VA's VATAS system deployment and hosting contract awarded to Leidos SMS Inc. for $28.5M

Contract Overview

Contract Amount: $28,506,870 ($28.5M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-07-15

End Date: 2020-03-08

Contract Duration: 1,698 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A HOSTING ENVIRONMENT FOR THE VATAS SYSTEM AND A WEB ENVIRONMENT FOR USER ACCESS TO VATAS TRAINING MODULES. THE CONTRACTOR SHALL PROVIDE SERVICES TO COMPLETE THE SUCCESSFUL DEPLOYMENT OF VATAS TO INCLUDE SOFTWARE DEVELOPMENT, VA STATION DEPLOYMENT, AND OPERATIONS AND MAINTENANCE TO SUPPORT ONGOING SUSTAINMENT OF VATAS FOR AN INITIAL 35,000 EMPLOYEE TIMECARDS RAMPING UP TO APPROXIMATELY 370,000 EMPLOYEE TIMECARDS PER PAYROLL PERIOD.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.5 million to LEIDOS SMS INC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A HOSTING ENVIRONMENT FOR THE VATAS SYSTEM AND A WEB ENVIRONMENT FOR USER ACCESS TO VATAS TRAINING MODULES. THE CONTRACTOR SHALL PROVIDE SERVICES TO COMPLETE THE SUCCESSFUL DEPLOYMENT OF VATAS TO INCLUDE SOFTWARE DEVELOPMENT, VA STATION… Key points: 1. Contract supports a critical system for managing employee timecards, impacting a large workforce. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 4. The contract duration of nearly 5 years indicates a long-term need for these services. 5. Services include software development, deployment, and ongoing operations and maintenance. 6. The contract is for computer systems design services, a common IT procurement category.

Value Assessment

Rating: good

The contract value of $28.5 million over approximately 1700 days appears reasonable for a system supporting hundreds of thousands of users. Benchmarking against similar large-scale IT system deployments for federal agencies suggests this is within expected cost ranges. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive down prices and ensure the government receives fair market value. The presence of multiple bidders typically leads to a more robust selection of the most capable and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a lower overall cost compared to a sole-source or limited competition scenario.

Public Impact

Federal employees within the Department of Veterans Affairs will benefit from an improved timecard management system. The contract delivers essential IT services including software development, system deployment, and ongoing maintenance. The system is designed to support approximately 370,000 employee timecards per payroll period. The primary geographic impact is within the Department of Veterans Affairs' operational locations nationwide. The contract supports the IT workforce involved in developing, deploying, and maintaining the VATAS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical system hosting and maintenance could pose a risk if performance issues arise.
Ensuring adequate cybersecurity measures are in place for a system handling sensitive employee data is crucial.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a potentially competitive and fair price.
Contract includes provisions for operations and maintenance, ensuring long-term system viability.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, procuring them for a wide range of applications from administrative systems to mission-critical platforms. Spending in this sector is driven by the need for modernization, efficiency, and the development of new technological capabilities across all agencies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large contract awarded through full and open competition, it is possible that larger prime contractors were involved, with potential for subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a firm-fixed-price contract, performance monitoring and acceptance of deliverables are key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal IT Services Procurement
Software Development Contracts
System Deployment and Integration
IT Operations and Maintenance
Employee Management Systems

Risk Flags

Potential for performance delays
Cybersecurity vulnerabilities
Scalability issues under peak load
Data integrity and accuracy concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.5 million to LEIDOS SMS INC. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A HOSTING ENVIRONMENT FOR THE VATAS SYSTEM AND A WEB ENVIRONMENT FOR USER ACCESS TO VATAS TRAINING MODULES. THE CONTRACTOR SHALL PROVIDE SERVICES TO COMPLETE THE SUCCESSFUL DEPLOYMENT OF VATAS TO INCLUDE SOFTWARE DEVELOPMENT, VA STATION DEPLOYMENT, AND OPERATIONS AND MAINTENANCE TO SUPPORT ONGOING SUSTAINMENT OF VATAS FOR AN INITIAL 35,000 EMPLOYEE TIMECARDS RAMPING UP TO APPROXIMATELY 370,000 EMPLOYEE TIMECARDS PER PAYROLL PERIOD.

Who is the contractor on this award?

The obligated recipient is LEIDOS SMS 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 $28.5 million.

What is the period of performance?

Start: 2015-07-15. End: 2020-03-08.

What is the track record of Leidos SMS Inc. in delivering similar large-scale IT systems for the federal government?

Leidos, and its subsidiaries like Leidos SMS Inc., has a significant history of performing large IT contracts for various federal agencies, including the Department of Veterans Affairs. Their experience often spans complex system development, integration, and sustainment. While specific performance metrics for this VATAS contract are not detailed here, Leidos is generally considered a major federal IT contractor with a broad portfolio. A deeper dive into past performance evaluations, contract close-out reports, and any past performance questionnaires (PPQs) associated with Leidos's other VA or similar agency contracts would provide a more granular understanding of their track record in delivering complex systems on time and within budget.

How does the cost of this contract compare to similar IT system deployments within the VA or other federal agencies?

Direct cost comparisons for IT system deployments are challenging due to variations in scope, complexity, user base, and contract type. However, a $28.5 million contract for a system supporting up to 370,000 users over nearly five years, encompassing development, deployment, and O&M, appears to be within a reasonable range for large federal IT initiatives. Similar projects, such as enterprise resource planning (ERP) implementations or large-scale human resources management systems, often run into tens or hundreds of millions of dollars. The firm-fixed-price nature of this contract also suggests that the government has secured a defined cost, with the contractor assuming cost overrun risks, which is a positive value indicator.

What are the primary risks associated with the performance of this contract for the Department of Veterans Affairs?

The primary risks for the VA in this contract revolve around successful system deployment and ongoing operational performance. Key risks include potential delays in software development and deployment, which could impact the transition for the large employee base. Ensuring the system's scalability and reliability to handle the peak load of 370,000 employee timecards per payroll period is critical; performance failures could disrupt payroll processing. Furthermore, cybersecurity risks associated with protecting sensitive employee data within the VATAS system are paramount. The contractor's ability to provide effective and timely operations and maintenance throughout the contract period is also a significant performance consideration.

How effective is the VATAS system likely to be in improving employee timecard management for the VA?

The effectiveness of the VATAS system hinges on its design, user interface, and integration capabilities. As a system intended to manage timecards for a large workforce (up to 370,000 employees), its success will be measured by its ability to accurately capture, process, and report time data efficiently and reliably. If well-implemented, it should streamline the timekeeping process, reduce manual errors, improve payroll accuracy, and provide better data for workforce management. The contract's scope, including software development and O&M, suggests a comprehensive approach. However, user adoption and satisfaction, which are not directly quantifiable from the contract data, will be key determinants of its overall effectiveness in practice.

What are the historical spending patterns for computer systems design services by the Department of Veterans Affairs?

The Department of Veterans Affairs is a significant spender on IT services, including computer systems design. Historical data indicates a consistent and substantial investment in modernizing its IT infrastructure and developing new systems to support its vast healthcare and benefits operations. Spending in this category typically fluctuates based on major system replacement cycles, new technology adoption initiatives, and specific program needs, such as the VATAS system. The VA's overall IT budget is in the billions annually, with a notable portion allocated to services like those procured under this contract. Analyzing historical VA spending on NAICS code 541512 (Computer Systems Design Services) would reveal trends and the typical scale of such procurements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: ONE NORTHERN CONCOURSE, SYRACUSE, NY, 13212

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

Financial Breakdown

Contract Ceiling: $32,510,910

Exercised Options: $28,506,870

Current Obligation: $28,506,870

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,192,502

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline