VA awards $120.5M for IT support services to Planned Systems International, Inc

Contract Overview

Contract Amount: $120,494,357 ($120.5M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-12

End Date: 2018-09-14

Contract Duration: 1,463 days

Daily Burn Rate: $82.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ETS SUPPORT SERVICES

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $120.5 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: IGF::OT::IGF ETS SUPPORT SERVICES Key points: 1. Contract value of $120.5M over four 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. Delivery Order under a larger contract structure implies a phased or modular approach. 5. Performance in Florida suggests a focus on regional IT infrastructure or services. 6. NAICS code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: fair

The contract value of $120.5 million over approximately four years for IT support services appears substantial. Benchmarking this against similar IT support contracts within the Department of Veterans Affairs (VA) or other large federal agencies would be necessary for a definitive value-for-money assessment. The firm fixed-price nature of the contract provides cost certainty, but the absence of detailed performance metrics or comparisons makes it difficult to fully evaluate the efficiency and effectiveness of the services rendered for the price paid. Without more granular data on the specific services provided and their outcomes, it's challenging to definitively label the value as excellent or concerning.

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. However, the data shows only two bids were received, which is a relatively low number for a contract of this magnitude. This limited number of bidders, despite the open competition, could suggest a specialized market, high barriers to entry, or that the solicitation may not have reached a broad enough audience. The specific reasons for the low bid count would need further investigation to understand the full competitive landscape.

Taxpayer Impact: While full and open competition was utilized, the low number of bids received means taxpayers may not have benefited from the most aggressive pricing that a larger pool of bidders could have potentially offered.

Public Impact

Veterans and VA staff benefit from reliable IT infrastructure and support services. Ensures the continuity and functionality of critical IT systems supporting healthcare and administrative functions. Services are geographically focused within Florida, impacting the state's federal IT workforce and infrastructure. Supports the operational needs of the Department of Veterans Affairs, a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids received despite full and open competition may indicate limited market engagement or specialized requirements.
Lack of detailed performance metrics makes it difficult to assess the true value for money and contractor efficiency.
The broad NAICS code (541519) could encompass a wide range of services, making it hard to pinpoint specific areas of potential over/under-spending without further detail.

Positive Signals

Firm Fixed Price contract type provides cost certainty and encourages contractor efficiency.
Awarded under full and open competition, theoretically allowing for the best possible offer.
Contract duration of approximately four years allows for stable IT support and planning.

Sector Analysis

The IT support services sector is a vast and critical component of federal operations, encompassing a wide array of services from network management to cybersecurity and help desk support. Federal spending in this area is consistently high, driven by the need to maintain aging infrastructure, adopt new technologies, and ensure secure operations. Contracts like this, under NAICS code 541519 (Other Computer Related Services), are common across many agencies. Benchmarks for similar IT support contracts can vary significantly based on scope, duration, and required expertise, but a $120.5 million award over four years places this contract in the mid-to-large size category for IT services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses arising from a set-aside provision. The prime contractor, Planned Systems International, Inc., is likely a mid-to-large sized business, and their engagement with the small business ecosystem would depend on their own subcontracting policies and opportunities outside of any formal set-aside requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under a larger contract, the specific oversight mechanisms would be detailed within the parent contract's terms and conditions. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services
IT Help Desk and Technical Support Contracts
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Low bid count despite full and open competition
Broad NAICS code may obscure specific service details
Lack of explicit performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $120.5 million to PLANNED SYSTEMS INTERNATIONAL INC. IGF::OT::IGF ETS SUPPORT SERVICES

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 $120.5 million.

What is the period of performance?

Start: 2014-09-12. End: 2018-09-14.

What specific IT support services were included under this $120.5 million contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services,' and is for 'ETS SUPPORT SERVICES.' However, the specific details of the services rendered are not itemized in the summary data. Typically, 'ETS Support Services' could encompass a broad range of activities including help desk support, network administration, system maintenance, hardware and software troubleshooting, user support, and potentially IT infrastructure management. To understand the precise scope, one would need to review the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order, which would detail the exact deliverables, service levels, and technical requirements.

How does the pricing of this contract compare to similar IT support services awarded by the VA or other federal agencies?

Direct price comparison is challenging without knowing the specific services, service levels, and geographic scope. However, a total contract value of approximately $120.5 million over four years averages to about $30 million per year. This figure needs to be broken down into per-labor-hour rates, fixed-price components for hardware/software, and other direct costs to be meaningfully benchmarked. Given the firm fixed-price nature, the VA aimed to establish a definitive price. A comprehensive analysis would involve comparing the contractor's proposed rates and total price against market research data, historical VA IT support contracts, and potentially other agency contracts for comparable services, considering factors like labor categories, experience levels, and geographic differentials.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of Planned Systems International, Inc. under this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the contractor's performance. For a contract of this nature and value, it is highly probable that the Statement of Work (SOW) or Performance Work Statement (PWS) included detailed performance standards and metrics. These could range from response times for help desk tickets, system uptime percentages, resolution rates for technical issues, user satisfaction scores, and adherence to security protocols. Effective oversight would involve regular performance reviews against these established metrics to ensure the VA is receiving the contracted services effectively and efficiently.

What is the track record of Planned Systems International, Inc. in delivering IT support services to the federal government?

Planned Systems International, Inc. (PSI) has a significant history of contracting with the federal government, including the Department of Veterans Affairs. They have been awarded numerous contracts across various agencies for IT services, professional services, and logistics support. Their track record generally indicates experience in providing IT solutions, including help desk, network management, and system integration. A deeper dive into their past performance evaluations, contract history (including any past performance issues or awards), and financial stability would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT support services.

Were there any significant risks identified during the procurement or execution of this contract?

The summary data does not explicitly list identified risks. However, potential risks inherent in large IT support contracts include scope creep, contractor performance issues, cybersecurity vulnerabilities, reliance on key personnel, and potential cost overruns if the fixed-price model is not well-defined. The fact that it was awarded under full and open competition with only two bidders might suggest perceived risks or high barriers to entry for other potential competitors. Effective risk management by the VA would involve proactive identification, mitigation strategies, and continuous monitoring throughout the contract's lifecycle.

How has federal spending on IT support services, particularly within the VA, trended over the past decade?

Federal spending on IT support services, including within the VA, has generally trended upwards over the past decade, driven by increasing digitization, the need to modernize legacy systems, and the expansion of digital services. The VA, in particular, has faced significant challenges and investments in upgrading its IT infrastructure to better serve veterans. This includes areas like electronic health records, data management, and cybersecurity. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the overall demand for robust IT support services remains consistently high across the federal government, with agencies like the VA being major spenders in this category.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKW, COLUMBIA, MD, 21044

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $144,832,281

Exercised Options: $120,494,357

Current Obligation: $120,494,357

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4649G

IDV Type: FSS

Timeline