Education Dept. Spends $810M on Front End Business Integration System with Vangent, Inc

Contract Overview

Contract Amount: $810,444,391 ($810.4M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Education

Start Date: 2005-02-01

End Date: 2015-04-30

Contract Duration: 3,740 days

Daily Burn Rate: $216.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FRONT END BUSINESS INTEGRATION SYSTEM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $810.4 million to VANGENT, INC. for work described as: FRONT END BUSINESS INTEGRATION SYSTEM Key points: 1. Significant investment of over $810 million highlights the critical nature of the system. 2. Vangent, Inc. secured this large contract, indicating potential market concentration. 3. The long contract duration (2005-2015) suggests a substantial, ongoing need. 4. Computer Systems Design Services (NAICS 541512) is the sector for this large expenditure.

Value Assessment

Rating: questionable

The total award of $810 million over 10 years is substantial. Without specific performance metrics or comparable contract data, it's difficult to definitively assess value for money. The firm fixed-price contract type suggests cost certainty, but the overall scale warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the significant total value and long duration may have limited the number of actual bidders or the intensity of competition over time.

Taxpayer Impact: Over $810 million in taxpayer funds were allocated to this system over a decade. While the system's necessity is implied, the sheer scale necessitates assurance of efficient and effective use of these funds.

Public Impact

Impacts the Department of Education's ability to integrate business functions. Potential for improved or hindered student and financial aid processing. Long-term reliance on a single vendor for a critical system. Significant financial commitment from taxpayers for IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High total contract value
Long contract duration
Lack of clear performance benchmarks in provided data

Positive Signals

Awarded under full and open competition
Firm fixed-price contract type

Sector Analysis

The Department of Education's investment falls within the IT services sector, specifically computer systems design. Benchmarking this against other large-scale government IT projects is crucial to understand if the $810 million expenditure represents a competitive market rate for similar integration systems.

Small Business Impact

The data indicates the prime contractor is Vangent, Inc., and the 'sb' field is false, suggesting that small businesses were not the primary recipients or direct awardees of this specific contract. Subcontracting opportunities for small businesses are not detailed here.

Oversight & Accountability

The long duration and significant value of this contract suggest a need for robust oversight to ensure continued alignment with agency goals and efficient use of funds. Monitoring performance and vendor adherence to contract terms would be key oversight activities.

Related Government Programs

Computer Systems Design Services
Department of Education Contracting
Department of Education Programs

Risk Flags

High total contract value ($810M)
Long contract duration (10 years)
Potential for vendor lock-in
Lack of detailed performance metrics in provided data
Limited insight into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $810.4 million to VANGENT, INC.. FRONT END BUSINESS INTEGRATION SYSTEM

Who is the contractor on this award?

The obligated recipient is VANGENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $810.4 million.

What is the period of performance?

Start: 2005-02-01. End: 2015-04-30.

What specific functionalities does the Front End Business Integration System provide, and how do these directly contribute to the Department of Education's mission?

The Front End Business Integration System likely serves as a crucial interface for various departmental operations, potentially including student financial aid processing, data management, and administrative functions. Its direct contribution to the mission would be enabling efficient and accurate delivery of educational services and support to students, institutions, and the public by streamlining complex business processes and data flows.

Given the $810 million total award, what were the key performance indicators (KPIs) used to measure the success and value delivered by Vangent, Inc. over the contract's lifespan?

Detailed KPIs for this contract are not provided in the data. Typically, for such a large IT integration system, KPIs would focus on system uptime, data accuracy rates, processing speed for key transactions (e.g., financial aid applications), user satisfaction, reduction in manual workarounds, and successful integration with other agency systems. Measuring these against baseline performance would determine the value delivered.

How did the 'full and open competition' process ensure the best possible price and technical solution for this extensive IT system, considering its decade-long duration?

Full and open competition theoretically allows any interested and capable vendor to bid, fostering a competitive environment that drives down prices and encourages innovative technical solutions. For a decade-long contract, the initial competition would have aimed to secure the best value at the outset. However, ongoing oversight and potential contract modifications would be critical to ensure continued value and adaptation to evolving needs throughout the system's lifecycle.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 4250 N FAIRFAX DR STE 1200, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $1,204,475,696

Exercised Options: $810,444,392

Current Obligation: $810,444,391

Timeline