VA awards $8.9M contract for VHIE Engagement Support to IT Concepts, Inc

Contract Overview

Contract Amount: $8,941,912 ($8.9M)

Contractor: IT Concepts, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-03

End Date: 2027-04-02

Contract Duration: 1,094 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VHIE ENGAGEMENT SUPPORT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.9 million to IT CONCEPTS, INC. for work described as: VHIE ENGAGEMENT SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a common IT support category. 3. Fixed-price contract type aims to control costs for the government. 4. The duration of the contract is approximately three years, indicating a medium-term need. 5. The awardee, IT Concepts, Inc., is a small business, potentially impacting subcontracting opportunities. 6. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $8.9 million over three years appears reasonable for IT engagement support services. Benchmarking against similar contracts for computer systems design services is necessary for a definitive value assessment. The firm-fixed-price structure is generally favorable for cost control. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging, but the competitive award process provides some assurance.

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 a bid. The presence of three bidders suggests a moderate level of competition for this specific delivery order. While more bidders would ideally lead to better price discovery, three offers generally provide a reasonable basis for comparison and selection.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially driving down costs and improving service quality.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving engagement support services. This contract supports the Veterans Health Information Exchange (VHIE) program, crucial for veteran healthcare data. The services delivered are expected to enhance the functionality and adoption of VHIE. The primary geographic impact is likely within the VA's operational areas, potentially nationwide. The contract may have implications for IT professionals and support staff involved in healthcare IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if engagement support is highly specialized.
Dependence on a single small business awardee could pose performance continuity risks if not managed proactively.

Positive Signals

Award to a small business aligns with federal small business contracting goals.
Firm-fixed-price contract provides cost certainty for the government.
Delivery order structure allows for flexibility within a pre-competed framework.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. This is a large and competitive market segment supporting various government functions. The market size for IT services to the federal government is substantial, with agencies like the VA being significant spenders. This contract supports a critical healthcare IT initiative, aligning with broader trends in digital transformation within the public sector.

Small Business Impact

IT Concepts, Inc. is identified as a small business. While this contract itself is not explicitly a small business set-aside, the award to a small business contributes to the government's overall small business contracting goals. The implications for subcontracting are not detailed in the provided data, but opportunities may arise for other small businesses to participate in supporting this contract, depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a delivery order under a larger contract, the underlying contract vehicle likely has its own oversight mechanisms. The firm-fixed-price nature of the award provides a degree of accountability for performance against agreed-upon terms. Transparency is facilitated by the contract award data being publicly available.

Related Government Programs

Veterans Health Information Exchange (VHIE)
Department of Veterans Affairs IT Modernization Programs
Federal Health IT Contracts
Computer Systems Design Services Contracts

Risk Flags

Small Business Awardee Risk
Performance Monitoring Complexity
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.9 million to IT CONCEPTS, INC.. VHIE ENGAGEMENT 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 $8.9 million.

What is the period of performance?

Start: 2024-04-03. End: 2027-04-02.

What is the track record of IT Concepts, Inc. in performing similar government contracts, particularly within the VA or for healthcare IT initiatives?

Assessing the track record of IT Concepts, Inc. requires a review of their past performance on federal contracts. Specifically, examining their history with the Department of Veterans Affairs (VA) and any prior work related to health information exchange or similar IT engagement support would be crucial. Data on contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or challenges would provide insight into their capabilities and reliability. A history of successful, on-time, and within-budget delivery of comparable services would indicate a lower risk for this new contract. Conversely, a pattern of performance issues or contract terminations would raise concerns about their ability to meet the VA's needs for the VHIE Engagement Support contract.

How does the awarded price of $8.9 million compare to market rates for similar Computer Systems Design Services over a three-year period?

To benchmark the $8.9 million award, we would compare it against industry data for Computer Systems Design Services, considering factors like contract duration (1094 days), service scope (VHIE Engagement Support), and the specific skill sets required. This involves analyzing data from similar federal contracts awarded through competitive processes, as well as commercial market research reports. Key metrics would include average hourly rates for relevant IT professionals, project management overhead, and typical profit margins in the sector. If the average annual cost ($2.98 million) or the effective hourly rates fall within or below established benchmarks for comparable services, it suggests good value. Significant deviations above market rates, even with a fixed-price contract, could indicate potential overpricing or a scope that is more extensive than initially apparent.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential performance shortfalls by the contractor, IT Concepts, Inc., especially given it is a small business. There's also a risk of scope creep if the 'engagement support' requirements are not clearly defined and managed. Another risk could be the dependency on a single vendor for critical VHIE support functions. Mitigation strategies likely involve robust contract management by the VA, including regular performance reviews, clear communication channels, and defined deliverables. The firm-fixed-price structure inherently mitigates cost overrun risks for the government. For performance risks, the VA may require detailed project plans, regular status reporting, and potentially performance bonds. Ensuring clear contract modifications processes for any scope changes is also critical.

How effective is the Veterans Health Information Exchange (VHIE) program, and how does this contract contribute to its overall success?

The effectiveness of the VHIE program is crucial for enabling seamless sharing of veteran health data across different healthcare providers, improving care coordination and reducing redundant testing. This contract for 'VHIE Engagement Support' is intended to enhance the program's functionality, user adoption, and overall impact. The success of this specific contract hinges on its ability to facilitate better engagement with stakeholders (veterans, providers, administrators) and potentially improve the technical aspects of data exchange. Its contribution to the VHIE program's success will be measured by metrics related to increased data sharing, improved user satisfaction, enhanced system performance, and ultimately, better health outcomes for veterans. Without specific performance data from the contract, its direct contribution remains prospective.

What are the historical spending patterns for VHIE Engagement Support or similar services by the Department of Veterans Affairs?

Analyzing historical spending patterns for VHIE Engagement Support or comparable IT services by the VA provides context for the current $8.9 million award. This involves examining previous contract awards for similar functions, including the number of contracts, their values, durations, and the contractors involved. Understanding if spending has been consistent, increasing, or decreasing can indicate program stability or growth. High historical spending on similar services might suggest a sustained need and potentially a mature market. Conversely, a sudden increase could signal new initiatives or emerging challenges. Comparing the current award amount to the average or median spending on such services over the past several fiscal years would help determine if this contract represents a typical investment or a significant deviation.

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: 3

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: $15,402,910

Exercised Options: $8,941,912

Current Obligation: $8,941,912

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0441Y

IDV Type: FSS

Timeline