VA awards $10.8M contract for accounting support, with 98.7% of spending benchmarked against similar contracts

Contract Overview

Contract Amount: $10,809,273 ($10.8M)

Contractor: Gentech Associates Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $9.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TO PROVIDE FINANCIAL ACCOUNTING SUPPORT SERVICES.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78744

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.8 million to GENTECH ASSOCIATES INC for work described as: TO PROVIDE FINANCIAL ACCOUNTING SUPPORT SERVICES. Key points: 1. Contract value is within the expected range for similar accounting support services. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance period is substantial, indicating a long-term need for these services. 4. The contract is a delivery order under a larger, competed vehicle. 5. Geographic location of performance is Texas. 6. The contractor has a track record with the agency.

Value Assessment

Rating: good

The contract value of $10.8 million over three years for financial accounting support services appears reasonable. Benchmarking indicates that 98.7% of the spending is aligned with comparable contracts for similar services. The pricing structure, based on labor hours, allows for flexibility but requires careful monitoring to ensure cost-effectiveness. Compared to other accounting support contracts, this award falls within a typical spending range for the scope of work described.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below certain thresholds. While the specific number of bidders is not provided, the fact that it was competed suggests multiple interested parties submitted proposals. This level of competition is generally favorable for price discovery and ensures the government receives offers from various qualified vendors.

Taxpayer Impact: A competed award under SAP generally leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation among bidders.

Public Impact

The Department of Veterans Affairs (VA) will benefit from enhanced financial accounting support. Services delivered will ensure accurate financial reporting and management within the agency. The geographic impact is primarily in Texas, where the contractor is located. Workforce implications include the employment of accounting professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Contract was competed, indicating a healthy market.
Contract value is benchmarked favorably against similar contracts.
Contract is a delivery order under a larger competed vehicle, suggesting established processes.
Contractor is based in Texas, potentially supporting local economy.

Sector Analysis

The market for accounting and financial services is a mature and competitive sector. Federal agencies frequently procure these services to manage complex financial operations. This contract for accounting support services fits within the broader category of professional services, where agencies rely on specialized expertise. Comparable spending benchmarks indicate that the $10.8 million award is in line with typical contract values for similar scopes of work within the federal government.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to GENTECH ASSOCIATES INC, a non-small business, suggests that the primary focus was on obtaining the required accounting services through the most competitive means available. Further analysis would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through a contracting officer's representative (COR) who will monitor performance and ensure compliance with the contract terms. Accountability measures are embedded in the contract through performance standards and payment terms tied to deliverables. Transparency is facilitated by the contract's existence within federal procurement databases, allowing for public scrutiny.

Related Government Programs

Financial Management Services
Accounting Services
Professional Services Contracts
Department of Veterans Affairs IT and Professional Services

Risk Flags

Potential for cost overruns due to labor hour pricing
Risk of performance deficiencies if service levels are not met
Cybersecurity and data breach risks associated with financial data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.8 million to GENTECH ASSOCIATES INC. TO PROVIDE FINANCIAL ACCOUNTING SUPPORT SERVICES.

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 $10.8 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of GENTECH ASSOCIATES INC with the Department of Veterans Affairs?

GENTECH ASSOCIATES INC has a history of performing contracts with the Department of Veterans Affairs. While this specific award is a new delivery order, the agency's decision to award it suggests a level of satisfaction or confidence in the contractor's past performance. Further investigation into their contract history with the VA, including past performance reviews and any documented issues, would provide a more comprehensive understanding of their reliability and capability in delivering accounting support services.

How does the value of this contract compare to other federal accounting support contracts?

The contract value of $10.8 million over three years for financial accounting support services is considered reasonable and aligns with market benchmarks. Data indicates that 98.7% of the spending is comparable to similar contracts. This suggests that the pricing negotiated for this award is competitive within the federal landscape for the services being procured. The use of labor hours as the contract type allows for flexibility, but requires diligent oversight to ensure costs remain controlled and aligned with the value delivered.

What are the primary risks associated with this contract?

Key risks for this contract include potential cost overruns if labor hours are not managed efficiently, performance deficiencies if the contractor fails to meet service level agreements, and potential disruptions if key personnel leave the contractor's employ. Given the sensitive nature of financial data, cybersecurity risks and data breach vulnerabilities are also significant concerns. The agency's oversight mechanisms, including COR monitoring and performance reviews, are crucial for mitigating these risks.

How effective is the competition level in ensuring value for taxpayers?

The contract was competed under Simplified Acquisition Procedures (SAP), which generally implies a full and open competition for awards below certain thresholds. While the exact number of bidders is not specified, the competitive nature of SAP awards typically drives price discovery and encourages multiple vendors to offer their best terms. This competitive environment is beneficial for taxpayers as it increases the likelihood of securing services at a fair and reasonable price, fostering efficiency and potentially leading to better service quality.

What is the historical spending pattern for accounting support services at the VA?

Historical spending patterns for accounting support services at the VA indicate a consistent need for these types of services. Agencies like the VA, with complex financial operations and large budgets, regularly procure accounting and financial management support. While specific historical data for this exact type of service is not detailed here, the recurring nature of such contracts suggests it is a core requirement. The $10.8 million award should be viewed in the context of the VA's overall budget and its ongoing commitment to robust financial management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gentech Associates, Inc.

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

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,677,280

Exercised Options: $10,809,273

Current Obligation: $10,809,273

Actual Outlays: $4,804,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0025

IDV Type: IDC

Timeline