VA awards $52.5M for IT support, with 6 bidders competing for 3-year contract

Contract Overview

Contract Amount: $52,478,829 ($52.5M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-06-09

End Date: 2020-06-09

Contract Duration: 1,096 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF EPMO BAM PMO AND TECHNICAL MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $52.5 million to FAVOR TECHCONSULTING, LLC for work described as: IGF::OT::IGF EPMO BAM PMO AND TECHNICAL MANAGEMENT SUPPORT SERVICES Key points: 1. Contract provides essential IT support services to the VA. 2. Strong competition indicates potential for competitive pricing. 3. Delivery order structure suggests flexibility in service needs. 4. Contract duration of 3 years allows for sustained support. 5. Focus on computer systems design services aligns with agency IT modernization efforts. 6. Contractor has a track record of performance within this service area.

Value Assessment

Rating: good

The contract value of $52.5 million over three years for IT support services appears reasonable given the scope. Benchmarking against similar IT support contracts within the federal government would provide a more precise value-for-money assessment. The pricing structure, identified as Time and Materials, can sometimes lead to cost overruns if not carefully managed, but it also offers flexibility for evolving IT needs. The number of bidders (6) suggests a healthy level of competition that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders vying for the opportunity. The presence of multiple bidders is a positive indicator of a competitive marketplace for these IT support services. This level of competition generally leads to better price discovery and ensures that the government receives offers from a range of qualified vendors, potentially driving down costs and improving service quality.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it fosters a competitive environment, which typically results in more cost-effective solutions and prevents potential price gouging.

Public Impact

Veterans Affairs (VA) benefits from enhanced IT infrastructure and support, crucial for delivering services to veterans. The contract ensures the continuity of critical IT systems and technical management support. Geographic impact is primarily within the District of Columbia, supporting the agency's headquarters operations. Workforce implications include the potential for skilled IT professionals to be engaged through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty if not closely monitored.
Dependence on a single contractor for critical IT support requires robust performance management.
Scope creep could increase costs beyond initial projections without proper controls.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Multiple bidders (6) suggest a competitive market and potentially better value.
Contractor is likely experienced in providing similar IT support services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market within the federal government is substantial, with agencies consistently investing in modernization and support. This contract represents a portion of the VA's overall IT spending, which is essential for maintaining and upgrading its complex technological infrastructure to serve veterans effectively.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete. There is no explicit information on subcontracting plans for small businesses within this data snippet. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would include performance reviews, adherence to contract terms, and delivery of services as specified. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Management Support Services
Computer Systems Design
Technical Support Services
Information Technology Services
Federal IT Contracts

Risk Flags

Time and Materials pricing requires diligent oversight to control costs.
Dependence on a single vendor for critical IT functions.
Cybersecurity risks inherent in IT support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $52.5 million to FAVOR TECHCONSULTING, LLC. IGF::OT::IGF EPMO BAM PMO AND TECHNICAL MANAGEMENT SUPPORT SERVICES

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 $52.5 million.

What is the period of performance?

Start: 2017-06-09. End: 2020-06-09.

What is the contractor's track record with the VA and other federal agencies for similar IT support services?

FAVOR TECHCONSULTING, LLC has been awarded this delivery order for IT support services. To assess their track record, one would need to examine their past performance on this and other federal contracts. This includes reviewing past performance evaluations, any awards or penalties received, and the timeliness and quality of their service delivery. A deeper dive into contract databases and agency performance reports would reveal their history of successfully fulfilling IT support requirements, particularly within the Department of Veterans Affairs, and their ability to manage contracts of similar size and complexity.

How does the awarded price compare to market rates for similar IT support services?

The total award amount is $52,478,829.02 over a 1096-day period (approximately 3 years). Without specific details on the labor categories, hours, and rates, a direct comparison to market rates is challenging. However, the fact that it was awarded under full and open competition with 6 bidders suggests that the pricing was likely competitive. To benchmark effectively, one would need to compare the average hourly rates for specific IT roles (e.g., system administrators, network engineers, IT project managers) against industry surveys and government-wide contract vehicles like GSA Schedules. The Time and Materials (T&M) pricing structure necessitates close monitoring of labor hours and direct costs to ensure they align with fair market value.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for IT support services, typical KPIs often include system uptime percentages, response times for service requests, resolution times for IT issues, user satisfaction ratings, and adherence to security protocols. The VA's contracting officer and program managers would establish these metrics in the contract's Performance Work Statement (PWS). Regular performance reviews would assess FAVOR TECHCONSULTING, LLC's performance against these KPIs to ensure the delivery of effective and reliable IT support.

What is the historical spending pattern for similar IT support services at the VA?

The provided data focuses on a single contract award. To understand historical spending patterns for similar IT support services at the VA, one would need to analyze aggregated spending data over several fiscal years. This would involve querying contract databases for all IT support, computer systems design, and related service contracts awarded by the VA. Examining trends in contract values, number of awards, and types of services procured would reveal whether spending in this area has been increasing, decreasing, or remaining stable, and identify any major shifts in procurement strategies or technology focus.

Are there any identified risks associated with this contractor or the nature of the services provided?

Potential risks associated with this contract include the inherent challenges of managing Time and Materials (T&M) contracts, which can lead to cost overruns if not meticulously monitored. Dependence on a single contractor for critical IT infrastructure support also poses a risk if performance degrades or the contractor faces financial instability. Furthermore, the sensitive nature of government IT systems means cybersecurity risks are paramount. The VA would mitigate these risks through robust contract oversight, regular performance evaluations, clear communication channels, and potentially requiring performance bonds or other financial assurances from the contractor.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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: $95,787,560

Exercised Options: $52,478,829

Current Obligation: $52,478,829

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1006

IDV Type: IDC

Timeline