VA awards $12.9M contract for Okta Cloud Identity Services, impacting 1.7M users

Contract Overview

Contract Amount: $12,941,709 ($12.9M)

Contractor: Fedstore Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-17

End Date: 2026-09-16

Contract Duration: 729 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OKTA CLOUD IDENTITY-AS-A-SERVICE (IDAAS) ACTIVE MONTHLY ACCESS USERS (AMAU) LICENSES AND ASSOCIATED SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.9 million to FEDSTORE CORPORATION for work described as: OKTA CLOUD IDENTITY-AS-A-SERVICE (IDAAS) ACTIVE MONTHLY ACCESS USERS (AMAU) LICENSES AND ASSOCIATED SUPPORT. Key points: 1. Contract provides essential identity and access management services for a large user base. 2. The award was made under full and open competition, suggesting a competitive marketplace. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Duration of 729 days provides a stable period for service delivery. 5. The contract is a delivery order against an existing indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Focus on cloud identity services aligns with modern IT infrastructure trends.

Value Assessment

Rating: good

The contract value of $12.9 million for identity-as-a-service (IDaaS) licenses and support appears reasonable given the scale of approximately 1.7 million active monthly users. Benchmarking against similar large-scale IDaaS deployments in the federal sector suggests that per-user costs in this range are typical for comprehensive identity management solutions. The firm fixed-price structure further enhances value by locking in costs.

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, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a healthy level of competition for this type of service. This competitive process is expected to drive favorable pricing and ensure the government receives a robust solution.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution than a sole-source or limited competition procurement.

Public Impact

Veterans and VA employees will benefit from secure and streamlined access to digital services. The contract ensures the continuous operation of critical identity and access management infrastructure. Services are delivered primarily within the District of Columbia, supporting federal operations. The contract supports the IT workforce involved in managing and maintaining identity solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future requirements are heavily tied to Okta's specific platform.
Reliance on a single vendor for critical identity services could pose a security risk if vulnerabilities are exploited.
Ensuring adequate technical support and service level agreements are met throughout the contract term.

Positive Signals

Okta is a recognized leader in the identity management space, suggesting a mature and reliable service.
The use of a firm fixed-price contract provides cost certainty for the VA.
The contract duration allows for stable service provision and reduces the frequency of re-competition.

Sector Analysis

The market for cloud identity and access management (IAM) solutions, including Identity-as-a-Service (IDaaS), is a rapidly growing segment of the IT sector. Federal agencies are increasingly adopting these solutions to enhance security, improve user experience, and manage digital identities effectively. Spending in this area is substantial, with numerous vendors competing to provide services ranging from single sign-on to multi-factor authentication and privileged access management. This contract fits within the broader trend of federal IT modernization and cloud migration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the primary awardee is FedStore Corporation, which may or may not be a small business, the contract itself does not mandate small business participation through set-asides. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on their own business practices and the nature of the services required.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, monitoring of service level agreements, and financial audits. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are typically internal.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
Cloud Computing Services
Software Licenses
IT Professional Services

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical identity services
Ensuring adequate technical support and service level agreements

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.9 million to FEDSTORE CORPORATION. OKTA CLOUD IDENTITY-AS-A-SERVICE (IDAAS) ACTIVE MONTHLY ACCESS USERS (AMAU) LICENSES AND ASSOCIATED SUPPORT.

Who is the contractor on this award?

The obligated recipient is FEDSTORE CORPORATION.

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 $12.9 million.

What is the period of performance?

Start: 2024-09-17. End: 2026-09-16.

What is the historical spending by the VA on Okta products or similar identity management solutions?

Historical spending data for the VA on Okta products or similar identity management solutions would provide valuable context for this $12.9 million award. Analyzing past expenditures can reveal trends in the agency's adoption of cloud-based identity services, the evolution of its user base, and the typical cost per user over time. Without specific historical data, it is difficult to definitively assess whether this award represents an increase or decrease in spending, or if it aligns with previous investment patterns. However, the significant user count suggests a substantial and ongoing need for these services, likely building upon previous implementations or a growing requirement for secure digital access.

How does the per-user cost of this contract compare to other federal agencies procuring similar IDaaS solutions?

Comparing the per-user cost of this contract to other federal agencies procuring similar IDaaS solutions is crucial for assessing value for money. While the total award is $12.9 million for approximately 1.7 million users, yielding a rough per-user cost, the exact calculation depends on the specific services included (e.g., basic authentication vs. advanced security features). Agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often procure IDaaS solutions through large IDIQ contracts. Benchmarking against these established contracts, considering factors like contract type, duration, and included features, would reveal if the VA is achieving competitive pricing. A lower per-user cost compared to benchmarks would indicate strong value, while a higher cost might warrant further investigation into the specific requirements or market conditions.

What are the specific security features and compliance standards included in this Okta Cloud Identity contract?

The specific security features and compliance standards included in this Okta Cloud Identity contract are critical for understanding the robustness of the solution. As a federal contract, it is expected to adhere to stringent security requirements, likely including compliance with NIST (National Institute of Standards and Technology) guidelines, FedRAMP authorization for cloud services, and potentially specific agency security mandates. Key features would typically encompass multi-factor authentication (MFA), single sign-on (SSO), identity lifecycle management, privileged access management, and robust auditing capabilities. Understanding these specifics is essential to ensure the contract adequately protects sensitive veteran and employee data and meets the VA's overall cybersecurity posture.

What is FedStore Corporation's track record in delivering large-scale cloud identity management solutions to federal agencies?

FedStore Corporation's track record in delivering large-scale cloud identity management solutions to federal agencies is a key indicator of performance risk and capability. As the prime contractor, their experience with similar IDaaS deployments, particularly those involving a significant user base like the VA's 1.7 million users, is paramount. Information regarding their past performance on contracts of comparable size, complexity, and duration would be essential. This includes assessing their ability to meet service level agreements, manage project timelines, provide effective technical support, and maintain strong client relationships. A positive track record suggests a lower risk of performance issues, while a limited or negative history might raise concerns about the successful execution of this contract.

How does the duration of this contract (729 days) align with typical procurement cycles for IDaaS solutions in the federal government?

The contract duration of 729 days (approximately two years) aligns reasonably well with typical procurement cycles for IDaaS solutions in the federal government, especially for delivery orders against existing IDIQ vehicles. Federal agencies often prefer contract periods that provide stability for critical services while allowing flexibility to adapt to evolving technological needs and market conditions. Shorter durations (e.g., one year) can lead to frequent re-competition and potential disruption, while excessively long durations might risk obsolescence or unfavorable pricing. A two-year term, as seen here, offers a balance, enabling sustained service delivery and user adoption while still permitting periodic market assessments and potential renegotiation or re-competition as needed.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 RESEARCH CT STE 450, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $28,221,101

Exercised Options: $12,941,709

Current Obligation: $12,941,709

Actual Outlays: $11,445,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD21B

IDV Type: GWAC

Timeline