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Looking up at the VA building in Washington. Its sign says “Veterans Affairs Building 810 Vermont Avenue, NW.”

A federal court has signaled that the Department of Veterans Affairs can proceed with a $60.7 billion, 10-year plan for modernizing IT services. (Stars and Stripes)

WASHINGTON — A federal court has ruled that the Department of Veterans Affairs can proceed with a $60.7 billion, 10-year plan for modernizing IT services.

Judge Molly R. Silfen issued a decision this week in the U.S. Court of Federal Claims, in Washington, D.C., that allows the VA to proceed with its new “contracting vehicle” — called Transformation Twenty-One Total Technology Next Generation 2, according to court documents.

Earlier court actions in the case were sealed until the parties reviewed the documents for potential redactions, according to court documents.

T4NG2 represents the VA’s multi-award vehicle for acquiring information technology, including for cybersecurity, software engineering and health information, according to the agency.

It has been at the center of a two-year legal protest by multiple companies that were unsuccessful bidders. The challenge was described as a “very large bid protest” in court documents.

Eighteen companies were affected by the ruling, according to Washington Technology.

The federal court reviewed the challenges as a consolidated bid protest. The case involved how the VA evaluated proposals.

A total of 31 companies originally had filed protests, with several of them later dropping out, according to court documents.

The government argued, in part, that the solicitation was clear and the parties “forfeited any challenges” by not raising them before the end of the bidding process, according to court documents.

The dispute highlighted the high stakes for companies seeking to do business with the VA, as it secures and updates IT services, according to Govly, a news platform for government contractors.

“The court’s decision clears the path for VA to proceed with its extensive IT modernization efforts under T4NG2, signaling stability and certainty for vendors involved and those considering future participation,” Govly said.

The agency first made awards through T4NG2 in October 2023, according to court documents.

Task orders typically fall between $1 million and $1 billion, said Technatomy Corp., which specializes in supporting and updating information technology for health systems.

Some of the protesters — including Taurian Consulting, Technatomy Corp. and Peregrine Digital Services — were added to the contract before the final ruling, according to Washington Technology.

The ruling effectively finalized the VA’s list of 33 authorized vendors, according to Govly.

T4NG2 is the primary contract for the VA to acquire IT services— including for cybersecurity, systems engineering, and software development—with a $60 billion ceiling over 10 years, according to Washington Technology.

The contract vehicle supports the VA’s electronic health records, veterans benefits systems, and various enterprise-wide updates to its benefits and services for veterans.

author picture
Linda F. Hersey is based in Washington, D.C., and reports on veterans. She previously covered the Navy and Marine Corps at Inside Washington Publishers. She also was a government reporter at the Fairbanks Daily News-Miner in Alaska, where she reported on the military, economy and congressional delegation.

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