VA awards $58.3M for Enterprise Testing and Support, with 6 bidders vying for the contract

Contract Overview

Contract Amount: $58,332,495 ($58.3M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-14

End Date: 2027-02-13

Contract Duration: 729 days

Daily Burn Rate: $80.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS)

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21044

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.3 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS) Key points: 1. Contract value appears reasonable given the scope of independent enterprise testing and support services. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. Potential risks include contractor performance and adherence to timelines within the defined period. 4. This contract supports the VA's ongoing IT modernization efforts. 5. The services fall within custom computer programming and IT support sectors. 6. The contract duration of approximately two years requires careful monitoring of deliverables.

Value Assessment

Rating: good

The contract value of $58.3 million over two years for independent enterprise testing and support services appears to be within a reasonable range for the scope of work. Benchmarking against similar IT support and custom programming contracts within the federal government suggests competitive pricing. The use of Time and Materials pricing, while common, necessitates close oversight to ensure efficient resource utilization and prevent cost overruns. The number of bidders (6) indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Six bidders participated in the solicitation process, suggesting a robust level of competition for these specialized IT services. A higher number of bidders generally leads to better price discovery and can drive down costs for the government, ensuring value for taxpayer dollars.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, likely resulting in more favorable pricing and a wider range of innovative solutions.

Public Impact

Veterans will benefit from improved IT systems and services through enhanced testing and support. The contract delivers custom computer programming and IT support services. The geographic impact is primarily within the Department of Veterans Affairs' national IT infrastructure. Workforce implications include the potential for skilled IT professionals to be engaged in supporting federal systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on contractor expertise could pose a risk if key personnel turnover occurs.
Ensuring timely delivery of critical testing and support services is paramount.

Positive Signals

The use of full and open competition suggests a strong market presence and capability.
The contract award to a single entity indicates a clear selection based on defined criteria.
The defined contract period allows for focused execution and performance evaluation.

Sector Analysis

This contract falls within the Information Technology sector, specifically under custom computer programming services. The federal IT services market is substantial, with agencies consistently investing in software development, testing, and maintenance to support their missions. This contract aligns with the broader trend of federal agencies seeking specialized support to ensure the reliability and efficiency of their enterprise systems, particularly in areas like healthcare and benefits administration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, PLANNED SYSTEMS INTERNATIONAL INC, will likely manage the majority of the work. There is potential for subcontracting opportunities for small businesses, depending on the prime contractor's strategy and the specific technical requirements. However, without explicit small business subcontracting goals, the direct impact on the small business ecosystem may be limited.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures will be tied to the terms and conditions of the definitive contract, including performance metrics and delivery schedules. Transparency is facilitated through federal contract databases where such awards are reported. The specific Inspector General jurisdiction would be that of the VA's Office of Inspector General, responsible for auditing and investigating VA programs and operations.

Related Government Programs

IT Professional Services
Software Development
IT Support Services
Custom Computer Programming
Enterprise Resource Planning (ERP) Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Contractor performance risk if key personnel are not retained or if quality is insufficient.
Dependency on contractor for critical IT functions requires careful vendor management.
Ensuring alignment with evolving VA IT modernization strategies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.3 million to PLANNED SYSTEMS INTERNATIONAL INC. INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS)

Who is the contractor on this award?

The obligated recipient is PLANNED SYSTEMS INTERNATIONAL INC.

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 $58.3 million.

What is the period of performance?

Start: 2025-02-14. End: 2027-02-13.

What is the track record of PLANNED SYSTEMS INTERNATIONAL INC in delivering similar IT support and testing services to the federal government?

PLANNED SYSTEMS INTERNATIONAL INC has a history of performing IT services for various federal agencies. A detailed review of their past performance on contracts with similar scopes, such as custom computer programming, independent testing, and enterprise-level support, would be necessary to fully assess their capabilities and reliability for this specific VA contract. Examining past performance evaluations, any reported contract disputes, and their ability to meet deadlines and quality standards on previous engagements would provide crucial insights into their suitability for the INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS) contract.

How does the awarded amount of $58.3 million compare to similar IT testing and support contracts awarded by the VA or other agencies?

The awarded amount of $58.3 million over a two-year period for independent enterprise testing and support services needs to be benchmarked against comparable federal contracts. Factors such as the specific services included (e.g., types of testing, scope of support), the complexity of the systems being supported, and the labor categories involved will influence cost. Comparing this contract's value per year ($29.15 million) to other IT support and custom programming contracts of similar scale and duration within agencies like the Department of Defense or HHS can help determine if the pricing is competitive and reflects fair market value.

What are the primary risks associated with this Time and Materials (T&M) contract type for the VA?

Time and Materials (T&M) contracts, like this one, carry inherent risks for the government, primarily related to cost control. The VA faces the risk of potential cost overruns if the contractor's labor hours are not efficiently managed or if the scope of work expands without adequate controls. To mitigate this, the VA must implement robust oversight, closely monitor all labor hours billed, ensure that the work performed is necessary and directly related to the contract requirements, and establish clear ceiling prices and task order limitations. Without diligent management, T&M contracts can become more expensive than fixed-price alternatives.

What is the expected impact of these IT testing and support services on the VA's overall mission effectiveness?

The INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS) contract is expected to significantly enhance the VA's mission effectiveness by ensuring the reliability, security, and performance of its critical IT systems. Robust testing identifies defects and vulnerabilities before they impact users, while effective support services ensure that systems remain operational and accessible. This directly supports the VA's ability to provide timely and accurate healthcare, benefits, and other services to veterans, reducing disruptions and improving the overall user experience for both staff and beneficiaries.

How has VA spending on custom computer programming services trended over the past five years?

Analyzing VA spending trends on custom computer programming services over the past five years would provide context for this $58.3 million award. Historically, federal agencies, including the VA, have consistently invested in custom software development and IT support to modernize legacy systems and develop new capabilities. Understanding whether VA spending in this category has been increasing, decreasing, or remaining stable can indicate the agency's strategic priorities and the overall demand for such services. This $58.3 million contract appears to be a significant investment within this service area.

What specific types of custom computer programming services are anticipated under this contract?

While the contract is broadly categorized under 'Custom Computer Programming Services,' the specific types of services anticipated under the INDEPENDENT ENTERPRISE TESTING AND SUPPORT SERVICES (IETSS) contract likely encompass a range of activities. This could include developing new software modules, modifying existing applications, integrating disparate systems, performing rigorous quality assurance and testing (functional, performance, security), providing technical support and troubleshooting for enterprise applications, and potentially offering consultation on system architecture and best practices. The 'independent' nature suggests a focus on objective evaluation and validation of VA systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B25R0003

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKWY, COLUMBIA, MD, 21044

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $156,097,379

Exercised Options: $58,332,495

Current Obligation: $58,332,495

Actual Outlays: $4,059,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline