Veterans Affairs sheds more light on $14B transformation recompete

After some consideration, the Veterans Affairs Department agency responsible for VA's health care system has opted to keep the kind of companies it wants for the next iteration of its go-to modernization contract vehicle as-is.

The Veterans Health Administration will continue to reserve the upcoming Integrated Healthcare Transformation 2.0 contract for service-disabled veteran-owned small businesses, the agency said in a Tuesday Sam.gov notice.

VHA indicated in August that it was considering whether to add large businesses on a separate track, but the new decision is in keeping with the current IHT contract that has six SDVOSB companies.

IHT 2.0's intended size and specs are to have ceiling of up to $14 billion over a 10-year period of performance. That represents a ceiling approximately 10 times higher than the current contract's maximum of $1.5 billion, against which VHA has obligated 43% to-date as indicated by GovTribe data.

VHA intends to release a final solicitation for the multiple-award recompete later in December with awards to follow in April.

Evaluations for IHT 2.0 will take place over a two-phase advisory downselect process, where bidders will learn after the first phase of their likelihood to advance and be in good position for an award. Phase two will see a full evaluation of the proposed team.

That word "team" is heavily emphasized in VHA's update on its IHT 2.0 plan, which describes the current contract as its SDVOSB-led teams having "combined their reach and collective capabilities to tackle some of VHA’s largest professional service requirements."

VHA designates its IHT prime contractors with the term VITAL -- Veteran Integrated Team Agile Lead.

Potential exclusive subcontractor partners can include large commercial health care consultants, academic institutions, nonprofit organizations, and other small businesses including veteran-owned firms. A fifth type of teammate called out in the update is the SDVOSB VIT Eligible Partner, or VITEP.

IHT 2.0 breaks out across four functional categories that include health system transformation and innovation, implementation and operations support, health care business enabling services, and health informatics.