VA's $21.3M software renewal for alert system highlights need for competitive sourcing

Contract Overview

Contract Amount: $21,366,760 ($21.4M)

Contractor: Four Points Technology, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-09-27

End Date: 2019-04-09

Contract Duration: 1,290 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS CONTRACT IS FOR SOFTWARE LICENSES AND MAINTENANCE SUPPORT. THIS EFFORT IS TO RENEW THE ANNUAL LICENSES AND MAINTENANCE SUPPORT FOR BRAND NAME ATHOC INTERACTIVE WARNING SYSTEM (IWS) ALERT SOFTWARE IN SUPPORT OF THE VA NOTIFICATION SYSTEM (VANS).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: IGF::OT::IGF THIS CONTRACT IS FOR SOFTWARE LICENSES AND MAINTENANCE SUPPORT. THIS EFFORT IS TO RENEW THE ANNUAL LICENSES AND MAINTENANCE SUPPORT FOR BRAND NAME ATHOC INTERACTIVE WARNING SYSTEM (IWS) ALERT SOFTWARE IN SUPPORT OF THE VA NOTIFICATION SYSTEM (VANS). Key points: 1. The contract renews licenses and maintenance for a specific brand-name alert software, raising questions about potential vendor lock-in. 2. A single award for a significant sum suggests limited competition or a focus on a specialized, proprietary solution. 3. The duration of the contract (over 3 years) indicates a long-term reliance on this particular software. 4. The contract's value, while substantial, needs benchmarking against similar software maintenance agreements to assess value for money. 5. The 'full and open competition after exclusion of sources' indicates a complex procurement history, possibly involving prior sole-source justifications. 6. The reliance on a specific brand name may limit opportunities for cost savings through alternative or open-source solutions.

Value Assessment

Rating: fair

The contract value of approximately $21.3 million over roughly 3.5 years for software licenses and maintenance is substantial. Without specific benchmarks for the 'ATHOC Interactive Warning System (IWS) Alert Software,' it's difficult to definitively assess value for money. However, brand-name renewals often carry a premium compared to competitively sourced, multi-vendor solutions. The 'full and open competition after exclusion of sources' suggests a history that may not have started with optimal competition, potentially impacting the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement type is unusual and typically implies that a previous sole-source or limited competition award was made, and then the agency opened it up more broadly. However, the fact that it resulted in a single award to Four Points Technology, L.L.C. for a specific brand-name product warrants further investigation into the extent of actual competition and whether other vendors could have offered comparable solutions.

Taxpayer Impact: While the 'full and open' designation is positive, the single award for a brand-name product suggests that taxpayers may not have benefited from the full potential of market competition, potentially leading to higher costs than if a more open approach to software selection had been taken.

Public Impact

Veterans and VA staff benefit from a reliable notification system for alerts. The software supports the VA Notification System (VANS), crucial for disseminating important information. The primary geographic impact is within the District of Columbia, where the contract is registered. The contract supports the IT workforce involved in maintaining and operating the VANS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to reliance on a specific brand-name software.
Limited transparency into the 'exclusion of sources' aspect of the competition.
Risk of overpaying for software licenses and maintenance compared to market alternatives.
Lack of information on whether alternative solutions were considered.
The substantial contract value could be subject to budget fluctuations or reallocations.

Positive Signals

The contract ensures continuity of a critical alert system for the VA.
The renewal process indicates the software is meeting the agency's needs.
The 'full and open' competition, even with a single award, suggests an attempt at broader market engagement.
The fixed-price contract type provides cost certainty for the agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and maintenance. The market for specialized alert and notification systems can be niche, often dominated by a few key providers. The value of this contract, over $21 million, places it in the mid-to-large tier for software renewals within federal agencies. Comparable spending benchmarks would typically look at annual recurring costs for enterprise-level software solutions, including support and maintenance agreements, across various government departments.

Small Business Impact

There is no indication that this contract involved small business set-asides. The award was made to Four Points Technology, L.L.C., which may or may not be a small business. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, though large software renewals often involve prime contractors who may then engage smaller specialized service providers.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Transparency is facilitated by contract databases like FPDS, which provide basic award details. Further oversight could be provided by the VA's Office of Inspector General if specific concerns regarding waste, fraud, or abuse arise. The 'full and open competition after exclusion of sources' suggests a level of review was already applied during the procurement process.

Related Government Programs

VA Notification System (VANS)
Software Licensing and Maintenance
Emergency Alert Systems
IT Infrastructure Support
Brand Name Justification Contracts

Risk Flags

Brand Name Justification
Limited Competition Indication
Potential for Vendor Lock-in
High Contract Value for Software Renewal

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. IGF::OT::IGF THIS CONTRACT IS FOR SOFTWARE LICENSES AND MAINTENANCE SUPPORT. THIS EFFORT IS TO RENEW THE ANNUAL LICENSES AND MAINTENANCE SUPPORT FOR BRAND NAME ATHOC INTERACTIVE WARNING SYSTEM (IWS) ALERT SOFTWARE IN SUPPORT OF THE VA NOTIFICATION SYSTEM (VANS).

Who is the contractor on this award?

The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..

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 $21.4 million.

What is the period of performance?

Start: 2015-09-27. End: 2019-04-09.

What is the specific functionality and criticality of the ATHOC Interactive Warning System (IWS) Alert Software to the VA Notification System (VANS)?

The ATHOC Interactive Warning System (IWS) Alert Software is crucial for the VA Notification System (VANS) by providing a platform for disseminating critical alerts and warnings. While the exact nature of these alerts isn't detailed, VANS typically handles communications regarding emergencies, facility status, or other time-sensitive information vital to VA operations, staff, and potentially beneficiaries. The criticality lies in ensuring timely and reliable communication during potentially disruptive events, maintaining operational continuity and safety. The renewal of licenses and maintenance for this specific software underscores its integral role in the VA's communication infrastructure, suggesting that alternative systems may not offer the same specialized functionality or integration capabilities required by VANS.

How does the 'full and open competition after exclusion of sources' procurement method impact the perceived value for money?

The 'full and open competition after exclusion of sources' method is a complex procurement strategy. It implies that while the competition was ultimately open, there was a prior justification to exclude certain sources, possibly due to proprietary technology, existing infrastructure integration, or previous sole-source awards. This can limit the pool of potential bidders and may result in less aggressive pricing than a truly open competition from the outset. For taxpayers, this method can mean paying a premium if the excluded sources could have offered a more cost-effective solution. While it aims to ensure fairness after an initial limitation, it raises questions about whether the government secured the best possible price and value compared to a scenario with broader, earlier competition.

What are the potential risks associated with renewing a brand-name software license and maintenance contract for over $21 million?

Renewing a brand-name software license and maintenance contract for a significant amount like $21.3 million carries several risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily reliant on a single vendor's proprietary technology, making it difficult and costly to switch to alternatives in the future. This can lead to escalating costs over time as the vendor may increase prices, knowing the agency has limited options. Secondly, there's the risk of paying a premium for the brand name itself, potentially exceeding the cost of comparable, non-proprietary, or less established solutions. Lastly, without robust performance metrics and service level agreements tied to the maintenance, there's a risk that the support provided may not fully meet the agency's evolving needs, yet the contract locks them into that specific vendor.

Can the VA leverage this contract to encourage competition or explore alternative solutions in the future?

The VA could potentially leverage future contract actions related to this software to encourage competition, although the current contract structure presents challenges. As this is a renewal for a specific brand-name product, the immediate opportunity for broad competition is limited. However, as the contract nears its end, the VA could conduct market research to identify potential alternative solutions or vendors that offer similar functionalities. They could also explore opportunities for integrating open-source components or seeking proposals that allow for greater interoperability. If the 'exclusion of sources' was based on specific technical requirements, the VA could re-evaluate those requirements to see if they can be broadened to allow more vendors to compete in subsequent procurements, thereby potentially driving down costs and increasing innovation.

What is the historical spending pattern for this specific software or similar alert systems within the VA?

Historical spending data for this specific software, the ATHOC Interactive Warning System (IWS) Alert Software, within the VA is not detailed in the provided information. However, the current award of $21,366,759.88 represents a significant investment over its duration (approximately 1290 days or 3.5 years). To understand historical patterns, one would need to examine prior contracts for this software or its predecessors, noting award amounts, durations, and competition levels. Analyzing spending on similar alert and notification systems across the VA would also provide context. A consistent pattern of single-award, brand-name renewals might indicate a long-standing reliance or a lack of proactive market research for alternatives. Conversely, a history of competitive bidding for similar functionalities would highlight this contract as an outlier.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14900 CONFERENCE CENTER DR STE 100, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,366,760

Exercised Options: $21,366,760

Current Obligation: $21,366,760

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline