VA awards $229M IT services contract to Minburn Technology Group, emphasizing full and open competition

Contract Overview

Contract Amount: $229,014,314 ($229.0M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-16

End Date: 2025-07-31

Contract Duration: 1,049 days

Daily Burn Rate: $218.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VA ENDPOINTS - BASE AWARD WITH OPTIONS EXERCISED AT AWARD.

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $229.0 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: VA ENDPOINTS - BASE AWARD WITH OPTIONS EXERCISED AT AWARD. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1049 days indicates a significant, long-term need for IT services. 3. The award value of over $229 million positions this as a major IT services procurement. 4. Services fall under 'Other Computer Related Services,' a broad category within IT. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's value of $229 million for IT services over approximately 2.8 years appears substantial. Benchmarking against similar 'Other Computer Related Services' contracts would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally provides cost certainty for the government, assuming the scope is well-defined and managed effectively. The number of bids received (implied by 'full and open competition') will be a key factor in determining if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that all responsible sources were permitted to submit a bid. The fact that it was competed broadly suggests that the agency sought the best possible pricing and technical solutions from the market. The number of bids received (10 bids were submitted) indicates a healthy level of interest and competition for this requirement.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging vendors to offer their most aggressive proposals to win the contract.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving IT services to support its operations. The contract will likely support the delivery of various computer-related services essential for the VA's mission. The geographic impact is primarily within Virginia, where the contract is managed. The workforce implications will involve IT professionals employed by Minburn Technology Group and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Scope creep could increase costs if not managed tightly under the fixed-price contract.
Reliance on a single awardee for critical IT services carries inherent risk.

Positive Signals

Firm Fixed Price contract structure provides cost predictability for the VA.
Full and open competition suggests a robust market response and potential for competitive pricing.
The contract is managed by the VA itself, indicating direct oversight.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically 'Other Computer Related Services.' The IT services market is highly competitive and dynamic, with significant government spending allocated to technology modernization and support. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by federal agencies, particularly those supporting large healthcare or administrative organizations like the VA. The market size for federal IT services is in the hundreds of billions annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely too large or complex for a small business set-aside, or that the agency determined that full and open competition would yield the best results. There is no explicit information on subcontracting plans for small businesses, which would be a key area to monitor for potential small business participation.

Oversight & Accountability

Oversight for this contract will be primarily managed by the Department of Veterans Affairs (VA) contracting officers and program managers. As a delivery order under a larger contract vehicle, there may be established oversight mechanisms within that framework. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA IT Modernization
Federal Civilian IT Services
IT Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for scope creep
Contractor performance risk
Cybersecurity vulnerabilities
Vendor lock-in potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $229.0 million to MINBURN TECHNOLOGY GROUP, LLC. VA ENDPOINTS - BASE AWARD WITH OPTIONS EXERCISED AT AWARD.

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $229.0 million.

What is the period of performance?

Start: 2022-09-16. End: 2025-07-31.

What is the historical performance record of Minburn Technology Group, LLC with the federal government, particularly with the VA?

A review of federal procurement data would be necessary to fully assess Minburn Technology Group, LLC's historical performance. Key indicators would include past contract awards, performance evaluations (e.g., CPARS), any past performance issues or disputes, and their track record in delivering similar IT services. Understanding their experience with the VA specifically would provide further context on their ability to meet the agency's unique needs and operational environment. Without specific past performance data, it is difficult to definitively assess their reliability and capability for this significant contract.

How does the awarded price compare to similar IT services contracts awarded by the VA or other large federal agencies?

To benchmark the $229 million award, one would need to compare it against contracts for 'Other Computer Related Services' or similar IT support categories awarded over the same period by agencies of comparable size and complexity to the VA. Factors such as contract duration, scope of work, service level agreements, and geographic location would need to be considered for a fair comparison. A higher number of bids received in this contract (10 bids) suggests a potentially competitive pricing environment, which could indicate the price is reasonable. However, a detailed analysis of contract line item pricing and labor rates would be required for a definitive assessment.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential scope creep, given the broad 'Other Computer Related Services' category, which could lead to cost overruns despite the fixed-price structure. Contractor performance issues, cybersecurity vulnerabilities, and the potential for vendor lock-in are also significant risks. Mitigation strategies would typically involve robust contract management, clear definition and enforcement of scope, regular performance reviews, strong cybersecurity protocols, and contingency planning for service continuity. The firm-fixed-price nature shifts some cost risk to the contractor, but effective oversight is still crucial.

How effective is the VA in managing large IT service contracts to ensure successful delivery and value for money?

The VA has a mixed record in managing large IT contracts, with notable successes and significant challenges historically. Initiatives like the Transformation Twenty-One Total Technology (T4) program have aimed to improve IT acquisition and delivery. The effectiveness of managing this specific contract will depend on the VA's program management capabilities, the clarity of the SOW, the rigor of performance monitoring, and the responsiveness of contracting officers. Lessons learned from past IT project failures and successes within the VA and other agencies are critical for ensuring this contract delivers value.

What has been the historical spending trend for 'Other Computer Related Services' by the Department of Veterans Affairs?

Analyzing historical spending trends for 'Other Computer Related Services' by the VA would reveal patterns of investment in this area. This includes understanding the total annual expenditure, the number and value of contracts awarded in this category, and the primary contractors. Such analysis can indicate whether spending is increasing, decreasing, or remaining stable, and whether this $229 million award represents a significant shift or continuation of past investment levels. It also helps in identifying potential areas of consolidation or expansion in IT service needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B22Q0148

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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: $418,781,360

Exercised Options: $229,014,314

Current Obligation: $229,014,314

Actual Outlays: $216,582,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline