VA awards $39.6M contract for computer systems design to King Street Technology Partners, LLC

Contract Overview

Contract Amount: $39,564,926 ($39.6M)

Contractor: King Street Technology Partners, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-02

End Date: 2025-02-28

Contract Duration: 1,306 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VA CLAIMS BASE YEAR AWARD

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39.6 million to KING STREET TECHNOLOGY PARTNERS, LLC for work described as: VA CLAIMS BASE YEAR AWARD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a critical area for agency operations. 3. The base year award value is substantial, indicating a significant investment in IT support. 4. The contract duration extends over 1306 days, implying a long-term need for these services. 5. The firm fixed-price contract type helps manage cost certainty for the government. 6. The award was made by the Department of Veterans Affairs, highlighting its focus on IT infrastructure.

Value Assessment

Rating: good

The base year award of approximately $39.6 million for computer systems design services appears to be a significant investment. Benchmarking against similar contracts for IT systems design within the federal government would provide a clearer picture of its value for money. The firm fixed-price nature of the contract offers cost predictability, which is a positive indicator for value.

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 bids. The fact that there were 5 bids received suggests a healthy level of competition for this requirement. This competitive environment is generally expected to drive better pricing and service offerings.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it is likely to result in more favorable pricing and potentially higher quality services compared to a sole-source or limited competition award.

Public Impact

Veterans Affairs beneficiaries will indirectly benefit from improved IT systems supporting agency operations. The contract delivers essential computer systems design services to the Department of Veterans Affairs. The geographic impact is primarily within Virginia, where the contractor is located. The contract supports the IT workforce by engaging a private sector technology partner.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and not easily transferable.
Reliance on a single contractor for critical IT systems design could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, King Street Technology Partners, LLC, has secured this award, suggesting they meet the government's requirements.
The contract is for computer systems design, a fundamental IT service.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on external contractors for specialized expertise in areas like computer systems design. This contract fits within the broader category of IT professional services, which includes a wide range of support from software development to network infrastructure management. Spending in this sector is driven by the need for modernization, cybersecurity, and efficient service delivery.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. Future analysis could explore if King Street Technology Partners, LLC has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a delivery order under a larger contract vehicle, oversight would likely involve regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Design
Department of Veterans Affairs IT Contracts
Federal IT Modernization Programs

Risk Flags

Contract performance risk
Security risk
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39.6 million to KING STREET TECHNOLOGY PARTNERS, LLC. VA CLAIMS BASE YEAR AWARD

Who is the contractor on this award?

The obligated recipient is KING STREET TECHNOLOGY PARTNERS, 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 $39.6 million.

What is the period of performance?

Start: 2021-08-02. End: 2025-02-28.

What is the track record of King Street Technology Partners, LLC with federal contracts, particularly with the Department of Veterans Affairs?

Information on King Street Technology Partners, LLC's track record with federal contracts, especially with the Department of Veterans Affairs, would require a deeper dive into federal procurement databases like SAM.gov or FPDS. This would involve examining past awards, performance reviews, and any reported issues. Without specific historical data on this contractor's performance, it's difficult to assess their reliability and expertise beyond their ability to win this current award. A review of their past performance could reveal patterns in contract types, agencies served, and overall satisfaction levels, providing a more comprehensive understanding of their capabilities and potential risks.

How does the awarded price compare to market rates for similar computer systems design services?

To assess the value for money, the awarded price of approximately $39.6 million for the base year needs to be benchmarked against market rates for comparable computer systems design services. This involves researching industry pricing for similar scopes of work, considering factors like the complexity of the systems, the level of expertise required, and the duration of the contract. Comparing the estimated per-hour or per-project costs to industry benchmarks, or to prices paid by other federal agencies for similar services, would indicate whether this contract represents a good deal for the government. The firm fixed-price nature provides some cost control, but the underlying price must still be competitive.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) for this computer systems design contract are not detailed in the provided data. Typically, such contracts would include metrics related to system functionality, performance, reliability, security, and adherence to project timelines and budgets. The Department of Veterans Affairs would establish these KPIs in the contract's Statement of Work (SOW) and monitor the contractor's performance against them. Regular progress reports, system testing, and user feedback would likely be used to measure performance. The effectiveness of the oversight mechanisms will be crucial in ensuring these KPIs are met.

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

Analyzing the historical spending patterns of the Department of Veterans Affairs (VA) for computer systems design services would provide context for this $39.6 million award. This involves examining past contract awards for similar services over several fiscal years to identify trends in spending levels, types of services procured, and primary contractors. Understanding whether this award represents an increase, decrease, or stable level of spending can help assess the agency's ongoing commitment to IT infrastructure development and modernization. It can also highlight any shifts in procurement strategies or reliance on specific service providers.

What are the potential risks associated with relying on King Street Technology Partners, LLC for critical IT systems?

Potential risks associated with relying on King Street Technology Partners, LLC for critical IT systems include performance issues, security vulnerabilities, cost overruns (though mitigated by FFP), and potential vendor lock-in. If the contractor fails to deliver on time or meet performance standards, it could disrupt VA operations. Security breaches originating from the contractor's systems or personnel could compromise sensitive veteran data. Vendor lock-in can occur if the systems designed are proprietary or require specialized knowledge to maintain, making it difficult and costly to switch providers. The government's oversight and contingency planning are key to mitigating these risks.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7989 GLENN FERRY RD, PFAFFTOWN, NC, 27040

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,564,926

Exercised Options: $39,564,926

Current Obligation: $39,564,926

Actual Outlays: $21,570,736

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $9,808,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1027

IDV Type: IDC

Timeline