VA awards $18.8M contract for Budget Tracking Tool system enhancements and support to Science Applications International Corporation

Contract Overview

Contract Amount: $18,840,355 ($18.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-28

End Date: 2026-08-27

Contract Duration: 1,825 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROJECT MANAGEMENT, ALL SOFTWARE DESIGN AND DEVELOPMENT ACTIVITIES FOR BUDGET TRACKING TOOL SYSTEM ENHANCEMENTS, HELP DESK SUPPORT, USER TRAINING, CONFIGURATION CONTROL BOARD (CCB) SUPPORT, AND BTT OPERATIONS AND MAINTENANCE SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PROJECT MANAGEMENT, ALL SOFTWARE DESIGN AND DEVELOPMENT ACTIVITIES FOR BUDGET TRACKING TOOL SYSTEM ENHANCEMENTS, HELP DESK SUPPORT, USER TRAINING, CONFIGURATION CONTROL BOARD (CCB) SUPPORT, AND BTT OPERATIONS AND MAINTENANCE SUPPORT Key points: 1. Contract focuses on critical IT infrastructure for budget management. 2. Long-term support indicates a need for specialized system maintenance. 3. Fixed-price contract type aims to control costs over the performance period. 4. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor has a significant role in maintaining essential financial systems. 6. System enhancements suggest ongoing development to meet evolving VA needs.

Value Assessment

Rating: good

The contract value of $18.8 million over five years for IT system development and support appears reasonable given the scope of work, which includes enhancements, help desk, training, and operations and maintenance. Benchmarking against similar large-scale IT support contracts within federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the VA, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair market pricing. This approach is generally preferred for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more favorable pricing and a wider range of innovative solutions being considered.

Public Impact

The Department of Veterans Affairs (VA) benefits from enhanced budget tracking capabilities. Services include software design, development, help desk support, and system maintenance. The contract supports the operational efficiency of the VA's financial management systems. Workforce implications include the need for skilled IT professionals to perform development and support tasks. Geographic impact is primarily within the VA's internal operations, supporting its nationwide mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term support requirements.
Reliance on a single contractor for critical budget system operations.
Scope creep could increase costs if not managed tightly.
Ensuring continuous knowledge transfer and avoiding key personnel dependency.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Long-term contract allows for stable system development and maintenance.
Contractor's role in critical financial systems indicates established expertise.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, particularly for developing, maintaining, and enhancing complex software systems that support agency operations. Spending in this sector is driven by the need for modernization, cybersecurity, and improved data management across all government functions. Comparable spending benchmarks for large-scale IT system development and support contracts often run into tens or hundreds of millions of dollars over multiple years.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular award. Therefore, there are no direct subcontracting implications for small businesses mandated by this contract's structure. The primary contractor, Science Applications International Corporation, is a large business, and their subcontracting plans would be governed by the terms of the IDIQ contract under which this delivery order was issued, if applicable.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services and system enhancements. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Financial Management Systems
IT Modernization Programs
Software Development Services
Help Desk and Technical Support Contracts
System Operations and Maintenance

Risk Flags

Long-term reliance on a single vendor for critical system support.
Potential for scope creep impacting budget and timeline.
Ensuring adequate knowledge transfer and avoiding key personnel dependency.
Cybersecurity risks associated with software development and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROJECT MANAGEMENT, ALL SOFTWARE DESIGN AND DEVELOPMENT ACTIVITIES FOR BUDGET TRACKING TOOL SYSTEM ENHANCEMENTS, HELP DESK SUPPORT, USER TRAINING, CONFIGURATION CONTROL BOARD (CCB) SUPPORT, AND BTT OPERATIONS AND MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

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 $18.8 million.

What is the period of performance?

Start: 2021-08-28. End: 2026-08-27.

What is the historical spending pattern for Budget Tracking Tool system enhancements and support at the VA?

Analyzing historical spending for the VA's Budget Tracking Tool (BTT) system is crucial for understanding trends and justifying current investments. While specific historical data for this exact contract is not provided, the VA consistently invests significant resources in its IT infrastructure to manage its vast budget and operations. Past contracts for similar IT support, development, and maintenance services within the VA have often been multi-year, firm-fixed-price or cost-plus-fixed-fee arrangements, ranging from a few million to tens of millions of dollars annually, depending on the scope and complexity of system upgrades or operational needs. The current $18.8 million award over five years suggests a sustained level of investment in maintaining and enhancing this critical financial system, aligning with typical federal agency IT lifecycle management.

How does the contractor's track record influence this award?

Science Applications International Corporation (SAIC) is a large, established government contractor with extensive experience in IT services, systems engineering, and support across various federal agencies, including the Department of Defense and the Department of Veterans Affairs. Their track record typically involves managing complex projects, delivering software solutions, and providing long-term operational support. For this specific contract, SAIC's demonstrated capability in computer systems design services (NAICS 541512) and their existing relationship with the VA likely played a significant role in the award. Agencies often favor contractors with a proven history of successful performance on similar projects to mitigate risks associated with system development and maintenance, especially for critical financial tools.

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

Key performance indicators (KPIs) for this contract would focus on the successful delivery of software enhancements, system availability, user support responsiveness, and overall system performance. For software design and development, KPIs might include on-time delivery of milestones, adherence to technical specifications, and successful integration of new features. For help desk support, metrics such as average response time, resolution rate, and user satisfaction scores would be critical. Operations and maintenance KPIs would likely involve system uptime percentages, incident response times, and the effectiveness of configuration management. The VA would monitor these KPIs to ensure the contractor is meeting the requirements of the firm-fixed-price contract and delivering value for the investment.

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

Potential risks include scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns (though mitigated by the firm-fixed-price structure). Another risk is contractor performance failure, where SAIC might not deliver the required quality or timeliness of services. This is mitigated by the full and open competition process, which theoretically selects the best-value offeror, and by the VA's ongoing oversight and performance monitoring. Technical risks, such as integration challenges with existing VA systems or cybersecurity vulnerabilities, are inherent in IT projects. Mitigation strategies include robust testing, adherence to security protocols, and clear technical requirements. Long-term reliance on a single vendor also poses a risk, which can be managed through knowledge transfer clauses and contingency planning.

How does this contract align with the VA's broader IT modernization goals?

This contract directly supports the VA's broader IT modernization goals by ensuring that a critical financial management system, the Budget Tracking Tool (BTT), remains up-to-date, functional, and capable of meeting evolving needs. Modernizing financial systems is essential for efficient resource allocation, accurate reporting, and compliance with federal financial management regulations. By investing in enhancements, user training, and ongoing maintenance, the VA aims to improve the reliability and usability of the BTT, which underpins crucial budget tracking and decision-making processes. This aligns with the government-wide push for digital transformation and the VA's specific objective to modernize its infrastructure to better serve veterans.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12010, SUNSET HILLS ROAD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,687,673

Exercised Options: $18,840,355

Current Obligation: $18,840,355

Actual Outlays: $10,773,514

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,256,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F486BA

IDV Type: FSS

Timeline