The Department of Veterans Affairs has started soliciting proposals for a potential 10-year, $700 billion multiple-award contract to provide Community Care Network, or CCN, services and healthcare resources for veterans through an established network of licensed healthcare providers and practitioners.
As VA advances the CCN Next Gen Medical contract to reshape how community care is delivered to veterans, healthcare leaders across government and industry are closely examining what comes next. Those conversations will continue at the Potomac Officers Club’s rescheduled 2025 Healthcare Summit on Feb. 12. Book your spot now to gain insight into the policies and partnerships shaping the future of federal healthcare.
According to a Dec. 16 solicitation published on SAM.gov, VA will accept offers for the CCN Next Generation Medical indefinite-delivery/indefinite-quantity contract through March 16.
What Is the Scope of the VA CCN Next Gen Medical IDIQ Contract?
Under the IDIQ contract, the selected contractors should provide the full range of healthcare services, technical and management expertise and solution-related products in one or more task areas to meet the Veterans Health Administration’s mission needs, according to the performance work statement.
The CCN Next Gen Medical contract has 17 general task areas, including program/project management; contractor maintained records; medical network development and maintenance; eligibility data management; customer service; pharmacy network development and maintenance; claims processing and adjudication; reimbursement submission; technology; and training.
According to the solicitation, the contract vehicle has a three-year base term, three two-year option periods and another option term of one year.
VA will use a Quality Assurance Surveillance Plan to monitor the quality of the contractor’s performance against the base contract requirements.
What Did VA CFO Richard Topping Say About the CCN Next Gen Medical Contract?
Federal News Network reported that Richard Topping, VA’s assistant secretary for management and chief financial officer, testified Thursday before the House Veterans Affairs Committee to discuss the contract, which is expected to become one of the largest service contracts in government history.
Topping said VA expects the contract to attract a broad range of vendors, not just large national health insurers. He noted that the contract is designed to encourage participation from smaller and regional providers that may not operate at a national scale.
While vendors will incur costs to bid and secure a position on the contract, Topping said those awarded a spot—large and small—will have the opportunity to work directly with VA and its program management team to help shape future task orders, according to FNN.
“There are two initial task orders in the initial award, those look a lot like what we have now. But we are going to immediately partner with the vendors on the vehicle to begin to build the next more regional, more adaptable, more local models in our task orders,” he added.
VA Eyes Value-Based Payment Models Via CCN Next Gen Medical
According to Topping, VA will implement value-based payment models through the CNN Next Gen Medical contract to modernize how the department pays contractors for care provided to veterans.
“We will begin with episode-based payments for lower extremity joint replacements. As we gain the data and the expertise to manage alternative payments, we will introduce at least three additional models over the performance period of the contract to continually improve care. These models will shift payment away from volume and toward outcomes and total cost of care, which aligns contractor incentives with veterans’ health and system sustainability,” he stated.
The CFO added that the department will also launch utilization management under the contract, including emergency department use, active oversight of inpatient admissions, concurrent hospital reviews and the use of high-cost drugs administered in clinical settings. He said the approach is intended to reduce unnecessary hospitalizations and inappropriate care while maintaining veterans’ access to medically necessary services.
