VA Spends $61.9M on Veteran Facing Services Applications via GovCIO, LLC

Contract Overview

Contract Amount: $61,912,900 ($61.9M)

Contractor: Govcio, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-07-08

End Date: 2023-05-26

Contract Duration: 1,418 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VETERAN FACING SERVICES - APPLICATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $61.9 million to GOVCIO, LLC for work described as: VETERAN FACING SERVICES - APPLICATIONS Key points: 1. Significant investment in IT services for veteran applications. 2. GovCIO, LLC is the primary contractor. 3. Full and open competition was utilized. 4. Contract duration spans nearly four years.

Value Assessment

Rating: good

The total award amount of $61.9M over 1418 days suggests a substantial but potentially reasonable investment for comprehensive IT services. Benchmarking against similar large-scale application development and support contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates a broad market solicitation, which generally promotes competitive pricing. The final award amount reflects the negotiated price after this competitive process.

Taxpayer Impact: Taxpayer funds were used through a competitive process, aiming for best value. Oversight is needed to ensure continued cost-effectiveness.

Public Impact

Direct impact on how veterans access and utilize services. Potential for improved efficiency and user experience in VA applications. Ensures continued support and development of critical veteran-facing technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, potentially leading to scope creep or outdated technology if not managed well.
Reliance on a single vendor for a significant period.
Lack of specific performance metrics in provided data.

Positive Signals

Full and open competition utilized.
Contract supports critical veteran services.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on application development and support. Spending benchmarks for similar government IT contracts vary widely based on scope, but $61.9M over nearly four years for a critical function like veteran services is a significant allocation.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses, nor does it mention subcontracting with small businesses. This contract appears to have been awarded to a larger entity.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting internal oversight. The duration and value warrant regular performance reviews and potential audits to ensure accountability and effective use of funds.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration.
Potential for vendor lock-in.
Lack of explicit small business participation.
Scope definition for 'Other Computer Related Services' needs clarity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $61.9 million to GOVCIO, LLC. VETERAN FACING SERVICES - APPLICATIONS

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 $61.9 million.

What is the period of performance?

Start: 2019-07-08. End: 2023-05-26.

What specific services are included under 'Other Computer Related Services' for veteran-facing applications, and how do they align with VA's strategic goals?

The 'Other Computer Related Services' (NAICS 541519) likely encompass a broad range of IT support, including custom software development, system integration, maintenance, and potentially cloud services tailored for veteran-facing applications. These services should directly support the VA's mission to provide efficient and accessible resources to veterans, improving their experience with government services and ensuring the reliability of critical platforms.

Given the $61.9M award, what are the key performance indicators (KPIs) used to measure the success and value delivered by GovCIO, LLC?

Key performance indicators for this contract would likely include application uptime and availability, user satisfaction ratings from veterans, successful deployment of new features or updates, response times for technical support, and adherence to security protocols. Measuring these KPIs ensures that the significant investment translates into tangible improvements in service delivery and user experience for veterans.

How does the firm fixed price structure mitigate risks associated with potential cost overruns for such a long-term IT services contract?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, GovCIO, LLC. This means the VA pays a set price regardless of the contractor's actual costs. While FFP provides budget certainty for the VA, it requires meticulous scope definition upfront to prevent disputes and potential contractor underperformance if costs exceed expectations.

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

Address: 4000 LEGATO RD, FAIRFAX, VA, 22033

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: $61,912,900

Exercised Options: $61,912,900

Current Obligation: $61,912,900

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $37,544,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0263Y

IDV Type: FSS

Timeline