VA awards $5M AI pilot for medical disability exams to Steerbridge Strategies LLC

Contract Overview

Contract Amount: $4,998,353 ($5.0M)

Contractor: Steerbridge Strategies LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-04

End Date: 2026-08-03

Contract Duration: 364 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MEDICAL DISABILITY EXAMS (MDE) ACCEPTABLE CLINICAL EVIDENCE (ACE) ARTIFICIAL INTELLIGENCE (AI) PROOF-OF-CONCEPT PILOT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.0 million to STEERBRIDGE STRATEGIES LLC for work described as: MEDICAL DISABILITY EXAMS (MDE) ACCEPTABLE CLINICAL EVIDENCE (ACE) ARTIFICIAL INTELLIGENCE (AI) PROOF-OF-CONCEPT PILOT Key points: 1. The VA is exploring AI for medical disability exams, a critical function for veterans. 2. This is a proof-of-concept pilot, indicating early-stage exploration rather than a full-scale deployment. 3. The contract was not competed under Simplified Acquisition Procedures (SAP), raising questions about competition. 4. The sector is IT services, specifically focusing on AI applications within healthcare administration.

Value Assessment

Rating: questionable

The contract value of $4.99M for a 1-year pilot seems high for a proof-of-concept, especially without clear benchmarks for AI in this specific application. Further analysis is needed to determine if this pricing is competitive for similar AI pilot projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' suggesting it may have been awarded under other limited competition or sole-source justifications. This lack of broad competition limits price discovery and potentially leads to higher costs.

Taxpayer Impact: The taxpayer impact is potentially negative due to the lack of competition, which could result in a higher price than if the contract had been more widely competed.

Public Impact

Potential for improved efficiency and accuracy in veteran disability claim processing. Raises concerns about data privacy and security with AI handling sensitive medical information. Could set a precedent for AI adoption in other government healthcare services. Impacts the accuracy and fairness of disability ratings for veterans. Requires robust oversight to ensure AI algorithms are unbiased and effective.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High cost for a pilot program
Potential data privacy risks
Unproven AI technology in this specific application

Positive Signals

Potential to improve veteran services
Focus on innovative technology adoption

Sector Analysis

This contract falls within the IT sector, specifically focusing on AI applications for healthcare. Spending benchmarks for AI pilots in government healthcare are still emerging, but $5M for a 1-year proof-of-concept is on the higher end.

Small Business Impact

The awardee, Steerbridge Strategies LLC, is not identified as a small business in the provided data. The lack of competition may have limited opportunities for small businesses to participate in this contract.

Oversight & Accountability

Oversight will be critical to ensure the AI pilot meets its objectives, maintains data integrity, and adheres to ethical AI principles. The VA's contracting and program management teams will need to closely monitor performance and outcomes.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of demonstrated competition
High cost for a pilot phase
Potential for AI bias impacting veterans
Data security and privacy concerns
Uncertainty of AI effectiveness in this domain

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.0 million to STEERBRIDGE STRATEGIES LLC. MEDICAL DISABILITY EXAMS (MDE) ACCEPTABLE CLINICAL EVIDENCE (ACE) ARTIFICIAL INTELLIGENCE (AI) PROOF-OF-CONCEPT PILOT

Who is the contractor on this award?

The obligated recipient is STEERBRIDGE STRATEGIES 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 $5.0 million.

What is the period of performance?

Start: 2025-08-04. End: 2026-08-03.

What specific AI capabilities are being tested in this pilot, and how do they align with the VA's long-term goals for disability claims processing?

The pilot aims to test Artificial Intelligence (AI) for Acceptable Clinical Evidence (ACE) in Medical Disability Exams (MDE). The specific capabilities likely involve natural language processing to analyze medical records, identify key evidence, and potentially assist in generating exam summaries. This aligns with the VA's goal to streamline and improve the accuracy and efficiency of the disability claims process for veterans.

What are the primary risks associated with using AI for medical disability exams, and what mitigation strategies are in place?

Key risks include potential bias in AI algorithms leading to unfair outcomes, data privacy and security breaches of sensitive veteran health information, and the possibility of AI errors impacting disability ratings. Mitigation strategies should involve rigorous testing for bias, robust cybersecurity measures, clear data governance policies, and human oversight to validate AI-generated assessments.

How will the effectiveness of this AI pilot be measured, and what are the criteria for deciding on a broader rollout?

Effectiveness will likely be measured by comparing AI-assisted exam processing times and accuracy rates against traditional methods. Key performance indicators could include reduction in backlogs, improved consistency in ratings, and veteran satisfaction. Criteria for broader rollout would depend on achieving statistically significant improvements in these metrics, demonstrating cost-effectiveness, and ensuring ethical and unbiased operation.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8521 LEESBURG PIKE, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,998,353

Exercised Options: $4,998,353

Current Obligation: $4,998,353

Actual Outlays: $892,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline