VA awards $17M IT services contract to Apptis, Inc. for command surgeon general support

Contract Overview

Contract Amount: $17,036,906 ($17.0M)

Contractor: Apptis, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-05-11

End Date: 2009-09-30

Contract Duration: 1,603 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION MANAGEMENT AND INFORMATION TECHNOLOGY SERVICES FOR OFFICE OF THE COMMAND SURGEON GENERAL HQ AETC

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.0 million to APPTIS, INC. for work described as: INFORMATION MANAGEMENT AND INFORMATION TECHNOLOGY SERVICES FOR OFFICE OF THE COMMAND SURGEON GENERAL HQ AETC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 4 years indicates a significant, long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The specific IT services required are for the Office of the Command Surgeon General HQ AETC. 5. Apptis, Inc. is the sole awardee, highlighting their success in the competitive bid. 6. The contract value of $17 million positions it as a substantial investment in IT support.

Value Assessment

Rating: good

The contract value of $17 million for IT services appears reasonable given the 4-year duration and the scope of supporting a command surgeon general's office. Benchmarking against similar IT support contracts for large government organizations would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of work was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 15 bids indicates a healthy level of interest and competition for this requirement. A competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The robust competition suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best value, driving down potential costs.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, specifically the Office of the Command Surgeon General HQ AETC, which receives essential IT support. Services delivered include computer systems design and related IT support crucial for the operational efficiency of the medical command. The geographic impact is primarily within the VA's command structure, supporting its healthcare mission. Workforce implications include the potential for IT professionals employed by Apptis, Inc. to support this critical government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades.
Ensuring ongoing cost-effectiveness throughout the contract's multi-year term requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract type helps mitigate cost overruns.
Multiple bidders (15) suggest a competitive market for these services.
Long contract duration allows for stable support and potential for contractor expertise development.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market for government agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the VA's investment in ensuring its medical command functions efficiently through robust technological infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the awardee, Apptis, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting goals.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of cost control. Transparency is facilitated by the public award notice. Accountability would be managed through contract performance reviews and adherence to service level agreements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration IT Support Contracts
Department of Defense IT Services
Medical Information Systems Procurement
Federal IT Services Contracts
Computer Systems Design Services

Risk Flags

Contract Duration
Sole Awardee
IT Service Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.0 million to APPTIS, INC.. INFORMATION MANAGEMENT AND INFORMATION TECHNOLOGY SERVICES FOR OFFICE OF THE COMMAND SURGEON GENERAL HQ AETC

Who is the contractor on this award?

The obligated recipient is APPTIS, INC..

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 $17.0 million.

What is the period of performance?

Start: 2005-05-11. End: 2009-09-30.

What is the track record of Apptis, Inc. in performing similar IT services for the Department of Veterans Affairs or other federal agencies?

A comprehensive review of Apptis, Inc.'s past performance would involve examining contract histories, past performance evaluations, and any reported issues or successes on similar government contracts. This includes assessing their ability to meet deadlines, deliver quality services, and manage budgets effectively. For this specific contract, understanding their experience with medical IT systems and command-level support would be crucial. Without direct access to performance reports, it's difficult to definitively assess their track record, but the award itself suggests they met the initial qualifications and demonstrated capability during the bidding process.

How does the awarded price of $17 million compare to market rates for similar IT services over a 4-year period?

To benchmark the $17 million award, one would compare it against industry data for IT services contracts of similar scope, duration, and complexity, particularly those awarded by government entities. This involves analyzing average hourly rates, project management fees, and overhead costs for comparable services. Factors like the specific technologies supported, security requirements, and geographic location of services can influence market rates. A detailed comparison would require access to market research reports or databases of IT service costs. Given the firm fixed-price nature, the VA likely conducted its own price analysis to ensure the offered price was fair and reasonable before awarding the contract.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

While the provided data does not detail specific KPIs or SLAs, typical indicators for IT services contracts include system uptime, response times for technical support, data security compliance, and project completion rates. These are usually defined in the contract's statement of work. Monitoring is typically conducted through regular performance reviews, contractor-submitted reports, and potentially government-led quality assurance surveillance. The VA's contracting officer and technical points of contact would be responsible for overseeing Apptis, Inc.'s adherence to these performance standards throughout the contract's life.

What is the potential impact of this contract on the VA's overall IT modernization efforts or specific healthcare technology initiatives?

This contract directly supports the operational IT needs of the Office of the Command Surgeon General, which is integral to the VA's healthcare mission. By ensuring reliable IT infrastructure and services, it indirectly contributes to the VA's broader IT modernization goals by maintaining a stable foundation upon which new technologies can be implemented. The specific impact on modernization depends on whether the services provided include support for legacy systems or the integration of new technological solutions within the command's operations.

How has the VA's spending on IT services for medical command and support functions evolved over the past five years?

Analyzing the VA's spending trends on IT services for medical command and support over the past five years would require accessing historical contract data and budget allocations. This would reveal whether spending has increased, decreased, or remained stable, and identify any shifts in the types of IT services procured. Such an analysis could highlight evolving technological needs, changes in procurement strategies, or the impact of broader healthcare IT initiatives on departmental spending patterns.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks could include performance failures by the contractor, cybersecurity threats to sensitive data, cost overruns (though mitigated by fixed-price), and potential disruptions during service transitions. Mitigation strategies likely involve robust contract oversight, clearly defined performance standards and penalties, regular security audits, contingency planning, and maintaining open communication channels with the contractor. The VA's contracting team would be responsible for proactively identifying and managing these risks throughout the contract 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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: V261-0235-04

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Apptis Holdings Inc. (UEI: 165295606)

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,085,713

Exercised Options: $17,036,906

Current Obligation: $17,036,906

Contract Characteristics

Cost or Pricing Data: NO

Timeline