VA's $26M T4NG contract for IT services awarded to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $25,978,075 ($26.0M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-26

End Date: 2018-09-25

Contract Duration: 729 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) FULL SERVICE SHIPPING

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23225

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.0 million to FAVOR TECHCONSULTING, LLC for work described as: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) FULL SERVICE SHIPPING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract duration is 729 days, indicating a medium-term engagement for IT services. 4. The award was a Delivery Order under a larger IDIQ contract (T4NG). 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 6. The contract was awarded to Favor Techconsulting, LLC, a specific IT service provider.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of services and comparing it to similar task orders under the T4NG IDIQ. The total value of $25.98 million over two years suggests a significant but not exceptionally large IT services contract. The firm fixed-price nature is standard for this type of service, but the ultimate value for money depends on the successful delivery of the specified computer systems design services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The fact that it is a delivery order under the T4NG IDIQ suggests that the initial T4NG contract underwent a robust competition. The number of bidders for this specific delivery order is not provided, but the overall T4NG competition likely involved multiple qualified vendors, which generally promotes price discovery and competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors, ultimately driving value for government IT investments.

Public Impact

Veterans Affairs (VA) benefits from enhanced computer systems design services. The contract supports the delivery of IT solutions aimed at improving VA operations. The geographic impact is primarily within the VA's operational areas, likely nationwide. Workforce implications include potential employment opportunities for IT professionals supporting Favor Techconsulting, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for this delivery order makes it difficult to assess effectiveness.
The total contract value is substantial, requiring diligent oversight to ensure efficient use of funds.
Dependence on a single contractor for specific IT services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract structure shifts cost risk to the contractor.
The contract is part of the T4NG IDIQ, a strategic vehicle for VA IT modernization.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The T4NG (Transformation Twenty-One Total Technology Next Generation) IDIQ contract vehicle is a significant procurement instrument for the Department of Veterans Affairs, designed to streamline the acquisition of a wide range of IT services. Spending in this category is substantial across federal agencies, with agencies like the VA heavily reliant on IT to manage healthcare, benefits, and administrative functions. Comparable spending benchmarks would typically be found within the broader IT services market for government contracts, often measured by average award values for similar NAICS codes and contract types.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The overall T4NG IDIQ, however, may have provisions or goals related to small business participation that would apply to other task orders issued under the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a delivery order under the T4NG IDIQ, it benefits from the established oversight framework of that larger contract vehicle. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise concerning the contract's performance or execution.

Related Government Programs

T4NG IDIQ Contract
Department of Veterans Affairs IT Services
Computer Systems Design Services
Federal IT Procurement

Risk Flags

Performance Risk
Contractor Viability
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.0 million to FAVOR TECHCONSULTING, LLC. IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) FULL SERVICE SHIPPING

Who is the contractor on this award?

The obligated recipient is FAVOR TECHCONSULTING, 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 $26.0 million.

What is the period of performance?

Start: 2016-09-26. End: 2018-09-25.

What is the track record of Favor Techconsulting, LLC with the Department of Veterans Affairs?

Favor Techconsulting, LLC has a history of receiving contracts from the Department of Veterans Affairs. This specific contract, valued at approximately $26 million, represents a significant award for IT services. Analyzing their broader contract portfolio with the VA, including past performance on similar IT projects, would provide a more comprehensive understanding of their capabilities and reliability. Information on contract modifications, timely delivery, and adherence to technical specifications on previous VA engagements would be crucial for a complete assessment of their track record.

How does the value of this delivery order compare to other T4NG task orders for similar services?

Comparing the value of this $25.98 million delivery order to other T4NG task orders requires access to detailed data on all awards under the T4NG IDIQ. Without that comparative data, it's difficult to definitively state whether this represents a high, low, or average value for computer systems design services. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award. Further analysis would involve examining the scope of work for this order against others to ensure a like-for-like comparison.

What are the key performance indicators (KPIs) associated with this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement plan for this particular delivery order. As a Firm Fixed Price contract, performance is typically measured against the successful completion of defined deliverables and adherence to the contract's technical requirements. The Department of Veterans Affairs contracting officer and technical representatives would be responsible for monitoring performance. A thorough review would necessitate examining the contract's statement of work and any associated performance work statements or quality assurance surveillance plans.

What is the historical spending trend for Computer Systems Design Services (NAICS 541512) by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently spends significant amounts on IT services, including Computer Systems Design Services (NAICS 541512). Historical data indicates a strong and often increasing reliance on external contractors for these services to support modernization efforts and maintain existing systems. The T4NG IDIQ itself represents a substantial portion of the VA's IT spending strategy. Analyzing trends over the past 5-10 years would reveal fluctuations based on agency priorities, budget allocations, and specific project needs, but the overall trajectory points towards continued high levels of investment in this sector.

What are the potential risks associated with relying on Favor Techconsulting, LLC for these IT services?

Potential risks associated with relying on Favor Techconsulting, LLC include performance-related issues such as delays, cost overruns (though mitigated by FFP), or failure to meet technical specifications. Contractor viability, such as financial stability or key personnel turnover, could also pose a risk. Given this is a delivery order under a larger IDIQ, the VA likely has mechanisms to manage these risks, including performance monitoring and potential remedies for non-performance. A comprehensive risk assessment would also consider the contractor's past performance history and the criticality of the services provided.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7400 BEAUFONT SPRINGS DR STE 300, RICHMOND, VA, 23225

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $47,666,043

Exercised Options: $25,978,075

Current Obligation: $25,978,075

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline