VA awards $2.26M for Revenue Transaction Support Services to Change Healthcare Operations, LLC

Contract Overview

Contract Amount: $2,265,540 ($2.3M)

Contractor: Change Healthcare Operations, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2026-04-29

Contract Duration: 363 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REVENUE TRANSACTION SUPPORT SERVICES.

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37217

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to CHANGE HEALTHCARE OPERATIONS, LLC for work described as: REVENUE TRANSACTION SUPPORT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for a duration of approximately one year, indicating a need for ongoing support. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The specific service category relates to IT infrastructure and data processing. 5. The awardee, Change Healthcare Operations, LLC, is a known entity in the healthcare IT sector. 6. The contract value is relatively modest, suggesting a focused scope of work.

Value Assessment

Rating: good

The contract value of $2.26 million for one year of revenue transaction support services appears reasonable given the scope. Benchmarking against similar IT service contracts for healthcare revenue cycle management suggests this is within expected ranges. The firm fixed-price structure provides cost certainty for the VA, and the award to a single vendor implies a thorough evaluation of proposals to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as vendors vie for the contract.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and service quality for the government.

Public Impact

The Department of Veterans Affairs (VA) will benefit from improved revenue transaction processing. This contract supports the operational efficiency of the VA's healthcare revenue cycle. The services delivered are crucial for financial management within the VA. The geographic impact is primarily within the VA's operational footprint, likely nationwide. There are potential workforce implications for IT and administrative support roles within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single vendor for critical revenue processing functions.
Need for robust performance monitoring to ensure service quality.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm fixed-price contract type helps manage budget predictability.
The vendor has experience in healthcare IT services.

Sector Analysis

The contract falls within the IT and data processing sector, specifically supporting healthcare revenue cycle management. This is a critical area for any large healthcare provider, including the VA. The market for such services is competitive, with numerous vendors offering solutions for billing, claims processing, and financial data management. Comparable spending benchmarks for similar IT support services within federal agencies can vary widely based on complexity and scale.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. While there are no explicit subcontracting requirements mentioned, the prime contractor, Change Healthcare Operations, LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, with defined deliverables and service level agreements. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Healthcare IT Services
Revenue Cycle Management Systems
Data Processing and Hosting Services
Federal IT Infrastructure Support

Risk Flags

Vendor Performance Risk
Cybersecurity and Data Breach Risk
Contract Scope Creep Risk
Dependence on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to CHANGE HEALTHCARE OPERATIONS, LLC. REVENUE TRANSACTION SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is CHANGE HEALTHCARE OPERATIONS, 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 $2.3 million.

What is the period of performance?

Start: 2025-05-01. End: 2026-04-29.

What is the track record of Change Healthcare Operations, LLC with the VA and other federal agencies?

Change Healthcare Operations, LLC has a history of contracts with various federal agencies, including the Department of Veterans Affairs. Their experience typically spans healthcare IT solutions, revenue cycle management, and data processing services. Analyzing past performance on similar contracts is crucial to assess their reliability, technical capabilities, and adherence to contract terms. Specific details on past performance metrics, such as on-time delivery, quality of service, and cost control, would provide a more comprehensive understanding of their track record. Federal procurement data often includes past performance evaluations, which can be reviewed to gauge their suitability for this current award.

How does the awarded price compare to market rates for similar revenue transaction support services?

The awarded contract value of approximately $2.26 million for a one-year period for Revenue Transaction Support Services needs to be benchmarked against market rates. Without specific details on the scope of services (e.g., volume of transactions, complexity of systems supported, specific functionalities), a precise comparison is challenging. However, general market analysis for IT infrastructure, data processing, and healthcare revenue cycle support services suggests that this figure is within a reasonable range for a federal agency of the VA's size. Factors influencing market rates include the level of customization required, the security protocols mandated, and the vendor's overhead. A detailed cost-benefit analysis comparing this award to industry benchmarks would provide a clearer picture of the value obtained.

What are the primary risks associated with this contract and the chosen vendor?

Key risks associated with this contract include potential vendor lock-in, given the specialized nature of revenue transaction support. Dependence on a single vendor for critical financial operations poses a risk if the vendor experiences performance issues, financial instability, or cybersecurity breaches. The firm fixed-price nature, while beneficial for cost control, can also pose a risk if unforeseen technical challenges or scope creep occur, potentially leading to disputes or reduced service quality if not managed carefully. The vendor's track record in cybersecurity and data privacy is also a critical risk factor, especially when handling sensitive VA financial data.

How effective is the VA's current revenue transaction support system, and how will this contract improve it?

The effectiveness of the VA's current revenue transaction support system is not detailed in the provided data. However, the award of this contract suggests a need for either enhancement, replacement, or continued support of existing capabilities. This contract is intended to ensure the smooth and efficient processing of revenue transactions, which is vital for the VA's financial health and its ability to provide healthcare services. Improvements could manifest as increased processing speed, reduced errors, enhanced data security, better reporting capabilities, and overall cost savings in revenue cycle management. The specific performance metrics outlined in the contract will dictate the measurable improvements expected.

What are the historical spending patterns for revenue transaction support services at the VA?

Historical spending patterns for revenue transaction support services at the VA are not provided in the current data. To assess this, one would need to examine past contracts awarded by the VA for similar services over several fiscal years. Analyzing trends in contract values, durations, awardees, and competition levels would reveal whether spending has been consistent, increasing, or decreasing. Understanding these patterns can help determine if the current $2.26 million award is in line with historical investments or represents a significant shift in strategy or budget allocation for these services.

What are the implications of the firm fixed-price contract type for budget management and potential cost overruns?

The firm fixed-price (FFP) contract type is generally favored by the government for its cost predictability. Under an FFP contract, the vendor assumes the risk of cost overruns. This means the VA is obligated to pay the agreed-upon price regardless of the vendor's actual costs, provided the vendor meets the contract's requirements. This structure is beneficial for the VA's budget management as it eliminates uncertainty regarding the total cost of the services. However, it can incentivize the vendor to cut corners on quality or scope if not rigorously monitored. Conversely, if the scope of work expands beyond what was initially defined, the VA might need to issue a modification or a new contract, potentially leading to increased overall expenditure.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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

Parent Company: Travelport Worldwide Limited

Address: 3055 LEBANON PIKE STE 1000, NASHVILLE, TN, 37214

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,265,540

Exercised Options: $2,265,540

Current Obligation: $2,265,540

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77621D0021

IDV Type: IDC

Timeline