Agriculture awards $2.3M for SNAP-QCS IT support, with Ventera LLC securing the contract

Contract Overview

Contract Amount: $2,282,573 ($2.3M)

Contractor: Ventera LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-05-12

End Date: 2026-11-11

Contract Duration: 1,279 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNAP-QCS OPERATIONS & MAINTENANCE SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to VENTERA LLC for work described as: SNAP-QCS OPERATIONS & MAINTENANCE SUPPORT Key points: 1. The contract value of $2.3M over approximately 3.5 years suggests a moderate annual spend for IT operations and maintenance. 2. Full and open competition was utilized, indicating a potentially competitive bidding process for this service. 3. The fixed-price contract type aims to control costs by establishing a set price for the services. 4. The primary service category, Computing Infrastructure Providers, Data Processing, and Related Services, is a common area for federal IT spending. 5. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting it leverages an existing master agreement. 6. The duration of the contract (1279 days) allows for sustained support but requires ongoing performance monitoring.

Value Assessment

Rating: good

The contract value of $2.3M over 1279 days equates to approximately $1,785 per day. Benchmarking this against similar IT operations and maintenance contracts is difficult without more specific service details. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price is competitive. The award amount appears reasonable for a support contract of this duration and scope, assuming it covers essential IT infrastructure and services for the SNAP-QCS program.

Cost Per Unit: $1,785 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were 4 bids received. A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government. The fact that four bids were submitted suggests a healthy level of interest in this contract, which is a positive sign for competition.

Taxpayer Impact: Full and open competition with four bidders helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of Agriculture's Office of the Chief Financial Officer, ensuring the operational continuity of the SNAP-QCS system. The services delivered include crucial IT operations and maintenance support, likely encompassing infrastructure management, data processing, and web hosting. The geographic impact is centered in Virginia, where the contractor is located, but the services support a national program (SNAP). The contract supports the federal IT workforce by engaging a private sector contractor for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA call is not managed effectively.
Reliance on a single contractor for critical IT operations could pose a risk if performance degrades.
Ensuring the contractor's adherence to evolving cybersecurity standards will be crucial.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract type helps manage cost certainty for the government.
The contractor, Ventera LLC, has a track record of federal contract awards, suggesting some level of established capability.
The contract supports a vital program (SNAP), contributing to essential government functions.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and related services. This is a significant area of federal spending, with agencies increasingly relying on robust IT systems for program delivery and data management. The market for these services is competitive, with numerous large and small businesses offering solutions. The annual value of this contract, approximately $650K, is moderate within the broader federal IT landscape, but critical for the specific functions it supports within the Department of Agriculture.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Ventera LLC is likely a mid-to-large-sized business. The absence of small business set-asides or explicit subcontracting goals means that the direct impact on the small business ecosystem for this specific award is likely minimal, though Ventera may engage small businesses as part of its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Agriculture's contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's performance or award.

Related Government Programs

SNAP Program IT Support
Department of Agriculture IT Services
Federal Data Processing Contracts
Cloud Computing Infrastructure Services
IT Operations and Maintenance

Risk Flags

Potential for performance issues if contractor capabilities are overestimated.
Cybersecurity vulnerabilities if not rigorously managed.
Dependency on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to VENTERA LLC. SNAP-QCS OPERATIONS & MAINTENANCE SUPPORT

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 $2.3 million.

What is the period of performance?

Start: 2023-05-12. End: 2026-11-11.

What is Ventera LLC's track record with federal contracts, particularly in IT operations and maintenance?

Ventera LLC has a history of receiving federal contracts, primarily within the IT services domain. While specific details on their performance for this particular SNAP-QCS contract are not publicly available in this data snippet, their continued awards suggest a capacity to meet government requirements. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and expertise in IT operations and maintenance. Federal procurement data often includes past performance evaluations, which would be a key resource for a deeper dive into their track record.

How does the $2.3M contract value compare to similar IT support contracts within the Department of Agriculture or for similar federal programs?

The $2.3M contract value over approximately 3.5 years translates to an annual spend of roughly $650,000. This is a moderate figure for federal IT operations and maintenance support. To benchmark effectively, one would need to compare it against contracts for similar services (e.g., infrastructure hosting, data processing, system maintenance) awarded to similarly sized contractors within the Department of Agriculture or to other agencies supporting comparable programs. Without access to a detailed database of comparable contracts with specific service scopes and pricing, a precise comparison is challenging. However, the firm fixed-price nature and the competitive award suggest an effort to achieve value for money.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure performance?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, IT operations and maintenance contracts include detailed SLAs related to system uptime, response times for issue resolution, data security compliance, and performance metrics for computing infrastructure. These are crucial for ensuring the contractor, Ventera LLC, meets the government's requirements. The contracting officer and program managers at the Department of Agriculture would be responsible for monitoring adherence to these KPIs and SLAs, and the contract document itself would outline the specific metrics and remedies for non-performance.

What is the historical spending trend for IT operations and maintenance support within the Department of Agriculture's Office of the Chief Financial Officer?

The provided data focuses on a single contract award and does not offer historical spending trends. To assess historical spending for IT operations and maintenance within the Department of Agriculture's Office of the Chief Financial Officer (OCFO), one would need to analyze multi-year federal procurement data. This analysis would involve identifying all contracts awarded by the OCFO for similar IT services over several fiscal years. Examining these trends would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and how this specific $2.3M award fits into the broader budgetary context for the OCFO's IT support needs.

What are the potential risks associated with relying on Ventera LLC for critical SNAP-QCS IT support, and how are these mitigated?

Potential risks include service disruptions, data breaches, cost overruns (though mitigated by fixed-price), and vendor lock-in. Mitigation strategies would involve robust contract oversight by the Department of Agriculture, clearly defined SLAs and KPIs, regular performance reviews, and contingency planning. The firm fixed-price structure shifts cost overrun risk to Ventera. Cybersecurity compliance and regular audits are essential to mitigate data breach risks. The use of a BPA call might also imply that the underlying BPA has mechanisms to ensure competition or transition if needed, reducing vendor lock-in.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1875 CAMPUS COMMONS DR STE 304, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,282,573

Exercised Options: $2,282,573

Current Obligation: $2,282,573

Actual Outlays: $1,714,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314422A0015

IDV Type: BPA

Timeline