VA awards $38.5M for DSS Software Maintenance and Support to Minburn Technology Group

Contract Overview

Contract Amount: $38,539,266 ($38.5M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-15

End Date: 2025-12-14

Contract Duration: 730 days

Daily Burn Rate: $52.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DSS SOFTWARE, MAINTENANCE AND SUPPORT

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: DSS SOFTWARE, MAINTENANCE AND SUPPORT Key points: 1. Contract value represents a significant investment in essential IT infrastructure. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration of two years indicates a need for ongoing, stable support. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The awardee, Minburn Technology Group, LLC, is positioned to deliver critical software services. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services.

Value Assessment

Rating: good

The contract's total value of $38.5 million over two years averages to $19.25 million annually. Benchmarking this against similar IT maintenance and support contracts requires detailed analysis of scope and service levels. However, the fixed-price nature suggests a degree of cost certainty. The award amount appears reasonable given the duration and the critical nature of software support, but a direct comparison to market rates for comparable services would provide a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources may have been excluded based on predefined criteria. The number of bidders is not specified, but the 'full and open' designation suggests an effort to maximize competition within the established parameters, which generally aids in price discovery.

Taxpayer Impact: The use of full and open competition, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple vendors to bid and offer competitive pricing.

Public Impact

Veterans Affairs IT systems and the personnel who rely on them will benefit from continued software support. Essential digital services supporting VA operations will remain functional and maintained. The contract ensures the stability of critical software infrastructure, impacting the efficiency of VA services nationwide. Workforce implications include the potential for Minburn Technology Group to utilize skilled IT professionals for support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if support is highly specialized.
Reliance on a single vendor for critical software maintenance could pose a risk if the vendor faces financial or operational challenges.

Positive Signals

Fixed-price contract structure provides cost predictability.
Full and open competition, even with exclusions, generally drives competitive pricing.
The contract duration of two years allows for stable, uninterrupted service delivery.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on software maintenance and support. The market for IT support services is highly competitive, with numerous providers ranging from large corporations to specialized small businesses. The VA's spending in this area is substantial, reflecting the critical role of technology in managing healthcare and benefits for veterans. Comparable spending benchmarks would involve analyzing other large federal IT support contracts, considering factors like the complexity of the software and the scope of services required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this award. The primary contractor, Minburn Technology Group, LLC, will be responsible for fulfilling the contract requirements. The impact on the broader small business ecosystem would depend on whether Minburn Technology Group itself utilizes small businesses for any subcontracting, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Software Maintenance
Federal IT Services
Department of Veterans Affairs IT Procurement
Software Support Contracts
Information Technology Professional Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical support
Effectiveness of 'exclusion of sources' in maintaining robust competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.5 million to MINBURN TECHNOLOGY GROUP, LLC. DSS SOFTWARE, MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $38.5 million.

What is the period of performance?

Start: 2023-12-15. End: 2025-12-14.

What is the track record of Minburn Technology Group, LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess Minburn Technology Group, LLC's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Understanding their past performance, particularly with the VA, is crucial for gauging their reliability and capability in delivering the required DSS software maintenance and support. Without specific historical data on their performance metrics, it's difficult to definitively assess their suitability beyond the fact that they were selected through a competitive process.

How does the annual cost of this contract compare to similar IT support contracts awarded by the VA or other agencies?

The annual cost of this contract is approximately $19.25 million ($38.5M / 2 years). To benchmark this effectively, one would need to compare it against contracts for similar software (e.g., Defense Software, Healthcare Software) with comparable service level agreements (SLAs), scope of support (e.g., 24/7 vs. business hours), and duration. Factors such as the complexity of the DSS software, the number of users supported, and the specific maintenance tasks included (e.g., patching, upgrades, help desk) are critical for a fair comparison. A detailed analysis of the Statement of Work (SOW) for this contract against those of comparable contracts would reveal whether the pricing is competitive.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential vendor performance issues, such as delays in support or failure to meet SLAs, and the risk of vendor lock-in due to specialized knowledge. Another risk could be unforeseen technical challenges with the DSS software that require extensive support beyond the initial scope. Mitigation strategies likely include the firm fixed-price contract type, which incentivizes the contractor to perform efficiently. The VA's oversight mechanisms, including performance monitoring and defined contract clauses for remedies, also serve as mitigation. Furthermore, the competitive nature of the award process suggests a selection of a vendor deemed capable of managing these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money for this specific contract?

This procurement method aims to balance broad competition with specific requirements that might necessitate excluding certain types of vendors or those not meeting particular criteria. If the exclusions were well-justified and based on objective technical or capability requirements, this method can still yield competitive pricing and ensure the selection of a highly qualified vendor. The effectiveness in ensuring value for money depends on the rigor of the evaluation process and the actual level of competition achieved. If only a few vendors remained after exclusions, the price discovery might be less robust than in a truly unrestricted full and open competition.

What is the historical spending trend for DSS software maintenance and support at the VA?

Analyzing historical spending data for DSS software maintenance and support at the VA would provide context for the current $38.5 million award. This would involve looking at previous contract values, durations, and awardees for similar services over the past several fiscal years. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate trends in software needs, technology adoption, or procurement strategies. Significant year-over-year increases might warrant further investigation into the reasons, such as new software implementations or expanded support requirements.

What specific IT services are encompassed by the NAICS code 541519 ('Other Computer Related Services') in the context of this contract?

The NAICS code 541519 is broad and covers establishments primarily engaged in providing expertise in the field of computer information technology not elsewhere classified. For this contract, 'DSS Software, Maintenance and Support,' it likely includes services such as software installation, configuration, troubleshooting, patching, upgrades, help desk support, and potentially system administration related to the specific DSS software. It signifies that the contract is not for the development of new software but for the ongoing operational support and upkeep of existing systems, ensuring their functionality and performance.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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

Financial Breakdown

Contract Ceiling: $38,539,266

Exercised Options: $38,539,266

Current Obligation: $38,539,266

Actual Outlays: $37,593,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline