the District of Columbia, a key federal hub. 6. The award value aligns with typical IT support contracts of this scope.

Value Assessment

Rating: good

The contract value of $30.3 million over approximately three years for IT support services appears reasonable given the scope of supporting a critical program like the VA's Modern Claims Processing. Benchmarking against similar IT support contracts for large federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost control, and the presence of three bidders indicates a competitive environment that likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three distinct bidders vying for the opportunity. The presence of multiple bidders is a positive indicator of a healthy competitive landscape, suggesting that the solicitation was accessible to a broad range of qualified vendors. This level of competition generally leads to better price discovery and encourages vendors to offer their most competitive terms and solutions.

Taxpayer Impact: The full and open competition with three bidders suggests that taxpayer dollars were likely used efficiently, as the government benefited from multiple proposals and the resulting competitive pressure on pricing.

Public Impact

Veterans benefit from improved efficiency and accuracy in claims processing due to enhanced IT support. The contract delivers essential IT services, including custom computer programming, to the VA's Office of Compensation Services. Services are primarily delivered within the District of Columbia, supporting federal operations. The contract supports a segment of the IT services workforce, likely involving skilled programmers and technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Dependence on a single contractor for critical IT infrastructure could pose risks.
Scope creep could increase costs if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition ensures a broad vendor pool.
Contract duration allows for stable support of a critical program.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a vital component of the broader IT services industry. The market for such services is large and competitive, with numerous firms capable of supporting federal IT modernization efforts. The VA's investment in its Modern Claims Processing program reflects a broader trend across government agencies to leverage technology for improved service delivery and operational efficiency. Comparable spending benchmarks for IT support services at agencies like the VA often range in the tens to hundreds of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. The award went to Amida Technology Solutions, Inc., a company that may or may not be classified as a small business itself, but the procurement mechanism did not prioritize small business participation. This means the direct impact on the small business ecosystem through this specific award is likely minimal, though larger prime contractors often engage small businesses for subcontracting on subsequent projects.

Oversight & Accountability

Oversight for this contract is managed by the Department of Veterans Affairs, likely through contracting officers and program managers responsible for the Modern Claims Processing program. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified IT services. Transparency is facilitated by the contract's public availability through federal procurement databases. While specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues, the VA OIG typically oversees VA contracts for waste, fraud, and abuse.

Related Government Programs

VA IT Modernization Programs
Federal Claims Processing Systems
Custom Computer Programming Services
IT Support Services Contracts
Department of Veterans Affairs IT Procurement

Risk Flags

Potential for vendor lock-in
Cybersecurity risks
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.3 million to AMIDA TECHNOLOGY SOLUTIONS, INC.. VBA STATION 101, OFFICE OF COMPENSATION SERVICES, MODERN CLAIMS PROCESSING (MCP) PROGRAM SUPPORT SERVICE PURCHASE.

Who is the contractor on this award?

The obligated recipient is AMIDA TECHNOLOGY SOLUTIONS, 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 $30.3 million.

What is the period of performance?

Start: 2020-08-19. End: 2023-10-18.

What is the track record of Amida Technology Solutions, Inc. with the Department of Veterans Affairs?

Amida Technology Solutions, Inc. has a history of performing IT services for the Department of Veterans Affairs. While this specific contract is for the Modern Claims Processing (MCP) Program Support, the company has likely been involved in other IT-related engagements with the VA. A deeper dive into their contract history with the VA would reveal the types of services provided, past performance ratings, and any significant issues or successes. Understanding their prior performance is crucial for assessing the reliability and effectiveness of their current service delivery under this $30.3 million award.

How does the $30.3 million award compare to other IT support contracts for claims processing modernization?

The $30.3 million award for the VA's Modern Claims Processing (MCP) Program Support over approximately three years is a significant but not extraordinary sum for large-scale federal IT support. Modernizing complex systems like claims processing often requires substantial investment in programming, integration, and ongoing maintenance. Compared to other federal IT modernization efforts, such as those in defense or social security, this figure appears to be in a mid-to-high range, reflecting the critical nature and complexity of the VA's mission. The value is influenced by factors like the number of users, data volume, security requirements, and the specific technological solutions employed.

What are the primary risks associated with this contract for the VA?

Key risks for the VA with this contract include potential vendor performance issues, where Amida Technology Solutions, Inc. might fail to deliver services meeting quality standards or timelines, impacting claims processing efficiency. Another risk is cost overruns, although mitigated by the firm-fixed-price structure, scope creep could still necessitate contract modifications. Technical obsolescence is a risk, as IT solutions can quickly become outdated, requiring continuous adaptation. Finally, cybersecurity vulnerabilities associated with the IT systems supporting claims processing present a significant risk, potentially leading to data breaches or system disruptions.

How effective is the Modern Claims Processing (MCP) program likely to be with this IT support?

The effectiveness of the Modern Claims Processing (MCP) program is significantly dependent on the quality of IT support provided under this contract. If Amida Technology Solutions, Inc. delivers robust, reliable, and secure IT services, it can enhance the program's ability to process claims accurately and efficiently, leading to faster benefit delivery for veterans. Conversely, any shortcomings in IT support could hinder the program's goals, potentially causing delays or errors. The success hinges on strong program management by the VA and consistent, high-quality performance from the contractor.

What has been the historical spending trend for IT support related to VA claims processing?

Historical spending on IT support for VA claims processing has generally trended upwards as the department seeks to modernize its systems and improve efficiency. Agencies like the VA face increasing demands for digital services and data management, necessitating continuous investment in IT infrastructure and support. While specific figures for claims processing IT support fluctuate based on program initiatives and contract cycles, the overall trajectory indicates a sustained and often growing allocation of resources to ensure the reliability and advancement of these critical systems. This $30.3 million award fits within that broader pattern of ongoing investment.

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

Solicitation ID: 36C10E20Q0156

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 19TH ST NW STE 203, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $30,301,803

Exercised Options: $30,301,803

Current Obligation: $30,301,803

Actual Outlays: $28,474,814

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,315,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D00CN

IDV Type: FSS

Timeline