VA's $32.7M software enhancement contract with Standard Register, Inc. ran for 10 years

Contract Overview

Contract Amount: $32,679,021 ($32.7M)

Contractor: Standard Register, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-09-01

End Date: 2017-08-31

Contract Duration: 3,652 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE ENHANCEMENT SERVICES

Place of Performance

Location: DULUTH, GWINNETT County, GEORGIA, 30096

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.7 million to STANDARD REGISTER, INC. for work described as: SOFTWARE ENHANCEMENT SERVICES Key points: 1. The contract's long duration suggests a sustained need for software services. 2. A decade-long engagement may indicate a stable but potentially less dynamic vendor relationship. 3. The absence of competition raises questions about potential cost efficiencies and innovation. 4. Fixed-price contracts can offer cost certainty but may limit flexibility for evolving requirements. 5. The contract's value, while significant, needs to be benchmarked against similar long-term IT service agreements. 6. The specific nature of 'software enhancement' implies ongoing maintenance and upgrades rather than new development.

Value Assessment

Rating: fair

Benchmarking the value of this $32.7 million contract over a 10-year period is challenging without specific performance metrics or comparable contracts. The firm fixed-price structure provides cost certainty for the VA, but the lack of competition over such an extended period might have led to suboptimal pricing compared to a more competitive environment. The total value, averaging over $3 million annually, is substantial for custom computer programming services, but its value-for-money depends heavily on the quality and impact of the enhancements delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating it was awarded on a sole-source basis. The lack of a competitive bidding process means that multiple vendors did not have the opportunity to propose solutions or offer pricing, which can limit price discovery and potentially lead to higher costs for the government. Without competition, it's difficult to assess if the VA received the best possible value or if alternative, more cost-effective solutions were overlooked.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The lack of competition also limits opportunities for innovative solutions from a broader market.

Public Impact

Veterans and VA staff likely benefited from improved or maintained software systems. The services delivered were custom computer programming and software enhancements. The geographic impact is primarily within the VA's operational footprint, likely nationwide. The contract supported IT professionals and software developers, potentially including those within Standard Register, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition over a decade may have resulted in higher costs than a competed contract.
Long-term sole-source awards can stifle innovation and prevent the adoption of newer technologies.
The extended duration without re-competition raises questions about the initial justification for sole-source award and ongoing necessity.

Positive Signals

The firm fixed-price structure provided budget certainty for the VA.
A 10-year contract suggests a consistent and reliable delivery of services over a long period.
The contract supported critical software enhancements for the Department of Veterans Affairs.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services market. The federal government is a major consumer of these services, utilizing them for everything from maintaining legacy systems to developing cutting-edge applications. The market is characterized by a mix of large system integrators and specialized software development firms. The value of this contract, approximately $3.27 million annually, is moderate within the context of large federal IT procurements, but its long duration makes it a substantial commitment.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. Standard Register, Inc. is not typically classified as a small business. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, and there's no indication of mandated subcontracting goals being met.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within the VA, and potentially the VA's Office of Inspector General (OIG) if performance issues or fraud were suspected. Transparency is limited by the lack of public reporting on performance metrics or detailed justifications for the sole-source award. Accountability rests with the contracting officer and the program office to ensure services meet requirements, but the absence of competition reduces external accountability.

Related Government Programs

VA IT Modernization Initiatives
Custom Software Development Services
IT Services for Healthcare Agencies
Long-Term IT Support Contracts
Federal Software Maintenance and Enhancement

Risk Flags

Sole-source award without clear justification
Lack of competition over an extended period
Potential for inflated costs due to non-competitive nature
Limited transparency on performance and specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.7 million to STANDARD REGISTER, INC.. SOFTWARE ENHANCEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is STANDARD REGISTER, INC..

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 $32.7 million.

What is the period of performance?

Start: 2007-09-01. End: 2017-08-31.

What was the specific justification for awarding this contract on a sole-source basis for such an extended period?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as unique capabilities, urgent needs, or when only one responsible source can provide the required services. For a 10-year contract, the justification would need to be exceptionally strong, potentially involving proprietary software, highly specialized expertise, or a critical, long-term dependency that could not be met through competition. Without this documentation, it's impossible to definitively assess the validity of the sole-source decision.

How did the VA ensure fair pricing without competition over the 10-year period?

Ensuring fair pricing without competition is inherently challenging. The VA would likely have relied on various methods, such as referencing historical pricing for similar services, using independent cost estimates, or negotiating based on established labor categories and rates. However, the absence of competitive bids means there was no market-driven validation of the price. The firm fixed-price nature of the contract implies that the price was set upfront, and the VA's ability to influence it during the contract term would be limited unless contract modifications occurred. Regular price reviews or audits might have been employed, but their effectiveness is diminished without a competitive baseline.

What were the key software enhancements delivered under this contract?

The provided data categorizes the contract under 'Custom Computer Programming Services' and indicates 'SOFTWARE ENHANCEMENT SERVICES.' However, it does not specify the particular software systems or the nature of the enhancements. These could range from functional improvements, performance optimizations, security updates, integration with other systems, or user interface modifications. To understand the impact, one would need to review contract performance reports, technical documentation, or statements of work associated with this contract.

What was Standard Register, Inc.'s track record with the VA prior to and during this contract?

The data indicates Standard Register, Inc. was the contractor for this specific $32.7 million, 10-year contract with the Department of Veterans Affairs (VA). Information regarding their prior track record with the VA or their performance during this contract's tenure (2007-2017) is not provided in the dataset. A comprehensive assessment would require examining past performance evaluations, any contract disputes, or other awards to Standard Register, Inc. by the VA or other federal agencies.

How does the annual spending of ~$3.27 million compare to similar VA IT enhancement contracts?

The annual spending of approximately $3.27 million for software enhancement services is a moderate figure within the VA's IT budget. However, a direct comparison to 'similar' contracts is difficult without defining 'similar.' Factors like contract duration, scope of work (e.g., maintenance vs. new development), complexity of systems supported, and the specific technologies involved significantly influence costs. Generally, long-term, sole-source contracts for specialized IT services can be more expensive than competitively procured ones. Benchmarking would require access to a database of comparable VA IT contracts, including their scope, duration, and pricing structures.

Were there any performance issues or contract disputes during the 10-year period?

The provided data does not contain information regarding performance issues or contract disputes related to this contract. Such details are typically found in contract administration records, performance reviews, or official dispute resolution logs. The absence of this information does not necessarily mean there were no issues, but rather that this specific dataset does not capture that level of detail. Further investigation into VA contract management files or OIG reports might reveal such information.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Taylor Corp (UEI: 006175806)

Address: 600 ALBANY ST, DAYTON, OH, 45417

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,679,021

Exercised Options: $32,679,021

Current Obligation: $32,679,021

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline