VA awards $24M contract for disability benefits form digitization support to Aquia Nava II LLC

Contract Overview

Contract Amount: $24,039,303 ($24.0M)

Contractor: Aquia Nava II LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-21

End Date: 2027-04-06

Contract Duration: 746 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPRUCE 0007 - DISABILITY BENEFITS CREW IS TO SUPPORT, MAINTAIN, AND IMPROVE ON THE DIGITIZED VA FORM 21-526EZ (DISABILITY FORM) AND ITS ASSOCIATED FEATURES

Place of Performance

Location: MILLSBORO, SUSSEX County, DELAWARE, 19966

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.0 million to AQUIA NAVA II LLC for work described as: SPRUCE 0007 - DISABILITY BENEFITS CREW IS TO SUPPORT, MAINTAIN, AND IMPROVE ON THE DIGITIZED VA FORM 21-526EZ (DISABILITY FORM) AND ITS ASSOCIATED FEATURES Key points: 1. Contract aims to enhance and maintain the digitized VA Form 21-526EZ, crucial for disability claims processing. 2. The contract value of $24 million over approximately two years suggests a significant investment in digital transformation. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a specific justification for the procurement approach. 4. The fixed-price contract type suggests a defined scope and potential for cost control if managed effectively. 5. Performance is expected to improve the user experience and efficiency of the disability benefits application process. 6. The contract's duration and value position it as a mid-tier investment within the IT services sector for the VA.

Value Assessment

Rating: good

The contract value of $24 million for approximately two years of support for a critical digital form suggests a reasonable investment. Benchmarking against similar IT support contracts for government systems indicates that this pricing is within expected ranges for specialized services. The fixed-price nature of the contract, coupled with a defined scope, provides a degree of cost certainty for the government, assuming the scope is well-managed and change orders are minimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be broad, specific circumstances led to the exclusion of certain potential bidders or a non-standard solicitation process. Further details on the justification for excluding sources would be needed to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The 'exclusion of sources' aspect warrants scrutiny to ensure that the government obtained the best possible value and that the exclusion was justified and did not unduly limit competition, potentially impacting taxpayer cost-effectiveness.

Public Impact

Veterans will benefit from a more streamlined and potentially more accurate disability claims application process through improved digital forms. The Department of Veterans Affairs (VA) will receive enhanced support for a critical IT system, improving operational efficiency. The contract supports the modernization of government services, contributing to a broader digital transformation initiative. IT professionals and support staff will be engaged in maintaining and improving a key government digital platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure fair and robust competition.
Potential for scope creep exists if the 'support, maintain, and improve' aspects are not tightly defined and managed.
Reliance on a single contractor for critical system maintenance could pose a risk if performance issues arise.

Positive Signals

The contract focuses on improving a critical system for veterans, aligning with the VA's mission.
The fixed-price contract type provides cost predictability for the government.
The contract duration allows for sustained support and improvement of the digital form.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom software development and IT support for government applications. The market for such services is competitive, with numerous firms capable of providing specialized support for legacy and modern government IT systems. The VA's ongoing efforts to modernize its digital infrastructure represent a significant area of spending within the federal IT landscape, with comparable contracts often involving system maintenance, upgrades, and user support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Aquia Nava II LLC, is likely a mid-to-large-sized business. There is no explicit information on subcontracting requirements, but large prime contracts often include provisions for small business participation. The absence of a small business set-aside suggests that the competition was geared towards firms with the specific capabilities required for this complex IT support task.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within agreed-upon terms. Transparency regarding performance metrics and any potential issues would typically be managed through contract reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Disability Claims Modernization
Digital Transformation Initiatives
Government IT Support Services
Custom Software Development Contracts
Federal Form Digitization Projects

Risk Flags

Limited competition justification
Potential for scope creep
Contractor performance risk
System dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.0 million to AQUIA NAVA II LLC. SPRUCE 0007 - DISABILITY BENEFITS CREW IS TO SUPPORT, MAINTAIN, AND IMPROVE ON THE DIGITIZED VA FORM 21-526EZ (DISABILITY FORM) AND ITS ASSOCIATED FEATURES

Who is the contractor on this award?

The obligated recipient is AQUIA NAVA II 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 $24.0 million.

What is the period of performance?

Start: 2025-03-21. End: 2027-04-06.

What is the specific justification for the 'exclusion of sources' in the procurement process for this contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (CT) indicates that while the competition was intended to be open, certain sources were excluded. This typically occurs when a specific justification, such as a critical need for specialized expertise, a prior relationship with a unique solution, or a limited number of capable vendors, is documented. Without access to the specific justification document (e.g., a Justification and Approval or J&A), it is difficult to ascertain the precise reasons. This exclusion method can sometimes limit the breadth of competition and potentially impact price discovery, making it important to ensure the exclusion was well-founded and served the government's best interest.

How does the cost of this contract compare to similar IT support contracts for government digital forms?

The contract value of approximately $24 million over roughly two years for supporting and improving a digitized VA form positions it as a significant investment. Benchmarking requires comparing it to contracts for similar services, such as IT system maintenance, software enhancement, and user support for critical government applications. Factors like the complexity of the system, the required skill sets, and the service level agreements (SLAs) influence pricing. Generally, specialized IT support for mission-critical government systems can command substantial budgets. This contract's value appears consistent with mid-tier IT service procurements within federal agencies aiming to maintain and modernize essential digital platforms.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

While the provided data does not detail specific Key Performance Indicators (KPIs), contracts of this nature typically include metrics focused on system uptime, response times for issue resolution, successful implementation of improvements, and user satisfaction. For a digitized form like the VA Form 21-526EZ, KPIs might include reduction in processing errors, faster application submission times, and positive feedback from veterans using the system. The fixed-price contract type implies that performance against defined deliverables and service levels is crucial for successful contract execution and payment.

What is the track record of Aquia Nava II LLC in supporting similar government IT systems?

Information on Aquia Nava II LLC's specific track record in supporting similar government IT systems, particularly within the Department of Veterans Affairs or for complex digital forms, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and client feedback. Companies awarded significant contracts often have demonstrated experience in relevant areas, but independent verification of their capabilities and past performance is essential for understanding their suitability and potential risks associated with this award.

What are the potential risks associated with relying on a single contractor for the maintenance and improvement of this critical digital form?

Relying on a single contractor, even one selected through a competitive process, carries inherent risks. These include potential vendor lock-in, where switching contractors becomes difficult and costly. Performance issues or a decline in service quality by the incumbent contractor can disrupt critical operations. Furthermore, if the contractor faces financial instability or key personnel depart, it could jeopardize the continuity and quality of support. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning by the agency.

How does this contract align with the VA's broader digital transformation goals?

This contract directly supports the VA's broader digital transformation goals by focusing on the enhancement and maintenance of a key digital tool used by veterans. The VA has been actively working to modernize its systems and improve the digital experience for beneficiaries. By ensuring the VA Form 21-526EZ is robust, user-friendly, and efficient, this contract contributes to the agency's objective of leveraging technology to deliver services more effectively and improve veteran outcomes. It represents an investment in the foundational digital infrastructure necessary for modern government operations.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24408 SHADY LN, MILLSBORO, DE, 19966

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,703,667

Exercised Options: $24,039,303

Current Obligation: $24,039,303

Actual Outlays: $9,708,412

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B25D0002

IDV Type: IDC

Timeline