VA awards $140M contract for VECMS user-centered design and Salesforce support to Acumen Solutions

Contract Overview

Contract Amount: $139,776,719 ($139.8M)

Contractor: Acumen Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-28

End Date: 2024-06-06

Contract Duration: 2,078 days

Daily Burn Rate: $67.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE USER CENTERED DESIGN, SALESFORCE CONFIGURATION,DEVELOPMENT AND INTEGRATION SUPPORT FOR VECMS INCLUDING PROJECT MANAGEMENT,REQUIREMENTS ELABORATION, DESIGN, CONFIGURATION, CONTENT CREATION, TESTING SUPPORT,TRAINING AND ORGANIZATIONAL CHANGE MANAGEMENT SUPPORT. THE CONTRACTOR WILL ALSOSUPPORT ADHERENCE TO ALL VA PROCESSES AND POLICIES, INCLUDING SECURITY, COMPLIANCE AND PRIVACY REGULATIONS. THE SCOPE OF THIS CONTRACT INCLUDES THE DEVELOPMENT OF NEW MODULES AND THE ENHANCEMENT OF EXISTING MODULES AS NEEDED.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $139.8 million to ACUMEN SOLUTIONS, INC. for work described as: THE CONTRACTOR SHALL PROVIDE USER CENTERED DESIGN, SALESFORCE CONFIGURATION,DEVELOPMENT AND INTEGRATION SUPPORT FOR VECMS INCLUDING PROJECT MANAGEMENT,REQUIREMENTS ELABORATION, DESIGN, CONFIGURATION, CONTENT CREATION, TESTING SUPPORT,TRAINING AND ORGANIZATIONAL CHANGE MANAGEMENT … Key points: 1. Contract focuses on user-centered design, Salesforce configuration, development, and integration for VECMS. 2. Scope includes new module development and enhancement of existing modules. 3. Services encompass project management, requirements elaboration, design, configuration, content creation, testing, training, and change management. 4. Contractor must adhere to VA processes, policies, security, compliance, and privacy regulations. 5. This contract represents a significant investment in modernizing VA's digital platforms. 6. The duration of the contract is over 2000 days, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract value of approximately $140 million over its duration appears to be within a reasonable range for comprehensive IT support services of this nature. Benchmarking against similar large-scale IT modernization contracts within the federal government, particularly those involving Salesforce and complex system integration, suggests that the overall investment is commensurate with the scope of work. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which is generally favorable for price discovery and value for money. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms and pricing to secure the contract.

Public Impact

Veterans will benefit from improved user experience and functionality of VA's digital systems (VECMS). The contract delivers essential IT services including system configuration, development, integration, and ongoing support. Services are likely to impact VA employees by providing them with better tools and systems to serve veterans. The contract supports the modernization of critical VA IT infrastructure, enhancing service delivery capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad nature of 'enhancement of existing modules'.
Reliance on a single contractor for critical system development and maintenance could pose a risk if performance falters.
Ensuring continued adherence to evolving VA security and privacy regulations throughout the contract lifecycle.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract provides cost predictability for the government.
Long contract duration indicates a strategic, long-term commitment to improving VECMS.
Focus on user-centered design aligns with modern IT development best practices.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom software development, system integration, and IT consulting. The market for such services is highly competitive, with numerous large and small businesses offering specialized expertise. The VA's significant investment in its IT infrastructure, including platforms like VECMS, reflects a broader trend across federal agencies to modernize legacy systems and improve citizen-facing services through technology. Comparable spending benchmarks for large federal IT modernization projects often run into hundreds of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. Further analysis would be needed to determine if Acumen Solutions has a subcontracting plan in place to engage small businesses for specific components of the work, which would be crucial for assessing the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The contract's adherence to VA processes and policies, including security, compliance, and privacy regulations, would be subject to regular review. While not explicitly stated, Inspector General oversight is a standard component of federal contracts, and any significant issues or performance deficiencies could trigger an IG investigation.

Related Government Programs

VA Enterprise Cloud Management System (VECMS)
Salesforce Government Cloud
Federal IT Modernization Programs
Custom Software Development Services
IT Consulting and Integration Services

Risk Flags

Potential for scope creep
Long-term vendor dependency
Ensuring compliance with evolving regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $139.8 million to ACUMEN SOLUTIONS, INC.. THE CONTRACTOR SHALL PROVIDE USER CENTERED DESIGN, SALESFORCE CONFIGURATION,DEVELOPMENT AND INTEGRATION SUPPORT FOR VECMS INCLUDING PROJECT MANAGEMENT,REQUIREMENTS ELABORATION, DESIGN, CONFIGURATION, CONTENT CREATION, TESTING SUPPORT,TRAINING AND ORGANIZATIONAL CHANGE MANAGEMENT SUPPORT. THE CONTRACTOR WILL ALSOSUPPORT ADHERENCE TO ALL VA PROCESSES AND POLICIES, INCLUDING SECURITY, COMPLIANCE AND PRIVACY REGULATIONS. THE SCOPE OF THIS CONTRACT INCLUDES THE DEVELOPMENT OF NEW MODULES AND THE ENHA

Who is the contractor on this award?

The obligated recipient is ACUMEN SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $139.8 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-06-06.

What is the track record of Acumen Solutions, Inc. with the Department of Veterans Affairs and other federal agencies?

Acumen Solutions, Inc. has a history of working with the Department of Veterans Affairs (VA) and other federal agencies. Their past performance with the VA would be a critical factor in the evaluation of this contract. A review of their contract history would reveal the types of services they have provided, their performance ratings on previous contracts, and any significant issues or successes. For instance, understanding their experience with Salesforce implementations and large-scale IT projects within government settings is crucial. Agencies typically maintain performance records (e.g., Contractor Performance Assessment Reporting System - CPARS) that inform future award decisions. Without access to specific performance data, it's assumed the VA conducted due diligence on Acumen's capabilities and past performance before awarding this significant contract.

How does the total contract value of $140 million compare to similar IT modernization contracts at the VA or other agencies?

The total contract value of approximately $140 million over its estimated duration is substantial and aligns with the scale of major IT modernization efforts within large federal agencies. For context, similar contracts for enterprise-wide system implementations, cloud migrations, or significant software development projects at agencies like the Department of Defense or Health and Human Services can range from tens to hundreds of millions of dollars. The VA, in particular, has undertaken numerous large-scale IT initiatives to improve veteran services. This contract's value is consistent with the complexity and scope of providing user-centered design, configuration, development, and integration support for a critical system like VECMS, especially when involving a platform like Salesforce which often requires extensive customization and integration.

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

Primary risks associated with this contract include potential scope creep due to the broad nature of 'enhancement of existing modules,' the risk of vendor lock-in or performance issues given the long duration and specialized nature of the work, and ensuring continuous compliance with evolving VA security and privacy regulations. Mitigation strategies likely involve robust contract management by the VA, including clear definition and control of scope changes, regular performance reviews, and strong oversight mechanisms. The firm-fixed-price structure also incentivizes the contractor to manage costs effectively. Furthermore, the requirement for adherence to VA policies and regulations provides a framework for compliance oversight. The competitive nature of the award also suggests a baseline level of vendor capability and commitment.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific IT service requirement?

The Firm-Fixed-Price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are manageable. For this contract, which involves user-centered design, configuration, development, and integration support for VECMS, an FFP structure provides cost certainty to the VA, as the price is set upfront. This incentivizes the contractor, Acumen Solutions, to control costs and manage resources efficiently to maintain profitability. The primary benefit for value for money is the predictability of the total expenditure. However, if the scope is not precisely managed, the contractor bears the risk of cost overruns, which could potentially lead to pressure to cut corners on quality or scope, although the contract's performance requirements should mitigate this. The VA's role in defining requirements and overseeing performance is crucial for maximizing value under an FFP.

What are the historical spending patterns for VECMS or similar IT systems at the VA?

Historical spending patterns for the VA's IT systems, particularly for large platforms like VECMS, often show significant and sustained investment. Agencies like the VA typically allocate substantial budgets towards maintaining, modernizing, and enhancing their IT infrastructure to meet the needs of veterans and staff. This can include multi-year contracts for software development, system integration, cloud services, and ongoing support. Spending on VECMS or comparable systems would likely reflect a pattern of continuous improvement and adaptation to new technologies and user requirements. Analyzing past VA IT budgets and contract awards for similar systems would reveal trends in spending levels, the types of services procured, and the duration of support contracts, indicating a long-term commitment to these critical digital assets.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Salesforce, Inc

Address: 8280 GREENSBORO DR STE 400, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $259,596,663

Exercised Options: $139,776,719

Current Obligation: $139,776,719

Actual Outlays: $13,123,397

Subaward Activity

Number of Subawards: 167

Total Subaward Amount: $20,642,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q16AEA1001

IDV Type: BPA

Timeline