Ventera LLC awarded $61.7M for digital solutions to support USDA's conservation mission

Contract Overview

Contract Amount: $61,745,846 ($61.7M)

Contractor: Ventera LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-27

End Date: 2026-02-26

Contract Duration: 1,248 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80521

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $61.7 million to VENTERA LLC for work described as: THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE Key points: 1. Contract aims to deliver digital solutions for the Farm Production and Conservation (FPAC) business lines. 2. Focus on supporting FPAC's strategic mission and individual business vision for conservation. 3. The contract is a BPA Call awarded under full and open competition. 4. The contract duration is 1248 days, ending in February 2026. 5. This award represents a significant investment in modernizing conservation program delivery. 6. The fixed-price contract type suggests a defined scope of work and cost control.

Value Assessment

Rating: good

The contract value of $61.7 million over approximately 3.5 years appears reasonable for custom computer programming services supporting a large federal agency's strategic objectives. Benchmarking against similar large-scale IT development contracts within the USDA or other conservation-focused agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, potentially leading to cost savings if the contractor efficiently delivers the required digital solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market response for these types of IT services. Full and open competition generally promotes price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in digital conservation solutions.

Public Impact

Farmers and agricultural producers will benefit from improved digital tools and services that support conservation efforts. The contract will deliver viable digital solutions to enhance the efficiency and effectiveness of FPAC's conservation programs. Geographic impact is nationwide, as FPAC's conservation mission serves agricultural communities across the United States. The contract supports the federal workforce within FPAC by providing them with better technological resources. This initiative aims to modernize the delivery of conservation services, potentially leading to better environmental outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial digital solution requirements are not precisely defined.
Dependence on contractor expertise could pose risks if knowledge transfer is inadequate.
Integration challenges with existing USDA IT infrastructure may arise.
Cybersecurity risks associated with new digital solutions need robust management.
Ensuring long-term maintainability and scalability of developed solutions.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Focus on strategic mission objectives indicates alignment with agency priorities.
Contract duration allows for comprehensive development and implementation.
Potential for significant improvements in conservation program delivery efficiency.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a critical component of the broader IT services industry. The federal government is a major consumer of these services, particularly for developing and maintaining complex systems that support agency missions. Spending in this area is driven by the need for digital transformation, modernization of legacy systems, and the development of new capabilities. Comparable spending benchmarks would involve analyzing other large-scale custom software development contracts awarded to federal agencies for mission-critical applications.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, there is potential for subcontracting opportunities for small businesses within Ventera LLC's team. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains uncertain. The focus is likely on large-scale solution providers rather than direct small business set-asides.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer and the FPAC program office. Accountability measures are embedded in the firm-fixed-price contract type, requiring delivery of specified digital solutions. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USDA FPAC IT Modernization Initiatives
Federal Digital Services Transformation Programs
Custom Software Development for Government Agencies
Conservation Program Management Systems
Agricultural Data Management Solutions

Risk Flags

Potential for vendor lock-in if solutions are proprietary.
Risk of inadequate knowledge transfer to government personnel.
Dependency on contractor for ongoing maintenance and updates.
Cybersecurity vulnerabilities in new digital systems.
Integration complexity with existing federal IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $61.7 million to VENTERA LLC. THE CONTRACTOR(S) SHALL PROVIDE FPAC CONSERVATION WITH TEAMS THAT DELIVER VIABLE DIGITAL SOLUTIONS IN SUPPORT OF FPACS STRATEGIC MISSION AND OBJECTIVES, AS WELL AS SUPPORTING THE INDIVIDUAL BUSINESS VISION FOR EACH OF THE CONSERVATION LINES OF BUSINE

Who is the contractor on this award?

The obligated recipient is VENTERA LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $61.7 million.

What is the period of performance?

Start: 2022-09-27. End: 2026-02-26.

What is Ventera LLC's track record with the Department of Agriculture and similar federal IT contracts?

Ventera LLC has a history of performing IT services for federal agencies. A review of federal procurement data indicates past awards to Ventera for various IT-related tasks, including software development and IT support. Specific to the Department of Agriculture, their past performance would need to be thoroughly vetted during the source selection process. Assessing their performance on similar large-scale, mission-critical digital solution development contracts, particularly those involving conservation or agricultural programs, is crucial for understanding their capability to meet the requirements of this FPAC contract. Their ability to deliver on time, within budget, and to the required quality standards on previous engagements provides a strong indicator of future success.

How does the $61.7 million contract value compare to similar custom computer programming services contracts awarded by the USDA or other agencies?

The $61.7 million contract value for custom computer programming services over approximately 3.5 years is substantial, reflecting the complexity and scope of developing digital solutions for a major federal agency's strategic mission. To benchmark this value, one would compare it to other large IT development contracts awarded by the USDA or agencies with similar missions, such as the Environmental Protection Agency or the Department of the Interior, for custom software development, system integration, or digital transformation initiatives. Factors such as the number of users supported, the criticality of the system, and the specific functionalities required influence pricing. A firm-fixed-price award suggests that the government has a clear understanding of the scope, and the price reflects the anticipated effort and risk. Without specific comparable contract data, it's difficult to definitively state if it's high or low, but it aligns with significant IT investments.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep if requirements are not meticulously defined and managed, technical challenges in developing and integrating new digital solutions with existing legacy systems, cybersecurity vulnerabilities, and potential delays in delivery. Mitigation strategies likely involve robust project management, clear and iterative requirement definition processes, strong cybersecurity protocols, phased development and testing, and performance metrics tied to contract deliverables. The firm-fixed-price nature incentivizes the contractor to manage costs and timelines effectively. Furthermore, the contract's duration allows for phased implementation and adaptation, potentially mitigating risks associated with large, monolithic development projects. Regular performance reviews and government oversight are critical for early risk identification and mitigation.

How effective is the full and open competition process likely to be in ensuring value for taxpayers on this contract?

The full and open competition process is designed to maximize value for taxpayers by encouraging a wide range of qualified vendors to submit proposals, thereby fostering a competitive environment. This typically leads to more innovative solutions and competitive pricing as contractors vie for the award. For this $61.7 million contract, the open competition suggests that the USDA sought the best possible technical solution at the most advantageous price. The effectiveness is further enhanced by the firm-fixed-price contract type, which shifts much of the cost risk to the contractor. However, the ultimate value realization depends on the clarity of the statement of work, the thoroughness of the evaluation process, and the government's ability to effectively manage the contract and ensure deliverables meet the intended objectives.

What are the potential long-term implications for the USDA's conservation mission if these digital solutions are successfully implemented?

Successful implementation of these digital solutions could significantly enhance the USDA's Farm Production and Conservation (FPAC) mission. Potential long-term implications include improved efficiency in delivering conservation programs, better data management and analysis for informed decision-making, increased accessibility and usability of services for farmers and stakeholders, and enhanced environmental monitoring and reporting capabilities. This modernization could lead to more effective conservation practices, better resource allocation, and a stronger ability to address evolving agricultural and environmental challenges. Ultimately, it could result in more impactful conservation outcomes across the nation, supporting sustainable agriculture and environmental stewardship.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that will measure success?

While the provided data does not detail specific Key Performance Indicators (KPIs), contracts of this magnitude and nature typically include detailed performance standards and metrics within the Statement of Work (SOW) or Performance Work Statement (PWS). These KPIs would likely focus on aspects such as system uptime, response times, data accuracy, user satisfaction, successful integration with other systems, and adherence to project milestones and deadlines. The firm-fixed-price structure inherently ties payment to the successful delivery of defined tasks and outcomes. The government will monitor these KPIs to ensure Ventera LLC meets its contractual obligations and delivers the intended value for the conservation mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422Q0063

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 INTERNATIONAL DR, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $68,608,214

Exercised Options: $61,745,846

Current Obligation: $61,745,846

Actual Outlays: $60,340,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314420A0070

IDV Type: BPA

Timeline