Agriculture awards $2.16M for custom software development and system optimization to VCH Partners LLC

Contract Overview

Contract Amount: $2,157,210 ($2.2M)

Contractor: VCH Partners LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-12-18

End Date: 2030-12-17

Contract Duration: 1,825 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE DESIGN AND ANALYSIS, USER MANAGEMENT ANALYSIS AND IMPLEMENTATION, SYSTEM OPTIMIZATION, PERFORMANCE AND DATABASE ENHANCEMENTS

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21045

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.2 million to VCH PARTNERS LLC for work described as: SOFTWARE DESIGN AND ANALYSIS, USER MANAGEMENT ANALYSIS AND IMPLEMENTATION, SYSTEM OPTIMIZATION, PERFORMANCE AND DATABASE ENHANCEMENTS Key points: 1. Contract focuses on critical software enhancements for user management and system performance. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period extends over five years, indicating a long-term need for these services. 5. The contract falls under custom computer programming services, a common IT requirement. 6. No small business set-aside was applied, suggesting large business participation. 7. The award is a BPA Call, indicating it's an order against a pre-existing agreement.

Value Assessment

Rating: good

The contract value of $2.16 million over five years appears reasonable for custom software development and system optimization services. Benchmarking against similar contracts for IT services, particularly those involving custom programming and system enhancements, suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value for money. However, without detailed scope of work and specific deliverables, a precise value-for-money assessment is challenging.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these specialized IT services.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential offerors and drives down prices through market forces, ensuring federal dollars are used efficiently.

Public Impact

The Food Safety and Inspection Service (FSIS) will benefit from improved software systems. Services include user management, system optimization, and performance enhancements. These improvements are expected to streamline internal operations and data management. The contract supports the agency's mission to ensure food safety through technological advancement. Workforce implications include potential for enhanced productivity due to better tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Scope details for 'system optimization' could be more granular to ensure clear deliverables.
Performance metrics are not detailed, making objective performance evaluation difficult.

Positive Signals

Firm-fixed-price contract type offers strong cost control.
Long contract duration (5 years) suggests a stable, ongoing need and potential for vendor expertise development.
Awarded under full and open competition, maximizing market participation.
Contractor VCH Partners LLC is selected, implying they met all requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under custom computer programming services. The market for such services is vast and highly competitive, with numerous firms offering specialized development, integration, and optimization solutions. The Department of Agriculture's spending on IT services is consistent with other large federal agencies requiring robust digital infrastructure to support their missions. Comparable spending benchmarks for custom software development can vary widely based on complexity, duration, and specific technologies, but a $2.16 million contract over five years for specialized enhancements is a moderate investment in this sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to businesses of all sizes, and VCH Partners LLC, the awardee, is likely not classified as a small business for this particular contract, or the nature of the requirement did not lend itself to a small business set-aside. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, though the absence of a set-aside means opportunities for small business prime contractors were not specifically prioritized.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Food Safety and Inspection Service contracting officers and program managers. The firm-fixed-price contract type provides a degree of financial oversight by establishing a set cost. Transparency is facilitated by the contract award being publicly available. While specific Inspector General (IG) jurisdiction is not detailed, the USDA IG typically oversees agency spending and program performance, and could investigate this contract if performance issues or irregularities arise.

Related Government Programs

Custom Software Development Services
IT System Modernization
User Account Management Systems
Database Performance Tuning
Federal IT Services Procurement

Risk Flags

Potential for technology obsolescence over the 5-year performance period.
Lack of detailed performance metrics in award data.
Limited information on the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.2 million to VCH PARTNERS LLC. SOFTWARE DESIGN AND ANALYSIS, USER MANAGEMENT ANALYSIS AND IMPLEMENTATION, SYSTEM OPTIMIZATION, PERFORMANCE AND DATABASE ENHANCEMENTS

Who is the contractor on this award?

The obligated recipient is VCH PARTNERS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2025-12-18. End: 2030-12-17.

What is the track record of VCH Partners LLC in performing similar federal IT contracts?

Information regarding VCH Partners LLC's specific track record with federal IT contracts is not detailed in the provided data. To assess their performance history, one would typically review past performance evaluations (e.g., CPARS reports), contract vehicles utilized, and the types and values of previous awards. A thorough analysis would involve searching federal procurement databases like SAM.gov or FPDS for historical contract data associated with VCH Partners LLC, looking for successful completion of projects similar in scope and complexity to the current award. This would help determine their experience in custom software design, user management, system optimization, and performance enhancements, and identify any potential red flags or areas of expertise.

How does the awarded value compare to similar custom computer programming services contracts?

The awarded value of $2.16 million over five years for custom computer programming services, including user management, system optimization, and performance enhancements, appears to be within a reasonable range for federal contracts of this nature. However, a precise comparison requires detailed benchmarking against contracts with similar scopes of work, complexity, and geographic locations. Factors such as the specific technologies used, the level of customization required, and the security protocols involved significantly influence pricing. Without access to detailed contract line item details and specific performance metrics, it's difficult to definitively state if this represents exceptional value. Generally, firm-fixed-price contracts awarded through full and open competition tend to yield competitive pricing.

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

Primary risks include potential scope creep, vendor performance issues, and integration challenges with existing systems. Scope creep is mitigated by the firm-fixed-price contract type, which discourages additional costs for expanded requirements unless formally modified. Vendor performance risk is managed through contract oversight by the agency and potentially through performance-based payment structures or award fees, though these are not specified here. Integration risks are inherent in system optimization projects and would be managed through detailed technical specifications, testing phases, and close collaboration between the contractor and the agency's IT staff. The five-year duration also presents a risk of technology obsolescence, which requires careful planning and potential for future modifications.

How effective is the Food Safety and Inspection Service (FSIS) in managing its IT contracts?

Assessing the overall effectiveness of FSIS in managing IT contracts requires a broader analysis of their procurement history, project success rates, and audit findings. The current award to VCH Partners LLC is a single data point. However, the use of full and open competition and a firm-fixed-price contract suggests adherence to standard best practices for IT procurement, which generally aim for efficiency and cost control. The effectiveness of FSIS's IT contract management would be better understood by examining trends in contract performance metrics, user satisfaction with implemented systems, and any reported issues from oversight bodies like the USDA Inspector General.

What are the historical spending patterns for custom computer programming services at the Department of Agriculture?

Historical spending patterns for custom computer programming services at the Department of Agriculture (USDA) would typically show consistent investment in IT modernization and support across its various agencies, including the Food Safety and Inspection Service (FSIS). Agencies like FSIS rely heavily on specialized software for data management, regulatory compliance, and operational efficiency. Spending in this category often fluctuates based on specific modernization initiatives, system upgrades, or the need to address emerging technological requirements. Analyzing past USDA contract awards for NAICS code 541511 (Custom Computer Programming Services) would reveal trends in contract values, award types (e.g., competitive vs. sole-source), and key contractors, providing context for the current $2.16 million award.

What is the significance of the BPA Call award type for this contract?

A BPA Call (Blanket Purchase Agreement Call) signifies that this contract is an order placed against a pre-existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods used to streamline the purchasing of recurring needs from approved vendors. Awarding this as a BPA Call suggests that VCH Partners LLC likely holds an existing BPA with the Department of Agriculture or a related entity, allowing for faster and more efficient procurement of these specific IT services. This method is often used when an agency anticipates repetitive needs for certain goods or services and has already established favorable terms and pricing through the initial BPA competition.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8840 STANFORD BLVD STE 4450, COLUMBIA, MD, 21045

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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

Financial Breakdown

Contract Ceiling: $12,546,487

Exercised Options: $2,157,210

Current Obligation: $2,157,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 123A9425A0003

IDV Type: BPA

Timeline