VA awards $36.8M IT contract to Clear Vantage Point Solutions LLC for VBA COE support

Contract Overview

Contract Amount: $36,840,186 ($36.8M)

Contractor: Clear Vantage Point Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VETERANS BENEFITS ADMINISTRATION (VBA) SOLUTIONS DELIVERY CENTER OF EXCELLENCE (COE)

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.8 million to CLEAR VANTAGE POINT SOLUTIONS LLC for work described as: VETERANS BENEFITS ADMINISTRATION (VBA) SOLUTIONS DELIVERY CENTER OF EXCELLENCE (COE) Key points: 1. Contract awarded through full and open competition, indicating a broad market search. 2. The contract duration of 1460 days suggests a long-term need for these services. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. The award was made to a single vendor, Clear Vantage Point Solutions LLC. 5. The contract is for computer systems design services, a critical IT function. 6. The value of the contract is substantial, reflecting significant investment in IT support.

Value Assessment

Rating: good

The contract value of $36.8 million over approximately four years for IT systems design services appears reasonable given the scope. Benchmarking against similar contracts for IT support within the Department of Veterans Affairs (VA) would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to manage costs effectively, but detailed cost breakdowns are not available to fully assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Seven bids were received, indicating a healthy level of interest and competition for this requirement. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award.

Public Impact

The primary beneficiary is the Veterans Benefits Administration (VBA) Solutions Delivery Center of Excellence (COE), which will receive enhanced IT support. The services delivered will focus on computer systems design, crucial for modernizing and maintaining critical veteran benefit systems. The contract has a geographic impact primarily in New Jersey, where the contractor is located. The contract supports the IT workforce by engaging a private sector firm for specialized design services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's solutions become deeply integrated and difficult to replace.
Reliance on a single vendor for critical IT design services could pose a risk if performance issues arise.
The firm-fixed-price nature, while good for cost control, might disincentivize innovation if not carefully managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration indicates a stable, long-term need being met, suggesting program continuity.

Sector Analysis

The IT services sector is highly dynamic, with significant government spending focused on modernization, cybersecurity, and cloud migration. This contract for computer systems design services fits within the broader IT consulting and systems integration market. Comparable spending benchmarks for similar IT support contracts within federal agencies often range from tens to hundreds of millions of dollars, depending on the complexity and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the subcontracting ecosystem for this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Affairs IT Modernization
VBA IT Support Services
Federal IT Consulting Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical services
Cybersecurity risks associated with sensitive data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.8 million to CLEAR VANTAGE POINT SOLUTIONS LLC. VETERANS BENEFITS ADMINISTRATION (VBA) SOLUTIONS DELIVERY CENTER OF EXCELLENCE (COE)

Who is the contractor on this award?

The obligated recipient is CLEAR VANTAGE POINT 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 $36.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the track record of Clear Vantage Point Solutions LLC with the Department of Veterans Affairs?

Information regarding Clear Vantage Point Solutions LLC's specific track record with the Department of Veterans Affairs (VA) prior to this award is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, previous contract history, and any reported issues or successes with the VA or other federal agencies. Understanding their experience with similar IT systems design projects, particularly those supporting large benefits administration systems, would be crucial for evaluating their capability to fulfill this contract effectively. Without this historical context, it is difficult to definitively assess their reliability and past performance.

How does the awarded amount compare to similar IT systems design contracts within the VA?

The awarded amount of $36.8 million over approximately four years for computer systems design services represents a significant investment. To benchmark this value, one would compare it to other VA contracts for similar IT support, system design, and integration services. Factors such as contract duration, scope of work (e.g., complexity of systems, number of users supported), and the specific technologies involved are critical for a fair comparison. If similar contracts for comparable services have been awarded at lower or higher price points, it would indicate whether this contract represents good or questionable value. The firm-fixed-price structure suggests an effort to contain costs, but a detailed analysis of the deliverables versus cost is needed for a definitive value assessment.

What are the primary risks associated with this contract for the VA?

Key risks for the VA in this contract include potential performance issues if Clear Vantage Point Solutions LLC fails to deliver the required computer systems design services adequately, potentially impacting the VBA's operations. There's also a risk of cost overruns if the firm-fixed-price contract is not managed tightly or if unforeseen technical challenges arise that require scope adjustments. Vendor lock-in is another concern, where the VA might become overly dependent on the contractor's proprietary solutions, making future transitions difficult or expensive. Ensuring the contractor maintains robust cybersecurity practices to protect sensitive veteran data is also a critical risk area. Finally, the long duration of the contract necessitates ongoing monitoring to ensure continued alignment with evolving technological needs and VA strategic goals.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for IT design services?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty for the government, as the contractor assumes most of the risk for cost overruns. For IT design services, FFP can drive efficiency by incentivizing the contractor to complete the work within the agreed-upon price. However, its effectiveness in ensuring program effectiveness can be limited if the scope of work is not clearly defined upfront, leading to disputes or change orders. It might also disincentivize innovation or extensive problem-solving if the contractor focuses solely on meeting the minimum requirements to avoid additional costs. For complex IT design, a cost-plus or time-and-materials contract might offer more flexibility for innovation and adaptation, but at a higher cost risk to the government. The success of FFP here depends heavily on the clarity and completeness of the contract's statement of work and performance standards.

What are the historical spending patterns for computer systems design services at the VA?

Historical spending patterns for computer systems design services at the Department of Veterans Affairs (VA) typically reflect the agency's ongoing need to modernize and maintain its complex IT infrastructure, which supports critical functions like benefits processing, healthcare, and claims management. The VA consistently invests significant resources in IT, with spending often fluctuating based on major modernization initiatives, cybersecurity upgrades, and the adoption of new technologies. Contracts in this category can range from smaller, task-order-based awards to large, multi-year prime contracts similar to this one. Analyzing past VA IT spending trends would reveal whether this $36.8 million award is in line with historical investments for similar services or represents a significant increase or decrease, potentially indicating shifts in strategic priorities or budget allocations.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7630 LITTLE RIVER TPKE STE 205, ANNANDALE, VA, 22003

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: $61,276,307

Exercised Options: $36,840,186

Current Obligation: $36,840,186

Actual Outlays: $31,308,439

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1024

IDV Type: IDC

Timeline