VA awards $46.7M contract to JJR Solutions for Veterans Crisis Line call center, leveraging prior SBIR research

Contract Overview

Contract Amount: $46,663,247 ($46.7M)

Contractor: JJR Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-15

End Date: 2026-08-14

Contract Duration: 1,460 days

Daily Burn Rate: $32.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SBIR PHASE III AWARD TO CONDUCT HUMAN PERFORMANCE ASSESSMENTS (HPA). THE CONTRACTOR SHALL EMPLOY THE HPA FRAMEWORK DEVELOPED UNDER SBIR N092-150 AN DELIVER AN ENTERPRISE-BASED VETERANS CRISIS LINE CALL CENTER.

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45402

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.7 million to JJR SOLUTIONS LLC for work described as: SBIR PHASE III AWARD TO CONDUCT HUMAN PERFORMANCE ASSESSMENTS (HPA). THE CONTRACTOR SHALL EMPLOY THE HPA FRAMEWORK DEVELOPED UNDER SBIR N092-150 AN DELIVER AN ENTERPRISE-BASED VETERANS CRISIS LINE CALL CENTER. Key points: 1. Contract leverages prior Small Business Innovation Research (SBIR) investment, aiming for value realization. 2. Sole-source award raises questions about price discovery and potential for competitive pressure. 3. Performance period of four years suggests a need for sustained service delivery and oversight. 4. Focus on human performance assessments indicates a specialized service delivery model. 5. Contract aligns with VA's mission to support veterans, particularly through crisis intervention. 6. Geographic location in Ohio may have implications for regional workforce and economic impact.

Value Assessment

Rating: fair

The contract value of $46.7 million over four years for an enterprise-based call center is substantial. Benchmarking this against similar large-scale call center operations for government agencies is challenging without more specific service delivery metrics. However, the reliance on a prior SBIR award suggests a potentially pre-vetted solution, which could imply some level of cost efficiency if the technology and framework are mature. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed among multiple vendors. The justification for a sole-source award typically involves unique capabilities or circumstances. In this case, the contractor, JJR Solutions LLC, developed the Human Performance Assessment (HPA) framework under a previous SBIR contract (N092-150). This prior investment likely forms the basis for the sole-source decision, aiming to capitalize on the developed intellectual property and expertise. The lack of competition means potential savings from a competitive bidding process were not realized.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through market competition. Taxpayers may not benefit from the cost efficiencies that could arise from multiple vendors vying for the contract.

Public Impact

Veterans in crisis will benefit from enhanced call center services designed to address their needs. The contract supports the delivery of critical crisis intervention services through a dedicated call center. The primary geographic impact is within the United States, serving veterans nationwide. The contract may create or sustain jobs within the IT and customer service sectors, particularly in Ohio. The Veterans Affairs department will receive an enterprise-based solution to manage and improve crisis line operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of competitive bidding may reduce opportunities for innovative solutions from other vendors.
Performance risks associated with implementing a new enterprise-based system need careful monitoring.
Dependence on a single contractor for critical crisis services poses a potential continuity risk.

Positive Signals

Leverages prior government investment in SBIR research, potentially accelerating development and deployment.
Firm-fixed-price contract shifts cost risk to the contractor.
Focus on human performance assessments suggests a tailored approach to service delivery.
Contract duration allows for sustained service provision and potential for long-term impact.

Sector Analysis

This contract falls within the 'Other Computer Related Services' sector, specifically focusing on IT solutions for government operations. The market for IT services supporting federal agencies is vast, with significant spending allocated to software development, system integration, and operational support. Comparable spending benchmarks for enterprise call center solutions can vary widely based on scope, technology, and service level agreements. The VA's investment here is directed towards a specialized application of IT to address a critical public service need.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting goals were mentioned. JJR Solutions LLC is a small business, but the award itself is a definitive contract, not a small business set-aside. The implications for the broader small business ecosystem are limited in terms of direct subcontracting opportunities stemming from this specific award, though the success of JJR Solutions could foster future opportunities.

Oversight & Accountability

Oversight for this contract will likely be 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 fixing the cost. Transparency will depend on the VA's reporting practices regarding contract performance and any public-facing metrics related to the Veterans Crisis Line. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Crisis Line Operations
SBIR Program Awards
Federal Call Center Services
IT Services for Healthcare

Risk Flags

Sole-source award lacks competitive pricing pressure.
Reliance on a single contractor for critical services.
Performance risk associated with implementing new enterprise systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.7 million to JJR SOLUTIONS LLC. SBIR PHASE III AWARD TO CONDUCT HUMAN PERFORMANCE ASSESSMENTS (HPA). THE CONTRACTOR SHALL EMPLOY THE HPA FRAMEWORK DEVELOPED UNDER SBIR N092-150 AN DELIVER AN ENTERPRISE-BASED VETERANS CRISIS LINE CALL CENTER.

Who is the contractor on this award?

The obligated recipient is JJR 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 $46.7 million.

What is the period of performance?

Start: 2022-08-15. End: 2026-08-14.

What is the track record of JJR Solutions LLC in delivering similar enterprise-level call center solutions for government agencies?

JJR Solutions LLC's primary qualification for this contract appears to stem from their development of the Human Performance Assessment (HPA) framework under a previous SBIR contract. While this demonstrates innovation and capability in a specific area, information regarding their track record in implementing and managing large-scale, enterprise-based call center operations for government entities is not detailed in the provided data. Further investigation into their past performance on similar contracts, client testimonials, and any performance metrics from previous engagements would be necessary to fully assess their capabilities in this specific domain. The success of this contract will be a key indicator of their ability to scale their expertise beyond the SBIR framework.

How does the $46.7 million contract value compare to similar federal call center or crisis intervention service contracts?

Benchmarking the $46.7 million contract value requires comparing it to similar federal contracts for enterprise call center solutions or crisis intervention services. Without specific details on the scope of services, number of agents, technology stack, and service level agreements (SLAs), a direct comparison is difficult. However, large-scale government call center operations can range from tens to hundreds of millions of dollars over several years, depending on complexity and volume. Given that this contract supports the Veterans Crisis Line, a critical and high-volume service, the $46.7 million over four years (approximately $11.65 million annually) appears to be within a reasonable range for a specialized, enterprise-level solution. The firm-fixed-price structure also provides a defined cost ceiling.

What are the primary risks associated with this sole-source award, and how are they being mitigated?

The primary risk of a sole-source award is the lack of price competition, which could lead to the government paying more than necessary. This also limits the potential for innovative solutions that might emerge from a competitive bidding process. Mitigation strategies typically involve rigorous negotiation of terms and pricing, clear performance metrics, and robust oversight. In this case, the VA is leveraging a pre-existing SBIR-developed framework, which may have already undergone some level of technical validation. However, the VA must ensure that the pricing is fair and reasonable and that JJR Solutions LLC meets all performance expectations throughout the contract duration. Strong contract management and performance monitoring are crucial.

How effective is the SBIR program in translating research into operational government services, as demonstrated by this contract?

This contract serves as a potential example of the Small Business Innovation Research (SBIR) program's effectiveness in translating research and development into tangible government solutions. The SBIR program aims to foster innovation by providing funding to small businesses for R&D, with the expectation that successful projects can be commercialized or adopted by government agencies. By awarding this Phase III contract based on the HPA framework developed under an earlier SBIR award, the VA is demonstrating a pathway for SBIR-funded technologies to move into operational use. This approach can reduce acquisition risk and leverage prior government investment, potentially leading to more cost-effective and advanced solutions. The success of this contract will ultimately determine the degree of this translation's effectiveness.

What are the historical spending patterns for similar IT services or call center operations within the Department of Veterans Affairs?

Historical spending patterns for IT services and call center operations within the Department of Veterans Affairs (VA) are substantial, reflecting the agency's large scale and critical mission. The VA consistently invests billions annually in IT modernization, system maintenance, and operational support. Specific spending on call center operations, particularly for critical services like the Veterans Crisis Line, would be a subset of this broader IT budget. While exact figures for comparable contracts are not provided, the VA has previously awarded large contracts for health IT systems, electronic health records, and various support services. The $46.7 million for this specific call center solution aligns with the VA's ongoing commitment to leveraging technology to improve veteran services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 607 E 3RD ST, DAYTON, OH, 45402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $81,719,648

Exercised Options: $46,663,247

Current Obligation: $46,663,247

Actual Outlays: $36,429,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline