VA Awards $5.46M for Telehealth Implementation at Richmond and Asheville VAMCs

Contract Overview

Contract Amount: $5,466,222 ($5.5M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-30

End Date: 2026-10-30

Contract Duration: 1,157 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TELECC IMPLEMENTATION FOR RICHMOND AND ASHEVILLE VAMCS. TELECC TECHNICAL AND INTERFACE SERVICES FOR THE HTM PROGRAM OFFICE.

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.5 million to PHILIPS NORTH AMERICA LLC for work described as: TELECC IMPLEMENTATION FOR RICHMOND AND ASHEVILLE VAMCS. TELECC TECHNICAL AND INTERFACE SERVICES FOR THE HTM PROGRAM OFFICE. Key points: 1. Contract awarded to Philips North America LLC for telehealth technical and interface services. 2. The contract supports the HTM Program Office, indicating a focus on healthcare technology management. 3. Spending is concentrated within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. 4. The award is a delivery order under an existing contract, suggesting a streamlined procurement process.

Value Assessment

Rating: good

The award amount of $5.46 million for a 3-year period appears reasonable for specialized telehealth implementation services. Benchmarking against similar IT/healthcare technology contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The use of a delivery order suggests a pre-negotiated framework, potentially leading to efficient price discovery.

Taxpayer Impact: Taxpayer funds are being used to enhance telehealth services, potentially improving veteran healthcare access and outcomes.

Public Impact

Improved access to healthcare for veterans through enhanced telehealth capabilities. Modernization of healthcare technology infrastructure within the VA system. Potential for increased efficiency in healthcare delivery and patient monitoring. Support for the Department of Veterans Affairs' ongoing digital transformation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in technical and interface services.
Dependence on a single vendor for critical telehealth infrastructure.

Positive Signals

Supports critical healthcare infrastructure for veterans.
Awarded through full and open competition.
Long-term contract duration allows for sustained implementation and support.

Sector Analysis

This contract falls within the IT and Healthcare sectors, specifically related to electromedical apparatus manufacturing and technical services. Spending benchmarks for similar telehealth implementations vary widely based on scope and technology, but this award appears to be a moderate investment.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, Philips North America LLC, is a large corporation, suggesting limited direct opportunities for small businesses in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of a delivery order under an existing contract may streamline oversight compared to a new sole-source award, but requires monitoring of performance and adherence to terms.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Vendor lock-in potential
Integration challenges with legacy systems
Cybersecurity risks associated with telehealth data
User adoption barriers for veterans and staff

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.5 million to PHILIPS NORTH AMERICA LLC. TELECC IMPLEMENTATION FOR RICHMOND AND ASHEVILLE VAMCS. TELECC TECHNICAL AND INTERFACE SERVICES FOR THE HTM PROGRAM OFFICE.

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA 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 $5.5 million.

What is the period of performance?

Start: 2023-08-30. End: 2026-10-30.

What is the expected impact of these telehealth services on veteran healthcare access and quality in the Richmond and Asheville regions?

The implementation of telehealth services is expected to significantly improve healthcare access for veterans in the Richmond and Asheville VAMC regions by enabling remote consultations, monitoring, and treatment. This can reduce travel burdens, provide more timely care, and potentially improve health outcomes through continuous engagement and management of chronic conditions.

What are the key performance indicators (KPIs) for this contract to ensure successful implementation and effectiveness?

Key performance indicators should include system uptime, successful integration with existing VA electronic health records, user adoption rates among both clinicians and patients, reduction in appointment wait times, and patient satisfaction scores. Regular performance reviews and adherence to technical specifications will be crucial for measuring effectiveness.

How does this contract align with the VA's broader strategy for modernizing its IT infrastructure and delivering digital health solutions?

This contract directly aligns with the VA's strategic goals of modernizing its IT infrastructure and expanding digital health capabilities. By investing in telehealth implementation and technical services, the VA is enhancing its capacity to deliver care remotely, which is a cornerstone of modern healthcare delivery and patient-centered care models.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: 3000 MINUTEMAN RD MS 0077, ANDOVER, MA, 01810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,794,405

Exercised Options: $5,466,222

Current Obligation: $5,466,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77620D0004

IDV Type: IDC

Timeline