Ventera LLC's $31.2M contract for SNAP tracking system O&M and enhancements shows fair value with a competitive history

Contract Overview

Contract Amount: $31,225,959 ($31.2M)

Contractor: Ventera LLC

Awarding Agency: Department of Agriculture

Start Date: 2017-09-22

End Date: 2022-09-26

Contract Duration: 1,830 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF SNAP STORE TRACKING AND REDEMPTION SYSTEM (STARS) BLANKET PURCHASE AGREEMENT (BPA) CALL #1 - OPERATIONS AND MAINTENANCE(O&M) AND ENHANCEMENTS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $31.2 million to VENTERA LLC for work described as: IGF::CT::IGF SNAP STORE TRACKING AND REDEMPTION SYSTEM (STARS) BLANKET PURCHASE AGREEMENT (BPA) CALL #1 - OPERATIONS AND MAINTENANCE(O&M) AND ENHANCEMENTS Key points: 1. The contract represents a significant investment in maintaining and improving a critical system for food assistance. 2. Competition dynamics suggest a healthy market for custom computer programming services in this sector. 3. Performance context is crucial for understanding the long-term value of this ongoing IT support. 4. Sector positioning highlights the government's reliance on specialized IT services for program management. 5. Risk indicators appear manageable given the firm-fixed-price structure and established contractor.

Value Assessment

Rating: fair

The total award amount of $31.2 million over approximately five years for operations, maintenance, and enhancements of the STARS system appears reasonable. Benchmarking against similar custom computer programming services contracts is challenging without more granular data on system complexity and scope. However, the firm-fixed-price nature of the contract provides cost certainty for the government, mitigating some of the financial risk associated with potential scope creep or unforeseen technical challenges. The value proposition hinges on the system's effectiveness in tracking and redeeming SNAP benefits, which directly impacts program integrity and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the fact that it was fully competed suggests a competitive marketplace for these types of IT services. Full and open competition generally leads to better price discovery and encourages vendors to offer competitive terms and pricing to win the contract. This approach aligns with federal procurement best practices aimed at maximizing value for taxpayer dollars.

Taxpayer Impact: A fully competed contract like this one helps ensure that the government is not overpaying for essential IT services. It drives down costs through market forces, ultimately benefiting taxpayers by allocating funds more efficiently.

Public Impact

Beneficiaries include SNAP recipients who rely on the system for timely and accurate benefit distribution. The services delivered are critical for the operational integrity and efficiency of the SNAP program. Geographic impact is nationwide, as the SNAP program serves individuals across all states. Workforce implications include the IT professionals employed by Ventera LLC to maintain and enhance the system, as well as the government personnel who utilize it.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if enhancements are not well-defined or managed.
Dependence on a single contractor for critical system maintenance could pose a risk if performance degrades.
Ensuring the system remains up-to-date with evolving technology and security threats requires continuous vigilance.

Positive Signals

Firm-fixed-price contract structure provides cost predictability.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract duration allows for sustained support and development of the critical system.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is large and diverse, with numerous companies capable of developing and maintaining complex software systems. Government spending in this area is substantial, driven by the need for efficient program management and data processing. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts for federal agencies, particularly those involving mission-critical systems like benefit distribution.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Ventera LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Nutrition Service (FNS) contracting officers and program managers within the Department of Agriculture. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and system performance. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed here, the USDA Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

SNAP Program Administration
Federal IT Modernization Programs
Custom Software Development Services
Government IT Operations and Maintenance

Risk Flags

Potential for scope creep in enhancements
Dependence on single vendor for critical system
Need for continuous system modernization
Ensuring data security and integrity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $31.2 million to VENTERA LLC. IGF::CT::IGF SNAP STORE TRACKING AND REDEMPTION SYSTEM (STARS) BLANKET PURCHASE AGREEMENT (BPA) CALL #1 - OPERATIONS AND MAINTENANCE(O&M) AND ENHANCEMENTS

Who is the contractor on this award?

The obligated recipient is VENTERA LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $31.2 million.

What is the period of performance?

Start: 2017-09-22. End: 2022-09-26.

What is the track record of Ventera LLC in performing similar government IT contracts?

Ventera LLC has a history of performing IT services for various government agencies. While specific details on past performance for the SNAP STARS system are not provided in this summary, their ability to secure and execute a multi-year, firm-fixed-price contract of this magnitude suggests a level of established capability and reliability. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous federal awards, would provide a more comprehensive understanding of their track record. This would include examining their performance on other custom computer programming services contracts and their adherence to delivery schedules and quality standards.

How does the per-unit cost or pricing structure of this contract compare to market rates for similar services?

The provided data does not include a specific per-unit cost breakdown, making direct market rate comparison difficult. The contract is a Blanket Purchase Agreement (BPA) Call, which often involves pre-negotiated rates or is based on established contract vehicles. The firm-fixed-price nature means the total cost is set, but the underlying labor rates or service costs are not explicitly detailed here. To benchmark effectively, one would need to compare the defined scope of work, required skill sets, and service level agreements against industry benchmarks for custom computer programming, IT operations, and maintenance services in the Washington D.C. metropolitan area, where Ventera LLC is based, or the specific geographic locations of the work.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if enhancements are not precisely defined, performance degradation impacting SNAP operations, and vendor lock-in. Mitigation strategies are inherent in the contract structure: the firm-fixed-price nature caps the government's financial exposure for the defined scope. The full and open competition process aims to select a capable vendor, and ongoing oversight by the FNS is expected to monitor performance and address issues proactively. Furthermore, the contract's duration allows for sustained support, but requires diligent management to ensure the system evolves with technological advancements and security requirements.

How effective has the STARS system been in achieving its stated goals of tracking and redemption of SNAP benefits?

The effectiveness of the STARS system is a critical measure of this contract's success, but this data summary does not provide performance metrics or outcome data. The system's primary goals are to ensure accurate tracking and redemption of SNAP benefits, which directly impacts program integrity, reduces fraud, and streamlines operations for both beneficiaries and the government. Evaluating its effectiveness would require analyzing data on error rates, fraud detection, processing times, user satisfaction (from both government staff and potentially SNAP recipients), and overall cost savings or efficiency gains attributed to the system. Without this performance data, the value derived from the $31.2 million investment remains partially unquantified.

What has been the historical spending trend for the STARS system or similar SNAP IT infrastructure over the past 5-10 years?

This specific data point only provides information for the current BPA Call awarded in 2017. To understand historical spending trends, one would need to access broader federal procurement databases to identify previous contracts related to the STARS system or its predecessors, as well as other IT infrastructure supporting the SNAP program. Analyzing spending patterns over a longer period would reveal whether investment in this area has been consistent, increasing, or decreasing, and how it compares to overall federal IT spending or spending on similar social welfare programs. This historical context is crucial for assessing the long-term financial commitment and strategic importance of maintaining and enhancing such systems.

Industry Classification

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

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

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: 1600 INTERNATIONAL DR, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,975,959

Exercised Options: $32,725,959

Current Obligation: $31,225,959

Actual Outlays: $19,294,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: AG3198B170010

IDV Type: BPA

Timeline