VA awards $7.2M sole-source contract for telehealth project management support to SoldierPoint Digital Health

Contract Overview

Contract Amount: $7,232,455 ($7.2M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-20

End Date: 2025-09-19

Contract Duration: 364 days

Daily Burn Rate: $19.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY 24 TELEHEALTH PROJECT MANAGEMENT SUPPORT (TPMS)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.2 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: FY 24 TELEHEALTH PROJECT MANAGEMENT SUPPORT (TPMS) Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract duration is one year, with a firm-fixed-price structure. 3. Focus on telehealth project management indicates a need for specialized IT support. 4. The award value is significant for a single-year, sole-source IT service contract. 5. Performance is within the Department of Veterans Affairs' own agency. 6. The contract is for a delivery order, suggesting it's part of a larger framework.

Value Assessment

Rating: fair

The contract value of $7.2 million for one year of telehealth project management support appears to be within a reasonable range for specialized IT services. However, without a competitive bidding process, it is difficult to benchmark against market rates or assess if the best possible value was achieved. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition raises questions about potential overpricing or suboptimal service delivery compared to what a more open market might offer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SoldierPoint Digital Health, LLC, was solicited. This approach bypasses the standard competitive procurement process. While sole-source awards are sometimes justified for specific reasons (e.g., unique capabilities, urgent needs), the lack of competition here means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to secure the most advantageous terms.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The government did not leverage market forces to drive down costs or ensure the most innovative solutions were considered.

Public Impact

Veterans will benefit from improved telehealth services through better project management. The contract supports the delivery of critical digital health initiatives within the VA. The primary geographic impact is within the Department of Veterans Affairs' operations. The contract likely supports a workforce focused on IT and project management within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in if this is a recurring need.
Limited opportunity to assess alternative solutions or innovative approaches.

Positive Signals

Focus on telehealth aligns with modern healthcare delivery needs.
Firm-fixed-price contract provides cost predictability.
Contract is for a defined period, allowing for future re-evaluation.
Awardee is a specialized digital health company, suggesting relevant expertise.

Sector Analysis

The IT services sector, particularly within healthcare, is experiencing significant growth. Telehealth project management is a niche but crucial area, requiring expertise in digital platforms, data security, and patient engagement. The Department of Veterans Affairs, like many large healthcare providers, is investing heavily in digital transformation to improve service delivery. This contract fits within the broader trend of government agencies seeking specialized IT support to modernize operations and enhance patient care through technology.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, SoldierPoint Digital Health, LLC, is likely a small business itself given the contract value, but the lack of a set-aside means larger businesses were not excluded from competing if the contract had been competed. The absence of specific small business provisions means there's no direct benefit or requirement for small business participation in this particular award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a sole-source award, the justification and approval process would have been subject to internal VA review and potentially higher-level agency approval depending on the dollar threshold and procurement regulations. Transparency is limited due to the non-competitive nature, but contract performance details and payment information are typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Health Information Technology
VA Electronic Health Records
VA Telehealth Services
Federal IT Project Management Support
Digital Health Modernization

Risk Flags

Sole-source award without clear justification.
Potential for inadequate competition impacting value for money.
Cybersecurity risks associated with telehealth data.
Dependence on a single vendor for critical project management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.2 million to SOLDIERPOINT DIGITAL HEALTH, LLC. FY 24 TELEHEALTH PROJECT MANAGEMENT SUPPORT (TPMS)

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 $7.2 million.

What is the period of performance?

Start: 2024-09-20. End: 2025-09-19.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements require a formal justification and approval (J&A) document that outlines why full and open competition is not feasible. Reasons can include unique capabilities of the vendor, urgent and compelling needs, or situations where only one source is capable of meeting the requirement. Without access to the J&A, it's impossible to definitively state the VA's rationale. However, given the contract is for 'TELEHEALTH PROJECT MANAGEMENT SUPPORT (TPMS)', the VA might argue that SoldierPoint Digital Health possesses unique expertise or proprietary technology essential for their specific telehealth initiatives that cannot be readily replicated by other firms.

How does the $7.2 million contract value compare to similar telehealth project management support contracts awarded by the VA or other federal agencies?

Benchmarking this $7.2 million contract value is challenging without more specific details on the scope of services and duration. However, for a one-year contract focused on project management support within a specialized area like telehealth, this value is substantial. Federal IT service contracts can range widely, but a sole-source award of this size for a single year warrants scrutiny. Comparable contracts, especially those competed, might reveal lower price points or more extensive service offerings for similar investment. The VA's own historical spending on IT and telehealth projects would be a key comparison point, but such data is not provided here. The lack of competition makes direct comparison difficult, as market-driven pricing is absent.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how will their successful completion be measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, a Statement of Work (SOW) or Performance Work Statement (PWS) would accompany such a contract, outlining specific objectives, tasks, and measurable outcomes. For telehealth project management support, KPIs might include timely project completion, adherence to budget, successful implementation of new telehealth features, user adoption rates, system uptime, and patient satisfaction metrics related to telehealth services. The VA's contracting officer and technical representatives would be responsible for monitoring SoldierPoint Digital Health's performance against these defined metrics throughout the contract period.

What is SoldierPoint Digital Health, LLC's track record with the federal government, particularly the Department of Veterans Affairs, in delivering IT and telehealth services?

Information on SoldierPoint Digital Health, LLC's specific track record is not detailed in the provided data. However, its existence as a recipient of a federal contract, especially from the VA, suggests some level of prior engagement or qualification. To assess their track record thoroughly, one would need to examine past performance evaluations (e.g., through the Contractor Performance Assessment Reporting System - CPARS), review other contracts they have held, and investigate any publicly available information regarding their project successes and failures. Given this is a sole-source award, the VA likely has internal data or prior experience with the company that informed their decision, but this is not publicly detailed here.

Are there any identified risks associated with this contract, such as vendor performance issues, cost overruns (despite fixed price), or cybersecurity vulnerabilities?

While the firm-fixed-price structure mitigates direct cost overrun risk for the government, potential risks remain. These could include inadequate performance by SoldierPoint Digital Health, leading to delays or failures in telehealth project management, which indirectly impacts VA operations and veteran care. Cybersecurity is a significant concern for any IT contract, especially in healthcare; the VA would need to ensure SoldierPoint adheres to stringent data security protocols (e.g., HIPAA, FISMA). Vendor performance risk is heightened in sole-source awards as there's less market pressure to perform exceptionally. Without specific risk assessments from the VA, these remain potential concerns inherent in such contracts.

Industry Classification

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

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

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: $12,633,865

Exercised Options: $12,633,865

Current Obligation: $7,232,455

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