VA awards $11M IT support contract to IT Concepts, Inc. for computer systems design

Contract Overview

Contract Amount: $10,957,745 ($11.0M)

Contractor: IT Concepts, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-20

End Date: 2026-06-19

Contract Duration: 272 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FIS FHP SUPPORT SERVICES

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.0 million to IT CONCEPTS, INC. for work described as: FIS FHP SUPPORT SERVICES Key points: 1. Contract value of $10.96M over 272 days suggests a significant investment in IT infrastructure support. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, but limits flexibility. 4. The services fall under Computer Systems Design, a critical area for agency operations. 5. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contractor, IT Concepts, Inc., has secured this significant award, indicating a strong position in the IT services market.

Value Assessment

Rating: good

The contract value of approximately $11 million for a 272-day period translates to a daily rate of roughly $40,286. This rate appears to be within a reasonable range for complex IT support services, especially considering the specialized nature of computer systems design. Benchmarking against similar contracts for IT support and systems integration would provide a more precise value-for-money assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: $40,286 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the Department of Veterans Affairs sought to leverage market competition to obtain the best value. The number of bidders is not specified, but a full and open competition generally leads to better price discovery and a wider range of technical solutions.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of securing services at competitive prices and encourages a robust marketplace for government IT support.

Public Impact

Veterans will benefit from improved IT systems and services, enhancing their access to VA resources. The contract delivers essential computer systems design and support services to the Department of Veterans Affairs. The primary geographic impact is within Virginia, where the contractor is based, and potentially across all VA facilities relying on these IT systems. The contract supports IT professionals and potentially creates or sustains jobs within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined within the delivery order.
Reliance on a single contractor for critical IT systems design could pose a risk if performance issues arise.
The fixed-price nature might disincentivize innovation or proactive problem-solving if not managed carefully.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair process.
Fixed-price contract type provides cost predictability for the VA.
The contractor, IT Concepts, Inc., has secured a significant contract, indicating established capabilities.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a broad and essential category within the federal IT market, encompassing the planning, design, development, and integration of complex computer systems. The federal government is a major consumer of IT services, with significant spending allocated annually to maintain and modernize its technological infrastructure. This contract represents a portion of that overall IT spending, supporting the VA's operational needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if IT Concepts, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures are typically embedded within the contract's performance work statement (PWS) and delivery terms. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office for the VA may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

IT Support Services
Computer Systems Design
Information Technology Professional Services
Department of Veterans Affairs IT Contracts
Federal IT Modernization Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependence on contractor expertise for critical system design.
Need for robust oversight to ensure adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.0 million to IT CONCEPTS, INC.. FIS FHP SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is IT CONCEPTS, 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 $11.0 million.

What is the period of performance?

Start: 2025-09-20. End: 2026-06-19.

What is the track record of IT Concepts, Inc. in performing similar federal IT support contracts?

A review of federal procurement data would be necessary to fully assess IT Concepts, Inc.'s track record. Key indicators would include the number and value of previous contracts, performance ratings (if available), and any history of contract disputes or terminations. Understanding their past performance in delivering computer systems design and IT support services, particularly for agencies of similar size and complexity to the VA, is crucial for evaluating their capability to successfully execute this new award. Without specific past performance data, this award represents a significant opportunity for the contractor to demonstrate its expertise and reliability.

How does the daily rate of $40,286 compare to industry benchmarks for similar IT systems design services?

The daily rate of approximately $40,286 for IT systems design services is a significant figure that warrants comparison against industry benchmarks. This rate needs to be evaluated in the context of the specific skill sets required, the complexity of the systems being designed, and the geographic location of service delivery. Federal IT consulting rates can vary widely. Benchmarking against data from industry reports, salary surveys for specialized IT roles, and publicly available data on similar federal contracts awarded through competitive processes would provide a clearer picture of whether this rate represents good value for money. Factors like the level of security clearance required and the specific technologies involved can also influence pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract could include performance deficiencies by the contractor, potential cost overruns (though mitigated by fixed-price), scope creep, and cybersecurity vulnerabilities. Mitigation strategies typically involve a robust Performance Work Statement (PWS) with clear deliverables and acceptance criteria, regular progress reviews, strong contract management by the VA, and adherence to cybersecurity protocols. The fixed-price nature of the contract inherently shifts some cost risk to the contractor. The VA's oversight and the contractor's own quality control processes are key to managing these risks effectively.

How does this contract contribute to the Department of Veterans Affairs' broader IT modernization goals?

This contract for computer systems design services likely plays a role in the VA's ongoing efforts to modernize its IT infrastructure and systems. Modernization often involves updating legacy systems, integrating new technologies, and improving the efficiency and security of IT operations to better serve veterans. The specific design services procured under this contract would aim to enhance the functionality, scalability, or user experience of critical VA systems. Understanding the specific systems or applications being addressed by this contract would clarify its direct contribution to the VA's strategic IT objectives and digital transformation initiatives.

What has been the historical spending pattern for similar computer systems design services by the Department of Veterans Affairs?

Analyzing historical spending patterns for computer systems design services by the VA is essential for context. This involves examining past contract awards within the same North American Industry Classification System (NAICS) code (541512) or similar service categories. Understanding the volume, frequency, and average value of previous contracts can reveal trends in VA's IT investment strategy, identify key contractors, and highlight periods of increased or decreased spending. Such analysis helps in assessing whether the current $11 million award is consistent with historical levels, represents an increase, or signifies a shift in procurement priorities for IT design services.

What is the potential impact of this contract on the VA's ability to deliver services to veterans?

The successful execution of this contract is expected to positively impact the VA's ability to deliver services to veterans by ensuring that its underlying IT systems are robust, efficient, and secure. Well-designed computer systems are fundamental to the operation of electronic health records, claims processing, communication platforms, and various other digital services that veterans rely on. Improvements in system design can lead to faster processing times, enhanced data accuracy, better user interfaces for both staff and veterans, and increased system uptime, all of which contribute to a smoother and more effective service delivery experience.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD STE 305, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,232,033

Exercised Options: $10,957,745

Current Obligation: $10,957,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0441Y

IDV Type: FSS

Timeline