VA awards $138.7M for IT support, with Peraton Enterprise Solutions LLC managing Veterans Health IT

Contract Overview

Contract Amount: $138,684,282 ($138.7M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-01-04

End Date: 2024-01-03

Contract Duration: 1,825 days

Daily Burn Rate: $76.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR THE MAINTENANCE AND SUPPORT OF VETERANS HEALTH INFORMATION SYSTEMS AND TECHNOLOGY ARCHITECTURE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $138.7 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR THE MAINTENANCE AND SUPPORT OF VETERANS HEALTH INFORMATION SYSTEMS AND TECHNOLOGY ARCHITECTURE Key points: 1. Contract focuses on essential maintenance and support for critical health information systems. 2. The award represents a significant investment in the technological infrastructure of veteran healthcare. 3. Long-term contract duration suggests a need for sustained, specialized IT support. 4. Fixed-price contract type aims to control costs and provide budget predictability. 5. The scale of the contract indicates a high level of reliance on external IT services. 6. Competition level is a key factor in assessing value for taxpayer dollars.

Value Assessment

Rating: good

The contract's value of $138.7 million over five years for IT maintenance and support for the Veterans Health Information Systems and Technology Architecture (VISIT) appears reasonable given the critical nature of the services. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that the pricing is within expected ranges for comprehensive system maintenance, including software updates, hardware support, and technical assistance. The firm-fixed-price structure provides cost certainty for the Department of Veterans Affairs (VA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though a higher number of bidders would typically lead to more robust price discovery and potentially lower costs. The VA's approach to full and open competition is generally favorable for ensuring a fair market price and accessing a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome for the government.

Public Impact

Veterans will benefit from the reliable functioning of the VISIT system, ensuring continuity of care and access to their health records. The contract supports the delivery of essential IT maintenance and support services for a critical national healthcare system. The primary geographic impact is national, as the VISIT system supports healthcare delivery across the VA's network. The contract likely supports a workforce of IT professionals, both within the contractor and potentially within the VA, involved in system management and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specialized requirements of IT support.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades or if the contractor faces financial instability.
Ensuring adequate knowledge transfer and documentation to mitigate risks associated with sole-source reliance in the future.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps manage cost overruns and provides budget predictability.
Long-term contract duration allows for stable planning and sustained support for critical systems.
The contractor, Peraton Enterprise Solutions LLC, has experience in large-scale government IT contracts.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies heavily reliant on contractors for maintaining and upgrading complex systems. This contract for the Veterans Health Information Systems and Technology Architecture (VISIT) is a significant component of the Department of Veterans Affairs' IT spending, reflecting the growing demand for specialized support in healthcare IT to ensure data integrity, system availability, and cybersecurity.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best overall technical solution and price from a large-scale provider. Further analysis would be needed to determine if Peraton Enterprise Solutions LLC has established subcontracting plans with small businesses to fulfill any aspects of this large IT support requirement.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through contract award databases and public reporting. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Veterans Affairs IT Modernization
Healthcare IT Support Services
Federal Information Technology Contracts
IT Infrastructure Maintenance
Health Information Systems

Risk Flags

Long-term reliance on a single vendor for critical IT infrastructure.
Potential for performance issues impacting veteran healthcare services.
Need for robust oversight to ensure continued value and service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $138.7 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER FOR THE MAINTENANCE AND SUPPORT OF VETERANS HEALTH INFORMATION SYSTEMS AND TECHNOLOGY ARCHITECTURE

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS 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 $138.7 million.

What is the period of performance?

Start: 2019-01-04. End: 2024-01-03.

What is the historical spending trend for IT maintenance and support services by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has consistently allocated significant funding towards IT maintenance and support services, reflecting the critical role technology plays in delivering healthcare to veterans. Historical data indicates a steady increase in IT spending over the past decade, driven by the need to modernize legacy systems, enhance cybersecurity, and implement new digital health solutions. For instance, prior to this $138.7 million award, the VA likely had other contracts in place for similar services, potentially totaling hundreds of millions annually across various IT domains. Analyzing past VA IT budgets and contract awards for maintenance and support reveals a pattern of substantial investment, often exceeding billions of dollars cumulatively, to ensure the operational integrity of systems like the Veterans Health Information Systems and Technology Architecture (VISIT).

How does the per-unit cost of this contract compare to similar IT support contracts for other federal agencies?

Benchmarking the per-unit cost of this $138.7 million contract for IT maintenance and support against similar contracts across federal agencies is complex due to variations in scope, service level agreements, and specific technologies supported. However, given that this contract covers comprehensive support for the Veterans Health Information Systems and Technology Architecture (VISIT) over five years, the estimated annual cost of approximately $27.7 million appears to be within the expected range for large-scale federal IT support. Contracts for maintaining complex enterprise resource planning (ERP) systems, electronic health records (EHR), or large network infrastructures in agencies like the Department of Defense or Health and Human Services often fall into similar multi-million dollar annual spending categories. Factors such as the number of users supported, the criticality of the systems, and the required uptime percentages significantly influence per-unit costs, making direct comparisons challenging without detailed service specifications.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided award data, contracts of this nature typically include metrics focused on system availability, response times for technical support, resolution times for issues, and adherence to security protocols. For the Veterans Health Information Systems and Technology Architecture (VISIT), critical KPIs would likely involve ensuring high uptime percentages (e.g., 99.9% availability), rapid response to critical system outages, timely application of security patches, and successful implementation of system updates. Performance would also be measured against user satisfaction surveys and the successful completion of scheduled maintenance and support tasks. The Department of Veterans Affairs would monitor these KPIs closely to ensure the contractor, Peraton Enterprise Solutions LLC, is meeting its contractual obligations and maintaining the integrity and functionality of the vital healthcare IT systems.

What is Peraton Enterprise Solutions LLC's track record with large federal IT support contracts, particularly within the healthcare sector?

Peraton Enterprise Solutions LLC has a significant track record in managing large-scale federal IT contracts, including those involving complex systems and critical infrastructure. The company has been involved in various government IT modernization efforts, cybersecurity solutions, and enterprise IT services across multiple agencies. While specific details on their healthcare IT support experience within the VA prior to this award would require deeper research, Peraton's broader portfolio often includes work with sensitive data and mission-critical systems, which are analogous to the requirements of supporting the Veterans Health Information Systems and Technology Architecture (VISIT). Their history suggests a capability to handle contracts of this magnitude and complexity, often involving firm-fixed-price structures and long-term engagements, indicating a level of experience relevant to the demands of this VA contract.

What are the potential risks associated with relying on a single contractor for the maintenance of critical veteran health IT systems?

Relying on a single contractor, Peraton Enterprise Solutions LLC, for the maintenance of critical veteran health IT systems like VISIT presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes heavily dependent on the contractor's proprietary knowledge and processes, making it difficult and costly to switch providers in the future. Secondly, performance degradation is a concern; if the contractor fails to meet service level agreements or experiences internal issues, it could directly impact the availability and reliability of essential healthcare services for veterans. Thirdly, a single point of failure exists: if the contractor faces financial instability, legal challenges, or significant operational disruptions, the VA's IT infrastructure could be severely compromised. Finally, there's the risk of reduced innovation if the contractor becomes complacent due to a lack of direct competition throughout the contract's duration.

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: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,753,209

Exercised Options: $138,684,282

Current Obligation: $138,684,282

Actual Outlays: $13,087,112

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $25,612,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1023

IDV Type: IDC

Timeline