VA awards $118M IT services task order to Favor TechConsulting, LLC under existing contract

Contract Overview

Contract Amount: $118,209,580 ($118.2M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-06-09

End Date: 2025-05-21

Contract Duration: 1,807 days

Daily Burn Rate: $65.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NEW TASK ORDER - BAM PMO

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $118.2 million to FAVOR TECHCONSULTING, LLC for work described as: NEW TASK ORDER - BAM PMO Key points: 1. Task order awarded for computer systems design services, indicating a need for ongoing IT support. 2. The contract duration of 1807 days suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. Favor TechConsulting, LLC is the awardee, suggesting a potentially established relationship or strong bid. 6. The task order falls under the Department of Veterans Affairs, highlighting a focus on supporting veteran services. 7. The North American Industry Classification System (NAICS) code 541512 points to a specific niche in IT services.

Value Assessment

Rating: fair

The total value of $118.2 million over approximately five years represents a significant investment in IT services. Benchmarking this against similar large-scale IT support contracts within the federal government is challenging without more granular data on the specific services provided. However, the Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. The number of bids received (3) is relatively low for a full and open competition of this magnitude, which could suggest either a highly specialized requirement or potential limitations in the market's response.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates three bids were received. While three bidders is a moderate level of competition, it is on the lower side for a contract of this value and scope under full and open competition. This could imply that the specific technical requirements were highly specialized, or that the bidding process itself may have had barriers to entry for a wider range of contractors. The limited number of bidders might suggest less downward pressure on pricing than a more competitive scenario.

Taxpayer Impact: For taxpayers, a moderate level of competition means that while there was an opportunity for multiple companies to bid, the potential for significant cost savings through intense bidding may have been limited. The government likely received competitive offers, but the absence of a larger pool of bidders could mean that taxpayers did not benefit from the absolute lowest possible price achievable in a broader market.

Public Impact

Veterans will benefit from improved IT systems and services managed and maintained by Favor TechConsulting, LLC, potentially leading to more efficient access to VA healthcare and benefits. The contract delivers computer systems design services, which could encompass a wide range of IT support, including system development, integration, and maintenance. The geographic impact is primarily within Virginia, where the contract is managed, but the IT services likely support VA operations nationwide. The contract supports the IT workforce, potentially creating or sustaining jobs within the technology sector, both directly with the prime contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not strictly monitored for efficiency and necessity of hours billed.
A low number of bidders (3) in a full and open competition for a large contract may indicate potential limitations in market response or specialized requirements that restrict competition.
The contract duration of nearly five years requires continuous oversight to ensure performance remains aligned with VA needs and evolving technology.

Positive Signals

Awarded under full and open competition, ensuring a fair opportunity for multiple vendors to compete.
The task order is part of a larger contract vehicle, suggesting that the foundational requirements and vendor vetting have already occurred.
The specific NAICS code indicates a focus on specialized IT services, potentially leading to tailored and effective solutions for the VA.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the Department of Veterans Affairs being significant spenders. This contract falls under the Computer Systems Design Services category (NAICS 541512), which includes establishments primarily engaged in designing, developing and integrating application software services, business and other systems software, and providing related computer systems integration services. The total federal spending on IT services is in the hundreds of billions annually, with significant portions allocated to system design, development, and maintenance. This task order represents a portion of that broader spending, aimed at modernizing and supporting critical VA IT infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large task order awarded to Favor TechConsulting, LLC, it is unlikely to have significant direct subcontracting opportunities specifically designated for small businesses unless the prime contractor voluntarily pursues them. The absence of a small business set-aside means that larger, established companies were the primary focus of this competition. This could limit the direct flow-down of contract funds to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under an existing contract, the initial award process has already undergone scrutiny. Ongoing oversight would involve monitoring performance against the contract's statement of work, ensuring adherence to the Time and Materials pricing structure through regular audits of labor hours and materials, and managing contract modifications. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services Contracts
Department of Veterans Affairs IT Support Services
Computer Systems Design and Integration Services
Time and Materials Federal Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition (3 bidders) for a large-value contract awarded under full and open competition.
Long contract duration (nearly 5 years) requires sustained oversight to ensure continued relevance and performance.
Dependence on a single prime contractor for critical IT systems design services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $118.2 million to FAVOR TECHCONSULTING, LLC. NEW TASK ORDER - BAM PMO

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 $118.2 million.

What is the period of performance?

Start: 2020-06-09. End: 2025-05-21.

What is Favor TechConsulting, LLC's track record with the Department of Veterans Affairs and other federal agencies?

Favor TechConsulting, LLC has a history of receiving federal contracts, primarily with the Department of Veterans Affairs. Analyzing their past performance data from sources like the Federal Procurement Data System (FPDS) would reveal the types of services they have provided, their contract values, and their performance ratings. Understanding their experience with similar IT services, particularly under Time and Materials contracts and within the VA's complex environment, is crucial for assessing their capability to successfully execute this $118 million task order. A review of past performance would also highlight any recurring issues or notable successes in their federal contracting history.

How does the $118.2 million value compare to typical IT services task orders for the VA?

The $118.2 million value for this task order is substantial, placing it among the larger IT services awards issued by the Department of Veterans Affairs. While the VA procures a wide range of IT services, task orders of this magnitude typically involve significant system modernization, large-scale infrastructure support, or comprehensive IT program management. Smaller task orders might focus on specific software development or hardware maintenance. Comparing this value requires looking at the average and median values of IT services task orders awarded by the VA over the past several fiscal years, considering the specific NAICS code (541512) to ensure a relevant comparison. This figure suggests a critical and extensive IT requirement.

What are the primary risks associated with a Time and Materials (T&M) contract of this size?

The primary risk with a Time and Materials (T&M) contract of this magnitude ($118.2 million) is the potential for cost overruns due to a lack of a fixed ceiling on labor hours and material costs. Without rigorous oversight, the contractor may not be incentivized to control costs as effectively as they would under a fixed-price contract. This necessitates robust monitoring by the VA to ensure that all billed hours are necessary, efficient, and directly related to the contract's objectives. Scope creep can also be a significant risk, as changes or additions to the work can easily inflate costs under a T&M structure. Ensuring clear definitions of work and diligent tracking of all expenditures are critical risk mitigation strategies.

How effective is the 'full and open competition' with only three bidders for this contract?

The effectiveness of 'full and open competition' when only three bids are received for a contract valued at $118.2 million is debatable. While the process technically allowed all responsible sources to compete, the limited number of bidders suggests potential factors that may have restricted broader participation. These could include highly specialized technical requirements, stringent pre-qualification criteria, or the complexity of the bidding process itself. From a taxpayer perspective, fewer bidders generally translate to less competitive pricing pressure. While the government likely received competitive offers from the three participants, the absence of a larger pool of potential offerors might mean that the final price was not as low as it could have been if more companies had bid.

What is the historical spending pattern for computer systems design services at the VA?

Historical spending patterns for computer systems design services (NAICS 541512) at the Department of Veterans Affairs have generally shown a consistent and significant investment. The VA relies heavily on IT to manage its vast network of healthcare facilities, benefits administration, and electronic health records. Spending in this category often fluctuates based on modernization initiatives, system upgrades, and the need for ongoing maintenance and support. Analyzing historical data would reveal trends in contract values, the types of services most frequently procured, and the prime contractors that have historically secured these awards. This specific $118 million task order aligns with the VA's ongoing commitment to enhancing its IT infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $118,209,580

Exercised Options: $118,209,580

Current Obligation: $118,209,580

Actual Outlays: $53,329,222

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $11,430,003

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