VA awards $4.9M contract for financial management consulting to GenTech Associates Inc

Contract Overview

Contract Amount: $4,893,575 ($4.9M)

Contractor: Gentech Associates Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-06-01

End Date: 2025-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAYMENT AND PAYMENT RESOLUTION SERVICES IN SUPPORT OF FINANCIAL SERVICES CENTER (FSC) WACO, TX.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46268

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to GENTECH ASSOCIATES INC for work described as: PAYMENT AND PAYMENT RESOLUTION SERVICES IN SUPPORT OF FINANCIAL SERVICES CENTER (FSC) WACO, TX. Key points: 1. Contract awarded to GenTech Associates Inc. for administrative management consulting. 2. The contract value is $4.9 million over its period of performance. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The North American Industry Classification System (NAICS) code is 541611, for Administrative Management and General Management Consulting Services.

Value Assessment

Rating: good

The contract value of $4.9 million for administrative management consulting appears reasonable given the 5-year period of performance. Benchmarking against similar contracts for management consulting services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently through a fair pricing process.

Public Impact

Supports financial operations for the VA's Financial Services Center in Waco, TX. Ensures continuity of essential administrative and management consulting services. Potential impact on VA's ability to manage its financial resources effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends to November 2025, requiring ongoing monitoring.
Potential for scope creep or changes in service requirements over the contract term.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type helps control costs.
Supports a critical government function (Financial Services Center).

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this sector is common across government agencies for specialized expertise. Benchmarks for similar consulting contracts vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. Therefore, small businesses were eligible to compete, but there is no specific set-aside mentioned.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The award through a competitive process suggests adherence to procurement regulations, but ongoing performance monitoring is crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is substantial (5 years).
Services are critical to financial operations.
Potential for evolving requirements over the contract term.
Need for continuous performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to GENTECH ASSOCIATES INC. PAYMENT AND PAYMENT RESOLUTION SERVICES IN SUPPORT OF FINANCIAL SERVICES CENTER (FSC) WACO, TX.

Who is the contractor on this award?

The obligated recipient is GENTECH ASSOCIATES 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 $4.9 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-11-30.

What specific management consulting services are being provided under this contract, and how do they align with the VA's strategic financial goals?

The contract specifies Administrative Management and General Management Consulting Services (NAICS 541611). These services likely encompass areas such as financial process improvement, operational efficiency, strategic planning support, and potentially system implementation guidance for the Financial Services Center (FSC) in Waco, TX. The alignment with VA's strategic financial goals would depend on the specific tasks outlined in the Statement of Work, which are not detailed here but are crucial for assessing true value.

What are the key performance indicators (KPIs) for GenTech Associates Inc. under this contract, and how will their performance be measured to ensure effectiveness?

While not explicitly stated in the provided data, effective contracts typically include defined Key Performance Indicators (KPIs) tied to service delivery, accuracy, timeliness, and client satisfaction. The VA's Contracting Officer's Representative (COR) would be responsible for monitoring GenTech's performance against these KPIs, likely through regular reports, reviews, and potentially site visits. Measuring performance ensures the services meet the required standards and contribute to the FSC's operational objectives.

Given the $4.9 million value and 5-year duration, what is the potential risk of cost overruns or contract modifications, and what mitigation strategies are in place?

The primary risk of cost overruns in a Firm Fixed Price contract is generally lower than cost-reimbursement types, but modifications can still increase costs. Potential triggers include unforeseen complexities, changes in VA requirements, or inadequate initial scope definition. Mitigation strategies typically involve robust contract management, clear change control processes, and thorough initial requirements gathering. The VA's oversight and GenTech's proactive management are key to preventing and managing such risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gentech Associates, Inc.

Address: 11644 N MICHIGAN RD, ZIONSVILLE, IN, 46077

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,893,575

Exercised Options: $4,893,575

Current Obligation: $4,893,575

Actual Outlays: $2,739,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F053AA

IDV Type: FSS

Timeline