VA's $48.7M IGF Insurance Card Buffer Software Contract Awarded to Minburn Technology Group

Contract Overview

Contract Amount: $48,727,727 ($48.7M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-12-15

End Date: 2023-12-14

Contract Duration: 1,825 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INSURANCE CARD BUFFER (ICB) SOFTWARE AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $48.7 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: IGF::OT::IGF INSURANCE CARD BUFFER (ICB) SOFTWARE AND MAINTENANCE Key points: 1. Contract value represents a significant investment in IT infrastructure for the VA. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (5 years) indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The NAICS code 541519 points to a focus on specialized computer-related services. 6. The contract's performance period spans a substantial timeframe, requiring sustained vendor support.

Value Assessment

Rating: good

The contract value of $48.7 million over five years for software and maintenance appears reasonable for specialized IT services. Benchmarking against similar VA IT contracts for software development and maintenance would provide a clearer picture of value for money. The firm fixed-price structure offers cost predictability. Without specific per-unit cost data or detailed service level agreements, a precise value assessment is challenging, but the overall investment aligns with the complexity of maintaining critical IT systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the initial intent might have been to exclude certain sources, the final award was made through a process open to all qualified bidders. The specific details of 'exclusion of sources' are not provided, but the 'full and open' designation suggests multiple bids were likely considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among vendors, driving down costs and improving the quality of services offered.

Public Impact

Veterans will benefit from improved IT systems supporting insurance card functions. The contract ensures the continued operation and maintenance of critical software. The services delivered are essential for the administrative and operational efficiency of the VA's healthcare system. The primary geographic impact is within the District of Columbia, where the contractor is based, but the IT services support a national veteran population. The contract supports the IT workforce, likely involving specialized software engineers and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance and support are highly specialized.
Reliance on a single vendor for critical software could pose continuity risks.
The 'exclusion of sources' clause, even if superseded by 'full and open,' warrants scrutiny for potential past limitations on competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty.
Long contract duration suggests a stable and reliable partnership for essential services.

Sector Analysis

The Information Technology sector, specifically IT services and software maintenance, is a critical component of federal agency operations. The market for these services is vast and highly competitive, with numerous vendors offering specialized solutions. This contract fits within the broader category of IT support services, which includes software development, maintenance, and infrastructure management. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but federal IT spending overall is in the hundreds of billions annually.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration, as the 'ss' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary focus was on securing the best technical and price solution through open competition, rather than specifically targeting small business participation. The impact on the small business ecosystem would depend on whether larger prime contractors (if any were involved in a broader sense) have robust subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The contract's performance would be monitored against the terms and conditions outlined in the agreement, including service level agreements and delivery schedules. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
VA IT Infrastructure Modernization Programs
Federal Civilian IT Services Contracts
Software Development and Maintenance Contracts

Risk Flags

Potential for scope creep in long-term fixed-price contracts.
Vendor performance risk over a five-year period.
Dependency on a single vendor for critical software maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $48.7 million to MINBURN TECHNOLOGY GROUP, LLC. IGF::OT::IGF INSURANCE CARD BUFFER (ICB) SOFTWARE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $48.7 million.

What is the period of performance?

Start: 2018-12-15. End: 2023-12-14.

What is the specific nature of the 'IGF INSURANCE CARD BUFFER (ICB) SOFTWARE AND MAINTENANCE' and its criticality to VA operations?

The IGF Insurance Card Buffer (ICB) Software and Maintenance contract likely supports the Department of Veterans Affairs' (VA) systems responsible for managing and processing insurance card information for veterans. This could involve storing, retrieving, and validating insurance details necessary for healthcare claims processing, eligibility verification, and other administrative functions. The criticality stems from its role in ensuring accurate and efficient healthcare delivery to veterans by maintaining up-to-date and accessible insurance data. Disruptions or inefficiencies in this system could lead to payment delays, administrative errors, and potentially impact the quality of care veterans receive. The software's maintenance ensures its continued functionality, security, and compatibility with evolving VA systems and healthcare regulations.

How does the $48.7 million contract value compare to similar IT software maintenance contracts within the federal government?

Comparing the $48.7 million contract value requires context on the scope and duration. Over its five-year term, this represents an average annual value of approximately $9.74 million. This figure is substantial but not unusual for complex IT software maintenance and support contracts within large federal agencies like the VA. For instance, similar contracts for maintaining large-scale enterprise resource planning (ERP) systems, electronic health record (EHR) systems, or core financial systems often run into tens or hundreds of millions of dollars over similar or longer periods. The specific nature of 'Insurance Card Buffer' software suggests a specialized but potentially critical function. Without knowing the number of users, transaction volumes, or specific functionalities, a precise benchmark is difficult, but the value is within the expected range for specialized, mission-critical federal IT support.

What are the potential risks associated with a five-year firm fixed-price contract for software maintenance?

A five-year firm fixed-price (FFP) contract for software maintenance presents several potential risks. Firstly, the fixed price might not adequately account for unforeseen technological advancements or significant changes in the software's requirements over the five-year period, potentially leading to scope creep if not managed tightly or vendor dissatisfaction if requirements change drastically. Secondly, the vendor might face challenges in maintaining profitability if their internal costs increase significantly (e.g., labor, infrastructure) over the contract term, potentially impacting service quality or their willingness to go above and beyond standard support. Conversely, the government risks overpaying if the vendor's costs decrease or if the required maintenance effort proves less than anticipated. Lastly, a long-term FFP contract can sometimes disincentivize innovation or proactive problem-solving if the vendor focuses solely on meeting the minimum contractual obligations to ensure profitability.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced procurement history. Initially, the VA may have intended to restrict the competition to a specific set of vendors or types of vendors (the 'exclusion of sources' part). However, for reasons not specified (perhaps a lack of adequate responses, a policy shift, or a legal challenge), the agency ultimately decided to open the competition broadly to all responsible sources capable of meeting the requirements. This implies that while there might have been an initial narrowing of the field, the final award was made after considering offers from any interested and qualified vendor. This approach can sometimes be used to ensure a wider range of potential solutions are considered or to comply with regulations requiring maximum practicable competition.

What is the track record of Minburn Technology Group, LLC, in performing similar federal IT contracts?

Information regarding the specific track record of Minburn Technology Group, LLC, in performing similar federal IT contracts is not detailed in the provided data snippet. To assess their track record, one would typically need to examine their past performance on federal contracts, including contract values, durations, types of services rendered, and customer satisfaction ratings (often available through sources like the Contractor Performance Assessment Reporting System - CPARS). A review of their contract history with the VA and other agencies would reveal their experience with software maintenance, IT services, and their ability to meet performance requirements and delivery schedules. Without this specific performance data, it's difficult to definitively assess their capabilities and reliability for this particular contract.

How does the $2,670,000 contract ceiling (br) relate to the total award amount?

The 'br' field, representing a ceiling of $2,670,000, appears to be a specific ceiling for a particular aspect or task order within the larger contract, rather than the total contract value. The total award amount ('a') is $48,727,727.25. This suggests that the $2.67 million ceiling might apply to a specific delivery order or a defined period of performance within the overall contract. It's common for larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or contracts with multiple CLINs (Contract Line Item Numbers) to have various ceilings for different components or task orders. This specific ceiling indicates a limit on spending for whatever it is designated to cover, ensuring that expenditure remains within a controlled budget for that particular element of the contract.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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

Financial Breakdown

Contract Ceiling: $49,638,078

Exercised Options: $48,727,727

Current Obligation: $48,727,727

Actual Outlays: $5,825,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline