VA awards $25M IT contract to GOVCIO, LLC for computer systems design services

Contract Overview

Contract Amount: $25,080,663 ($25.1M)

Contractor: Govcio, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-01

End Date: 2026-04-30

Contract Duration: 1,064 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LIPAS II

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.1 million to GOVCIO, LLC for work described as: LIPAS II Key points: 1. Contract value of $25.08 million over approximately 3.5 years suggests a significant investment in IT infrastructure. 2. The award to GOVCIO, LLC, a single contractor, warrants scrutiny regarding potential price competitiveness. 3. The firm-fixed-price contract type aims to control costs, but the specific value-for-money assessment requires further benchmarking. 4. This contract falls under the 'Computer Systems Design Services' NAICS code, indicating a focus on IT solutions. 5. The contract's duration of 1064 days (approx. 3.5 years) implies a need for sustained IT support or development. 6. The absence of small business set-aside or subcontracting requirements may limit opportunities for smaller firms in this contract's execution.

Value Assessment

Rating: fair

The contract value of $25.08 million for computer systems design services over 1064 days appears substantial. Without specific benchmarks for similar IT design services within the VA or across government, it's difficult to definitively assess value for money. The firm-fixed-price structure is a positive indicator for cost control, but the actual value depends on the scope and quality of services delivered. Further analysis comparing this contract's per-diem rates or project milestones to industry standards would be necessary for a more robust evaluation.

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 offers. The data does not specify the number of bids received, which is crucial for understanding the level of competition. A high number of bidders typically suggests a more competitive environment, potentially leading to better pricing for the government. Conversely, a low number of bids might indicate limited market interest or specialized requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, theoretically driving down prices and improving service quality through market forces.

Public Impact

Veterans Affairs (VA) personnel and potentially beneficiaries will benefit from improved computer systems and IT infrastructure. The contract will deliver computer systems design services, likely encompassing planning, development, integration, and maintenance of IT solutions. The primary geographic impact is expected within the VA's operational areas, particularly where GOVCIO, LLC is based or has a presence. The contract may have implications for the IT workforce, potentially creating or sustaining jobs for skilled professionals in computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of data on the number of bidders limits the assessment of true competition and potential price advantages.
The substantial contract value necessitates close monitoring to ensure services align with stated objectives and deliver expected value.
Without details on specific performance metrics, it's challenging to gauge the contractor's track record on similar projects.
The absence of small business subcontracting requirements could mean missed opportunities for smaller, specialized IT firms.

Positive Signals

The contract was awarded through full and open competition, suggesting a broad search for qualified vendors.
The firm-fixed-price contract type provides cost certainty and incentivizes the contractor to manage expenses efficiently.
The contract duration of over three years indicates a long-term need and potential for stable IT support.
The award to a single entity (GOVCIO, LLC) may streamline management and communication for the VA.

Sector Analysis

The IT services sector is a vast and dynamic market within federal procurement. Computer systems design services, as indicated by NAICS code 541512, represent a significant segment focused on the architecture, development, and implementation of IT systems. Federal spending in this area is consistently high, driven by the need for modernization, cybersecurity, and efficient data management across agencies. This contract likely fits within the VA's broader IT modernization efforts, aiming to enhance its technological capabilities to better serve veterans. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT design services awarded by the VA or other large federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, GOVCIO, LLC, will be responsible for fulfilling the contract requirements, potentially with its own resources or through larger partners. The absence of set-asides or subcontracting goals means that opportunities for small businesses to participate in this specific contract are likely limited, potentially impacting the broader small business IT ecosystem that relies on federal subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the contract provides a degree of cost oversight. Transparency is facilitated through contract databases like FPDS, which publish award details. The VA also has an Office of Inspector General (OIG) that conducts audits and investigations into VA programs and contracts to ensure accountability and identify potential fraud, waste, or abuse.

Related Government Programs

Veterans Affairs IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
IT Support Services for Federal Agencies

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor underperformance impacting VA IT capabilities.
Dependency on a single contractor for critical IT services.
Potential for cybersecurity vulnerabilities in designed systems.
Risk of technological obsolescence if design is not future-proof.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.1 million to GOVCIO, LLC. LIPAS II

Who is the contractor on this award?

The obligated recipient is GOVCIO, 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 $25.1 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-04-30.

What is the track record of GOVCIO, LLC in performing similar computer systems design services for the federal government?

Assessing GOVCIO, LLC's track record requires a review of their past federal contract performance, particularly for contracts involving computer systems design services. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without access to specific performance data for GOVCIO, LLC on similar projects, it is difficult to definitively gauge their capability and reliability. A thorough analysis would look for evidence of successful project completion, adherence to schedules and budgets, and positive client feedback on prior engagements of comparable scope and complexity.

How does the awarded value of $25.08 million compare to similar IT design services contracts within the VA or other federal agencies?

Benchmarking the $25.08 million contract value requires comparing it against similar contracts for computer systems design services awarded by the Department of Veterans Affairs (VA) or other federal agencies over a comparable timeframe and duration. Factors such as the specific services included (e.g., software development, network design, system integration), the complexity of the systems, and the contract duration (1064 days) are critical for a meaningful comparison. If this contract's value per day or per service deliverable is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing. Access to detailed contract line item data and performance metrics would enhance this comparative analysis.

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

The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement plan for this contract. Typically, for computer systems design services, KPIs might include metrics related to system uptime, response times, successful deployment of new features, adherence to project milestones, defect rates, and user satisfaction. The VA contracting officer and program manager are responsible for establishing and monitoring these KPIs throughout the contract's lifecycle. The firm-fixed-price nature suggests that meeting defined deliverables and quality standards is paramount. A review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would be necessary to identify the specific performance expectations and measurement criteria.

What is the historical spending pattern of the VA on computer systems design services, and how does this award fit within that trend?

Analyzing the VA's historical spending on computer systems design services (NAICS 541512) would reveal trends in IT investment. This involves examining aggregate spending data over several fiscal years to understand the typical contract values, the number of awards, and the primary contractors. This $25.08 million award to GOVCIO, LLC can then be contextualized within that historical spending. If VA spending in this category has been increasing, this award might represent a continuation or expansion of IT modernization efforts. Conversely, if spending has been declining, this award could signify a strategic shift or a particularly high-priority project. Understanding this trend helps assess the significance and potential impact of this specific contract.

Are there any identified risks associated with GOVCIO, LLC as a contractor, or with the nature of computer systems design services?

Risks associated with this contract can be categorized. For GOVCIO, LLC, potential risks might include financial stability, past performance issues (if any), or capacity to deliver on a contract of this size. For computer systems design services, common risks involve scope creep, technological obsolescence, integration challenges with existing systems, cybersecurity vulnerabilities, and delays in development or deployment. The firm-fixed-price contract type aims to mitigate cost overrun risks for the government but places the risk of cost management on the contractor. A comprehensive risk assessment would involve reviewing the contractor's history, the complexity of the technical requirements, and the VA's internal controls for managing IT projects.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 CONSTITUTION AVE NW STE 100W, WASHINGTON, DC, 20001

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

Financial Breakdown

Contract Ceiling: $40,910,552

Exercised Options: $25,080,663

Current Obligation: $25,080,663

Actual Outlays: $20,042,080

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,961,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1003

IDV Type: IDC

Timeline