VA awards $432.6M for InterSystems software maintenance, with a 3-year duration

Contract Overview

Contract Amount: $432,610,032 ($432.6M)

Contractor: ALL Points Logistics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $395.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTERSYSTEMS SOFTWARE MAINTENAINCE

Place of Performance

Location: MERRITT ISLAND, BREVARD County, FLORIDA, 32952

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $432.6 million to ALL POINTS LOGISTICS, LLC for work described as: INTERSYSTEMS SOFTWARE MAINTENAINCE Key points: 1. Contract value of $432.6M over three years suggests significant investment in critical IT infrastructure. 2. Full and open competition indicates a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of 1095 days allows for sustained support and development. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded by the Department of Veterans Affairs, this contract supports essential healthcare IT systems. 6. The NAICS code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: good

The total award of $432.6 million over three years for software maintenance is substantial. Benchmarking this against similar large-scale IT maintenance contracts within the federal government is challenging without more specific service details. However, the firm fixed-price nature suggests that the VA has negotiated a set cost for the services, which can be advantageous if the scope is well-defined. The per-unit cost is difficult to ascertain without knowing the specific services or number of users supported.

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 a bid. The fact that there were two bidders (no: 2) suggests a competitive environment, though the exact level of competition would depend on the number of proposals received and their quality. A limited number of bidders can sometimes indicate specialized requirements or a concentrated market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for government spending.

Public Impact

Veterans will benefit from the continued availability and functionality of critical healthcare IT systems. The contract ensures the maintenance and support of InterSystems software, likely used for electronic health records and other patient management functions. The geographic impact is nationwide, as VA facilities across the country rely on these IT systems. Workforce implications may include the need for specialized IT personnel to support and maintain the InterSystems platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if InterSystems software is highly specialized and difficult to replace.
Reliance on a single software vendor for critical healthcare IT could pose long-term strategic risks.
The substantial contract value may attract fewer bidders in future competitions if market conditions change.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the VA.
Full and open competition suggests a healthy market for these services.
The multi-year duration allows for stable support of essential systems.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software maintenance and support for a critical healthcare application. The market for enterprise healthcare IT solutions and their ongoing maintenance is substantial, with significant investment from both public and private sector organizations. Comparable spending benchmarks would typically involve looking at other large federal agencies' IT maintenance contracts or large health systems' IT budgets, though direct comparisons are difficult without knowing the specific modules and scale of the InterSystems deployment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). As a large contract valued at over $432 million, it is unlikely that small businesses would be the prime contractor. However, the prime contractor, ALL POINTS LOGISTICS, LLC, may have subcontracting opportunities for small businesses, depending on the specific requirements and the company's subcontracting plan. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by tying payment to deliverables. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Veterans Health Administration IT Modernization
Electronic Health Record Systems Maintenance
Federal Health IT Services
InterSystems Caché Database Support
Department of Veterans Affairs IT Services

Risk Flags

Potential vendor lock-in
Reliance on single-source technology
Long-term sustainment costs
Cybersecurity risks associated with legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $432.6 million to ALL POINTS LOGISTICS, LLC. INTERSYSTEMS SOFTWARE MAINTENAINCE

Who is the contractor on this award?

The obligated recipient is ALL POINTS LOGISTICS, 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 $432.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is the historical spending pattern for InterSystems software maintenance at the VA?

Analyzing historical spending for InterSystems software maintenance at the VA requires accessing historical contract data. Without direct access to that data, we can infer that the VA has likely been investing in InterSystems technology for a significant period, given its critical role in healthcare IT. The current award of $432.6 million over three years suggests a substantial and ongoing commitment. Previous contracts for similar services would likely show a pattern of consistent, albeit potentially fluctuating, annual expenditures. Understanding the trend of this spending over time would reveal whether the VA's investment in this specific software is increasing, decreasing, or remaining stable, which can be indicative of strategic shifts or the lifecycle of the technology.

How does the per-unit cost of this contract compare to market rates for similar software maintenance services?

Determining a precise per-unit cost for this contract is challenging without detailed information on the specific services rendered, the number of users, or the modules supported by the InterSystems software. The total award of $432.6 million over three years averages to approximately $144.2 million per year. If we were to assume this supports a large number of users across the VA's extensive network, the per-user cost might be competitive. However, without a clear definition of 'unit' (e.g., per user, per server, per module, per support hour), a direct comparison to market rates is speculative. Generally, large, long-term federal contracts can achieve economies of scale, potentially offering lower per-unit costs than smaller commercial agreements, but this is highly dependent on the specifics of the service level agreements and the competitive landscape.

What is the track record of ALL POINTS LOGISTICS, LLC in managing large federal IT maintenance contracts?

ALL POINTS LOGISTICS, LLC's track record in managing large federal IT maintenance contracts is a key factor in assessing the risk and potential success of this award. A review of their contract history would reveal their experience with similar scale and complexity, particularly within the healthcare IT domain. Key indicators would include past performance evaluations, any history of contract disputes or terminations, and their demonstrated ability to meet performance metrics and delivery schedules. If they have a history of successful, on-time, and within-budget delivery of complex IT services to federal agencies, it would increase confidence in their ability to manage this significant VA contract effectively. Conversely, any past issues could signal potential risks.

What are the potential risks associated with relying on a single vendor for critical InterSystems software maintenance?

Relying on a single vendor, such as ALL POINTS LOGISTICS, LLC, for critical InterSystems software maintenance presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes heavily dependent on the vendor's proprietary technology and pricing, making it difficult and costly to switch to alternative solutions in the future. Secondly, if the vendor experiences financial instability or undergoes significant organizational changes, it could disrupt service delivery. Thirdly, a lack of competition in future contract renewals could lead to price increases. Finally, the VA's negotiating power might be diminished over time if alternative solutions are not actively explored or developed. Mitigating these risks often involves robust contract management, clear performance metrics, and proactive planning for future technology transitions.

How does this contract align with the VA's broader IT modernization and digital transformation goals?

This contract for InterSystems software maintenance directly aligns with the VA's critical need to maintain and modernize its existing IT infrastructure, which underpins its healthcare delivery systems. While modernization often implies adopting new technologies, ensuring the stability and performance of current core systems through effective maintenance is a prerequisite. InterSystems software is often foundational for electronic health records (EHR) and patient management, areas central to the VA's mission. Therefore, this contract supports the operational continuity necessary for the VA to pursue its broader digital transformation goals. It ensures that the systems veterans rely on remain functional while the VA explores and integrates newer technologies.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ulterliner, Inc.

Address: 190 S SYKES CREEK PKWY STE 4, MERRITT ISLAND, FL, 32952

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

Financial Breakdown

Contract Ceiling: $932,498,814

Exercised Options: $432,610,032

Current Obligation: $432,610,032

Actual Outlays: $342,905,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC25B

IDV Type: GWAC

Timeline