VA's $47.5M VETLINK System O&M contract awarded to Vecna Technologies, Inc. under full and open competition

Contract Overview

Contract Amount: $47,531,236 ($47.5M)

Contractor: Vecna Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-05-08

End Date: 2019-09-30

Contract Duration: 1,606 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR VPS VETLINK SYSTEM

Place of Performance

Location: HARPERS FERRY, JEFFERSON County, WEST VIRGINIA, 25425

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.5 million to VECNA TECHNOLOGIES, INC for work described as: IGF::OT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR VPS VETLINK SYSTEM Key points: 1. Contract value represents a significant investment in maintaining a critical VA IT system. 2. Vecna Technologies, Inc. secured this contract through a competitive bidding process. 3. The contract duration of over 4 years suggests a need for sustained operational support. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. The award was made by the Department of Veterans Affairs, indicating a focus on veteran services. 6. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.

Value Assessment

Rating: fair

The contract's total value of $47.5 million over approximately four years for IT operations and maintenance services requires careful benchmarking. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. However, the firm-fixed-price structure suggests an attempt to manage costs. Comparing this to similar IT O&M contracts within the federal government, particularly for specialized systems like VETLINK, would be necessary for a more precise evaluation of its cost-effectiveness and pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the competitive nature of the award suggests that multiple companies vied for this opportunity. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and service for the VETLINK system's maintenance and operation.

Public Impact

Veterans will benefit from the continued reliable operation of the VETLINK system, which likely supports various aspects of their care and benefits. The contract ensures the ongoing maintenance and operational support for a critical IT infrastructure within the Department of Veterans Affairs. The geographic impact is likely nationwide, as the VETLINK system is presumably used across various VA facilities. The contract supports jobs within the IT services sector, specifically in custom computer programming and system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'operations and maintenance' is not tightly managed.
Dependence on a single contractor for critical system support could pose a risk if performance degrades.
Ensuring the system remains up-to-date with evolving cybersecurity threats requires continuous vigilance.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract indicates a stable need and potentially a proven track record of the contractor.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and related services. The federal IT market is substantial, with significant spending on software development, maintenance, and operations. Contracts like this are crucial for agencies to maintain their digital infrastructure and deliver services. Benchmarking this contract's value would involve comparing its per-year cost against similar IT O&M contracts for large-scale government systems, considering factors like system complexity and user base.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Vecna Technologies, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the focus was on the best technical and price offering, regardless of business size.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The contract's firm-fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Depending on the specific VA Inspector General's jurisdiction, there may be oversight related to the performance and financial integrity of this contract.

Related Government Programs

Veterans Health Administration IT Modernization
Federal Civilian IT Operations and Maintenance
Department of Veterans Affairs Core Systems Support
Custom Software Development Services

Risk Flags

Potential for vendor lock-in if competition is limited in future procurements.
Cybersecurity risks associated with maintaining a critical veteran-facing system.
Ensuring continued relevance and modernization of the VETLINK system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.5 million to VECNA TECHNOLOGIES, INC. IGF::OT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR VPS VETLINK SYSTEM

Who is the contractor on this award?

The obligated recipient is VECNA TECHNOLOGIES, 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 $47.5 million.

What is the period of performance?

Start: 2015-05-08. End: 2019-09-30.

What is the historical spending trend for VETLINK system operations and maintenance?

The provided data reflects a single award of $47,531,236.43 to Vecna Technologies, Inc. for the VETLINK system's operations and maintenance, spanning from May 8, 2015, to September 30, 2019. This represents a total contract value over approximately 1606 days (around 4.4 years). To understand the historical spending trend, one would need to examine prior contracts for the VETLINK system's O&M, if any, or subsequent contracts awarded for its continued support. Without this broader context, it's impossible to discern a trend, only the magnitude of this specific contract award.

How does the per-year cost of this contract compare to similar VA IT O&M contracts?

The total contract value is approximately $47.5 million over roughly 4.4 years, equating to an average annual cost of about $10.8 million. To benchmark this effectively, we would need to compare it against other VA contracts for similar IT operations and maintenance services, particularly those involving custom-developed systems of comparable complexity and user base. Factors such as the specific functionalities of the VETLINK system, the number of users it supports, and the criticality of its operations would influence cost. A direct comparison with contracts for generic IT support or off-the-shelf software maintenance might not be appropriate.

What specific risks are associated with Vecna Technologies, Inc. as the contractor for this system?

The provided data does not include specific performance history or risk assessments for Vecna Technologies, Inc. beyond the award of this contract. General risks associated with any IT O&M contract include potential contractor underperformance, failure to meet service level agreements, cybersecurity vulnerabilities introduced or not mitigated, and key personnel turnover. To assess specific risks related to Vecna, one would need to review past performance evaluations, any past performance issues or disputes, their financial stability, and their demonstrated expertise in maintaining systems as complex as VETLINK. The fact that the contract was awarded competitively suggests that these risks were evaluated and deemed acceptable at the time of award.

How effective has the VETLINK system been in supporting VA operations and veteran services?

The provided contract data focuses on the procurement and award details for the operations and maintenance of the VETLINK system, not its operational effectiveness or the impact on VA services. Assessing the system's effectiveness would require analyzing performance metrics, user feedback, and its contribution to achieving VA's mission objectives. For instance, does it streamline benefit processing, improve healthcare coordination, or enhance veteran engagement? Without access to program-specific evaluations, performance reports, or user satisfaction surveys related to the VETLINK system itself, its effectiveness cannot be determined from this contract data alone.

What is the typical duration and value for IT O&M contracts of this nature within the federal government?

IT Operations and Maintenance (O&M) contracts within the federal government can vary significantly in duration and value depending on the system's complexity, criticality, and the agency's needs. Durations often range from one to five years, sometimes with options for extension. Values can span from hundreds of thousands to hundreds of millions of dollars. A $47.5 million contract over approximately 4.4 years for a custom system like VETLINK is substantial but not uncommon for critical federal IT infrastructure. Contracts for large enterprise resource planning (ERP) systems or major agency-wide platforms often fall into this range or higher.

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: VA118-15-Q-0199

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 36 CAMBRIDGEPARK DR STE 36, CAMBRIDGE, MA, 02140

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $47,531,236

Exercised Options: $47,531,236

Current Obligation: $47,531,236

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0363L

IDV Type: FSS

Timeline