VA awards $194.5M IT services contract to GOVCIO, LLC for health portfolio support

Contract Overview

Contract Amount: $194,542,500 ($194.5M)

Contractor: Govcio, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-08-23

End Date: 2022-08-22

Contract Duration: 1,460 days

Daily Burn Rate: $133.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) BASIC CONTRACT P00003 INCORPORATES ADMIN CHANGES._TASK ORDER HEALTH PORTFOLIO PMO AND TECHNICAL SUP

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $194.5 million to GOVCIO, LLC for work described as: IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) BASIC CONTRACT P00003 INCORPORATES ADMIN CHANGES._TASK ORDER HEALTH PORTFOLIO PMO AND TECHNICAL SUP Key points: 1. Contract provides essential IT support for the VA's Health Portfolio PMO. 2. Services include computer systems design and technical support. 3. Contract duration spans four years, ending August 2022. 4. Awarded via full and open competition, indicating broad market engagement. 5. GOVCIO, LLC is the prime contractor for this significant IT services award. 6. The contract value is substantial, reflecting the scope of health IT needs. 7. This award falls under the T4NG Basic Contract vehicle.

Value Assessment

Rating: good

The contract value of $194.5 million over four years suggests a significant investment in IT support for the VA's health portfolio. Benchmarking against similar large-scale IT service contracts within federal health agencies is necessary for a precise value-for-money assessment. However, the T4NG vehicle itself is designed to provide competitive pricing for a wide range of IT services, implying a degree of pre-negotiated value. The time and materials pricing structure, while flexible, requires careful monitoring to ensure costs remain aligned with project scope and market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this significant IT services requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process that is expected to yield a fair price for the critical IT services required by the VA's health portfolio.

Public Impact

Veterans will benefit from improved IT infrastructure and support for health services. The contract delivers essential technical support and computer systems design. Services are primarily focused within the Department of Veterans Affairs, impacting national health IT operations. The contract supports a workforce of IT professionals and technical specialists. Enhanced IT capabilities can lead to more efficient and effective healthcare delivery for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely managed.
Ensuring continued innovation and adaptation to evolving health IT needs over the contract term.
Dependency on a single contractor for critical health IT infrastructure support.

Positive Signals

Awarded under a large, established IT services vehicle (T4NG) designed for efficiency.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Contract supports a critical mission area for the VA, directly impacting veteran care.
GOVCIO, LLC's role as prime contractor on a significant award indicates established capabilities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is vast, with agencies like the VA being major consumers due to the complexity and scale of their operations, particularly in healthcare. The T4NG (Transformation Twenty-One Total Technology Next Generation) Basic Ordering Agreement (BOA) is a significant Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle used by the VA to procure a wide range of IT solutions, making this award a typical example of IT spending within the agency.

Small Business Impact

While this contract was awarded to GOVCIO, LLC as the prime contractor, the data does not indicate any specific small business set-aside provisions or subcontracting goals. Analysis of the T4NG vehicle's overall small business utilization plan would be necessary to understand the broader impact on the small business ecosystem. Prime contractors on such large awards often have subcontracting requirements, which could provide opportunities for small businesses if included in the performance work statement.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs contracting officers and program managers. As a task order under the T4NG BOA, it is subject to the oversight mechanisms inherent in that IDIQ contract. Transparency is facilitated through contract award databases and reporting requirements. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

T4NG Basic Ordering Agreement
VA Health IT Modernization Efforts
Federal Health Information Technology Services
IT Services for Large Federal Agencies
Computer Systems Design Services

Risk Flags

Potential for cost creep with Time and Materials contract type.
Ensuring contractor performance meets evolving health IT standards and cybersecurity requirements.
Dependency on a single prime contractor for critical health IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $194.5 million to GOVCIO, LLC. IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) BASIC CONTRACT P00003 INCORPORATES ADMIN CHANGES._TASK ORDER HEALTH PORTFOLIO PMO AND TECHNICAL SUP

Who is the contractor on this award?

The obligated recipient is GOVCIO, LLC.

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 $194.5 million.

What is the period of performance?

Start: 2018-08-23. End: 2022-08-22.

What is GOVCIO, LLC's track record with the Department of Veterans Affairs and on similar IT service contracts?

GOVCIO, LLC has a history of performing IT services for the Department of Veterans Affairs, as evidenced by this award under the T4NG vehicle. The T4NG contract itself is designed to streamline IT procurement for the VA, and GOVCIO's success in winning this task order suggests a demonstrated capability to meet the VA's requirements. Further analysis would involve examining their past performance ratings on previous VA contracts, any awards or penalties received, and their experience with health IT portfolios specifically. Their ability to manage complex IT projects, deliver on time and within budget, and provide effective technical support are key indicators of their track record.

How does the awarded price of $194.5 million compare to similar IT support contracts for federal health agencies?

The $194.5 million award for four years of IT support for the VA's Health Portfolio PMO represents a significant investment. To benchmark this value, one would compare it to other large-scale IT service contracts awarded to federal health agencies, such as those within the Department of Defense or HHS. Factors like the scope of services (e.g., systems design, technical support, cybersecurity), the specific technologies involved, and the duration of the contract are crucial for a fair comparison. The T4NG vehicle is intended to provide competitive pricing, but a detailed analysis would involve looking at per-year costs and comparing them to market rates for similar services, adjusted for the complexity and scale of the VA's health IT environment.

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

Key risks include potential cost overruns due to the Time and Materials (T&M) pricing structure, which requires diligent oversight to ensure costs align with the defined scope. Another risk is ensuring the contractor's ability to adapt to rapidly evolving health IT technologies and cybersecurity threats over the four-year period. Mitigation strategies likely involve robust contract management by the VA, including regular performance reviews, detailed cost tracking, and clear change management processes. The VA's Office of Inspector General also provides oversight to identify and address potential waste, fraud, or abuse.

How effective is the T4NG contract vehicle in delivering value for IT services at the VA?

The T4NG (Transformation Twenty-One Total Technology Next Generation) contract vehicle is a large, multi-award IDIQ contract designed by the VA to streamline the procurement of a broad range of IT services. Its effectiveness in delivering value is generally considered high due to its competitive nature, allowing the VA to solicit proposals from numerous pre-qualified vendors. This competition helps drive down prices and encourages innovation. By consolidating IT needs under a single vehicle, the VA can achieve economies of scale and reduce administrative burden. However, the effectiveness of individual task orders, like this one awarded to GOVCIO, LLC, still depends on strong program management and oversight.

What is the historical spending trend for IT services within the VA's Health Portfolio?

Historical spending on IT services within the VA's Health Portfolio has been substantial and generally increasing, reflecting the growing reliance on technology for healthcare delivery, data management, and patient engagement. The VA has consistently invested heavily in modernizing its IT infrastructure to improve electronic health records (EHR) systems, telehealth capabilities, and data analytics. The T4NG contract vehicle itself represents a significant portion of this spending, designed to consolidate and manage these diverse IT requirements efficiently. Analyzing past annual spending figures for similar IT support contracts and overall IT budgets for the VA's health mission would provide context for the $194.5 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 101 CONSTITUTION AVE NW STE 100W, WASHINGTON, DC, 20001

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

Financial Breakdown

Contract Ceiling: $197,665,909

Exercised Options: $194,542,500

Current Obligation: $194,542,500

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $180,914,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1003

IDV Type: IDC

Timeline