VA awards $237.7M contract for digital health solutions to SoldierPoint Digital Health, LLC

Contract Overview

Contract Amount: $237,746,921 ($237.7M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-07

End Date: 2026-09-06

Contract Duration: 729 days

Daily Burn Rate: $326.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CCIN - ARCHITECTURE & APPLICATION DEVELOPMENT

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $237.7 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: CCIN - ARCHITECTURE & APPLICATION DEVELOPMENT Key points: 1. Contract focuses on critical digital health infrastructure for veterans. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 729 days indicates a medium-term project. 4. Fixed-price contract type may limit cost overruns but could impact scope flexibility. 5. The awardee, SoldierPoint Digital Health, LLC, is a key player in this domain. 6. This spending supports the VA's broader digital transformation efforts.

Value Assessment

Rating: good

The contract value of $237.7 million over approximately two years suggests a significant investment in digital health. Benchmarking against similar large-scale IT service contracts within the federal government is necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract, if well-defined, can provide cost certainty. The specific services rendered under 'Computer Systems Design Services' will be crucial in determining if the pricing is competitive relative to the scope and complexity.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The VA's decision to use full and open competition suggests confidence in the market's ability to meet their needs effectively.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive bidding, driving down costs and ensuring the government receives the best value for its investment.

Public Impact

Veterans will benefit from improved digital health services and potentially more accessible healthcare. The contract will likely result in the development and enhancement of critical IT systems for the VA. The geographic impact is national, as VA healthcare systems are distributed across the United States. Workforce implications may include the creation of jobs in IT development, system integration, and digital health support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined upfront.
Dependence on a single contractor for critical digital health infrastructure could pose a risk if performance issues arise.
Ensuring data security and privacy for sensitive veteran health information will be paramount.

Positive Signals

Award to a specialized firm suggests expertise in the required digital health solutions.
Fixed-price contract can provide budget predictability.
Full and open competition indicates a robust market response and potential for innovation.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to areas like application development and computer systems design. This contract falls within the broader category of health IT, a rapidly growing sector driven by the need for digital transformation in healthcare delivery. Comparable spending benchmarks would typically involve analyzing other large-scale IT modernization contracts awarded by agencies like the Department of Defense or HHS, focusing on system design and integration services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific technical requirements or to meet broader socioeconomic goals. The impact on the small business ecosystem will depend on the extent to which SoldierPoint Digital Health, LLC, incorporates them into its supply chain.

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 embedded within the contract's performance work statement, including defined deliverables, service level agreements, and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Electronic Health Record Modernization Program
Department of Defense Health Affairs IT Modernization
Federal Health Information Technology Services
Veterans Health Administration IT Infrastructure

Risk Flags

Potential for vendor lock-in if not managed carefully.
Cybersecurity risks associated with sensitive health data.
Dependence on contractor performance for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $237.7 million to SOLDIERPOINT DIGITAL HEALTH, LLC. CCIN - ARCHITECTURE & APPLICATION DEVELOPMENT

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 $237.7 million.

What is the period of performance?

Start: 2024-09-07. End: 2026-09-06.

What is SoldierPoint Digital Health, LLC's track record with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess SoldierPoint Digital Health, LLC's track record. However, the award of a significant contract like this by the VA suggests a level of established performance or specialized capability that met the agency's requirements. Further analysis would involve examining past performance evaluations, any prior contracts with the VA or similar agencies, and the nature of services previously provided. Understanding their history with complex IT projects, particularly in the healthcare domain, is crucial for evaluating their ability to execute this current contract successfully. Any past performance issues or successes would provide valuable context for this award.

How does the $237.7 million contract value compare to similar digital health IT contracts awarded by the VA or other federal health agencies?

The $237.7 million contract value represents a substantial investment in digital health solutions over its duration. To benchmark this value, one would compare it against other large-scale IT service contracts awarded by the VA, HHS, or DoD for similar services such as application development, systems integration, and health IT modernization. Factors like contract duration, scope of work, and specific technologies involved are critical for a meaningful comparison. For instance, if similar two-year contracts for comparable digital health system development have ranged from $150 million to $300 million, this award would appear within a reasonable market range. Conversely, if it significantly deviates, further scrutiny of the scope and pricing would be warranted.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technical challenges in developing and integrating complex digital health systems, cybersecurity threats to sensitive veteran data, and the possibility of cost overruns or schedule delays, although the fixed-price nature mitigates some cost risk. Mitigation strategies typically involve robust project management, stringent cybersecurity protocols, clear performance metrics, and regular progress reviews. The VA's oversight mechanisms, including defined deliverables and performance standards, are designed to manage these risks. The contractor's experience and the competitive nature of the award also serve as risk-reduction factors, suggesting a capable partner is in place.

How effective is the VA's current digital health infrastructure, and what specific improvements is this contract expected to deliver?

The effectiveness of the VA's current digital health infrastructure is a complex issue, with ongoing efforts to modernize and improve. This contract is expected to deliver specific enhancements to SoldierPoint Digital Health, LLC's capabilities in areas such as application development and computer systems design. These improvements could translate to more user-friendly interfaces for veterans, better data interoperability between different health systems, enhanced telehealth services, and more efficient administrative processes. The ultimate effectiveness will be measured by the successful implementation of these digital solutions and their positive impact on veteran care delivery and access.

What are the historical spending patterns for 'Computer Systems Design Services' (NAICS 541512) by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently allocates significant funding towards computer systems design services, reflecting its ongoing need for IT modernization and support. Historical spending data for NAICS code 541512 by the VA would reveal trends in contract awards, average contract values, and the types of services most frequently procured within this category. Analyzing this data over several fiscal years would indicate whether spending in this area is increasing, decreasing, or remaining stable, and which contractors have been most successful in securing these types of awards. This context is vital for understanding the VA's strategic IT investment priorities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $862,795,007

Exercised Options: $237,746,921

Current Obligation: $237,746,921

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $58,909,069

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0048

IDV Type: IDC

Timeline