VA awards $97M for IT testing services to Planned Systems International Inc

Contract Overview

Contract Amount: $97,033,330 ($97.0M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-07-27

End Date: 2014-09-12

Contract Duration: 1,873 days

Daily Burn Rate: $51.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD TESTING SERVICE SUPPORT SVS

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $97.0 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: BASE PERIOD TESTING SERVICE SUPPORT SVS Key points: 1. Contract value of $97M over 5 years suggests significant IT support needs. 2. Sole awardee indicates potential for limited competition or specialized capabilities. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Contract duration of 5 years allows for long-term service provision and relationship building. 5. The 'Other Computer Related Services' NAICS code points to a broad range of IT support.

Value Assessment

Rating: fair

The contract's total value of $97 million over five years averages to approximately $19.4 million annually. Without specific performance metrics or comparison data for similar testing services, it is difficult to definitively benchmark value. However, the firm-fixed-price structure suggests an attempt to manage costs. Further analysis would require comparing the per-unit cost of services or the overall cost relative to the scope of work against industry standards or other government contracts for similar IT testing support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows 3 bids were received. While the number of bidders is relatively low for a contract of this size, full and open competition generally promotes price discovery and allows the government to select the best value offer. The specific evaluation criteria and the number of proposals received would provide more insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it encourages competitive pricing and allows for the selection of the most advantageous offer.

Public Impact

Veterans Affairs (VA) benefits from consistent and potentially high-quality IT testing services. The contract supports the delivery of IT services and infrastructure critical to VA operations. Services are likely concentrated in Florida, given the 'ST' and 'SN' codes. The contract supports jobs within the IT services sector, potentially in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term contract and specialized services.
Risk of cost overruns if the scope of work expands beyond initial projections.
Dependence on a single contractor for critical IT testing functions.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Long contract duration allows for stable service delivery and relationship building.
Full and open competition mechanism can lead to competitive pricing.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The IT services market is highly competitive and dynamic, with significant government spending allocated to support agency operations and modernization efforts. Benchmarking this contract's value would involve comparing its annual value ($19.4M) against IT support contracts of similar scope and duration across federal agencies, considering the specific services provided under NAICS code 541519.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business subcontracting goals were explicitly mentioned. This suggests that the primary awardee, Planned Systems International Inc., is likely a large business. The absence of small business set-asides or subcontracting requirements means that the direct impact on the small business IT ecosystem for this specific contract may be limited, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally facilitated through contract award databases like FPDS. Specific accountability measures would be detailed within the contract's statement of work and performance standards. Inspector General involvement would depend on any reported issues of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
Software Testing Services
Information Technology Professional Services

Risk Flags

Potential for scope creep in long-term IT contracts.
Risk of service quality degradation if contractor faces cost pressures.
Dependence on a single vendor for critical IT testing functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $97.0 million to PLANNED SYSTEMS INTERNATIONAL INC. BASE PERIOD TESTING SERVICE SUPPORT SVS

Who is the contractor on this award?

The obligated recipient is PLANNED SYSTEMS INTERNATIONAL 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 $97.0 million.

What is the period of performance?

Start: 2009-07-27. End: 2014-09-12.

What is the track record of Planned Systems International Inc. with the Department of Veterans Affairs and other federal agencies?

Planned Systems International Inc. (PSI) has a significant history of contracting with the federal government, including the Department of Veterans Affairs (VA). Reviewing PSI's contract history reveals numerous awards across various agencies for IT services, including software development, system integration, and technical support. For the VA specifically, PSI has secured multiple contracts over the years, indicating a sustained relationship and likely a demonstrated capability to meet the agency's needs. Analyzing past performance evaluations and any reported issues or successes on previous VA contracts would provide a clearer picture of their reliability and effectiveness in delivering services similar to those required under this testing support contract. Their overall federal contracting portfolio suggests they are an established player in the government IT services market.

How does the annual value of this contract compare to similar IT testing support contracts awarded by the VA or other agencies?

The annual value of this contract, approximately $19.4 million ($97M / 5 years), needs to be benchmarked against comparable IT testing support contracts. Without specific details on the scope and complexity of services, a direct comparison is challenging. However, for large-scale IT testing and support services, this annual figure is within a reasonable range for major federal agencies. Contracts for similar services can range from a few million to tens of millions annually, depending on the agency's size, the criticality of the systems being tested, and the specific deliverables. A more precise comparison would involve identifying contracts with similar NAICS codes (e.g., 541519), contract types (firm-fixed-price), and durations, while also considering the geographic scope and the specific technical requirements outlined in the statement of work.

What are the primary risks associated with a five-year firm-fixed-price contract for IT testing services?

A significant risk with a five-year firm-fixed-price (FFP) contract for IT testing services is the potential for scope creep or unforeseen technical challenges that were not adequately accounted for during the initial pricing. If the contractor encounters unexpected complexities or if the government's requirements evolve significantly, the FFP structure can lead to either the contractor absorbing substantial losses or seeking contract modifications, which can negate the cost certainty. Another risk is the potential for the contractor to reduce service quality to maintain profitability if costs increase unexpectedly. Furthermore, over a five-year period, technology can rapidly evolve, potentially making the contracted testing methodologies or tools outdated, which could impact the effectiveness of the services delivered. Ensuring robust change management processes and clear performance metrics are crucial to mitigate these risks.

What is the expected impact of this contract on the VA's IT infrastructure and service delivery?

This contract is expected to have a positive impact on the VA's IT infrastructure and service delivery by ensuring the quality, reliability, and security of its various IT systems. Comprehensive testing services are critical for identifying and rectifying defects, vulnerabilities, and performance issues before they affect end-users, including healthcare providers and veterans. By outsourcing these specialized testing functions to Planned Systems International Inc., the VA can leverage external expertise and resources, potentially leading to more efficient testing cycles and improved system stability. This, in turn, should contribute to smoother operations, enhanced data integrity, and a better user experience for both internal staff and the veterans who rely on VA digital services.

How has VA spending on IT testing services evolved over the past five years, and does this contract align with historical trends?

Analyzing VA's historical spending on IT testing services requires access to detailed procurement data over the past five years. Generally, federal IT spending, including testing services, has been substantial and often increasing due to the growing complexity of IT systems and the need for robust cybersecurity and performance assurance. This $97 million contract, spanning five years, represents a significant investment. If the VA has consistently awarded multi-year, multi-million dollar contracts for IT testing support, then this award aligns with historical trends of sustained investment in IT quality assurance. However, if this represents a substantial increase or decrease compared to previous similar contracts, it might indicate a shift in strategy, budget allocation, or perceived need for testing services within the VA.

Industry Classification

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKWY STE 200, COLUMBIA, MD, 03

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $97,033,330

Exercised Options: $97,033,330

Current Obligation: $97,033,330

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0024

IDV Type: IDC

Timeline