The Department of Veterans Affairs has issued a request for proposals for the potential 10-year, $14 billion follow-on Integrated Healthcare Transformation (IHT) contract. The IHT 2.0 indefinite-delivery/indefinite-quantity (IDIQ) contract seeks to provide contracting opportunities for service-disabled veteran-owned small businesses (SDVOSB) through set-aside contract awards to Veteran Integrated Agile Leads (VITALs) and SDVOSB teaming partners serving as VIT Eligible Partners or VITEPS.

What is the Integrated Healthcare Transformation (IHT) 2.0?

The IHT 2.0 contract is a multiple-award, IDIQ contract that has a base ordering period of five years and a five-year optional term and covers the delivery of health care and professional consulting services to the Veterans Health Administration through a pool of veteran integrated contractor teams or VITs.

The IDIQ contract has four functional categories: health system transformation and innovation, implementation and operations support, health care business enabling services and health informatics.

Each functional category consists of capability areas. For the health system transformation and innovation category, the capability areas include program and project management, strategic planning, business process reengineering, improvement and management, strategic communications and executive support and artificial intelligence.

The minimum guaranteed amount to each awardee will be set at $10,000.00 which could change at the time the IDIQ award is issued based on initial task order pricing, however the Government has no obligation to award TO’s beyond the minimum guaranteed amount. The maximum aggregate value of all awards and Task Orders for this opportunity will be set at $14,000,000,000.

All awardees will be Fully Mission Capable, Veteran Integrated Teams (VITs) populated with vendor partners specializing in healthcare assembled under the leadership of a Veteran Integrated Team Agile Lead (VITAL). The VITAL receiving the award must be determined eligible in terms of both size (small under NAICS Code 541611 as confirmed through Representations and Certifications) and Service-Disabled Veteran-Owned Small Business (SDVOSB) status (VETCERT verified). Following award, the VITAL will be considered “small” for the duration of the five (5) year base period. The VITAL will be required to re-certify its size should the Government exercise its contract option at the end of the base period. VITALs must remain VETCERT Verified for the duration of the contract.

For VITALs that are Joint Ventures (JV), if the SDVOSB partner to the JV no longer qualifies as a small business under the IHT 2.0 NAICS, the JV will not be eligible for its contract option period. A change in the protégé’s size status during the base period, however, will not affect the original contract awarded to the JV and it will remain eligible to compete under IHT 2.0 (so long as the JV remains VETCERT-certified).

As an SDVOSB set-aside, the prime and/or similarly situated entities must perform at least 50% of the work (amount paid by Gov’t to the prime) and the prime contractor cannot subcontract 50% or more to non-similarly situated entities. To contribute to the prime contractor’s required performance percentage, a VITEP must be VETCERT verified at time of TO award and be classified under the NAICS code established in the subcontract for the Capability Area being supported.

All contractors performing under VHA IHT 2.0 shall provide services as required which will be identified throughout the ordering period. Requirements may span the labor categories and tasks of one or more Functional Categories and/or Capability Areas. Each requirement will specify details as they relate to deliverables, performance, and other technical items. Contractors may be required to use the Acquisition Task Order Management System (ATOMS) for all task orders.

Coley, an SDVOSB, has successfully assisted companies, both veteran and nonveteran, for over 23 years with navigating the complex world of Federal contracting.  We constantly monitor VA acquisition trends and policies and assist in identifying winning strategies to enter and succeed in that marketplace. Contact us today at, by phone 210-402-6766 or schedule a call at a time convenient for you.

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