VA awards $40.4M for CCRS program IT support to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $40,393,778 ($40.4M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-06-01

End Date: 2021-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEVELOPMENT, COTS INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE CCRS PROGRAM. IGF::OT::IGF

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.4 million to FAVOR TECHCONSULTING, LLC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEVELOPMENT, COTS INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE CCRS PROGRAM. IGF::OT::IGF Key points: 1. Contract value represents a significant investment in IT modernization for the CCRS program. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The services procured fall under computer systems design, a critical area for government IT infrastructure. 6. The awardee, Favor Techconsulting, LLC, is a key player in delivering these specialized IT services.

Value Assessment

Rating: good

The total award of $40.4 million over approximately four years for IT project management and development services appears reasonable given the scope. Benchmarking against similar IT services contracts within the Department of Veterans Affairs (VA) would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically drives down costs and ensures the government receives the best value for its investment.

Public Impact

Veterans will benefit from improved IT systems supporting the CCRS program. The contract delivers essential IT services including project management, analysis, design, development, and testing. The services are primarily delivered within Virginia, impacting the local IT workforce. The contract supports the modernization and efficiency of critical government IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT services over an extended period.
Ensuring contractor performance meets the evolving needs of the CCRS program.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type aligns incentives and manages cost risk for the government.
Contract duration suggests a stable, long-term partnership for critical IT support.
The contractor has a track record of delivering IT services to the government.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services from custom software development to IT consulting and systems integration. Federal spending in this area is consistently high as agencies modernize their infrastructure and digital services. The $40.4 million award is substantial and reflects the complexity and importance of the CCRS program's IT needs.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and program officials. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed here.

Related Government Programs

Veterans Health Administration IT Modernization
Department of Veterans Affairs Core Systems
Federal Civilian IT Services
Government IT Project Management
Software Development Contracts

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.4 million to FAVOR TECHCONSULTING, LLC. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE PROJECT MANAGEMENT, REQUIREMENTS ANALYSIS, DESIGN, DEVELOPMENT, COTS INTEGRATION, TESTING RELEASE SUPPORT, WARRANTY AND DOCUMENTATION FOR REQUIREMENTS SUPPORTING THE CCRS PROGRAM. IGF::OT::IGF

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 $40.4 million.

What is the period of performance?

Start: 2017-06-01. End: 2021-11-30.

What is Favor Techconsulting, LLC's past performance record with the VA and other federal agencies?

Favor Techconsulting, LLC has a history of performing IT services for federal agencies, including the Department of Veterans Affairs. While specific details on past performance metrics are not provided in this summary, their ability to win and execute a contract of this magnitude suggests a satisfactory track record. Further investigation into contract databases like the Federal Procurement Data System (FPDS) or agency-specific performance evaluations would reveal more granular details about their performance on previous projects, including timeliness, quality of deliverables, and adherence to budget.

How does the $40.4 million contract value compare to similar IT services contracts awarded by the VA?

The $40.4 million contract value for IT project management and development services over approximately four years is a significant award. To benchmark this value, one would compare it to other VA contracts for similar services (e.g., NAICS code 541512) with comparable durations and scopes. The VA, like many large federal agencies, procures substantial IT support. This award appears to be within the typical range for major IT modernization or support programs, but a detailed comparison with specific contract line item numbers (CLINs) and service levels of comparable contracts would be necessary for a precise assessment of value for money.

What are the primary risks associated with this contract for the VA?

Key risks for the VA include potential contractor underperformance, where Favor Techconsulting, LLC may not deliver services to the required quality or timeline. Given the firm fixed-price nature, there's a risk of the contractor cutting corners to maintain profitability. Another risk is vendor lock-in, where the VA becomes heavily reliant on Favor Techconsulting for critical CCRS program functions, making future transitions difficult or costly. Scope creep, where project requirements expand beyond the initial agreement without corresponding adjustments to cost or schedule, also poses a risk if not managed diligently by the VA program office.

How effective is the firm fixed-price contract type in ensuring program effectiveness for the CCRS program?

The firm fixed-price (FFP) contract type is generally effective in ensuring program effectiveness when requirements are well-defined and stable. It incentivizes the contractor to control costs and deliver the specified scope efficiently, as any cost overruns are borne by Favor Techconsulting. This can lead to a focus on meeting deliverables. However, if the CCRS program's requirements are complex or subject to change, an FFP contract might discourage innovation or make it difficult to adapt to new needs without costly change orders. The VA's program management will be crucial in defining requirements clearly and managing the contract to maximize effectiveness.

What are the historical spending patterns for IT services related to the CCRS program or similar VA initiatives?

Historical spending data for the CCRS program specifically would provide the best context for this $40.4 million award. Without that, we can look at broader VA IT spending trends. The VA has consistently invested heavily in IT modernization to improve services for veterans. Spending in areas like health IT, claims processing, and program management systems has been substantial over the years. Analyzing past VA IT contracts, particularly those for system development and support, would reveal trends in contract values, durations, and the types of services procured, helping to contextualize the current award.

What is the potential impact of this contract on the IT workforce within Virginia?

This contract is likely to have a positive impact on the IT workforce in Virginia, as Favor Techconsulting, LLC, the awardee, is based there. The company will likely need to hire or allocate existing personnel to fulfill the project management, analysis, design, development, and testing requirements. This could lead to job creation or increased demand for skilled IT professionals in the region, particularly those with expertise in government IT systems and software development. The duration of the contract suggests sustained employment opportunities.

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: 6

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: $50,762,888

Exercised Options: $40,393,778

Current Obligation: $40,393,778

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $7,991,093

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline