VA awards $41.5M Salesforce development contract to Liberty IT Solutions, highlighting IT modernization efforts

Contract Overview

Contract Amount: $41,464,896 ($41.5M)

Contractor: Liberty IT Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-04-13

End Date: 2022-04-12

Contract Duration: 1,825 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF VIEWS SALESFORCE DEVELOPMENT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41.5 million to LIBERTY IT SOLUTIONS LLC for work described as: IGF::OT::IGF VIEWS SALESFORCE DEVELOPMENT Key points: 1. Contract value represents a significant investment in IT infrastructure modernization. 2. Competition dynamics suggest a robust market for Salesforce development services. 3. Performance risk appears moderate given the fixed-price contract type. 4. This contract aligns with broader government initiatives to improve citizen services through technology. 5. The IT services sector is highly competitive, with many firms capable of delivering these solutions. 6. The duration of the contract indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $41.5 million for Salesforce development over five years appears reasonable when benchmarked against similar large-scale IT modernization projects. While specific per-unit costs for development hours are not detailed, the firm-fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be a positive indicator of value. Comparisons with other federal contracts for similar Salesforce implementations would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of four bidders suggests a healthy level of competition for this type of IT service. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure competitive pricing and innovative solutions.

Public Impact

Veterans will benefit from improved digital services and streamlined access to VA resources. The contract supports the development and enhancement of critical Salesforce platforms used by the VA. The geographic impact is primarily national, affecting veterans across the United States. This contract likely supports a workforce of IT professionals, including developers, project managers, and system administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependency on a single vendor for critical system development could pose long-term risks.
Ensuring adequate technical expertise within the VA to oversee the contractor's work is crucial.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks for the government.
Full and open competition suggests a competitive market and potentially better pricing.
The long contract duration indicates a strategic commitment to improving VA IT systems.

Sector Analysis

The IT services sector, particularly custom software development and system integration, is a significant area of federal spending. This contract falls within the Computer Systems Design Services NAICS code (541512), which encompasses a broad range of IT support. The market is characterized by numerous small, medium, and large businesses vying for government contracts, with Salesforce implementation being a specialized and in-demand skill set.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Liberty IT Solutions LLC, may engage small businesses for subcontracting. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specialized Salesforce development tasks.

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 accountability for the contractor to deliver within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Salesforce Federal Contracts
IT Modernization Programs
Veterans Affairs IT Services
Custom Software Development Contracts

Risk Flags

Potential for vendor lock-in
Integration complexity with legacy systems
Reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.5 million to LIBERTY IT SOLUTIONS LLC. IGF::OT::IGF VIEWS SALESFORCE DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is LIBERTY IT SOLUTIONS 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 $41.5 million.

What is the period of performance?

Start: 2017-04-13. End: 2022-04-12.

What is the track record of Liberty IT Solutions LLC with federal contracts, particularly within the Department of Veterans Affairs?

Liberty IT Solutions LLC has a history of performing federal contracts, including work with the Department of Veterans Affairs. Analyzing their past performance on similar IT development projects, especially those involving large-scale system implementations like Salesforce, is crucial. Past performance reviews, on-time delivery rates, and adherence to budget on previous VA contracts would provide insight into their reliability and capability. A review of contract databases and performance evaluations, where available, would offer a more detailed picture of their track record and suitability for this significant award.

How does the awarded amount of $41.5 million compare to other federal Salesforce development contracts?

The $41.5 million award for Salesforce development over five years is a substantial sum, indicative of a large-scale, long-term project. To benchmark its value, it should be compared against similar federal contracts for Salesforce implementation and customization. Factors such as the scope of work, number of users, complexity of integrations, and specific modules being developed will influence pricing. Contracts with similar durations and service requirements, particularly those awarded by agencies like the General Services Administration (GSA) or other large cabinet-level departments, can serve as valuable comparators to assess if this award represents a fair market price and good value for the government.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, vendor lock-in, and challenges in integrating the new Salesforce system with existing VA infrastructure. The firm-fixed-price contract type helps mitigate financial risks by capping the government's expenditure. Mitigation for scope creep relies on robust contract management, clear definition of requirements, and change control processes. Vendor lock-in can be addressed through careful contract structuring that allows for data portability and future flexibility. Successful integration depends on thorough technical planning and testing, and the VA's own technical oversight.

How effective is the full and open competition process in ensuring optimal value for this IT development contract?

The full and open competition process is designed to maximize value by encouraging a wide range of qualified vendors to submit bids, fostering price competition and innovation. For a specialized area like Salesforce development, this process allows the VA to solicit proposals from firms with diverse approaches and pricing structures. The presence of four bidders suggests sufficient market interest. The effectiveness is ultimately measured by whether the winning bid represents a competitive price, high-quality solution, and a strong value proposition compared to what might have been achieved through other procurement methods.

What are the historical spending patterns for Salesforce development within the Department of Veterans Affairs?

Understanding historical spending on Salesforce development within the VA is crucial for context. This involves examining past contract awards for similar services, including Salesforce implementation, customization, and maintenance. Analyzing trends in contract values, durations, and the number of vendors engaged over time can reveal whether spending has been consistent, increasing, or decreasing. Such analysis helps in assessing whether the current $41.5 million award aligns with historical investment levels or represents a significant shift in strategy or budget allocation for Salesforce-related initiatives within the VA.

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

Parent Company: Booz Allen Hamilton Inc

Address: 2303 DULLES STA BLVD STE 210, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,464,896

Exercised Options: $41,464,896

Current Obligation: $41,464,896

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $43,831,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1015

IDV Type: IDC

Timeline