VA awards $98.7M IT services contract to TRILLAMED LLC for I-CARE 24/7 system

Contract Overview

Contract Amount: $98,770 ($98.8K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-04

End Date: 2027-04-03

Contract Duration: 1,825 days

Daily Burn Rate: $54/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: I-CARE 24/7

Place of Performance

Location: COATESVILLE, CHESTER County, PENNSYLVANIA, 19320

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $98,770 to TRILLAMED LLC for work described as: I-CARE 24/7 Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of five years suggests a long-term need for these IT services. 3. The fixed-price nature of the contract shifts some performance risk to the contractor. 4. The specific IT services provided under 'Other Computer Related Services' warrant further detail. 5. Geographic focus on Pennsylvania may indicate a regional or facility-specific implementation.

Value Assessment

Rating: fair

Without comparable contract data or a competitive bidding process, assessing the value for money is challenging. The fixed-price structure is a positive indicator, but the lack of competition means there's no benchmark to evaluate TRILLAMED LLC's pricing against market rates or other potential providers. Further analysis would require understanding the specific services delivered and their criticality to the VA's mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding, potentially leading to higher overall spending for the same level of service.

Public Impact

Veterans will benefit from the I-CARE 24/7 system, likely improving access to healthcare information and services. The contract supports IT infrastructure and services within the Department of Veterans Affairs. The primary geographic impact appears to be within Pennsylvania, suggesting a localized deployment or support. The contract supports a firm providing IT services, potentially impacting the IT workforce in its operational area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of transparency in the justification for sole-source award.
Long contract duration without competitive re-evaluation could lead to price creep.

Positive Signals

Fixed-price contract shifts some risk to the contractor.
Contract supports a critical VA system (I-CARE 24/7) aimed at improving veteran services.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services,' a broad category that can encompass a wide range of support, maintenance, and consulting. The Department of Veterans Affairs is a significant spender in this sector, often seeking solutions to manage vast amounts of data and provide services to a large user base. Benchmarking this contract's value would require comparing it to similar IT support contracts within the federal government, particularly those managed by large health-focused agencies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor, TRILLAMED LLC, will be responsible for fulfilling the contract requirements, with potential limited opportunities for small business participation unless subcontracting is initiated by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and delivery schedules. Transparency is limited due to the sole-source nature of the award, though contract award data is publicly available. The Inspector General's office for the VA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on specific services and performance metrics.
Potential for price inefficiency due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $98,770 to TRILLAMED LLC. I-CARE 24/7

Who is the contractor on this award?

The obligated recipient is TRILLAMED 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 $98,770.

What is the period of performance?

Start: 2022-04-04. End: 2027-04-03.

What specific services are included under 'Other Computer Related Services' for the I-CARE 24/7 system?

The specific services encompassed by 'Other Computer Related Services' (NAICS code 541519) for the I-CARE 24/7 system are not detailed in the provided award data. This category is broad and can include activities such as IT consulting, system integration, custom software development, IT support, and data processing services. To understand the full scope, one would need to review the contract's Performance Work Statement (PWS) or Statement of Work (SOW). These documents typically outline the tasks, deliverables, and technical requirements. Without this detailed information, it's difficult to assess the precise nature of the work TRILLAMED LLC is performing and its alignment with the VA's needs for the I-CARE 24/7 system.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which typically signifies a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or capable of providing the required service, or in cases of urgent need. For this VA contract, the specific justification would likely be documented in a Justification and Approval (J&A) document. Common reasons include proprietary technology, unique capabilities of the contractor, or a critical need that cannot be met through competitive means within the required timeframe. Without access to the J&A, the precise rationale remains undisclosed, making it difficult to independently verify the necessity of a sole-source approach.

How does the $98.7 million contract value compare to similar IT service contracts awarded by the VA?

Comparing the $98.7 million contract value for TRILLAMED LLC's IT services requires context within the VA's overall IT spending. The VA is a major federal IT spender, with numerous contracts for health IT, infrastructure, and support services. Contracts of this magnitude are not uncommon for large-scale IT system development, implementation, or sustainment. However, without knowing the specific services and duration, a direct comparison is difficult. For instance, major EHR system implementations or large cloud migration projects can run into hundreds of millions or even billions of dollars. This $98.7 million contract, spanning five years, suggests a significant but potentially focused IT support or development effort for the I-CARE 24/7 system, likely falling within the mid-to-large range for specific IT service procurements.

What is the track record of TRILLAMED LLC in performing federal IT contracts?

Information on TRILLAMED LLC's track record with federal IT contracts is limited based solely on the provided award data. The data confirms they were awarded this specific $98.7 million contract by the Department of Veterans Affairs. To assess their broader track record, one would need to consult federal procurement databases like SAM.gov or FPDS to identify previous contracts awarded to TRILLAMED LLC, their values, agencies involved, and performance history. Key indicators to examine would include on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. A lack of extensive federal contract history might suggest this is a significant, potentially defining, contract for the company.

What are the potential risks associated with a five-year, sole-source IT contract?

A five-year, sole-source IT contract carries several potential risks. Firstly, the lack of competition means the government may not be achieving the best possible pricing, potentially leading to overspending. Secondly, without regular competitive re-evaluation, there's a risk of complacency from the contractor, potentially impacting service quality or innovation over the contract's lifespan. Thirdly, if the contractor's capabilities or the technology landscape changes significantly, the VA might be locked into a solution that becomes outdated or less effective. Finally, sole-source awards can sometimes face scrutiny regarding their necessity and fairness, potentially leading to protests or negative perceptions if not adequately justified.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30100 TELEGRAPH RD STE 366, BINGHAM FARMS, MI, 48025

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $98,770

Exercised Options: $98,770

Current Obligation: $98,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline