Arrow ARC Awarded $9.4 Million VA Contract to Modernize Veteran and Family Member Programs

Arrow ARC, a joint venture between Artemis ARC and Aptive, has received a three-year, $9.4 million contract to support the Veterans Health Administration’s Veteran and Family Member Programs (VFMP), the office responsible for health benefits delivered to more than one million eligible family members and six million service-connected Veterans.

The work includes automating manual processes, migrating legacy data to modern systems and building the electronic data interchange (EDI) infrastructure that connects claims, eligibility and appeals data across VFMP’s operations.

“VFMP already proved eligibility decisions in its largest program could drop to five days or faster. What has been missing is the infrastructure to make that the standard instead of the exception across every program VFMP runs,” said Tammy Czarnecki, Executive Vice President of Health Services at Aptive. “That is what this team is building: EDI, automation and data migration that let the wins already happening in one program become repeatable everywhere else.”

VFMP administers five statutory health programs with a combined annual budget of about $3.5 billion. Demand has surged since 2022, when the PACT Act expanded disability eligibility; enrollment in CHAMPVA, VFMP’s largest program, grew more than 22% in the past fiscal year alone. Arrow ARC’s team will support portfolio management, organizational change management, front-end data automation, system migration and EDI technical implementation, all aimed at cutting cycle times and reducing the manual rework that slows down claims and appeals.

“The PACT Act eligibility changed the shape of the work, not just the volume. A backlog never shows up as a number first. It shows up as a family calling multiple times about a claim nobody can find and feeling the stress of that,” said Leigh Starr, Executive Vice President for Health Services at Artemis ARC. “Our job is to build the data and support process improvements that enable VFMP to find and resolve that case before another phone call is made.”

This task order falls within the Integrated Healthcare Transformation 2.0 Indefinite Delivery Indefinite Quantity (IDIQ) contract. Under this IDIQ, Arrow ARC and partners support the Veterans Health Administration across health system transformation, implementation and operations, informatics and business services. Arrow ARC is a joint venture between Aptive and Artemis ARC, bringing an agile, mission-first mindset and a strong track record of delivering practical, high-impact solutions across the federal health sector.