VA's $35.8M Virtual Care Remediation Contract Awarded to Accenture Federal Services

Contract Overview

Contract Amount: $35,875,234 ($35.9M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-03-28

End Date: 2019-02-26

Contract Duration: 1,065 days

Daily Burn Rate: $33.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF THIS TO IS FOR VIRTUAL CARE REMEDIATION ENHANCEMENT AND RELEASE SERVICES FOR VHA'S CCO.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.9 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF THIS TO IS FOR VIRTUAL CARE REMEDIATION ENHANCEMENT AND RELEASE SERVICES FOR VHA'S CCO. Key points: 1. Contract focused on enhancing virtual care services for the Veterans Health Administration. 2. Accenture Federal Services, a large IT services provider, secured the award. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. Performance period spanned nearly three years, indicating a significant project duration. 5. The contract type, Time and Materials, can pose cost control challenges if not managed closely. 6. This award falls within the Computer Systems Design Services NAICS code, a common area for IT support.

Value Assessment

Rating: fair

The contract's total value of $35.8 million over approximately three years suggests a moderate investment in virtual care IT infrastructure. Benchmarking this against similar contracts for IT system remediation and enhancement is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not meticulously managed and monitored for efficiency. The number of bids received (8) provides some indication of market interest, but the ultimate value for money depends heavily on the successful delivery of the specified remediation and enhancement services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Eight bids were received, indicating a healthy level of interest from the market for this type of IT service. The competitive nature of the bidding process should have theoretically driven down prices and encouraged innovative solutions. The presence of multiple bidders suggests that the government had a range of options to choose from, potentially leading to a better-suited and more cost-effective outcome.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The active bidding process helps ensure that public funds are used efficiently by leveraging market forces.

Public Impact

Veterans will benefit from improved virtual care services, potentially leading to better access to healthcare. The contract supports the VHA's CCO (Clinical Contact Center Operations) in delivering enhanced digital health solutions. Services delivered include remediation and enhancement, aiming to improve the functionality and reliability of virtual care platforms. The primary geographic impact is within the VHA system, serving veterans nationwide. The contract likely involves IT professionals and support staff, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope creep and labor hours.
The duration of the contract (over 3 years) requires sustained oversight to ensure continued value and performance.
Reliance on a single large contractor for critical virtual care infrastructure enhancements carries inherent performance and continuity risks.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract addresses a critical need for virtual care enhancement within the VHA, aligning with modern healthcare delivery trends.
The number of bidders (8) suggests significant market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for healthcare IT, particularly virtual care and telehealth solutions, has seen significant growth, accelerated by recent public health events. The Department of Veterans Affairs is a major investor in health IT, aiming to modernize its systems to provide better care to veterans. Comparable spending benchmarks would typically involve other large-scale IT system development, integration, and support contracts within federal health agencies or large enterprise IT projects.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Accenture Federal Services LLC, a large prime contractor. There is no explicit indication of small business subcontracting requirements within the provided data. The focus on a large prime contractor for a significant IT project suggests that opportunities for small businesses would primarily be through subcontracting, the extent of which is not detailed here. This approach is common for large, complex IT initiatives where specialized expertise and scale are required from the prime.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Veterans Affairs, likely managed by contracting officers and program managers responsible for VHA's IT infrastructure. The Inspector General's office for the VA would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance metrics and ongoing oversight activities are often internal.

Related Government Programs

VHA Electronic Health Record Modernization
VA Telehealth Services
Federal Health IT Modernization Programs
Department of Defense Health IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of performance issues if system enhancements are not well-integrated.
Dependency on a single large contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.9 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF THIS TO IS FOR VIRTUAL CARE REMEDIATION ENHANCEMENT AND RELEASE SERVICES FOR VHA'S CCO.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES 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 $35.9 million.

What is the period of performance?

Start: 2016-03-28. End: 2019-02-26.

What was Accenture Federal Services' track record with the VA prior to this contract?

Accenture Federal Services has a significant history of contracting with the Department of Veterans Affairs across various IT and consulting services. Prior to this specific virtual care remediation contract, Accenture has been involved in large-scale IT projects for the VA, including work related to the VA's transition to a new electronic health record (EHR) system. Their extensive experience with the VA's complex IT environment and healthcare mission suggests a deep understanding of the agency's needs and challenges. However, like any large contractor, their performance history with the VA would warrant a detailed review, examining past project successes, challenges, and any reported issues to fully assess their capability and reliability for critical initiatives like virtual care enhancement.

How does the $35.8 million value compare to similar virtual care IT enhancement contracts within the federal government?

The $35.8 million value for this three-year virtual care remediation and enhancement contract is within a moderate range for large federal IT projects, particularly those focused on specific system improvements rather than complete overhauls. For instance, major EHR implementations or enterprise-wide network upgrades can run into hundreds of millions or even billions of dollars. However, contracts focused on enhancing existing platforms, like virtual care services, often fall into the tens of millions. Comparing this to similar contracts requires detailed analysis of the scope of work, the specific technologies involved, and the duration. Contracts for IT system modernization, cybersecurity enhancements, or cloud migration within agencies like HHS or DoD can offer comparable benchmarks, but the unique nature of virtual care services within the VHA context makes direct comparisons difficult without granular data on service delivery and technical requirements.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

Time and Materials (T&M) contracts, like the one awarded to Accenture for virtual care services, present specific risks primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used. This structure offers flexibility, which can be beneficial for projects with evolving requirements or uncertain scopes. However, it lacks the cost certainty of fixed-price contracts. The primary risk is potential cost overrun if the contractor's labor hours are inefficiently used, if the scope of work expands without adequate controls (scope creep), or if labor rates are higher than anticipated. Effective oversight, detailed tracking of hours and resources, and strong contract management are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective are competition levels like 'full and open' with 8 bidders in ensuring value for taxpayer money in IT contracts?

A 'full and open' competition with eight bidders is generally a strong indicator that the government is likely to achieve good value for taxpayer money in IT contracts. This level of competition signifies that the marketplace has sufficient capacity and interest to bid on the requirement, fostering a competitive environment. The presence of multiple bidders typically drives down prices as companies vie for the award. Furthermore, a broader competition increases the likelihood that the government will select a contractor offering not only a competitive price but also the most suitable technical solution and best overall value. While not a guarantee, robust competition is a fundamental mechanism for ensuring efficiency and cost-effectiveness in federal procurement.

What are the potential performance implications of enhancing virtual care systems for the VHA?

Enhancing the VHA's virtual care systems has significant potential performance implications, both positive and negative. Positively, successful enhancements can lead to improved access to healthcare for veterans, particularly those in remote areas or with mobility issues. It can also increase the efficiency of healthcare delivery, reduce wait times, and improve patient engagement through better digital tools. However, poorly executed enhancements or system integrations can lead to disruptions in care, data security vulnerabilities, user frustration (for both veterans and providers), and increased technical support burdens. The success hinges on the contractor's ability to deliver robust, secure, and user-friendly solutions that seamlessly integrate with existing VHA infrastructure and workflows.

How does the NAICS code 541512 (Computer Systems Design Services) typically relate to virtual care IT projects?

The NAICS code 541512, 'Computer Systems Design Services,' is highly relevant to virtual care IT projects. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For virtual care, this includes designing the architecture for telehealth platforms, integrating electronic health records (EHRs) with virtual visit applications, developing secure communication channels, and ensuring the overall system is user-friendly and reliable. It covers the analytical and design aspects of creating complex IT solutions tailored to specific needs, such as enabling remote patient monitoring, facilitating virtual consultations, and managing patient data securely within a healthcare context.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $130,901,969

Exercised Options: $58,619,450

Current Obligation: $35,875,234

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $7,379,436

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0005

IDV Type: GWAC

Timeline