VA awards $56.5M contract for IT services to World Wide Technology LLC

Contract Overview

Contract Amount: $56,501,824 ($56.5M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $77.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO LSA

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $56.5 million to WORLD WIDE TECHNOLOGY LLC for work described as: CISCO LSA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 3. The duration of the contract is 729 days, spanning over two years. 4. The awardee, World Wide Technology LLC, is a significant player in the IT services market. 5. The contract falls under Computer Facilities Management Services, a critical IT support function. 6. The contract is not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $56.5 million for a two-year period for Computer Facilities Management Services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this falls within expected ranges. The firm fixed-price structure provides cost predictability for the VA. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

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 presence of two bids indicates a level of competition, though the exact number of potential bidders is unknown. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

The Department of Veterans Affairs (VA) will benefit from enhanced IT infrastructure and support. Services delivered will likely include the management and maintenance of computer facilities, ensuring operational continuity. The geographic impact is primarily within Missouri, where the contract is managed. The contract supports the IT workforce, potentially involving skilled technicians and IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single large contractor could limit future flexibility in IT service delivery.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty and budget predictability.
The contractor, World Wide Technology LLC, has a significant presence and experience in the federal IT market.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and dynamic. This contract for Computer Facilities Management Services falls under the broader IT professional services market, which is a significant portion of federal IT spending. The market is characterized by a mix of large prime contractors and specialized subcontractors. Comparable spending benchmarks for similar IT support contracts within federal agencies can vary widely based on scope, duration, and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of mandatory subcontracting goals for small businesses. This suggests that the prime contractor, World Wide Technology LLC, will likely handle the majority of the work. While this may not directly benefit small businesses through prime contracts, it is possible that WWT may engage small businesses as subcontractors, though this is not explicitly mandated by the contract details provided.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Veterans Affairs, which has established oversight mechanisms for its procurements. Accountability is expected through performance metrics and adherence to the firm fixed-price terms. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Management
Computer Systems Management
IT Support Services
Federal IT Procurement
Department of Veterans Affairs IT Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $56.5 million to WORLD WIDE TECHNOLOGY LLC. CISCO LSA

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY 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 $56.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the specific scope of 'Computer Facilities Management Services' covered under this contract?

The provided data indicates the contract falls under NAICS code 541513 (Computer Facilities Management Services). This typically encompasses a range of activities including operating and providing technical support for facilities services, data processing, and other related services. Specific services could include managing data centers, maintaining server infrastructure, providing network support, ensuring system uptime, and potentially help desk functions for the facilities. A detailed statement of work (SOW) would further define the precise deliverables, service level agreements (SLAs), and performance standards expected from World Wide Technology LLC.

How does the awarded amount of $56.5 million compare to historical spending on similar VA IT services contracts?

Benchmarking $56.5 million for a two-year contract requires comparison with similar Computer Facilities Management Services contracts awarded by the VA or other large federal agencies. Without access to a comprehensive database of historical VA IT contracts with detailed service descriptions, a precise comparison is difficult. However, for large-scale IT operations and maintenance contracts, this value appears within a reasonable range for a two-year duration, especially considering the potential complexity of managing facilities for a major federal agency like the VA. The firm fixed-price nature also suggests a defined scope that aids in cost comparison.

What are the key performance indicators (KPIs) or metrics used to evaluate World Wide Technology LLC's performance on this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, for Computer Facilities Management Services, typical KPIs often include system uptime percentages, response times for service requests, resolution times for issues, adherence to security protocols, and successful completion of scheduled maintenance. The firm fixed-price contract structure implies that performance will be measured against the defined requirements in the Statement of Work (SOW). Failure to meet these requirements could lead to penalties or contract termination, depending on the contract's terms and conditions.

What is World Wide Technology LLC's track record with the Department of Veterans Affairs and other federal agencies for similar IT services?

World Wide Technology LLC is a well-established IT solutions provider with a significant history of contracting with the federal government, including the Department of Veterans Affairs. While specific details of their past performance on VA contracts are not provided here, WWT is known for its capabilities in areas such as cloud computing, cybersecurity, and IT infrastructure. Their extensive experience suggests a likely ability to manage complex IT facilities. A deeper dive into contract databases would reveal the specific types and values of previous contracts they have held with the VA and other agencies.

What are the potential risks associated with awarding a large IT services contract to a single vendor like World Wide Technology LLC?

Potential risks associated with awarding a large IT services contract to a single vendor include vendor lock-in, where the government becomes heavily reliant on the contractor's proprietary systems or expertise, making future transitions difficult and costly. There's also a risk of reduced innovation if the vendor faces less competitive pressure. Furthermore, the financial stability and operational capacity of the single vendor are critical; any disruption to the vendor's business could directly impact the government's IT operations. However, the firm fixed-price nature and the competitive award process aim to mitigate some of these risks by clearly defining expectations and ensuring a vetted selection.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B24Q0590

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

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

Financial Breakdown

Contract Ceiling: $396,444,480

Exercised Options: $56,501,824

Current Obligation: $56,501,824

Actual Outlays: $40,043,674

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $123,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline