VA awards $57.5M for software and IT services to Data Innovations LLC, with a 3-year term

Contract Overview

Contract Amount: $57,545 ($57.5K)

Contractor: Data Innovations LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-07-31

End Date: 2027-07-30

Contract Duration: 364 days

Daily Burn Rate: $158/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTRUMENT MANAGER- LICENSE-SOFTWARE

Place of Performance

Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446

State: Vermont Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,545.1 to DATA INNOVATIONS LLC for work described as: INSTRUMENT MANAGER- LICENSE-SOFTWARE Key points: 1. Contract value appears reasonable for a 3-year software and IT services agreement. 2. Competition dynamics are unclear due to limited information on the 'COMPETED UNDER SAP' designation. 3. Performance risk seems moderate, given the nature of software licensing and support. 4. The contract duration of 364 days is standard for this type of procurement. 5. This contract falls within the broader IT services sector, specifically focusing on computer-related services. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $57.5 million over three years for software and IT services from Data Innovations LLC is within a typical range for such procurements. Without specific details on the software or services provided, a direct benchmark is difficult. However, the fixed-price nature suggests a pre-defined scope, which aids in cost control. Further analysis would require understanding the specific functionalities and market rates for comparable software licenses and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP,' which typically refers to the Simplified Acquisition Procedures. This usually implies a competition among a limited number of sources, often below a certain dollar threshold. The exact number of bidders and the specific reasons for limiting competition are not detailed in the provided data. This method can sometimes lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: The limited competition under SAP may mean taxpayers did not benefit from the most competitive pricing achievable through a broader solicitation process.

Public Impact

Veterans Affairs (VA) personnel will benefit from the software and IT services provided. The services delivered are expected to support the VA's IT infrastructure and operations. The geographic impact is likely national, supporting VA facilities across the United States. Workforce implications may include IT support staff and end-users within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises concerns about optimal price discovery.
The specific nature of the software and its criticality to VA operations is not detailed, posing potential performance risks if not managed closely.
Reliance on a single vendor for potentially critical IT services could create future lock-in risks.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract duration is clearly defined, allowing for predictable budgeting.
The vendor, Data Innovations LLC, is identified, allowing for track record assessment.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT services, including software development, IT consulting, and system integration. The market for IT services to government agencies is substantial, with significant spending allocated annually to maintain and upgrade federal IT infrastructure. Comparable spending benchmarks would depend heavily on the specific software and services procured.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests that the procurement was not specifically targeted towards small businesses. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Therefore, the direct impact on small businesses from this specific contract is likely minimal unless Data Innovations LLC engages them as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods or services. Transparency is limited by the 'COMPETED UNDER SAP' designation, which often involves less public disclosure than full and open competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Procurement
Software Licensing and Maintenance Contracts
IT Services for Healthcare Agencies

Risk Flags

Limited competition information
Lack of specific service details
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,545.1 to DATA INNOVATIONS LLC. INSTRUMENT MANAGER- LICENSE-SOFTWARE

Who is the contractor on this award?

The obligated recipient is DATA INNOVATIONS LLC.

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 $57,545.1.

What is the period of performance?

Start: 2026-07-31. End: 2027-07-30.

What is the specific software or IT service being procured, and what is its criticality to the VA's mission?

The provided data classifies the contract under NAICS code 541519 ('Other Computer Related Services') and identifies the instrument manager as 'INSTRUMENT MANAGER- LICENSE-SOFTWARE'. This suggests the procurement is for software licenses and potentially related IT services, such as support, maintenance, or integration. The criticality to the VA's mission is not explicitly stated but is likely significant if it supports core healthcare operations, patient data management, or administrative functions. Without more specific details on the software's function, its precise impact on the VA's mission remains an assumption based on the agency's role in serving veterans.

How does the contract value of $57.5 million compare to similar IT service contracts awarded by the VA or other federal agencies?

Comparing the $57.5 million contract value requires context regarding the specific services and duration. For a three-year contract (364 days + 364 days + 364 days, assuming the 364-day duration is the base term and it might be extended or renewed), this amount is substantial but not unusual for enterprise-level software licenses and associated IT support. Federal agencies, particularly large ones like the VA, often award multi-million dollar contracts for IT infrastructure and services. Benchmarking would necessitate identifying contracts with similar scope, vendor type, and service complexity. For instance, other large federal IT procurements for electronic health records or core IT infrastructure can range from tens to hundreds of millions of dollars over several years.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for software licensing and IT services, SLAs would define metrics such as software uptime, response times for technical support, patch deployment schedules, and data security compliance. KPIs might track user adoption rates, system performance improvements, or the successful integration of the software with other VA systems. The absence of this information in the summary data suggests that these details are likely contained within the full contract document and are crucial for assessing the contractor's performance and the value delivered.

What is the track record of Data Innovations LLC in performing similar government contracts?

The provided data identifies Data Innovations LLC as the contractor but does not offer details on their past performance history with the government. A thorough assessment of the contractor's track record would involve reviewing their performance on previous federal contracts, including any past performance evaluations, contract awards, and any instances of disputes or terminations. Agencies typically use past performance information as a significant factor in source selection. Without this specific data, it is difficult to gauge Data Innovations LLC's reliability and capability in delivering on this $57.5 million contract.

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

Potential risks include vendor lock-in, cybersecurity vulnerabilities associated with the software, performance issues if the software does not meet VA needs, and potential cost increases if the contract includes options or is subject to scope creep. Mitigation strategies often involve clearly defined contract terms, robust security requirements, performance monitoring, and contingency planning. The firm fixed-price nature helps mitigate cost overrun risks, but ensuring the software's effectiveness and security requires ongoing vigilance from the VA. The limited competition also presents a risk if the vendor fails to perform adequately.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25626Q0527

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roper Technologies, Inc.

Address: 463 MOUNTAIN VIEW DR STE 305, COLCHESTER, VT, 05446

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $351,319

Exercised Options: $351,319

Current Obligation: $57,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline