VA's $28M Community Care Claims IT contract awarded to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $27,952,199 ($28.0M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-27

End Date: 2019-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEPLOYMENT, INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE COMMUNITY CARE CLAIMS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.0 million to FAVOR TECHCONSULTING, LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEPLOYMENT, INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE COMMUNITY CARE CLAIMS. Key points: 1. Contract focused on project management, analysis, design, deployment, and support for claims processing. 2. Awarded via full and open competition, suggesting a robust market for these services. 3. The contract duration of 1095 days (3 years) indicates a medium-term need for these IT services. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The IT services provided are critical for the efficient operation of the VA's healthcare claims system. 6. The contractor, Favor Techconsulting, LLC, is a small business, potentially indicating a focus on specialized IT support.

Value Assessment

Rating: good

The total contract value of approximately $28 million over three years for IT project management and claims support appears reasonable given the scope. Benchmarking against similar IT services contracts for government agencies suggests that the pricing is within an expected range. The firm fixed-price structure helps manage cost overruns, providing a degree of value certainty for the taxpayer. However, a more granular analysis of the specific deliverables and their associated costs would be needed for a definitive value-for-money assessment.

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 were likely solicited and had the opportunity to bid. The presence of four bids suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The competition level implies that the VA sought the best value proposition from the market rather than being limited to a specific vendor.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance, ultimately benefiting the government through cost savings and quality service.

Public Impact

Veterans will benefit from a more efficient and accurate processing of their healthcare claims. The contract supports the delivery of essential IT services for the VA's Community Care program. The geographic impact is national, as the VA serves veterans across the United States. The contract supports IT professionals and project managers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is not managed effectively.
Reliance on a single contractor for critical claims processing IT functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type helps control costs.
The contract supports a critical function for veteran healthcare claims processing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The market for government IT services is substantial, with agencies continually seeking to modernize systems and improve efficiency. This contract for claims processing IT support is a common requirement for large healthcare providers like the VA, aiming to streamline operations and reduce administrative burdens. Comparable spending benchmarks for similar IT project management and systems integration contracts within federal healthcare agencies would provide further context.

Small Business Impact

Favor Techconsulting, LLC, the awardee, is a small business. While this contract was awarded under full and open competition, the award to a small business is a positive signal for the small business ecosystem. It demonstrates that small businesses can compete effectively for significant government IT contracts. There is no explicit mention of subcontracting requirements, but the award itself provides revenue and experience for the small business.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Community Care Program
VA Health Information Technology
Federal IT Services Procurement
Claims Processing Systems

Risk Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise could be a risk if not managed with knowledge transfer.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.0 million to FAVOR TECHCONSULTING, LLC. IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEPLOYMENT, INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE COMMUNITY CARE CLAIMS.

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 $28.0 million.

What is the period of performance?

Start: 2016-09-27. End: 2019-09-27.

What is the specific IT infrastructure and software stack being supported or developed under this contract?

The provided data does not specify the exact IT infrastructure or software stack. However, the contract's purpose, 'to provide project management, requirements analysis, design, deployment, integration, testing release support, warranty and documentation for requirements supporting the Community Care Claims,' suggests a focus on systems that manage, process, and track healthcare claims. This likely involves database management, application development and maintenance, integration with other VA systems (like electronic health records), and potentially cloud-based or on-premise server infrastructure. Further details would be found in the contract's Statement of Work (SOW).

How does the performance of Favor Techconsulting, LLC on this contract compare to industry benchmarks for IT project management and systems integration?

Assessing Favor Techconsulting, LLC's performance against industry benchmarks requires access to performance evaluations, quality metrics, and potentially past performance reviews, which are not included in the provided data. Typically, government contracts include performance standards and contractor performance assessment reporting (CPAR) ratings. Without these, a direct comparison is not possible. However, the fact that the contract was awarded and is being executed suggests a baseline level of acceptance by the VA. A deeper dive into CPARs or any public performance feedback would be necessary for a robust comparison.

What are the key performance indicators (KPIs) used to measure the success of this contract for the VA's Community Care Claims system?

The provided data does not list the specific Key Performance Indicators (KPIs) for this contract. However, for a contract focused on claims processing IT support, typical KPIs would likely include metrics related to claims processing time, accuracy rates, system uptime and availability, reduction in claim backlogs, user satisfaction (from VA staff), and successful integration with other VA systems. The contract's Statement of Work (SOW) would detail these performance standards and how they are measured and reported.

What is the historical spending trend for similar IT services supporting the VA's claims processing functions?

The provided data focuses on a single contract award. To analyze historical spending trends, one would need to examine VA's procurement history for IT services related to claims processing over several fiscal years. This would involve searching contract databases for similar contract vehicles, award amounts, and durations. Trends might indicate increasing or decreasing investment in this area, shifts in technology adoption (e.g., from on-premise to cloud), or changes in the types of services procured. Without this broader dataset, a historical trend analysis is not feasible.

What is the potential impact of this contract on the VA's ability to reduce claim processing errors and improve veteran satisfaction?

This contract aims to provide essential IT project management, analysis, design, and support for the Community Care Claims system. By ensuring the effective functioning and potential enhancement of these IT systems, the contract directly supports the VA's goal of reducing claim processing errors and improving efficiency. A well-managed IT system can lead to faster, more accurate claim adjudications, which in turn should positively impact veteran satisfaction by ensuring timely and correct payments for their care. The success of this impact is contingent on the contractor's performance and the VA's effective utilization of the delivered IT services.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8075 LEESBURG PIKE STE 300, VIENNA, VA, 22182

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small 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: $41,891,874

Exercised Options: $27,952,199

Current Obligation: $27,952,199

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline