VA awards $34.2M for JLV & Community Viewer Agile Development & Sustainment to Cerner Federal Solutions

Contract Overview

Contract Amount: $34,187,513 ($34.2M)

Contractor: Cerner Federal Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-30

End Date: 2020-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS TASK ORDER IS FOR JLV AND COMMUNITY VIEWER AGILE DEVELOPMENT AND SUSTAINMENT SUPPORT.

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20121

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.2 million to CERNER FEDERAL SOLUTIONS LLC for work described as: IGF::OT::IGF THIS TASK ORDER IS FOR JLV AND COMMUNITY VIEWER AGILE DEVELOPMENT AND SUSTAINMENT SUPPORT. Key points: 1. Contract value represents a significant investment in modernizing VA's health IT infrastructure. 2. Agile development and sustainment indicate a focus on iterative improvements and ongoing support. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. Competition level suggests a potentially competitive bidding process for this critical service. 5. Contract duration of 4 years allows for sustained development and integration. 6. Focus on JLV (Joint Legacy Viewer) and Community Viewer highlights efforts to improve data accessibility for veterans.

Value Assessment

Rating: good

The contract value of $34.2 million over four years for agile development and sustainment of health IT systems appears reasonable given the scope. Benchmarking against similar large-scale health IT development contracts within the federal government, particularly those involving complex electronic health record (EHR) components and data integration, suggests this pricing is within expected ranges. The firm-fixed-price nature of the award provides cost certainty for the VA, although the ultimate value will depend on the successful delivery of agile sprints and sustained system performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While not an exceptionally high number of bidders, it does imply that the VA sought proposals from a range of qualified contractors, which is generally positive for price discovery and ensuring a competitive outcome.

Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition awards. It encourages contractors to offer their best value to secure the contract.

Public Impact

Veterans will benefit from improved access to their health information through the Joint Legacy Viewer (JLV) and Community Viewer. The contract supports the development and ongoing maintenance of critical health IT systems for the Department of Veterans Affairs. Enhanced data accessibility can lead to better-informed clinical decisions and improved patient care coordination. Workforce implications include potential employment opportunities for software developers, project managers, and IT support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if agile methodologies are not managed to ensure portability of developed components.
Risk of scope creep in agile development if requirements are not tightly managed, potentially increasing costs beyond initial projections.
Dependence on a single contractor for sustainment could pose risks if performance issues arise or if the contractor's strategic direction changes.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Agile development methodology allows for flexibility and iterative improvements based on user feedback.
Full and open competition suggests a competitive process was utilized, potentially leading to better value.
Long-term sustainment support ensures the continued functionality and evolution of critical health IT systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government, particularly agencies like the VA, invests heavily in health IT to manage vast amounts of sensitive patient data and improve healthcare delivery. The market for EHR and related health information exchange systems is competitive, with several large players and specialized firms vying for contracts. This specific award contributes to the broader trend of modernizing legacy systems and adopting agile approaches for software development and maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major vendor, it is unlikely to directly benefit small businesses through prime contract awards. However, there may be opportunities for small businesses to participate as subcontractors to Cerner Federal Solutions, depending on the company's subcontracting plan and the specific needs of the project. Further analysis would be required to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of accountability through financial controls. Transparency is facilitated by the contract's award under full and open competition, with details likely available through federal procurement databases. While specific Inspector General (IG) jurisdiction for this particular task order isn't explicitly stated, the VA Office of Inspector General generally has oversight over VA contracts to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

VA Electronic Health Record Modernization (EHRM)
DoD/VA Interoperability Initiatives
Health Information Exchange (HIE) Programs
Veterans Health Administration (VHA) IT Modernization Efforts

Risk Flags

Potential for vendor lock-in
Risk of scope creep in agile development
Dependence on contractor for critical system sustainment
Technological obsolescence during sustainment phase
Security vulnerabilities in long-term supported systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.2 million to CERNER FEDERAL SOLUTIONS LLC. IGF::OT::IGF THIS TASK ORDER IS FOR JLV AND COMMUNITY VIEWER AGILE DEVELOPMENT AND SUSTAINMENT SUPPORT.

Who is the contractor on this award?

The obligated recipient is CERNER FEDERAL SOLUTIONS 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 $34.2 million.

What is the period of performance?

Start: 2016-09-30. End: 2020-09-29.

What is the historical spending pattern for JLV and Community Viewer support by the VA?

Analyzing historical spending for the Joint Legacy Viewer (JLV) and Community Viewer requires examining prior contracts and task orders related to these specific systems. Without direct historical data for these exact systems, we can infer trends from broader VA IT modernization spending. The VA has consistently allocated significant funds towards upgrading its IT infrastructure, including electronic health records and data sharing platforms, to improve veteran care and interoperability. Spending in this area has generally increased over the past decade as the department grapples with legacy systems and the need for more integrated health information. This $34.2 million award represents a substantial, multi-year investment, suggesting a commitment to the ongoing development and sustainment of these viewers, likely building upon previous, possibly smaller or less defined, support efforts.

How does the per-unit cost of this contract compare to similar agile development contracts for health IT?

Determining a precise per-unit cost for this contract is challenging without a clear definition of the 'unit' (e.g., per developer, per sprint, per feature). However, we can assess the overall value proposition. The contract's total value of $34.2 million over 1460 days (approximately 4 years) averages to roughly $23.4 million per year. For large-scale agile development and sustainment of complex health IT systems, this annual figure is within a reasonable range, considering the specialized skills required, the criticality of the systems, and the overhead associated with managing such projects. Benchmarking against other federal health IT contracts of similar scope and duration, particularly those involving EHR components or data integration platforms, suggests that the VA is likely receiving competitive pricing, especially given the firm-fixed-price structure which caps the government's financial exposure.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for agile development and sustainment contracts in health IT would likely include metrics related to software quality, delivery timeliness, system availability, and user satisfaction. For agile development, this might involve sprint velocity, bug detection rates, and adherence to release schedules. For sustainment, key metrics would focus on system uptime (availability), response times for critical issues, and the successful resolution of reported defects. User satisfaction surveys and feedback from clinical staff utilizing the JLV and Community Viewer would also be crucial. The VA contracting officer and program managers would establish these KPIs in the contract's performance work statement (PWS) to ensure the contractor meets performance expectations and delivers value.

What is Cerner Federal Solutions' track record with similar VA health IT contracts?

Cerner Federal Solutions, now part of Oracle Health, has a significant and long-standing track record with the Department of Veterans Affairs, particularly concerning electronic health record (EHR) systems. They are a primary contractor for the VA's broader EHR Modernization (EHRM) program, which aims to replace legacy systems with a modern, integrated platform. This includes providing the core EHR software and associated services. Given this extensive experience, Cerner possesses deep knowledge of the VA's clinical workflows, data structures, and IT environment. Their history with the VA includes both successes and challenges, as is common with large-scale IT transformations. This specific task order for JLV and Community Viewer likely leverages their existing expertise and infrastructure, building upon their established relationship and understanding of VA healthcare needs.

What are the potential risks associated with the sustainment phase of this contract?

The sustainment phase of this contract carries several potential risks. One primary risk is technological obsolescence; as software and hardware evolve, maintaining older systems can become increasingly complex and costly. Another risk is the potential for performance degradation over time if not adequately managed, impacting system responsiveness and reliability for users. Vendor lock-in is also a concern, where the VA might become overly dependent on Cerner's specific technologies and expertise, making future transitions difficult or expensive. Furthermore, security vulnerabilities could emerge, requiring continuous patching and updates to protect sensitive veteran health data. Finally, changes in VA requirements or budget constraints could necessitate modifications to the sustainment plan, potentially leading to scope disputes or reduced service levels if not managed collaboratively.

How does this contract contribute to the VA's overall IT modernization goals?

This contract directly supports the VA's overarching IT modernization goals by focusing on critical components of its health information infrastructure: the Joint Legacy Viewer (JLV) and the Community Viewer. The JLV aims to provide a unified view of a veteran's health record, integrating data from various sources, including legacy systems and potentially DoD records. The Community Viewer facilitates the sharing of health information with external healthcare providers. By awarding this contract for agile development and sustainment, the VA is investing in the continuous improvement and ongoing operational stability of these tools. This aligns with the goal of creating a more seamless, accessible, and interoperable health IT ecosystem for veterans, enabling better care coordination and informed decision-making by clinicians.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerner Corporation

Address: 13800 COPPERMINE ROAD, OFFICE 206, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,432,313

Exercised Options: $34,187,513

Current Obligation: $34,187,513

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $17,703,021

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1009

IDV Type: IDC

Timeline