Treasury's $2.38M Middleware Support Contract Awarded to Veteran Information Technologies, LLC

Contract Overview

Contract Amount: $2,376,159 ($2.4M)

Contractor: Veteran Information Technologies, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-12-17

End Date: 2026-12-16

Contract Duration: 729 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDDLEWARE SUPPORT SERVICES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918

State: Colorado Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.4 million to VETERAN INFORMATION TECHNOLOGIES, LLC for work described as: MIDDLEWARE SUPPORT SERVICES Key points: 1. Contract value of $2.38 million over two years for essential middleware support. 2. Awarded to Veteran Information Technologies, LLC, a service-disabled veteran-owned small business. 3. Competition was full and open after exclusion of sources, indicating a broad search for qualified vendors. 4. The contract type is Firm Fixed Price, providing cost certainty for the government. 5. Performance period spans 729 days, aligning with typical IT support lifecycles. 6. The North American Industry Classification System (NAICS) code 541519 suggests a focus on specialized computer services. 7. This contract supports the Bureau of the Fiscal Service's IT infrastructure.

Value Assessment

Rating: good

The contract value of $2.38 million for two years of middleware support appears reasonable given the specialized nature of IT services. Without specific benchmarks for 'middleware support services' within the Bureau of the Fiscal Service, a direct comparison is challenging. However, the firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which is generally favorable for the government. The award to a service-disabled veteran-owned small business also aligns with federal procurement goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was broad, certain sources may have been excluded based on specific criteria, possibly related to prior performance or specialized capabilities. The fact that it was 'full and open' suggests multiple bidders were likely considered, contributing to price discovery and ensuring a competitive selection process.

Taxpayer Impact: A full and open competition, even with exclusions, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Federal employees within the Bureau of the Fiscal Service will benefit from reliable and supported middleware infrastructure. Ensures the continued operation of critical financial systems managed by the Treasury. Supports the IT infrastructure necessary for the government's financial operations. The contract supports a small business, contributing to the federal IT services ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single vendor for critical middleware support could pose a risk if the vendor faces operational challenges.

Positive Signals

Award to a service-disabled veteran-owned small business aligns with federal socio-economic procurement goals.
Firm Fixed Price contract provides cost predictability for the government.
Full and open competition suggests a robust selection process.

Sector Analysis

Middleware support services are a critical component of the broader IT services sector, encompassing software that connects other software components or applications. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which includes a wide range of IT support and consulting. The federal government is a significant consumer of such services, with spending often driven by the need to maintain and upgrade complex legacy systems while integrating new technologies. Benchmarks for this specific niche are difficult to ascertain without more granular data, but overall IT services spending by the federal government is in the tens of billions annually.

Small Business Impact

Veteran Information Technologies, LLC is identified as a service-disabled veteran-owned small business (SDVOSB). While this contract was awarded under full and open competition, the selection of an SDVOSB aligns with federal goals to support small businesses. The contract does not explicitly state a small business set-aside, but the awardee's status is a positive signal for the small business ecosystem. Further analysis would be needed to determine if subcontracting opportunities are mandated or likely.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of the Fiscal Service's contracting officers and program managers. The firm fixed-price nature of the contract simplifies financial oversight by establishing a clear ceiling. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Infrastructure Support Services
Software Maintenance and Support
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.4 million to VETERAN INFORMATION TECHNOLOGIES, LLC. MIDDLEWARE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VETERAN INFORMATION TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-12-17. End: 2026-12-16.

What is the track record of Veteran Information Technologies, LLC in delivering similar middleware support services to federal agencies?

Assessing the track record of Veteran Information Technologies, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., CPARS reports), and any documented issues or successes. Given this is a $2.38 million contract over two years, it represents a significant engagement. A positive track record would indicate a history of meeting deadlines, delivering quality services, and managing costs effectively. Conversely, a history of performance issues or contract disputes could raise concerns about the current award's risk profile. Without access to specific past performance data for this contractor, it's difficult to definitively assess their reliability for this particular middleware support requirement.

How does the pricing of this contract compare to similar middleware support contracts awarded by the federal government?

Benchmarking the pricing of this $2.38 million contract requires comparing it against similar middleware support services procured by other federal agencies. Key comparison points would include the scope of services, duration, labor categories, and the specific technologies supported. The 'full and open competition after exclusion of sources' suggests a competitive process that should drive reasonable pricing. However, the uniqueness of middleware environments and the specialized skills required can make direct comparisons challenging. A detailed analysis would involve looking at average hourly rates for comparable labor, the total contract value relative to the number of systems supported, and the overall value proposition offered by Veteran Information Technologies, LLC compared to potential alternatives.

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

Primary risks associated with this middleware support contract include potential vendor performance issues, cost overruns (though mitigated by FFP), and the risk of vendor lock-in. Vendor performance could be impacted by staffing challenges or unforeseen technical complexities. Mitigation strategies include the initial vetting process during competition, clear performance standards outlined in the contract, and ongoing oversight by the Bureau of the Fiscal Service. The Firm Fixed Price (FFP) structure shifts cost overrun risk to the contractor. Vendor lock-in can be mitigated through knowledge transfer clauses, well-defined exit strategies, and maintaining competitive sourcing options for future contract renewals.

How effective is the Bureau of the Fiscal Service in managing its IT support contracts, and does this contract align with past practices?

The effectiveness of the Bureau of the Fiscal Service in managing IT support contracts can be assessed by examining their historical contract performance data, audit findings from the Inspector General, and overall IT system reliability. This contract's structure (FFP, full and open competition) aligns with generally accepted best practices for federal IT procurement. The award to a service-disabled veteran-owned small business also reflects a commitment to socio-economic goals. If the Bureau has a history of successful IT contract management, this award is likely to follow similar positive patterns. Conversely, a history of issues might warrant closer scrutiny of the oversight mechanisms for this specific contract.

What has been the historical spending trend for middleware support services within the Department of the Treasury or the Bureau of the Fiscal Service?

Analyzing historical spending trends for middleware support services within the Department of the Treasury or the Bureau of the Fiscal Service is crucial for context. This involves reviewing prior contract awards for similar services over the past several fiscal years. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate evolving needs, technological shifts, or changes in procurement strategies. A significant increase in spending might suggest growing infrastructure demands or a shift towards outsourcing. Conversely, a decrease could point to consolidation or in-house solutions. This $2.38 million award should be viewed in light of these historical patterns to assess its proportionality and strategic alignment.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2033H625Q00018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5475 MARK DABLING BLVD STE 320, COLORADO SPRINGS, CO, 80918

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,382,771

Exercised Options: $2,376,159

Current Obligation: $2,376,159

Actual Outlays: $1,438,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD41B

IDV Type: GWAC

Timeline