VA awards $26.7M for IT IV&V services to Sierra7, Inc. under full and open competition

Contract Overview

Contract Amount: $26,706,904 ($26.7M)

Contractor: Sierra7, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-21

End Date: 2027-05-05

Contract Duration: 1,506 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BENEFITS AND MEMORIALS SERVICES PORTFOLIO INDEPENDENT VERIFICATION AND VALIDATION SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.7 million to SIERRA7, INC. for work described as: BENEFITS AND MEMORIALS SERVICES PORTFOLIO INDEPENDENT VERIFICATION AND VALIDATION SERVICES Key points: 1. Contract awarded for Independent Verification and Validation (IV&V) services for the VA's Benefits and Memorials Services Portfolio. 2. Sierra7, Inc. is the prime contractor, with the contract having a duration of 1506 days. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The total value of the award is $26,706,903.90. 5. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services.

Value Assessment

Rating: good

The contract value of $26.7M for IV&V services appears reasonable given the scope and duration. Benchmarking against similar IT professional services contracts of this size and complexity would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of qualified vendors to bid. This method is expected to result in fair market value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the essential IV&V services provided to the VA.

Public Impact

Ensures quality and effectiveness of VA IT systems supporting veterans' benefits. Supports accountability and risk management in critical IT projects. Potential for improved service delivery to veterans through robust IT oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IV&V contracts.
Reliance on a single vendor for critical oversight functions.
Ensuring continued performance and value throughout the contract duration.

Positive Signals

Awarded via full and open competition.
Clear definition of services (IV&V).
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls under the IT professional services sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, with IV&V services being crucial for managing complex IT projects and ensuring system integrity.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award through full and open competition suggests a structured procurement process. Ongoing oversight by the Department of Veterans Affairs will be critical to ensure performance, adherence to contract terms, and effective delivery of IV&V services.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in if performance is consistently good.
Risk of inadequate oversight if VA resources are stretched.
Dependency on contractor's expertise for critical system validation.
Ensuring long-term cost-effectiveness beyond initial award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.7 million to SIERRA7, INC.. BENEFITS AND MEMORIALS SERVICES PORTFOLIO INDEPENDENT VERIFICATION AND VALIDATION SERVICES

Who is the contractor on this award?

The obligated recipient is SIERRA7, INC..

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 $26.7 million.

What is the period of performance?

Start: 2023-03-21. End: 2027-05-05.

What is the specific scope of the IV&V services required for the Benefits and Memorials Services Portfolio?

The specific scope of IV&V services would detail the types of testing, analysis, and validation activities Sierra7, Inc. is expected to perform. This could include requirements validation, system testing, performance testing, security assessments, and project management oversight to ensure the IT systems meet their intended objectives and are delivered on time and within budget.

What are the key performance indicators (KPIs) used to measure the success of Sierra7, Inc.'s IV&V services?

Key performance indicators would likely focus on the effectiveness of identified issues, the timeliness of reporting, the accuracy of assessments, and the overall contribution to project success. Examples include the percentage of critical defects found and resolved, adherence to reporting schedules, and positive feedback from project stakeholders regarding the value of the IV&V team's insights.

How does the VA ensure that the IV&V services provided by Sierra7, Inc. are continuously aligned with evolving project needs and risks?

The VA likely employs regular performance reviews, milestone meetings, and change management processes to ensure alignment. Continuous communication channels and a collaborative approach between the VA project team and Sierra7, Inc. are essential for adapting IV&V efforts to new risks or shifts in project requirements throughout the contract's duration.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11951 FREEDOM DR STE 1300, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $104,584,653

Exercised Options: $26,706,904

Current Obligation: $26,706,904

Actual Outlays: $23,134,825

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,430,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1014

IDV Type: IDC

Timeline