VA awards $15.6M IT support contract to IT Concepts, Inc. for strategic operations

Contract Overview

Contract Amount: $15,584,698 ($15.6M)

Contractor: IT Concepts, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-29

End Date: 2027-03-28

Contract Duration: 1,094 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VHIE STRATEGIC OPERATIONS SUPPORT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.6 million to IT CONCEPTS, INC. for work described as: VHIE STRATEGIC OPERATIONS SUPPORT Key points: 1. Contract provides essential IT support for strategic operations, indicating a focus on maintaining critical infrastructure. 2. The fixed-price contract type suggests predictable costs for the government, though scope creep could impact final value. 3. Competition was full and open, implying a potentially competitive bidding process that could drive favorable pricing. 4. The contract duration of nearly three years allows for sustained support and potential for performance improvements. 5. IT Concepts, Inc. is the sole awardee, highlighting their specific capability or market position for this requirement. 6. The award is a delivery order under a larger contract vehicle, suggesting a streamlined procurement process.

Value Assessment

Rating: good

The contract value of $15.6 million over approximately three years for IT strategic operations support appears reasonable given the scope. Benchmarking against similar IT support contracts within the federal government, particularly for system design and integration services (NAICS 541512), suggests this pricing is within a competitive range. The firm-fixed-price structure helps manage cost certainty for the Department of Veterans Affairs. However, a detailed cost breakdown and comparison of labor rates would be necessary for a more precise value assessment.

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. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further inform the assessment of competition effectiveness.

Taxpayer Impact: Full and open competition, even with two bidders, provides a baseline for fair pricing and ensures the government explored available market options. This approach helps taxpayers by preventing sole-source awards that might carry a price premium.

Public Impact

Veterans Affairs (VA) personnel and systems will benefit from enhanced IT strategic operations support. Services delivered include computer systems design and related support, crucial for the VA's operational efficiency. The contract's geographic impact is primarily within the VA's operational footprint, likely supporting national or regional IT infrastructure. Workforce implications may include the direct employment of IT professionals by IT Concepts, Inc. and potential indirect support roles within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in strategic operations support, which could increase costs beyond the initial award amount.
Reliance on a single awardee, IT Concepts, Inc., may limit future competitive opportunities if performance is not exceptional.
The effectiveness of the competition, with only two bidders, warrants monitoring to ensure optimal value for taxpayer funds.

Positive Signals

Awarded under full and open competition, indicating a commitment to exploring market capabilities.
Firm-fixed-price contract type provides cost predictability for the VA.
The contract duration allows for sustained support and relationship building, potentially leading to improved service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies like the VA being significant spenders on maintaining and modernizing their technological infrastructure. This contract represents a portion of the VA's broader IT spending, aimed at ensuring the reliability and strategic alignment of its operational systems. Comparable spending benchmarks for similar IT support contracts often vary widely based on complexity, duration, and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The awardee, IT Concepts, Inc., is not explicitly identified as a small business. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Future analysis would need to examine the prime contractor's subcontracting plan, if applicable, to assess broader small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for IT strategic operations. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services
Computer Systems Design Services
Strategic Technology Planning Contracts

Risk Flags

Moderate competition level
Potential for scope creep
Reliance on single awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.6 million to IT CONCEPTS, INC.. VHIE STRATEGIC OPERATIONS SUPPORT

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 $15.6 million.

What is the period of performance?

Start: 2024-03-29. End: 2027-03-28.

What is the track record of IT Concepts, Inc. in delivering similar IT strategic operations support to federal agencies?

A comprehensive review of IT Concepts, Inc.'s past performance is crucial for assessing their capability to fulfill this $15.6 million VA contract. While the provided data indicates they are the awardee, it does not detail their history. Federal procurement databases and past performance reviews would reveal their experience with similar IT support, strategic planning, and computer systems design services. Agencies typically evaluate a contractor's performance on previous contracts, including adherence to schedule, budget, and quality standards. A strong track record with the VA or other large federal agencies would increase confidence in their ability to deliver successfully on this new award. Conversely, a history of performance issues or contract disputes could signal potential risks.

How does the awarded price of $15.6 million compare to market rates for similar IT strategic operations support services?

The $15.6 million award for approximately three years of IT strategic operations support needs to be benchmarked against prevailing market rates for comparable services. This involves analyzing the specific tasks outlined in the contract (e.g., system design, operational support) and comparing the estimated labor rates, overhead, and profit margins to industry standards. Factors such as the geographic location of service delivery, the complexity of the VA's systems, and the specific skill sets required will influence market rates. Without access to the detailed cost proposal and a broader market analysis, a precise comparison is difficult. However, the fact that it was awarded under full and open competition with two bidders suggests the VA likely performed some level of price reasonableness analysis to ensure the cost was competitive.

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

Key risks for this contract include potential scope creep, where the requirements for strategic operations support may expand beyond the initial definition, leading to cost overruns despite the firm-fixed-price structure. Another risk is the reliance on a single contractor, IT Concepts, Inc., which could lead to vendor lock-in or performance issues if not managed effectively. Technical risks, such as integration challenges with existing VA systems or cybersecurity vulnerabilities, are also present. Mitigation strategies typically involve robust contract management, clear definition of scope, regular performance reviews, and contingency planning. The VA's program managers and contracting officers are responsible for actively monitoring performance and addressing any emerging risks proactively to ensure successful contract execution and value for taxpayer dollars.

How effective is the competition level (two bidders) in ensuring optimal value for the VA and taxpayers?

A competition level with two bidders, while better than a sole-source award, represents a moderate level of competition. Full and open competition theoretically allows for the widest possible range of offers, but the actual number of bids received can be influenced by factors such as contract complexity, required qualifications, and market dynamics. With only two bidders, there is a reduced incentive for intense price competition compared to a scenario with numerous offers. The VA likely conducted a price reasonableness analysis to ensure the awarded price was fair. However, taxpayers might not be realizing the absolute lowest possible price that could have been achieved with a larger pool of competitors. Continued monitoring of IT Concepts, Inc.'s performance and pricing will be important to gauge the long-term value realized.

What is the historical spending pattern for similar IT strategic operations support at the VA?

Analyzing historical spending patterns for similar IT strategic operations support at the VA is essential for context. This involves examining previous contracts awarded for computer systems design, IT strategic planning, and operational support services. Key metrics to consider include the total amount spent annually on such services, the number and types of contractors utilized, the average contract duration, and the pricing structures employed (e.g., fixed-price vs. cost-plus). Understanding these historical trends helps in evaluating whether the current $15.6 million award is consistent with past investments, represents an increase or decrease in spending, and if it aligns with any strategic shifts in the VA's IT procurement approach. Significant deviations from historical patterns might warrant further investigation into the underlying reasons.

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: 2

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: $26,722,954

Exercised Options: $15,584,698

Current Obligation: $15,584,698

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0441Y

IDV Type: FSS

Timeline