VA awards $12.5M for IT services to Minburn Technology Group, LLC, with full and open competition

Contract Overview

Contract Amount: $12,514,517 ($12.5M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ERELEASE OF INFORMATION PLUS ANNUAL LIMITED SOFTWARE LICENSES WITH MAINTENANCE SUPPORT AND PERFECTIVE MAINTENANCE SERVICES

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: ERELEASE OF INFORMATION PLUS ANNUAL LIMITED SOFTWARE LICENSES WITH MAINTENANCE SUPPORT AND PERFECTIVE MAINTENANCE SERVICES Key points: 1. Contract focuses on information release, software licenses, and maintenance, indicating a need for ongoing IT support. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately three years provides a stable period for service delivery. 4. The firm-fixed-price structure aims to control costs and provide predictability for the agency. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $12.5 million over approximately three years appears reasonable for the scope of IT services described, including software licenses and maintenance. Benchmarking against similar contracts for IT support and software licensing within the Department of Veterans Affairs (VA) would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps in cost control, but the specific details of the services and the competitive landscape will ultimately determine the true value.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific award. While more than one bidder is positive, a higher number of bidders generally leads to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of companies to bid, potentially driving down prices and increasing the quality of services offered.

Public Impact

Veterans and VA staff will benefit from improved IT services, including access to updated software and reliable maintenance. The services delivered will support the VA's mission of providing healthcare and benefits to veterans. The contract is geographically focused on Virginia, where the contractor is located. The contract supports the IT workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software licenses are proprietary and maintenance is exclusively tied to the vendor.
Dependence on a single vendor for critical IT infrastructure support could pose a risk if the vendor experiences financial or operational difficulties.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the VA.
Full and open competition generally leads to better value and service quality.
The contract duration allows for a stable, long-term relationship for essential IT services.

Sector Analysis

The IT services sector is a vast and critical component of government operations. This contract falls under the 'Other Computer Related Services' category, which encompasses a wide array of IT support functions beyond specialized areas like software development or network management. The federal government is a significant consumer of IT services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and improve data management. Comparable spending benchmarks would typically be found within broader IT services categories, often exceeding billions of dollars annually across various agencies.

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 or specific benefits for small businesses arising from this particular award. The focus remains on larger, potentially more established firms capable of meeting the full scope of the contract requirements. The impact on the small business ecosystem is neutral in this instance, as it does not involve set-aside provisions.

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 terms, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Professional Services
Software Licensing and Maintenance
Information Technology Support Services
Cloud Computing Services (if applicable to licenses)
IT Infrastructure Management

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance for critical IT functions
Scope creep risk if 'limited' licenses require expansion

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.5 million to MINBURN TECHNOLOGY GROUP, LLC. ERELEASE OF INFORMATION PLUS ANNUAL LIMITED SOFTWARE LICENSES WITH MAINTENANCE SUPPORT AND PERFECTIVE MAINTENANCE SERVICES

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 $12.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

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

A review of federal procurement data indicates that Minburn Technology Group, LLC has received multiple awards from the Department of Veterans Affairs (VA) in the past. These awards often fall within the IT services and support categories. While specific details on past performance quality require deeper analysis of contract close-out reports and performance evaluations, the consistent awarding of contracts suggests a level of satisfaction or capability recognized by the VA. Further investigation into the nature and value of previous contracts, as well as any reported performance issues or commendations, would provide a more comprehensive understanding of their track record.

How does the awarded price compare to similar IT services contracts within the VA?

Directly comparing the $12.5 million award for 'ERELEASE OF INFORMATION PLUS ANNUAL LIMITED SOFTWARE LICENSES WITH MAINTENANCE SUPPORT AND PERFECTIVE MAINTENANCE SERVICES' to similar VA contracts requires access to a detailed database of IT service procurements with comparable scopes of work, duration, and service levels. The NAICS code 541519 is broad, encompassing many types of computer-related services. Without specific benchmarks for 'information release' services combined with 'limited software licenses and maintenance,' a precise comparison is difficult. However, the firm-fixed-price structure and the competitive nature of the award (full and open competition with two bidders) suggest an effort to achieve competitive pricing. A more thorough analysis would involve identifying contracts with similar service descriptions and contract types within the VA over the past 1-2 years.

What are the primary risks associated with this contract for the VA?

The primary risks for the VA in this contract revolve around potential vendor performance and the long-term implications of software licensing. If Minburn Technology Group, LLC fails to deliver the promised information release, software maintenance, or perfective maintenance services effectively, it could disrupt VA operations. There's also a risk of cost escalation if the 'limited' software licenses prove insufficient and require costly upgrades or additional licenses not fully accounted for in the initial fixed price. Furthermore, reliance on a single vendor for critical IT support and maintenance could lead to vendor lock-in, making it difficult and expensive to switch providers in the future if performance issues arise or better solutions become available.

How effective is the 'full and open competition' approach in ensuring value for this specific IT services contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in federal contracting, as it maximizes the pool of potential bidders and encourages competitive pricing. In this case, with two bids received, the competition was present but perhaps not as robust as it could be with a larger number of offers. The effectiveness in ensuring value will depend on the specific technical requirements and the market for these specialized IT services. If the market is niche, two bidders might represent significant competition. The firm-fixed-price contract type further supports value by capping the government's financial exposure, provided the scope is well-defined and the contractor can deliver within that price.

What are the historical spending patterns for similar IT services at the Department of Veterans Affairs?

Historical spending patterns for IT services at the Department of Veterans Affairs (VA) show a significant and consistent investment in technology to support its vast network of healthcare facilities and benefits administration. The VA frequently procures services related to electronic health records, IT infrastructure, software development, cybersecurity, and general IT support. Spending in these areas often runs into the hundreds of millions, and sometimes billions, of dollars annually. Contracts like this one, for specific IT support and licensing, represent a component of this larger IT expenditure. Analyzing past VA IT spending trends reveals a continuous effort to modernize systems and enhance digital capabilities, often through a mix of large prime contracts and smaller, specialized awards.

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

Solicitation ID: 36C10B24Q0099

Offers Received: 2

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: $13,745,122

Exercised Options: $12,514,517

Current Obligation: $12,514,517

Actual Outlays: $8,137,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline