DHS awards $29M for IT modernization, with Ventera LLC securing a significant portion
Contract Overview
Contract Amount: $29,032,881 ($29.0M)
Contractor: Ventera LLC
Awarding Agency: Department of Homeland Security
Start Date: 2017-09-27
End Date: 2023-03-26
Contract Duration: 2,006 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF MODERNIZATION OF EXECUTION, PERFORMANCE, INVOICE CONSOLIDATION (EPIC)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $29.0 million to VENTERA LLC for work described as: IGF::OT::IGF MODERNIZATION OF EXECUTION, PERFORMANCE, INVOICE CONSOLIDATION (EPIC) Key points: 1. Contract value of $29 million over six years indicates a substantial investment in IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. The duration of the contract (over 2000 days) suggests a long-term need for these services. 5. The award to Ventera LLC highlights their role in supporting critical government IT functions. 6. The specific NAICS code (541511) points to custom computer programming services, a key area for modernization.
Value Assessment
Rating: fair
The total award of $29 million over approximately six years averages to about $4.8 million annually. Benchmarking this against similar custom computer programming contracts for federal agencies requires detailed analysis of scope and deliverables. However, the Time and Materials (T&M) pricing model, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed with rigorous oversight and clear task definitions. Without specific performance metrics or comparison data, assessing the true value-for-money is challenging, but the duration and scale suggest a significant, ongoing need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The presence of multiple bidders typically allows for price discovery and encourages contractors to offer their best terms.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider pool of qualified vendors to bid, potentially driving down costs.
Public Impact
The Department of Homeland Security (DHS) benefits from modernized IT systems, enhancing operational efficiency. Custom computer programming services are delivered to support the agency's mission-critical functions. The contract's impact is primarily within the federal government's IT infrastructure, supporting internal operations. Workforce implications may include the need for specialized IT personnel to implement and manage the new systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not meticulously monitored.
- The long contract duration may reduce flexibility to adapt to rapidly changing technology landscapes.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency gains.
- The concentration of a large award with one contractor could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contract addresses a critical need for IT modernization within a major federal agency.
- The duration indicates a sustained commitment to improving essential IT services.
- The specific NAICS code points to specialized programming expertise being leveraged.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services (NAICS 541511). The federal IT market is vast, with agencies consistently investing in modernization to improve efficiency, security, and service delivery. Comparable spending benchmarks would involve analyzing other large-scale IT development and modernization contracts awarded by agencies like DHS, DoD, or GSA. The market for custom programming is competitive, with numerous firms offering specialized skills.
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 stemming from a small business set-aside. 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 contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- DHS IT Modernization Initiatives
- Custom Software Development Services
- Federal IT Services Contracts
- Procurement Operations Support
Risk Flags
- Potential for cost overruns due to T&M pricing
- Risk of technology obsolescence over long contract duration
- Need for strong government oversight to manage performance and costs
- Dependence on a single contractor for critical IT modernization
Tags
it, dhs, custom-computer-programming, time-and-materials, full-and-open-competition, delivery-order, ventera-llc, federal-contract, it-modernization, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $29.0 million to VENTERA LLC. IGF::OT::IGF MODERNIZATION OF EXECUTION, PERFORMANCE, INVOICE CONSOLIDATION (EPIC)
Who is the contractor on this award?
The obligated recipient is VENTERA LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $29.0 million.
What is the period of performance?
Start: 2017-09-27. End: 2023-03-26.
What is Ventera LLC's track record with federal IT contracts, particularly with DHS?
Ventera LLC has a history of performing federal IT contracts. While the provided data focuses on this specific award, a deeper dive into federal procurement databases would reveal the extent of their contract history, including past performance ratings, types of services rendered, and agencies served. Their involvement with DHS on this significant IT modernization effort suggests a level of trust and capability recognized by the agency. Examining past performance on similar contracts, especially those involving custom programming and system integration, would provide further insight into their reliability and expertise in delivering complex IT solutions for government clients.
How does the $29 million award compare to other IT modernization contracts within DHS?
The $29 million award for IT modernization over approximately six years represents a substantial investment. To benchmark this, one would compare it to other DHS contracts for similar services, such as custom computer programming, system integration, or enterprise resource planning (ERP) implementations. For instance, if DHS has awarded multiple contracts in the $5-10 million range for smaller modernization projects, this $29 million contract signifies a larger, more comprehensive initiative. Conversely, if DHS has awarded multi-hundred-million-dollar contracts for enterprise-wide IT overhauls, this contract might be considered a significant but focused project within a broader modernization strategy. The average annual value of approximately $4.8 million places it as a mid-to-large-sized IT project.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?
The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a predetermined ceiling on the total cost. If the scope of work is not clearly defined, or if project management is lax, the contractor may incur significant labor hours and material costs, leading to a final price that exceeds initial expectations. This necessitates robust oversight from the government to ensure that hours billed are reasonable and allocable to the defined tasks, and that materials are necessary and priced appropriately. Without stringent monitoring, T&M can be less cost-effective for the government compared to other contract types.
How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?
Full and open competition is designed to maximize value for money by encouraging a wide range of qualified vendors to bid, thereby fostering price competition and innovation. For this $29 million IT modernization contract, this approach likely led to a more competitive bidding environment, potentially driving down costs and improving the quality of proposals received. However, the ultimate value for money also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to effectively manage the contract post-award. While competition is a strong indicator of potential value, ongoing performance monitoring and contract administration are crucial to realizing those benefits throughout the contract's lifecycle.
What are the historical spending patterns for custom computer programming services at DHS?
Historical spending patterns for custom computer programming services at DHS would reveal the agency's consistent investment in this area. Analyzing past contract awards for NAICS code 541511 (Custom Computer Programming Services) within DHS over several fiscal years would indicate trends in contract values, durations, and the types of services procured. This data could show whether DHS typically awards large, multi-year contracts like this one, or if spending is distributed across numerous smaller projects. Understanding these patterns helps contextualize the current $29 million award, indicating if it represents a typical investment, an increase in spending, or a shift in procurement strategy for IT modernization efforts.
What are the potential performance challenges given the contract's duration and scope?
The contract's duration of approximately six years (2006 days) and its focus on IT modernization present potential performance challenges. Technology evolves rapidly, and a six-year timeframe could see significant shifts in required capabilities or the emergence of more efficient solutions. Maintaining relevance and adaptability over such a long period requires proactive contract management and potentially contract modifications. Furthermore, the complexity of modernizing IT systems can lead to unforeseen technical hurdles, integration issues, and scope creep, all of which can impact performance. Ensuring clear communication, agile development methodologies, and rigorous testing throughout the contract's life is critical to mitigating these challenges.
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
Solicitation ID: HSHQDC-17-Q-00008
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1600 INTERNATIONAL DR, MC LEAN, VA, 22102
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $68,216,085
Exercised Options: $29,032,881
Current Obligation: $29,032,881
Actual Outlays: $1,589,485
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0286L
IDV Type: FSS
Timeline
Start Date: 2017-09-27
Current End Date: 2023-03-26
Potential End Date: 2024-09-10 00:00:00
Last Modified: 2023-09-11
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