VA awards $7M contract for SoldierPoint Digital Health expansion and refresh to SoldierPoint Digital Health, LLC

Contract Overview

Contract Amount: $7,049,485 ($7.0M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-25

End Date: 2026-03-24

Contract Duration: 545 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24 SVT CFT EXPANSION AND REFRESH

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.0 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: FY24 SVT CFT EXPANSION AND REFRESH Key points: 1. Contract awarded on a sole-source basis, limiting potential for competitive pricing. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 545 days indicates a medium-term project. 4. The award is for expansion and refresh, implying ongoing support and upgrades. 5. No small business set-aside was utilized for this procurement. 6. The contract falls under the Electronic Computer Manufacturing NAICS code.

Value Assessment

Rating: fair

The contract value of approximately $7 million for a digital health expansion and refresh appears reasonable for the scope. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The firm fixed price structure provides cost predictability, but the absence of competition raises questions about whether the VA secured the best possible value. Further analysis would require understanding the specific services and equipment included in the 'expansion and refresh' to compare against similar sole-source procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when it's deemed impractical or uneconomical to compete. The lack of competition means there were no other bidders to compare against, potentially leading to higher prices than if the contract had been competed. The VA would need to justify the sole-source award based on specific circumstances.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. This could result in a higher overall expenditure for the services rendered compared to a fully competed contract.

Public Impact

Veterans will benefit from expanded and refreshed digital health services. The contract supports the modernization of health IT infrastructure within the VA. Services are likely to be delivered across various VA facilities, impacting a broad user base. The contract may involve IT professionals and support staff for implementation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in given the nature of digital health systems.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award supports critical digital health infrastructure for veterans.
Contract duration allows for planned implementation and refresh.

Sector Analysis

The IT services sector, particularly within healthcare, is characterized by rapid technological advancements and specialized solutions. This contract for digital health expansion and refresh fits within the broader market for health IT modernization, which is a significant area of federal spending. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded contracts for similar IT infrastructure upgrades and digital health platform support within federal agencies, especially the Department of Defense and other health-focused departments.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a single entity without a small business focus means that opportunities for small businesses to participate in this specific procurement are limited. This could impact the broader small business ecosystem if similar large contracts are consistently awarded without set-aside provisions.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures will be tied to the terms and conditions of the Firm Fixed Price contract, focusing on timely delivery and adherence to specifications. Transparency regarding the sole-source justification and performance metrics will be crucial for assessing accountability. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
Federal Health IT Initiatives
Digital Health Services Contracts
IT Infrastructure Modernization Programs

Risk Flags

Sole-source award raises concerns about competition and potential value for money.
Lack of transparency regarding the justification for sole-source procurement.
Potential for vendor lock-in with specialized digital health solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.0 million to SOLDIERPOINT DIGITAL HEALTH, LLC. FY24 SVT CFT EXPANSION AND REFRESH

Who is the contractor on this award?

The obligated recipient is SOLDIERPOINT DIGITAL HEALTH, 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 $7.0 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-03-24.

What is the specific justification for awarding this contract on a sole-source basis to SoldierPoint Digital Health, LLC?

The provided data indicates the contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs (VA) did not compete this procurement. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Common justifications include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when it is uneconomical to obtain full and open competition. For this specific contract, the VA would have had to document and approve a justification (e.g., a Justification and Approval document) detailing why SoldierPoint Digital Health, LLC was the only viable option. Without access to this documentation, the precise reason remains unknown, but it likely relates to specialized expertise or existing system integration that makes Soldier Point the sole capable provider for this expansion and refresh.

How does the $7 million contract value compare to similar digital health expansion and refresh projects within the VA or other federal agencies?

Benchmarking the $7 million contract value for a digital health expansion and refresh requires comparing it to similar procurements. Given this was a sole-source award, direct price comparisons are challenging. However, if we consider the duration (545 days, approximately 18 months) and the nature of 'expansion and refresh' for digital health systems, the average annual spend would be around $4.6 million. This figure needs to be contextualized by the scope of services and technology involved. For instance, large-scale EHR system upgrades or expansions can cost tens or hundreds of millions of dollars. Smaller, targeted refreshes or expansions of specific digital health modules might fall within the single-digit millions. Without detailed service descriptions, it's difficult to definitively state if $7 million is high or low, but it suggests a significant, yet not enterprise-wide, undertaking. Further analysis would involve reviewing publicly available data on similar VA IT contracts, particularly those involving SoldierPoint Digital Health, LLC or its competitors, to establish a more precise benchmark.

What are the potential risks associated with a sole-source award for critical digital health infrastructure?

Sole-source awards for critical digital health infrastructure carry several potential risks. Firstly, the absence of competition can lead to inflated pricing, meaning the government may pay more than necessary for the services or technology. Secondly, it can reduce the incentive for the sole-source provider to innovate or maintain high service levels, as there is no immediate threat of losing the contract to a competitor. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future, even if performance issues arise or better solutions become available. Lastly, sole-source awards can sometimes indicate a lack of strategic planning or market research by the agency, potentially missing opportunities to foster a competitive market for essential services. For the VA, ensuring robust oversight and performance management is crucial to mitigate these risks.

What is SoldierPoint Digital Health, LLC's track record with the Department of Veterans Affairs, particularly on similar contracts?

SoldierPoint Digital Health, LLC has a history of contracting with the Department of Veterans Affairs (VA). This specific award, valued at approximately $7 million for an expansion and refresh of digital health services, indicates an ongoing relationship. To assess their track record, one would need to examine past VA contracts awarded to SoldierPoint Digital Health, LLC. Key aspects to review include contract performance history (e.g., on-time delivery, quality of services, adherence to budget), any past performance issues or disputes, and the types of digital health solutions they have previously provided to the VA. Understanding their experience with similar 'expansion and refresh' projects would be particularly relevant. A positive track record with the VA on comparable projects would lend confidence to this current award, while any significant past issues would raise concerns about the potential risks associated with this contract.

How does this contract align with the VA's broader digital health strategy and modernization efforts?

This contract for a 'SoldierPoint Digital Health, LLC CFT Expansion and Refresh' directly aligns with the VA's ongoing efforts to modernize its digital health infrastructure and improve healthcare delivery for veterans. The VA has been investing significantly in upgrading its IT systems, including electronic health records (EHR), telehealth capabilities, and patient engagement platforms. An 'expansion and refresh' suggests an effort to enhance existing digital health services, potentially by incorporating new features, improving user interfaces, updating underlying technology, or increasing capacity. This aligns with the strategic goal of providing seamless, accessible, and high-quality healthcare through advanced digital solutions. The contract's focus on SoldierPoint Digital Health implies a continuation or enhancement of a specific digital health solution already in use, aiming to keep it current and effective within the VA's evolving digital ecosystem.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 COOPERATIVE WAY STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,049,485

Exercised Options: $7,049,485

Current Obligation: $7,049,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G21D0016

IDV Type: IDC

Timeline