VA awards $24.3M for IT services to Liberty IT Solutions, raising questions on competition and value
Contract Overview
Contract Amount: $24,294,081 ($24.3M)
Contractor: Liberty IT Solutions LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2016-08-03
End Date: 2019-07-05
Contract Duration: 1,066 days
Daily Burn Rate: $22.8K/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 VETERANS POINT OF SERVICE PERFORMANCE MANAGEMENT AND CONTROL SERVICES, THERMAL PAPER SUPPORT, AND NSOC REMEDIATION
Place of Performance
Location: HARPERS FERRY, JEFFERSON County, WEST VIRGINIA, 25425
Plain-Language Summary
Department of Veterans Affairs obligated $24.3 million to LIBERTY IT SOLUTIONS LLC for work described as: IGF::OT::IGF VETERANS POINT OF SERVICE PERFORMANCE MANAGEMENT AND CONTROL SERVICES, THERMAL PAPER SUPPORT, AND NSOC REMEDIATION Key points: 1. The contract for IT services was awarded to Liberty IT Solutions LLC for $24.3 million. 2. The award was made under 'full and open competition after exclusion of sources,' suggesting limited competition. 3. The contract's duration of 1066 days and fixed-price nature aim to control costs. 4. The sector is Administrative Management and General Management Consulting Services, a broad category.
Value Assessment
Rating: fair
The contract's fixed-price structure is standard for IT services. Benchmarking the $24.3 million award against similar contracts for administrative management and general management consulting services is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while competition was sought, specific sources were excluded. This method can limit the pool of potential bidders and may impact price discovery.
Taxpayer Impact: The $24.3 million expenditure represents taxpayer funds allocated for essential IT services within the VA.
Public Impact
Veterans may experience improved IT services impacting their access to benefits and care. The exclusion of sources raises concerns about whether the VA secured the best possible price. Transparency in the procurement process is crucial for public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion
- Lack of detailed cost breakdown for value assessment
Positive Signals
- Fixed-price contract to manage costs
- Awarded to a single vendor for defined services
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on the specific services procured, but IT support is a significant component for agencies like the VA.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'exclusion of sources' clause warrants further scrutiny to ensure fair competition and optimal use of taxpayer funds. Oversight should confirm the justification for excluding specific sources.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for reduced competition due to source exclusion.
- Lack of transparency regarding the rationale for excluding sources.
- Difficulty in assessing value for money without detailed benchmarks.
- Risk of overpayment if competition was unduly limited.
Tags
administrative-management-and-general-ma, department-of-veterans-affairs, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $24.3 million to LIBERTY IT SOLUTIONS LLC. IGF::OT::IGF VETERANS POINT OF SERVICE PERFORMANCE MANAGEMENT AND CONTROL SERVICES, THERMAL PAPER SUPPORT, AND NSOC REMEDIATION
Who is the contractor on this award?
The obligated recipient is LIBERTY IT SOLUTIONS LLC.
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 $24.3 million.
What is the period of performance?
Start: 2016-08-03. End: 2019-07-05.
What was the specific justification for excluding sources in this 'full and open competition'?
The justification for excluding sources under 'full and open competition' typically involves specific technical requirements, prior performance, or unique capabilities that only certain vendors possess. Without detailed documentation, it's difficult to assess if this exclusion was warranted or if it unnecessarily limited competition, potentially impacting the final price and value for the government.
How does the $24.3 million cost compare to industry benchmarks for similar IT performance management and control services?
Benchmarking this $24.3 million contract requires detailed service scope and performance metrics. General IT consulting services vary greatly in price. A direct comparison is challenging without knowing the specific deliverables, service level agreements, and duration relative to market rates for comparable managed IT services within the federal or commercial sectors.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured to ensure effectiveness?
The effectiveness of this contract hinges on clearly defined KPIs related to performance management, control services, and NSOC remediation. The VA must have robust mechanisms to track these metrics, ensuring Liberty IT Solutions LLC meets or exceeds service level agreements. Regular performance reviews and reporting are essential to validate the value and impact of the services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: VA118-16-R-0935
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2303 DULLES STA BLVD STE 210, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $24,294,081
Exercised Options: $24,294,081
Current Obligation: $24,294,081
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-03
Current End Date: 2019-07-05
Potential End Date: 2019-07-05 00:00:00
Last Modified: 2020-02-12
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