VA awards $161.6M IT services contract to Colossal Contracting LLC for 5 years

Contract Overview

Contract Amount: $161,590 ($161.6K)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-01

End Date: 2027-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $89/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PACKAGE TRACKING SYSTEM

Place of Performance

Location: ROSEBURG, DOUGLAS County, OREGON, 97470

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $161,589.9 to COLOSSAL CONTRACTING LLC for work described as: PACKAGE TRACKING SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. Services fall under 'Other Computer Related Services,' a broad IT category. 4. The award is a BPA Call, indicating it's a task order under a larger agreement. 5. Contract duration of 5 years provides long-term service stability. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

Benchmarking the value of this $161.6 million contract over five years requires more granular data on the specific services rendered. However, the firm-fixed-price structure is generally favorable for the government, as it caps potential cost overruns. Without comparable contract data for similar IT services within the VA or across other agencies, a precise value-for-money assessment is challenging. The price per year is approximately $32.3 million, which needs to be evaluated against the scope and complexity of the IT services provided.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment. A robust competition typically leads to better pricing and service offerings for the government by allowing multiple vendors to vie for the contract. The VA's choice of this procurement method suggests they sought the best possible value through market forces.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives competitive pricing for the services procured. This approach helps prevent inflated costs that can occur with less competitive methods.

Public Impact

The Department of Veterans Affairs benefits from this contract by securing IT services to support its operations. Veterans and VA staff are indirectly impacted through improved IT infrastructure and services. The contract is geographically focused on Oregon, where the BPA Call was likely issued or managed. The IT services delivered will support the VA's mission-critical functions, potentially including healthcare systems, administrative platforms, and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality.
Limited transparency on the number of bidders hinders a full understanding of competition intensity.
The broad 'Other Computer Related Services' category could lead to scope creep if not managed tightly.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive process.
Long-term contract duration provides service continuity.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a wide range of IT support, consulting, and integration services not classified elsewhere. Federal IT spending is consistently one of the largest categories of government expenditure, with agencies relying heavily on technology to deliver services. This contract's value of $161.6 million over five years places it as a significant, though not exceptionally large, award within the broader federal IT landscape. Comparable contracts in this space often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The absence of set-aside provisions means that large businesses were eligible to compete and potentially win the award. This could limit opportunities for small businesses to directly participate in this specific contract, although they might be involved as subcontractors if Colossal Contracting LLC chooses to engage them. The overall impact on the small business ecosystem depends on the contractor's subcontracting strategy.

Oversight & Accountability

The primary oversight for this contract would fall under the Department of Veterans Affairs' contracting officers and program managers. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work and performance standards. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

IT Professional Services
Information Technology Support Services
IT Services for Healthcare Agencies
Department of Veterans Affairs IT Modernization

Risk Flags

Potential for scope creep due to broad service category.
Lack of specific bidder count limits competition assessment.
Long contract duration may not reflect evolving IT market prices.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $161,589.9 to COLOSSAL CONTRACTING LLC. PACKAGE TRACKING SYSTEM

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING 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 $161,589.9.

What is the period of performance?

Start: 2022-06-01. End: 2027-05-31.

What specific IT services are included under the 'Other Computer Related Services' category for this contract?

The provided data classifies this contract under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT services not specifically defined under other codes, such as IT consulting, systems integration, IT support, network management, and potentially custom software development or IT project management. Without the detailed Statement of Work (SOW) or Performance Work Statement (PWS) for this specific BPA Call, the precise nature of the services remains undefined. However, given the awarding agency is the Department of Veterans Affairs, these services likely support the agency's vast IT infrastructure, including healthcare systems, administrative platforms, and data management, crucial for serving veterans.

How does the $161.6 million contract value compare to typical IT service contracts awarded by the VA?

The $161.6 million contract value, spread over five years, averages approximately $32.3 million annually. This places it as a significant IT services award. The VA, being one of the largest federal agencies, procures a substantial volume of IT services. Contracts of this magnitude are not uncommon for agencies supporting complex operations like healthcare and benefits administration. However, the 'typical' value can vary widely based on the specific services (e.g., cloud migration, cybersecurity, electronic health records maintenance) and the duration. To provide a precise comparison, one would need to benchmark against contracts with similar scopes of work and service categories within the VA's historical spending data.

What are the potential risks associated with a 5-year firm-fixed-price IT services contract?

A primary risk with a 5-year firm-fixed-price (FFP) IT services contract is the potential for the contractor to become complacent or less innovative over time, especially if the contract terms do not adequately incentivize performance improvements or technological advancements. For the government, the risk lies in the possibility that the fixed price may become uncompetitive if market rates decrease significantly during the contract period, or if the scope of work needs to change substantially, requiring costly modifications. Additionally, if the initial price was set too high due to aggressive bidding or poor cost estimation by the contractor, taxpayers could overpay. Effective contract management, including regular performance reviews and clear communication, is crucial to mitigate these risks.

What does the 'BPA CALL' award type signify in terms of procurement efficiency?

A 'BPA CALL' signifies that this contract is a task order issued under a previously established Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods used when a government agency anticipates recurring needs for certain supplies or services. They allow agencies to pre-qualify vendors and establish pre-negotiated terms and pricing. Issuing a 'BPA CALL' (or task order) against a BPA is generally more efficient and faster than conducting a full, new procurement from scratch. It streamlines the process for acquiring specific quantities or services under the umbrella of the existing BPA, leading to quicker delivery and potentially better pricing due to the pre-negotiated terms.

Given the contract is for 'Other Computer Related Services,' how might this impact workforce implications for the VA?

Contracts for 'Other Computer Related Services' can have significant workforce implications for the VA. If these services involve outsourcing functions previously performed by government employees, it could lead to a reduction in the VA's internal IT workforce or a shift in skill requirements. Conversely, if the contract focuses on specialized IT support or project management that the VA lacks in-house, it could augment the existing workforce, allowing federal employees to focus on higher-level strategic tasks. The specific impact depends heavily on whether the contract is for augmentation, replacement, or specialized support, and how the VA manages the integration of contractor personnel with its own staff.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $161,590

Exercised Options: $161,590

Current Obligation: $161,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26022A0009

IDV Type: BPA

Timeline