VA awards $38.3M task order for IT services to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $38,319,458 ($38.3M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-22

End Date: 2023-09-21

Contract Duration: 1,460 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BISL TASK ORDER

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23225

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.3 million to FAVOR TECHCONSULTING, LLC for work described as: BISL TASK ORDER Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The duration of the contract is 4 years, ending in September 2023. 4. The task order falls under the Computer Systems Design Services NAICS code. 5. The awardee, Favor Techconsulting, LLC, is a small business. 6. The contract was awarded by the Department of Veterans Affairs, with the VA also serving as the assigned office.

Value Assessment

Rating: good

The total award amount of $38.3 million over four years for IT services appears reasonable given the scope of computer systems design services. Benchmarking against similar contracts for IT support within the VA or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts cost risk to the contractor, which can be advantageous for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this task order. While not a large number of bidders, full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the most advantageous pricing and service offerings for the government.

Public Impact

Veterans and VA staff benefit from improved IT systems and services. The contract supports the delivery of computer systems design services, crucial for the VA's operational efficiency. The geographic impact is primarily within the Virginia region, where the contract is assigned. The contract likely supports IT professionals and potentially other roles within Favor Techconsulting, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of IT services.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract aligns incentives for cost control.
Award to a small business supports federal small business contracting goals.
Full and open competition provides a baseline for fair pricing.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market within the federal government is substantial, with agencies like the VA being major consumers. This task order represents a portion of the VA's broader IT spending, which aims to modernize and maintain its technological infrastructure to support its mission.

Small Business Impact

Favor Techconsulting, LLC is identified as a small business. This award contributes to the government's small business contracting goals. As a prime contractor, the company will be responsible for delivering the services. There is no explicit information on subcontracting plans or set-asides within this specific task order, but the overall impact on the small business ecosystem depends on Favor Techconsulting's own subcontracting practices and its role in the broader IT services market.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet defined performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design Services Contracts

Risk Flags

Potential for performance issues
Risk of scope creep
Dependence on contractor viability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.3 million to FAVOR TECHCONSULTING, LLC. BISL TASK ORDER

Who is the contractor on this award?

The obligated recipient is FAVOR TECHCONSULTING, 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 $38.3 million.

What is the period of performance?

Start: 2019-09-22. End: 2023-09-21.

What is Favor Techconsulting, LLC's track record with the VA and other federal agencies prior to this award?

Prior to this $38.3 million task order, Favor Techconsulting, LLC had a history of federal contract awards, though likely at a smaller scale. Analyzing their past performance with the VA and other agencies would reveal their experience in delivering IT services, their adherence to schedules and budgets, and any past performance issues or commendations. A review of their contract history in systems like FPDS would indicate the types of services previously rendered, the agencies they've served, and the total value of those contracts. This context is crucial for assessing their capability to handle a task order of this magnitude and complexity.

How does the per-unit cost or overall value of this contract compare to similar IT services contracts awarded by the VA?

Direct per-unit cost comparison is challenging without specific service breakdowns (e.g., hourly rates for different skill sets, software licenses). However, the total award of $38.3 million over four years for computer systems design services can be benchmarked against the VA's overall IT spending. For instance, if the VA spends billions annually on IT, this $38.3 million represents a fraction. Comparing the average cost per year ($9.575 million) to other similar-sized task orders or contracts for comparable services within the VA or other agencies can indicate if the pricing is within a competitive range. Factors like complexity, duration, and specific deliverables heavily influence these comparisons.

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

Key risks include potential performance deficiencies by Favor Techconsulting, LLC, leading to delays or subpar IT systems. Scope creep, where the project expands beyond its original objectives, is another common risk in IT projects. Mitigation strategies involve robust contract management by the VA, including clear performance metrics, regular progress reviews, and change control processes. The firm-fixed-price structure inherently mitigates cost overrun risk for the government, placing that burden on the contractor. However, this can increase the risk of the contractor cutting corners on quality if not properly overseen.

How effective has the VA been in managing IT service contracts of this nature to ensure program effectiveness?

The VA's effectiveness in managing IT service contracts varies. Historically, the VA has faced challenges with large IT procurements, including cost overruns and schedule delays. However, they have also successfully executed numerous IT contracts. The effectiveness of managing this specific task order hinges on the VA's program managers' expertise, the clarity of the SOW (Statement of Work), and the diligence of contract oversight. Success is measured by the timely delivery of functional IT systems that meet the VA's operational needs and support its mission to serve veterans.

What are the historical spending patterns for computer systems design services at the VA, and how does this award fit in?

The VA consistently spends significant amounts on IT services, including computer systems design, to maintain and upgrade its vast healthcare and benefits systems. Historical spending data would show fluctuations based on modernization initiatives, cybersecurity needs, and budget allocations. This $38.3 million award fits within the VA's ongoing efforts to procure IT support. It represents a specific investment in systems design, likely contributing to a larger strategic IT objective. Analyzing trends in VA IT spending can reveal whether this award is part of a sustained investment or a response to a particular project's needs.

What is the potential impact of this contract on the broader IT services market, particularly for small businesses?

This award to Favor Techconsulting, LLC, a small business, directly benefits that company and contributes to the VA's small business prime contracting goals. It provides them with significant revenue and experience. The broader impact depends on Favor Techconsulting's own subcontracting strategy. If they engage other small businesses as subcontractors, it can have a ripple effect. Conversely, if they perform the work entirely in-house, the direct impact on other small businesses is limited to the competitive opportunity lost by those who did not win. The success of this contract could also enhance Favor Techconsulting's reputation, potentially leading to more opportunities.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8075 LEESBURG PIKE STE 300, VIENNA, VA, 22182

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $38,319,458

Exercised Options: $38,319,458

Current Obligation: $38,319,458

Actual Outlays: $3,293,577

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $21,942,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline