VA's $22.8M insurance card scanner contract awarded to Avertium, highlighting IT services for healthcare administration

Contract Overview

Contract Amount: $22,867,931 ($22.9M)

Contractor: Avertium Tennessee, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-03-31

End Date: 2014-08-20

Contract Duration: 1,968 days

Daily Burn Rate: $11.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSURANCE CARD SCANNER SOLUTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.9 million to AVERTIUM TENNESSEE, INC for work described as: INSURANCE CARD SCANNER SOLUTION Key points: 1. Contract focused on IT services, specifically document management and scanning solutions for healthcare claims. 2. Awarded via a competitive delivery order, suggesting multiple vendors were considered. 3. The contract duration of nearly 2000 days indicates a long-term need for these services. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded to a single vendor, Avertium Tennessee, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the scope of services and the technology provided. However, the total award amount of over $22 million over approximately five years suggests a significant investment in document management. Comparing this to similar IT service contracts for healthcare administration would be necessary to determine if the pricing was competitive. The fixed-price contract type generally offers good value by capping government liability, but the ultimate value depends on the efficiency and effectiveness of the delivered solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar competitive vehicle. The term 'competitive' suggests that multiple vendors had the opportunity to bid on this specific order. The number of bidders is not explicitly stated, but the competitive nature generally promotes price discovery and encourages vendors to offer their best pricing and technical solutions to win the award.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a marketplace where vendors vie for the contract, potentially leading to lower prices and better service quality.

Public Impact

Veterans will benefit from more efficient processing of their insurance claims and related documentation. The Department of Veterans Affairs (VA) receives a solution to digitize and manage insurance cards and associated paperwork. The contract supports the administrative functions within the VA's healthcare system. Geographic impact is primarily within the District of Columbia, where the contractor is located, but the services likely support a national VA network. Workforce implications may include the need for IT specialists and administrative staff to manage and utilize the scanning solution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution is proprietary and difficult to replace.
Dependence on a single vendor for a critical administrative function could pose a risk if the vendor experiences financial or operational difficulties.
Ensuring data security and privacy for sensitive veteran information is paramount.

Positive Signals

The competitive award process suggests a fair evaluation of multiple potential solutions.
A fixed-price contract provides cost predictability for the government.
The long contract duration indicates a stable, ongoing need that the vendor is expected to fulfill reliably.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on document management and scanning solutions for the healthcare industry. The market for such services is substantial, driven by the increasing need for digitization and efficient data handling in government and private sectors. Comparable spending benchmarks would involve looking at other large-scale document imaging and management contracts within federal agencies, particularly those in healthcare, to assess cost-effectiveness relative to industry standards.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific delivery order was not provided. As a competitive delivery order, it's possible that larger prime contractors were involved, which could present subcontracting opportunities for small businesses. However, without explicit details on set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures are inherent in the fixed-price contract terms, requiring the vendor to deliver the specified services. Transparency is generally facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Health Information Technology Services
Federal Electronic Health Records
Government Document Management Systems
Healthcare Claims Processing Systems

Risk Flags

Long contract duration may indicate potential for scope creep or evolving technological needs.
Reliance on a single vendor for a critical function requires robust oversight.
Data security and privacy are inherent risks with healthcare-related IT contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.9 million to AVERTIUM TENNESSEE, INC. INSURANCE CARD SCANNER SOLUTION

Who is the contractor on this award?

The obligated recipient is AVERTIUM TENNESSEE, INC.

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 $22.9 million.

What is the period of performance?

Start: 2009-03-31. End: 2014-08-20.

What specific technology or software solution was implemented for the insurance card scanning?

The provided data does not specify the exact technology or software solution used for the insurance card scanning. It only indicates the service category as 'Other Computer Related Services' (NAICS 541519) and the contract type as a 'Delivery Order' for an 'INSURANCE CARD SCANNER SOLUTION'. To understand the specific technology, one would need to review the detailed contract statement of work (SOW) or performance work statement (PWS). This document would outline the technical requirements, deliverables, and potentially the approved hardware and software platforms. Without this, we can only infer that it involves scanning, data capture, and likely some form of integration with existing VA systems for processing insurance information.

How does the cost per day of this contract compare to similar IT service contracts for document management?

The total award was $22,867,931.17 over a period of 1968 days (approximately 5.4 years). This equates to an average daily cost of approximately $11,620. This figure represents the total value spread across the entire contract duration. To compare this to similar IT service contracts for document management, we would need to identify contracts with comparable scopes of work, service levels, and technologies. Factors such as the volume of documents processed, the complexity of data extraction, security requirements, and the level of integration with other systems significantly influence pricing. A direct comparison would require accessing detailed cost breakdowns and performance metrics of other relevant federal contracts.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents define the expected performance standards, such as scanning accuracy rates, turnaround times for processing documents, system uptime, and data security compliance. The success of the 'INSURANCE CARD SCANNER SOLUTION' would be measured against these defined metrics. Without access to the SOW/PWS, it's impossible to detail the specific KPIs or SLAs that Avertium Tennessee, Inc. was required to meet.

What is the track record of Avertium Tennessee, Inc. with the Department of Veterans Affairs or similar agencies?

Avertium Tennessee, Inc. was awarded this $22.8 million contract by the Department of Veterans Affairs (VA) for an insurance card scanner solution. While this specific award indicates a relationship with the VA, a comprehensive assessment of their track record would require examining their entire contract history with the VA and other federal agencies. This would involve looking at past performance evaluations, any contract modifications, and the successful completion of previous projects. Information on their experience with similar IT services, particularly in the healthcare sector, would be crucial to understanding their capabilities and reliability in fulfilling such requirements.

Were there any significant challenges or issues reported during the performance of this contract?

The provided data does not contain information about any significant challenges or issues encountered during the performance of this contract. To identify potential problems, one would need to consult contract performance reports, CPARS (Contractor Performance Assessment Reporting System) records, or any Inspector General reports related to this award. Such sources would detail any disputes, delays, quality issues, or unmet performance standards that may have arisen. Without this information, it is assumed the contract was performed without major reported difficulties.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: VA-200-09-RQ-0050

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1431 CENTERPOINT BLVD STE 150, KNOXVILLE, TN, 37932

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,867,931

Exercised Options: $22,867,931

Current Obligation: $22,867,931

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA21B

IDV Type: GWAC

Timeline