VA awards $2.26M contract for IT services to Evideon, Inc. under sole-source justification

Contract Overview

Contract Amount: $225,840 ($225.8K)

Contractor: Evideon, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-18

End Date: 2027-04-17

Contract Duration: 364 days

Daily Burn Rate: $620/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EVIDEON TV SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $225,840 to EVIDEON, INC for work described as: EVIDEON TV SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The fixed-price contract structure aims to control costs, but the lack of competition may limit price discovery. 3. Performance period extends over one year, suggesting a need for ongoing IT support services. 4. The specific IT services are not detailed, making it difficult to benchmark against industry standards. 5. Awarded by the Department of Veterans Affairs, indicating a focus on supporting veteran healthcare or administrative systems. 6. The contract value is relatively modest, suggesting it may be for a specific project or service rather than a large-scale IT overhaul.

Value Assessment

Rating: fair

The contract value of $2.26 million for a one-year term appears within a reasonable range for IT services, however, without detailed service descriptions or comparable contract data, a precise value-for-money assessment is challenging. The sole-source nature of the award prevents direct comparison with competitively bid contracts, which typically yield lower prices due to market forces. The fixed-price type offers some cost certainty, but the absence of competition could mean the price is not optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. This typically occurs when only one vendor is capable of providing the required services, or in specific emergency situations. The lack of competition means that potential bidders were not solicited, and the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process. This can sometimes lead to higher prices than might be achieved in an open market.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these services due to the absence of competitive pressure. The justification for the sole-source award would need to be robust to ensure public funds are used efficiently.

Public Impact

Veterans may benefit indirectly through improved IT infrastructure supporting healthcare or administrative services. The contract delivers unspecified 'Other Computer Related Services' to the Department of Veterans Affairs. The geographic impact is localized to Louisiana, where the contractor is based. Workforce implications are likely limited to the contractor's personnel, with no direct public sector job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Limited transparency into the specific services procured.
Sole-source awards can reduce accountability through market mechanisms.

Positive Signals

Fixed-price contract provides cost certainty for the awarded amount.
Award to a single vendor may indicate specialized capabilities required.
Contract duration suggests a stable, ongoing need for the services.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services' (NAICS 541519), which encompasses a broad range of IT support, consulting, and integration activities. While the specific market size for this niche is difficult to isolate, the overall IT services market for the federal government is in the tens of billions of dollars annually. This contract represents a small portion of that spending, likely addressing a specific operational need within the VA.

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 Evideon, Inc. does not appear to directly support the small business ecosystem through set-asides or mandated subcontracting. Further analysis would be needed to determine if Evideon itself is a small business or if they utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability is established through the contract terms and performance requirements. Transparency is limited by the sole-source nature and the lack of detailed public information on the specific services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal IT Services Procurement
Healthcare IT Support Contracts
Computer Systems Design Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific services procured.
Potential for higher costs without competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $225,840 to EVIDEON, INC. EVIDEON TV SERVICES

Who is the contractor on this award?

The obligated recipient is EVIDEON, 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 $225,840.

What is the period of performance?

Start: 2026-04-18. End: 2027-04-17.

What specific IT services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can include a wide range of IT support, consulting, integration, and maintenance activities. Without further details from the contract award notice or associated documentation, it is impossible to specify the exact services. These could range from network management and cybersecurity support to software development or IT infrastructure maintenance. The Department of Veterans Affairs' specific needs would dictate the precise nature of these 'Other Computer Related Services.'

Why was this contract awarded on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's requirements. Common justifications include unique capabilities, proprietary technology, urgent needs where competition is impractical, or when a specific contractor has already invested significantly in developing a solution for the agency. For this contract, the Department of Veterans Affairs would have had to provide a formal justification, such as 'only one source is available' or 'brand name justification,' to procure services from Evideon, Inc. without competition. This justification is crucial for ensuring public funds are used appropriately.

How does the contract value compare to similar IT services contracts awarded by the VA?

Comparing the $2.26 million contract value requires knowledge of similar IT services procured by the VA. Given the broad 'Other Computer Related Services' category and the one-year duration, this value appears moderate. Larger IT modernization projects or enterprise-wide support contracts can run into tens or hundreds of millions of dollars. Smaller, project-specific IT support or consulting engagements might be in the hundreds of thousands. Without specific details on the services rendered, it's difficult to benchmark precisely. However, for a one-year service contract, $2.26M suggests a significant but not massive scope of work.

What is Evideon, Inc.'s track record with federal contracts, particularly with the VA?

Information on Evideon, Inc.'s specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require searching federal procurement databases like SAM.gov or FPDS to identify past awards, performance history, and any reported issues. Understanding their past performance, contract values, and types of services delivered would provide context for this current award and help assess their reliability and capability in fulfilling the VA's needs.

What are the potential risks associated with a sole-source IT services contract?

The primary risk of a sole-source IT services contract is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may pay more than necessary. Another risk is reduced innovation, as the contractor may have less incentive to propose cost-saving or efficiency-enhancing solutions. Furthermore, sole-source awards can limit the government's options if the contractor's performance is unsatisfactory, as switching vendors may be difficult and costly. Transparency and accountability can also be diminished compared to competitively awarded contracts.

What is the typical duration and value for 'Other Computer Related Services' contracts within the federal government?

Contracts under NAICS code 541519, 'Other Computer Related Services,' vary widely in duration and value depending on the specific services and agency needs. Federal agencies procure these services for tasks ranging from short-term consulting projects to long-term IT support and system integration. Contract durations can span from a few months to several years, often with option periods. Values can range from tens of thousands to millions of dollars. The $2.26 million for a one-year term awarded to Evideon, Inc. by the VA falls within the mid-range for significant IT service engagements, suggesting a substantial but not enterprise-level scope.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1059 WEALTHY ST SE UNIT 202, GRAND RAPIDS, MI, 49506

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,198,800

Exercised Options: $225,840

Current Obligation: $225,840

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline