8 Awarded on $23B VHA ICSP Health Staffing IDIQ Contract

1/15/24

The Department of Veterans Affairs (VA), facing ongoing staffing shortages, has introduced the Integrated Critical Staffing Program (ICSP) under President Biden. This program involves contracting out human resources functions, including recruitment and staffing, to private-sector temporary staffing agencies. While this approach is not entirely new, the scale of the solicitation, amounting to a $23 billion, (up to) ten-year opportunity, is unprecedented. This staff-augmentation model appears to have been adopted from the Department of Defense (DOD), where thousands of contract employees operate alongside the regular civilian workforce.

The VA has granted positions to eight companies. This contract has a five-year base term and five option years. The VA received 13 offers for this multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contract, which aims to provide clinical and non-clinical staffing support, program management, human capital, and other professional services to address critical staffing needs and key program requirements. The competition for the VHA ICSP contract was conducted as a service-disabled veteran-owned small business (SDVOSB) set-aside program.

The ICSP contractors will provide temporary employees across various roles within the Veterans Health Administration (VHA). Some are concerned that temporary staff could create a transient workforce, however others argue that temps may have the option to become direct federal employees later. This move contrasts with the previous strategy of leaving vacancies unfilled, which faced legal challenges and cost the agency millions in back pay and reinstatements under the previous administration.

The VHA is leveraging the contract to ensure seamless continuity in its regular recruitment and onboarding procedures, avoiding any interruptions in care for veterans. Additionally, the contract serves to offer temporary coverage for ongoing program management and support requirements.

Per The American Prospect, VA press secretary Terrence Hayes communicated that temporary staffing contracts are a common practice at VA and are an important means for delivering top-notch service to their beneficiaries. He noted that the ICSP represents a shift in handling these contracts at the national level through swift engagement with national contract staffing companies. According to Hayes, this change aims to reduce administrative burdens and onboarding timelines, facilitating quicker access to contract staffing resources and ultimately improving care accessibility at VHA.

Hayes confirmed that temporary staff members have the option to apply for permanent employment. He stated, “VA does not intend to use contracted employees for any position in the long term,” emphasizing that the recruitment of permanent federal employees for these roles would be an ongoing process whenever a contracted employee is brought on board.

The awardees are:

• ARROW ARC LLC 36C10X24D0003
• ASPIRE-LUKE JV LLC 36C10X24D0004
• BLUE WATER THINKING, LLC 36C10X24D0005
• NORTH AMERICAN UNITED HEALTHCARE SERVICES JV LLC 36C10X24D0006
• PROMETHEUS FEDERAL SERVICES LLC 36C10X24D0007
• TITA-NAUXO, LLC 36C10X24D0008
• VETERAN FIRST TECHNOLOGIES, LLC 36C10X24D0009
• WELLPATH MEDICAL LLC 36C10X24D0010

To learn more about the VHA ICSP Health Staffing Contract, the associated task order awards, and similar health staffing opportunities, get full access with a 5-day trial.