DA01--VA-26-00007819 Life Insurance Policy Administration System (LIPAS) Phase III (Base)

Other / Unclassified

This document is an attachment to a notice regarding the Life Insurance Policy Administration System (LIPAS) Phase III (Base) requirement. It serves as justification and approval for a sole source acquisition, citing an exception to fair opportunity under FAR 16.507-6(b)(2). The justification is based on the unique and highly specialized nature of the services required, stating that only one awardee is capable of providing them at the necessary quality level.

This document is relevant to potential bidders as it explains the rationale behind the sole source award strategy for the LIPAS Phase III (Base) requirement. It indicates that the government has determined the services are unique and highly specialized, which may limit the opportunity for new vendors to compete unless they can demonstrate a similar level of specialized capability. Bidders interested in this opportunity should understand this context when considering their approach or potential for future similar requirements.

Justification for an Exception to Fair Opportunity

This document justifies a sole-source Task Order (TO) for the renewal of brand name EXL LifePro Commercial-off-the-Shelf (COTS) software and associated configuration services for the Life Insurance Policy Administration Solution (LIPAS) Phase III. LIPAS, also branded "VISION", is used by the VA Office of Information & Technology, Product Delivery Service, Benefits and Memorials Services Portfolio Insurance Service to manage Veteran life insurance policies.

• Renewal and annual maintenance of EXL LifePro, LifePro Digital Suite, and SmartComm software licenses.

• Support services including project management, enhancements and development scrum teams, and sustainment scrum teams.

• Agile development to enhance LIPAS, increase automation, implement Artificial Intelligence (AI), and integrate with internal/external systems.

• Sustainment program for optimal system availability, prompt incident resolution, and reliable after-hours operations.

• Ensuring the solution is interoperable and compatible with VA Insurance's existing platform.

• The action is a sole-source Task Order issued under the T4NG Indefinite Delivery Indefinite Quantity contract VA118-16-D-1003 with GovCIO, LLC.

• Period of Performance: 12-month base period with two 12-month option periods and six optional tasks.

• The total estimated value is not specified in the provided text but is inclusive of all option periods and optional tasks.

• Not applicable, as this is a justification for a sole-source action, not a solicitation for proposals.

• This action is justified as a sole source due to unique and highly specialized requirements, with GovCIO LLC (and its subcontractor EXL) being the only capable provider.

• The justification cites FAR Overhaul VA Deviation 16.507-6(b)(2) as the authority for the exception to fair opportunity.

• Market research indicated no other vendors could meet the requirements without significant duplication of effort and cost (estimated $62.9 million and 24 months).

• Moving away from the current solution would negatively impact Veterans due to potential delays and issues with policy processing and payments.

Request for Information (RFI)

This RFI is for planning purposes to determine the availability of Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) capable of providing services for the Life Insurance Policy Administration System (LIPAS) Phase III. It is not a solicitation for bids or proposals, and no contract will be awarded based on this RFI. Responses will not be reimbursed.

Vendors are asked to provide a summary of their capability to meet requirements outlined in the draft Performance Work Statement (PWS), specifically concerning:

• Enhancements and sustainment for EXL LifePro, EXL LifePro Digital Suite (LDS), and SmartComm software.
• Obtaining SmartComm licenses and experience with its Letter Generation Tool.
• Experience implementing or maintaining insurance products and expertise in the insurance sector.
• Experience with EXL, including license access and maintenance.
• Cloud migration experience to VAEC AWS GovCloud, sustainment, and enhancements for the LIPAS solution.
• Managing data quality during migration, ensuring no loss or downtime.
• Challenges working with VA Enterprise Cloud (VAEC).
• Managing VAEC environments for resource allocation and cost minimization.
• Experience with Artificial Intelligence (AI), including integration and implementation success.
• Corporate experience and specific examples/references for performing these services (agency, POC, dollar value, contract number).
• Intent and ability to meet the SDVOSB set-aside requirement.
• Information on available personnel, financial resources, and proposed team members for subcontracting.
• Feedback on the sufficiency of the draft PWS.

This effort may be competed under the Transformation Twenty-One Total Technology Next Generation (T4NG) multiple award IDIQ contract using fair opportunity procedures. The NAICS code is 541512 with a size standard of $34 million.

• Responses are due by 1:00 PM Eastern on October 23, 2025.

• Submit responses via email to Christine.Keen-Deputy@va.gov and Susan.Banasiak@va.gov with "LIPAS Phase III" in the subject line.

• Page limitation: 12 pages (excluding cover page and table of contents). No marketing materials or generic capability statements.

• Email file size limit: 5 MB.

• Focus on identifying capable SDVOSBs and VOSBs not currently T4NG contract holders.

• SDVOSB/VOSB companies must be verified in the SBA VetCert database.

• Responses must include proof of SBA VetCert verification for VOSB/SDVOSBs.

• The response must address the intent and ability to meet the VAAR 852.219-73 (JAN 2023) (DEVIATION) VA Notice of Total Set-Aside For Certified SDVOSBs.

• Interested vendors must provide company name, address, POC, contact info, business size/status, DUNS number, and existing contract vehicles in the initial paragraph.

• Mark responses as "Proprietary Information" if business sensitive.

Statement of Work (SOW) / Performance Work Statement (PWS)

This Performance Work Statement (PWS) outlines the requirements for the Transformation Twenty-One Total Technology (T4NG) Next Generation (T4NG) program, specifically for the Life Insurance Policy Administration System (LIPAS) Phase III. The objective is to modernize and enhance the current LIPAS/VISION system to ensure efficient operation, increase automation, and leverage Artificial Intelligence (AI) for improved processing of insurance applications, claims, and customer requests. The goal is to provide Veterans, Service members, and their families with world-class insurance products and services.

The Contractor shall provide enhancements, sustainment, and license management for the LIPAS Solution. This includes implementing AI to automate business processes and modernizing interfaces with other VA enterprise systems. Key areas of work include:

• Agile DevSecOps approach for continuous delivery.
• Application sustainment support, including maintenance, upgrades, and product compliance.
• Help desk support (Tier Two and Tier Three).
• Batch jobs and monitoring.
• Agile development and enhancement scrum teams.
• Integration and testing support services.
• Implementation services.
• Optional tasks for additional sustainment, agile development, system expansion, and cloud migration (specifically for the Electronic Insurance (EIN) system).

Performance will be measured against established objectives, including:

• Technical/Quality of Product or Service.

• Project Milestones and Schedule.

• Cost & Staffing.

• Management.

• Service Level Agreements (SLAs) for incident response, resolution times, and availability (e.g., 99.9% system uptime).

• Performance Period: 12 months from the date of award with four 12-month option periods.

• Place of Performance: Contractor facilities.

• Adherence to VA security and privacy requirements, including background investigations and mandatory training.

• Compliance with Section 508 standards for Information and Communication Technology (ICT).

• Use of VA approved project management tools (e.g., Jira) for tracking requirements, development, and defects.

• Development and implementation of a Contractor Project Management Plan (CPMP).

• Regular status meetings and reporting.

• Government Furnished Equipment (GFE) will be limited to developer grade laptops.

Sources Sought / RFI

This is a Sources Sought notice for the Life Insurance Policy Administration System (LIPAS) Phase III (Base) requirement. The Department of Veterans Affairs, Technology Acquisition Center, is seeking capability statements from interested parties.

• Solicitation Number: 36C10B26Q0037
• NAICS Code: 541512 (Computer Systems Design Services)
• Product Service Code: DA01
• Set-Aside: Service-Disabled Veteran-Owned Small Business (SDVOSB)
• Response Date: October 23, 2025, 1:00 PM Eastern Time
• Contracting Office: Department of Veterans Affairs, Technology Acquisition Center, Eatontown, NJ

Vendors are instructed to read the attached Performance Work Statement (PWS) Draft for RFI. The requirement involves the Life Insurance Policy Administration System (LIPAS) Phase III. EXL software is required for this solution.

Interested parties should submit a capability statement. This is a Sources Sought notice, not a solicitation for offers.

• LIPAS III PWS Draft for RFI
• T4NG RFI_SAM.gov LIPAS III final