GSA awards $32.6M for computer systems design, with limited competition and a focus on IT services

Contract Overview

Contract Amount: $32,585,383 ($32.6M)

Contractor: Vana Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $29.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: VANA TO16 AFCENT SBIR PHASE III

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $32.6 million to VANA SOLUTIONS LLC for work described as: VANA TO16 AFCENT SBIR PHASE III Key points: 1. Contract awarded to VANA SOLUTIONS LLC for computer systems design services. 2. Significant portion of the award value allocated to IT services. 3. Contract duration of 1095 days suggests a medium-term engagement. 4. Awarded under the Federal Acquisition Service, indicating a focus on common government needs. 5. The contract type is 'LABOR HOURS', suggesting payment based on time and effort. 6. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process. 7. The contract is not set aside for small businesses, but subcontracting opportunities may exist.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The award of $32.6 million over three years for computer systems design services appears within a typical range for such engagements, but the lack of competitive bidding prevents a robust assessment of price reasonableness. Without a competitive process, it's difficult to determine if the government secured the best possible value for the funds expended. Further analysis would require comparing the specific tasks and deliverables to similar contracts awarded through full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating that it was not competed through a standard solicitation process. This typically means the agency identified a specific need that could only be met by a particular contractor, or that the procurement falls under specific exceptions to full and open competition. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best value.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. This could result in a higher overall cost for the services provided.

Public Impact

The primary beneficiaries are likely federal agencies requiring computer systems design and integration services. Services delivered will focus on enhancing or developing IT systems to meet specific government operational needs. The geographic impact is primarily within South Carolina, where the contractor is located, but the services may support broader federal operations. Workforce implications include potential job creation or utilization of skilled IT professionals by VANA SOLUTIONS LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpricing and suboptimal value.
The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny to ensure proper justification and adherence to procurement regulations.
Limited transparency into the specific services and performance metrics makes it difficult to assess effectiveness.
The contract's duration and value could represent a significant commitment without demonstrated market-tested pricing.

Positive Signals

Award to a single contractor suggests a potentially specialized capability meeting a specific agency requirement.
The contract is for computer systems design services, a critical area for federal IT modernization.
The contractor, VANA SOLUTIONS LLC, is receiving a substantial award, indicating a level of trust or established relationship.
The contract is managed by the General Services Administration (GSA), which often implies adherence to established procurement standards.

Sector Analysis

The Information Technology (IT) sector is a significant area of federal spending, encompassing a wide range of services from software development to cybersecurity and systems integration. Computer Systems Design Services, classified under NAICS code 541512, represent a core component of this sector. Federal agencies consistently invest heavily in IT to maintain and upgrade their infrastructure, improve operational efficiency, and enhance service delivery. This contract fits within the broader trend of government reliance on specialized IT contractors to meet complex technological demands. Comparable spending benchmarks for IT services can vary widely based on scope, complexity, and security requirements, but multi-million dollar awards for system design are common.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. Therefore, there is no direct set-aside benefit for small businesses in this specific award. However, as a prime contractor, VANA SOLUTIONS LLC may engage small businesses for subcontracting opportunities, depending on the nature of the services required and the company's subcontracting plan. The absence of a small business set-aside means that larger, established companies were likely considered or were the only ones capable of meeting the contract's requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service, which awarded the contract. The contract's performance will be monitored to ensure deliverables are met according to the terms and conditions. Accountability measures are typically embedded in contract clauses, including performance standards and payment schedules tied to successful completion of milestones. Transparency is often limited for sole-source or non-competed contracts, but reporting requirements may exist through contract management systems. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Services
Computer Systems Design
Federal Acquisition Service Contracts
General Services Administration IT Procurement
Sole Source IT Awards

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Sole Source Justification Required

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $32.6 million to VANA SOLUTIONS LLC. VANA TO16 AFCENT SBIR PHASE III

Who is the contractor on this award?

The obligated recipient is VANA SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $32.6 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What specific computer systems design services are being provided under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS 541512) awarded to VANA SOLUTIONS LLC by the General Services Administration (GSA). However, the specific nature of these services is not detailed. Typically, computer systems design services can encompass a broad range of activities, including analyzing user needs, designing system architecture, developing software specifications, integrating hardware and software components, and providing technical consulting. Without further documentation, such as the Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to ascertain the precise tasks, deliverables, and technical focus of this $32.6 million contract. This lack of specificity makes it difficult to assess the contract's true value and alignment with agency objectives.

Why was this contract not competed, and what justification was provided?

The contract is marked with 'ct': 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited-source award. Federal procurement regulations generally require full and open competition to ensure the best value for taxpayers. However, exceptions exist, such as when only one responsible source can satisfy the agency's needs, or in specific circumstances like follow-on work to a prior contract where competition is not feasible. The justification for not competing this $32.6 million award would typically be documented in a Justification for Other Than Full and Open Competition (JOFOC) or a similar agency-specific document. Without access to this justification, it is impossible to verify the necessity of a sole-source award and assess whether taxpayer interests were adequately protected.

How does the 'LABOR HOURS' contract type impact cost and performance monitoring?

The contract type is specified as 'LABOR HOURS' ('pt': 'LABOR HOURS'), meaning the government pays for the direct labor hours expended by the contractor at specified hourly rates, plus applicable overhead, profit, and other direct costs. This type of contract is often used when the scope of work is not clearly defined or is expected to evolve, making a fixed-price contract impractical. For cost control, the government must closely monitor the hours worked by contractor personnel and ensure they are reasonable and necessary for the tasks performed. Performance monitoring involves tracking progress against defined objectives and ensuring that the labor hours are being used efficiently to achieve those objectives. While it offers flexibility, it also places a greater burden on the government to manage and oversee contractor effort to prevent cost overruns and ensure value.

What is the track record of VANA SOLUTIONS LLC in delivering similar computer systems design services to the federal government?

The provided data identifies VANA SOLUTIONS LLC as the contractor for this $32.6 million award. However, it does not offer details on the company's past performance or track record with the federal government. To assess the contractor's reliability and capability, one would need to examine their contract history, including past performance evaluations, any awards or penalties received, and the successful completion of previous government contracts, particularly those involving computer systems design services. A strong track record typically indicates a contractor's ability to deliver quality services on time and within budget. Without this information, the assessment of risk associated with this award is incomplete.

Are there any comparable contracts for computer systems design services that can be used to benchmark this award's value?

Benchmarking this $32.6 million award for computer systems design services is difficult without more specific details about the scope of work and the services rendered. The contract is awarded by the General Services Administration (GSA) under NAICS code 541512. To establish a benchmark, one would need to identify similar contracts awarded by GSA or other federal agencies for comparable services, considering factors like contract duration, complexity, security requirements, and the specific technologies involved. The fact that this contract was not competed ('NOT AVAILABLE FOR COMPETITION') further complicates benchmarking, as competitive awards typically yield more transparent and market-driven pricing. A thorough benchmark would require access to a database of federal contracts and the ability to filter for relevant parameters.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of $32.6 million carries several potential risks. Firstly, the lack of competition means the government may not be achieving the best possible price, potentially leading to higher costs for taxpayers. Secondly, without the pressure of competition, the contractor might have less incentive to innovate or maintain high service quality. Thirdly, there's a risk that the justification for the sole-source award might be weak or improperly applied, indicating potential procedural irregularities. Finally, if the chosen contractor underperforms, the government has limited recourse without a competitive process to switch providers. Robust oversight and clear performance metrics are crucial to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA23R0079

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3610 PENTAGON BLVD SUITE 110, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,730,745

Exercised Options: $32,730,745

Current Obligation: $32,585,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA19D0005

IDV Type: IDC

Timeline