VA awards $29M IT contract for veteran program support, extending services through 2027

Contract Overview

Contract Amount: $28,994,760 ($29.0M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-13

End Date: 2027-04-12

Contract Duration: 1,460 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MILLION VETERAN PROGRAM ONLINE FOLLOW-ON

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.0 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: MILLION VETERAN PROGRAM ONLINE FOLLOW-ON Key points: 1. Contract provides essential IT support for a critical veteran program. 2. Long-term contract duration suggests a need for sustained services. 3. Competition level indicates potential for fair pricing. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contractor has a significant federal presence, suggesting experience. 6. IT services are crucial for modern government operations.

Value Assessment

Rating: good

The contract value of approximately $29 million over four years is moderate for IT support services. Benchmarking against similar contracts for IT systems design and integration reveals a competitive pricing structure. The fixed-price nature of the award suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The award amount appears reasonable given the scope of services and the duration of the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible businesses had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, leading to better pricing and service offerings. This approach allows the agency to select the best value solution from a wide pool of potential contractors.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings for taxpayers by encouraging multiple vendors to offer their best prices and innovative solutions.

Public Impact

Veterans will benefit from continued access to essential online program services. The contract ensures the ongoing operation and maintenance of critical IT infrastructure. Services are likely to be delivered nationwide, supporting veterans across the country. The IT sector workforce will see continued employment opportunities through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT infrastructure could pose risks.
Scope creep could lead to cost increases if not managed tightly.

Positive Signals

Contractor has a history of performance with the federal government.
Fixed-price contract aligns incentives for efficient service delivery.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal government is a major consumer of IT services, with significant spending allocated annually to maintain and modernize its technological infrastructure. This contract represents a portion of the Department of Veterans Affairs' investment in IT solutions to support its mission. Comparable spending benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars, depending on the complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. While this maximizes the pool of potential bidders, it may limit direct opportunities for small businesses unless they are part of a larger subcontracting team. The agency's approach to subcontracting with small businesses will be a key factor in determining the overall impact on the small business ecosystem.

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 fixed-price contract type, requiring the contractor to deliver services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Veteran Health Administration IT Modernization
VA Enterprise Cloud Services
Department of Defense IT Support Contracts
Federal Civilian Agency IT Services

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical systems
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.0 million to PERATON ENTERPRISE SOLUTIONS LLC. MILLION VETERAN PROGRAM ONLINE FOLLOW-ON

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE 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 $29.0 million.

What is the period of performance?

Start: 2023-04-13. End: 2027-04-12.

What is the contractor's past performance record with the federal government, particularly with the Department of Veterans Affairs?

Peraton Enterprise Solutions LLC has a substantial history of federal contracting. While specific details of past performance on similar VA contracts are not provided in this data snippet, their status as a significant federal contractor suggests experience in delivering IT services. A deeper dive into their contract history, including performance evaluations and any past issues or commendations, would be necessary for a comprehensive assessment. Agencies typically consider past performance as a key factor in award decisions, especially for follow-on or critical service contracts.

How does the awarded amount compare to the estimated cost or budget for this program?

The provided data indicates the award amount is approximately $29 million. However, it does not include the government's initial estimate or budget for this specific contract. Without this information, a direct comparison to assess whether the award represents a significant saving or overage is not possible. Agencies often conduct independent cost estimates before soliciting bids, and the difference between the estimate and the final award price can be an indicator of competitive pricing or negotiation success.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for IT support services, KPIs might include system uptime, response times for issue resolution, data security compliance, and user satisfaction. The Department of Veterans Affairs would establish these metrics in the contract's Performance Work Statement (PWS). Performance against these KPIs would be monitored by the Contracting Officer's Representative (COR) and would influence future contract decisions and contractor evaluations.

What is the historical spending trend for this specific veteran program or similar IT support services at the VA?

The provided data snippet focuses on a single award and does not offer historical spending trends for this specific veteran program or similar IT support services at the VA. To analyze historical spending, one would need to examine contract awards over multiple fiscal years for this program or for contracts with similar North American Industry Classification System (NAICS) codes (like 541512) and service descriptions within the VA. This would reveal patterns of investment, potential increases or decreases in spending, and the stability of the program's IT support budget.

Are there any identified risks associated with Peraton Enterprise Solutions LLC's ability to perform this contract?

The provided data does not explicitly list any identified risks associated with Peraton Enterprise Solutions LLC's performance on this contract. However, general risks for any IT support contract include potential technical challenges, cybersecurity threats, personnel turnover, and the contractor's financial stability. Given that this is a follow-on contract, it implies a degree of trust in the contractor's capabilities. A comprehensive risk assessment would involve reviewing the contractor's past performance evaluations, financial health, and any specific clauses or requirements within the contract addressing risk mitigation.

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

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $37,006,065

Exercised Options: $28,994,760

Current Obligation: $28,994,760

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $13,054,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1023

IDV Type: IDC

Timeline