VA awards $47.5M for Health Product Support, Computer Systems Design Services

Contract Overview

Contract Amount: $47,551,628 ($47.6M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-01-24

End Date: 2022-06-10

Contract Duration: 1,963 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS TASK ORDER WILL PROVIDE SUPPORT THE ENTERPRISE PROGRAM MANAGEMENT OFFICE, OFFICE OF TRANSITION, RELEASE, AND SUPPORT, HEALTH PRODUCT SUPPORT (HPS). THIS PROCUREMENT IS FOR TIER 3 (T3) PRODUCT SUSTAINMENT SUPPORT TO HPS TO ENSURE THAT SUSTAINMENT PRODUCT(S) ARE WELL-MANAGED AND MAINTAIN SUPPORT FOR THE CUSTOMER BASE. THIS SUPPORT INCLUDES COMMUNICATION, APPLICATION BASELINE CONFIGURATION, QUALITY, RISK, SCHEDULE, COST, AND PERFORMANCE MANAGEMENT AND REPORTING FOR ADMINISTRATIVE APPLICATIONS. HPS ADDITIONALLY REQUIRES TECHNICAL SUPPORT WHICH INCLUDES PROVIDING TECHNICAL EXPERTISE TO HPS WITH REGARD TO T3 ISSUES THAT ARISE, DEVELOPING PATCH DESCRIPTIONS AND/OR REVIEWING BUSINESS LOGIC WITH HPS CUSTOMER SUPPORT REPRESENTATIVES AS NECESSARY, AND MANAGING INDIVIDUAL SITE ACCESS REQUESTS TO ADDRESS HELP DESK TICKETS.

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23225

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.6 million to FAVOR TECHCONSULTING, LLC for work described as: IGF::OT::IGF THIS TASK ORDER WILL PROVIDE SUPPORT THE ENTERPRISE PROGRAM MANAGEMENT OFFICE, OFFICE OF TRANSITION, RELEASE, AND SUPPORT, HEALTH PRODUCT SUPPORT (HPS). THIS PROCUREMENT IS FOR TIER 3 (T3) PRODUCT SUSTAINMENT SUPPORT TO HPS TO ENSURE THAT SUSTAINMENT PRODUCT(S) ARE… Key points: 1. Contract focuses on Tier 3 product sustainment for administrative applications. 2. Services include communication, configuration, quality, risk, schedule, cost, and performance management. 3. Technical support for T3 issues and patch descriptions is also required. 4. The contract spans over five years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract's firm-fixed-price structure suggests a clear understanding of costs. However, without specific benchmarks for similar T3 product sustainment contracts, a precise value assessment is difficult. The total award of $47.5M over five years appears reasonable for comprehensive IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered.

Public Impact

Ensures continued support for critical health product applications for veterans. Maintains the operational integrity of administrative systems within the VA. Supports the Office of Transition, Release, and Support, facilitating program management. Provides technical expertise to resolve complex product sustainment issues. Contributes to the overall efficiency of the Health Product Support program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in administrative application support.
Reliance on a single vendor for critical sustainment functions.
Long contract duration may limit flexibility for future technological advancements.

Positive Signals

Clear definition of support services for administrative applications.
Awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.
Long-term engagement ensures continuity of essential services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, which is a significant area of government IT spending. Benchmarks for similar sustainment support contracts can vary widely based on the complexity and criticality of the systems involved.

Small Business Impact

The data indicates that the prime contractor, FAVOR TECHCONSULTING, LLC, is not a small business. There is no explicit mention of subcontracting goals for small businesses within this award notice.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for its procurements. The firm-fixed-price nature and defined scope should aid in accountability, but ongoing performance monitoring is crucial.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long-term reliance on a single vendor.
Potential for vendor lock-in.
Complexity of managing sustainment for administrative applications.
Ensuring continued relevance of support with evolving technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.6 million to FAVOR TECHCONSULTING, LLC. IGF::OT::IGF THIS TASK ORDER WILL PROVIDE SUPPORT THE ENTERPRISE PROGRAM MANAGEMENT OFFICE, OFFICE OF TRANSITION, RELEASE, AND SUPPORT, HEALTH PRODUCT SUPPORT (HPS). THIS PROCUREMENT IS FOR TIER 3 (T3) PRODUCT SUSTAINMENT SUPPORT TO HPS TO ENSURE THAT SUSTAINMENT PRODUCT(S) ARE WELL-MANAGED AND MAINTAIN SUPPORT FOR THE CUSTOMER BASE. THIS SUPPORT INCLUDES COMMUNICATION, APPLICATION BASELINE CONFIGURATION, QUALITY, RISK, SCHEDULE, COST, AND PERFORMANCE MANAGEMENT AND REPORTING FOR ADMINISTRATI

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 $47.6 million.

What is the period of performance?

Start: 2017-01-24. End: 2022-06-10.

What is the specific definition of 'Tier 3' product sustainment within the VA's context, and how does it compare to industry standards?

Tier 3 product sustainment typically refers to the most complex level of support, often involving advanced technical troubleshooting, root cause analysis, and resolution of critical system issues. Within the VA, this likely encompasses the maintenance and enhancement of core administrative applications critical to health product support operations. Comparing this to industry standards requires a detailed understanding of the specific applications and their criticality, but generally, T3 support demands highly specialized expertise and significant resources.

How will the VA ensure that the firm-fixed-price contract remains cost-effective over its five-year duration, given potential changes in technology or support needs?

The VA can ensure cost-effectiveness through robust contract management, including regular performance reviews and clear performance metrics. While the firm-fixed-price structure provides initial cost certainty, the contract likely includes provisions for change orders or modifications if significant shifts in requirements occur. Proactive communication and collaboration with FAVOR TECHCONSULTING, LLC will be key to identifying potential cost-saving opportunities and managing any necessary scope adjustments efficiently.

What mechanisms are in place to measure the effectiveness of FAVOR TECHCONSULTING, LLC's support in managing administrative applications and ensuring system reliability?

Effectiveness is likely measured through Key Performance Indicators (KPIs) outlined in the contract, such as response times for issue resolution, system uptime percentages, and customer satisfaction ratings. Regular reporting by the contractor and independent government assessments will track performance against these KPIs. The VA's Program Management Office will be responsible for monitoring these metrics and holding the contractor accountable for meeting the defined service levels.

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: 5

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: $47,551,628

Exercised Options: $47,551,628

Current Obligation: $47,551,628

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,825,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline