VA awards $7.4M contract for VR headsets and software updates to SoldierPoint Digital Health

Contract Overview

Contract Amount: $7,402,199 ($7.4M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MODIFICATION (P00005) TO UPDATE MPL P00005 - FOR TEVES AND VR HEADSETS AND SOMNOWARE UPDATES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.4 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: MODIFICATION (P00005) TO UPDATE MPL P00005 - FOR TEVES AND VR HEADSETS AND SOMNOWARE UPDATES Key points: 1. Contract focuses on essential updates and hardware for virtual reality systems. 2. Sole awardee suggests potential for specialized expertise or limited market options. 3. Performance period spans one year, indicating a need for timely delivery. 4. Fixed-price contract type aims to control costs and manage budget predictability. 5. This award falls within computer systems design services, a broad IT category.

Value Assessment

Rating: good

The contract value of $7.4 million for a one-year period for VR hardware and software updates appears reasonable given the specialized nature of the technology. Benchmarking against similar contracts for advanced digital health solutions is challenging due to the niche market. However, the fixed-price structure suggests a defined scope and cost control, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was initiated. This approach is generally favored to ensure the government receives the best possible pricing and solutions.

Taxpayer Impact: A competitive bidding process for this contract helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple vendors.

Public Impact

Veterans will benefit from enhanced virtual reality experiences for health and rehabilitation. The contract supports the modernization of digital health services within the VA. Services delivered include hardware provision (VR headsets) and software updates. The geographic impact is likely national, supporting VA facilities across the country. Workforce implications may include training for VA staff on new VR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Details on the specific software updates and their criticality are not provided.
The long-term sustainability and integration of these VR systems require further clarity.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
Focus on virtual reality aligns with modernizing healthcare delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The market for specialized VR hardware and software in healthcare is growing, driven by advancements in immersive technologies for training, therapy, and patient engagement. The VA's investment reflects a trend towards adopting innovative digital health solutions to improve patient outcomes and operational efficiency.

Small Business Impact

The contract does not indicate any specific small business set-aside. SoldierPoint Digital Health, LLC's size status is not provided, but the award was made under full and open competition. There is no explicit information on subcontracting requirements for small businesses, which may limit opportunities for smaller firms to participate in this specific contract's execution.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs is responsible for monitoring performance and ensuring compliance with contract terms. Transparency is facilitated through contract databases, though specific performance metrics and ongoing oversight activities are not detailed here. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Veterans Health Administration (VHA) Digital Health Initiatives
Department of Defense Virtual Reality Training Programs
Federal IT Modernization Programs
Healthcare Technology Procurement

Risk Flags

Potential for vendor lock-in if software is proprietary.
Dependence on a single vendor for critical hardware and software updates.
Need for clear performance metrics to ensure value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.4 million to SOLDIERPOINT DIGITAL HEALTH, LLC. MODIFICATION (P00005) TO UPDATE MPL P00005 - FOR TEVES AND VR HEADSETS AND SOMNOWARE UPDATES

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 $7.4 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the specific nature of the 'SOMNOWARE UPDATES' and how critical are they to the VR system's functionality?

The provided data does not specify the exact nature or criticality of the 'SOMNOWARE UPDATES'. These updates likely pertain to the software platform that manages or supports the virtual reality headsets, potentially including enhancements to user interface, data tracking, system stability, or new feature integration. Given that this is a modification to an existing contract (P00005), these updates are likely necessary for the continued optimal performance, security, or functionality of the VR systems already deployed or planned for use by the VA. Further details would typically be found in the contract's statement of work or technical exhibits, which are not included in the provided data.

How does the pricing of these VR headsets and software updates compare to commercial off-the-shelf (COTS) solutions or similar government contracts?

Without specific details on the VR headset models, software features, and licensing terms, a direct price comparison is difficult. The contract value of $7.4 million for a one-year period for VR hardware and software updates suggests a significant investment. If these are highly specialized or customized VR systems for medical applications, their cost could be substantially higher than standard consumer-grade headsets. Benchmarking against similar VA or DoD contracts for advanced simulation or digital health technologies would provide a more relevant comparison. The fixed-price nature of the contract implies that the VA has negotiated a set price for the defined scope, aiming for cost predictability, but the underlying value-for-money assessment requires more granular cost data and market intelligence.

What is SoldierPoint Digital Health, LLC's track record with the VA or other federal agencies, particularly concerning VR or digital health solutions?

The provided data identifies SoldierPoint Digital Health, LLC as the contractor but does not offer details on their past performance, track record, or experience with the VA or other federal agencies. To assess their reliability and expertise, one would need to review their contract history, past performance evaluations (e.g., CPARS reports), and any previous awards related to virtual reality, digital health, or similar IT services. A company's history of successful project delivery, adherence to schedules, and quality of work are crucial indicators of their capability to fulfill this contract effectively.

What are the anticipated performance metrics or key performance indicators (KPIs) for this contract to ensure successful delivery of VR systems and software?

The provided data does not specify the key performance indicators (KPIs) or performance metrics for this contract. Typically, contracts of this nature would include requirements related to the timely delivery of hardware, successful installation and integration of VR systems, availability and uptime of the software, user satisfaction, and the effectiveness of the software updates in improving system performance or adding desired functionality. The VA would likely monitor these aspects to ensure the contractor meets the agreed-upon standards and that the investment yields the intended benefits for veterans' healthcare.

What is the historical spending pattern of the VA on virtual reality technology and digital health solutions?

The provided data focuses on a single contract award and does not offer historical spending patterns for the VA on virtual reality or digital health solutions. To understand historical spending, one would need to analyze aggregated contract data over several fiscal years, looking at awards related to VR hardware, software, simulation technologies, telehealth platforms, and other digital health services. Such an analysis would reveal trends in investment, identify key vendors, and provide context for the current $7.4 million award, indicating whether this represents an increase, decrease, or steady investment in these technologies.

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: $45,316,012

Exercised Options: $7,402,199

Current Obligation: $7,402,199

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