VA awards $123M IT contract for identity management to By Light Professional IT Services LLC

Contract Overview

Contract Amount: $123,034,091 ($123.0M)

Contractor: BY Light Professional IT Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-05-24

End Date: 2024-07-04

Contract Duration: 1,868 days

Daily Burn Rate: $65.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF IDENTITY AND ACCESS MANAGEMENT PROGRAM SUPPORT SERVICES

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 $123.0 million to BY LIGHT PROFESSIONAL IT SERVICES LLC for work described as: IGF::OT::IGF IDENTITY AND ACCESS MANAGEMENT PROGRAM SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1868 days indicates a long-term need for these services. 3. The fixed-price contract type may offer cost certainty for the government. 4. The awardee, By Light Professional IT Services LLC, is a significant player in the IT services sector. 5. The contract falls under computer systems design services, a critical area for federal IT infrastructure. 6. The geographic location of the awardee is Washington D.C.

Value Assessment

Rating: good

The contract's total value of $123 million over approximately five years suggests a substantial investment in identity and access management. Benchmarking against similar large-scale IT support contracts is difficult without more specific service details. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined. The number of bids received (3) is moderate, and further analysis would be needed to determine if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for this significant IT services contract. While three bidders suggest some level of market interest, a higher number could potentially drive prices down further. The competition level here likely provided the VA with a reasonable selection of qualified vendors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

Veterans will benefit from improved security and access to their digital services through robust identity management. The contract supports essential IT infrastructure for the Department of Veterans Affairs. The services delivered are critical for maintaining the integrity and security of VA's information systems. The primary geographic impact is within the District of Columbia, where the contractor is located, but the services support a national user base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and difficult to transition.
Reliance on a single contractor for critical identity management functions could pose a risk if performance falters.
The long contract duration might lead to less agile adaptation to evolving cybersecurity threats without careful management.

Positive Signals

The use of firm-fixed-price contracts can incentivize efficiency and cost control by the contractor.
Awarding through full and open competition suggests a thorough vetting of potential contractors.
The contract addresses a fundamental IT security need, enhancing the overall digital infrastructure.

Sector Analysis

The Information Technology sector, particularly within government contracting, is highly competitive. Identity and Access Management (IAM) is a critical sub-sector focused on ensuring that the right individuals have the right access to the right resources at the right times. Federal spending in IT services, including IAM, has been substantial, driven by modernization efforts and increasing cybersecurity threats. This contract fits within the broader category of IT professional services, which includes areas like computer systems design and integration. Comparable spending benchmarks would typically look at the average cost of similar IAM support contracts across federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, By Light Professional IT Services LLC, may engage small businesses as subcontractors, which would then contribute to the small business economy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. The contract's firm-fixed-price nature provides some level of financial oversight by limiting cost increases. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
VA IT Modernization Initiatives
Cybersecurity Support Services
IT Professional Services

Risk Flags

Long contract duration may require careful performance management.
Dependence on a single vendor for critical IAM functions.
Potential for scope creep if requirements are not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $123.0 million to BY LIGHT PROFESSIONAL IT SERVICES LLC. IGF::OT::IGF IDENTITY AND ACCESS MANAGEMENT PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BY LIGHT PROFESSIONAL IT SERVICES 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 $123.0 million.

What is the period of performance?

Start: 2019-05-24. End: 2024-07-04.

What is the track record of By Light Professional IT Services LLC with the Department of Veterans Affairs?

By Light Professional IT Services LLC has a history of receiving contracts from the Department of Veterans Affairs. Analyzing their past performance on similar IT support and systems integration contracts with the VA would provide insight into their reliability and effectiveness. Specific metrics such as on-time delivery, adherence to budget (where applicable), and quality of service would be key indicators. A review of past contract performance evaluations, if publicly available, would offer a more detailed assessment of their track record with the agency.

How does the per-unit cost or pricing structure of this contract compare to similar identity management services?

Without specific line-item details or service level agreements, a precise per-unit cost comparison is challenging. However, the contract's firm-fixed-price nature suggests that the total cost is agreed upon upfront. To benchmark, one would typically compare the overall contract value against the scope of work and duration, looking for similar IAM support contracts awarded by other federal agencies. Factors like the complexity of the systems supported, the number of users, and the specific security requirements would influence pricing. A higher number of bidders in a competitive environment generally correlates with more favorable pricing for the government.

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

Key risks include potential performance issues from the contractor, cybersecurity vulnerabilities within the identity management system, and the risk of vendor lock-in due to the specialized nature of the services. Mitigation strategies likely involve robust performance monitoring by the VA, clearly defined service level agreements (SLAs), and contingency planning for security incidents. The firm-fixed-price structure shifts some financial risk to the contractor. Regular contract reviews and potential for phased transitions could also mitigate long-term dependency risks.

How effective is the current identity and access management system at the VA, and how will this contract enhance it?

The effectiveness of the VA's current IAM system is not detailed in the provided data. However, the award of a significant contract suggests a need for enhancement, modernization, or sustained support. This contract is expected to improve security, streamline user access, and ensure compliance with federal regulations. Enhanced IAM systems contribute to a more secure and efficient digital environment for veterans accessing services and for VA personnel managing those services. The specific enhancements will depend on the detailed statement of work.

What has been the historical spending trend for identity and access management services at the VA?

Historical spending data for IAM services at the VA would require accessing broader federal procurement databases. However, given the increasing reliance on digital services and heightened cybersecurity concerns, it is probable that spending in this area has been stable or increasing across federal agencies, including the VA. This $123 million award over five years represents a substantial, ongoing investment, suggesting a consistent and significant requirement for these critical IT functions within the department.

What is the potential impact of this contract on the cybersecurity posture of the Department of Veterans Affairs?

This contract is directly aimed at strengthening the cybersecurity posture of the VA by ensuring robust identity and access management. Effective IAM is a foundational element of cybersecurity, preventing unauthorized access to sensitive veteran data and critical systems. By supporting and potentially enhancing these capabilities, the contract helps mitigate risks associated with data breaches, identity theft, and insider threats. The success of the contract in improving the cybersecurity posture will depend on the quality of services delivered and the VA's ability to leverage these services effectively.

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: 8484 WESTPARK DR STE 600, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $123,034,091

Exercised Options: $123,034,091

Current Obligation: $123,034,091

Actual Outlays: $22,681,905

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $42,738,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1019

IDV Type: IDC

Timeline