VA's $36.7M Life Insurance Policy Administration Solution contract awarded to GOVCIO, LLC under full and open competition

Contract Overview

Contract Amount: $36,688,352 ($36.7M)

Contractor: Govcio, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-04-30

End Date: 2023-05-31

Contract Duration: 1,492 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF LIFE INSURANCE POLICY ADMINISTRATION SOLUTION (LIPAS)

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 $36.7 million to GOVCIO, LLC for work described as: IGF::OT::IGF LIFE INSURANCE POLICY ADMINISTRATION SOLUTION (LIPAS) Key points: 1. The contract value is $36.7 million over approximately 5 years. 2. GOVCIO, LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The NAICS code 541512 indicates Computer Systems Design Services. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $36.7 million for a 5-year period for policy administration software seems within a reasonable range for enterprise-level solutions. However, without specific feature comparisons or detailed cost breakdowns, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of potential offerors. This method is expected to yield fair market prices.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the services rendered, as multiple vendors had the opportunity to bid.

Public Impact

Veterans will benefit from improved administration of their life insurance policies. The Department of Veterans Affairs aims to modernize its insurance systems. The contract supports IT services for a critical government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Potential for vendor lock-in with a single system provider.
Reliance on a single vendor for critical policy administration.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type helps control costs.
Long-term contract provides stability for system development.

Sector Analysis

The IT sector, particularly custom software development and system integration services, often involves significant investment. Benchmarks for similar government contracts for policy administration systems vary widely based on complexity and scope, but $36.7M over 5 years is a substantial but not necessarily excessive amount.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors. The awardee, GOVCIO, LLC, is not identified as a small business in this context.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, which has internal oversight mechanisms. Further details on specific oversight activities or performance reviews would be needed for a comprehensive assessment.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole awardee may limit future competition or innovation.
Lack of detail on performance metrics makes oversight difficult.
Potential for vendor lock-in with a single IT solution provider.
Long-term reliance on one vendor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.7 million to GOVCIO, LLC. IGF::OT::IGF LIFE INSURANCE POLICY ADMINISTRATION SOLUTION (LIPAS)

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 $36.7 million.

What is the period of performance?

Start: 2019-04-30. End: 2023-05-31.

What specific functionalities does the LIPAS solution provide, and how do they compare to industry standards for life insurance policy administration?

The provided data does not detail the specific functionalities of the LIPAS solution. A comprehensive analysis would require reviewing the contract's statement of work (SOW) to understand the system's capabilities, such as policy issuance, premium collection, claims processing, and customer service features. Comparing these to industry standards would reveal if the VA is receiving a modern, efficient, and competitive system.

What are the key performance indicators (KPIs) for this contract, and how is GOVCIO, LLC's performance being measured against them?

The provided data lacks information on specific Key Performance Indicators (KPIs) established for this contract. Effective oversight requires clearly defined metrics related to system uptime, processing speed, error rates, and user satisfaction. Without these, it's challenging to assess the contractor's performance and ensure the government is receiving the expected value and quality of service.

What is the long-term strategy for maintaining and updating the LIPAS system beyond the current contract period?

The current data focuses on the award and duration of this specific contract. A complete understanding of the system's lifecycle and taxpayer impact requires insight into the VA's long-term IT strategy. This includes plans for future upgrades, potential system replacements, and the associated costs, ensuring the initial investment remains effective and relevant over time.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $36,688,352

Exercised Options: $36,688,352

Current Obligation: $36,688,352

Actual Outlays: $5,771,462

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $17,404,180

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