VA awards $63M contract for Volcano Professional Licenses to Volexity, Inc

Contract Overview

Contract Amount: $63,000 ($63.0K)

Contractor: Volexity, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-10

End Date: 2027-08-09

Contract Duration: 1,460 days

Daily Burn Rate: $43/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VOLCANO PROFESSIONAL LICENSES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $63,000 to VOLEXITY, INC. for work described as: VOLCANO PROFESSIONAL LICENSES Key points: 1. Contract awarded to a single vendor, Volexity, Inc., for professional licenses. 2. The contract value is $63,000,000 over a period of 4 years. 3. The procurement method was 'NOT COMPETED', raising potential competition concerns. 4. The sector appears to be IT services, specifically computer-related services.

Value Assessment

Rating: questionable

The contract value of $63M over 4 years for professional licenses needs further benchmarking against similar IT service contracts. Without comparative data, assessing if this price is reasonable is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these professional licenses, impacting taxpayer funds.

Public Impact

Veterans may experience service disruptions if these licenses are critical for VA operations. Taxpayers could be overpaying due to the absence of competitive bidding. The VA's reliance on a single vendor for essential services warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Single vendor dependency

Positive Signals

Clear contract duration
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar professional IT licenses can vary widely based on the specific software or service provided.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was a sole-source award to Volexity, Inc.

Oversight & Accountability

The VA's decision to not compete this requirement needs thorough justification and oversight to ensure taxpayer funds are used efficiently and effectively.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Dependency on a single vendor.
Lack of transparency in procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $63,000 to VOLEXITY, INC.. VOLCANO PROFESSIONAL LICENSES

Who is the contractor on this award?

The obligated recipient is VOLEXITY, 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 $63,000.

What is the period of performance?

Start: 2023-08-10. End: 2027-08-09.

What specific 'Volcano Professional Licenses' are being procured, and what is their criticality to VA operations?

The specific nature of 'Volcano Professional Licenses' is not detailed in the provided data. Understanding the exact software or service these licenses represent is crucial for assessing their value and necessity. Their criticality to VA operations would determine the impact of any potential service disruptions or vendor issues.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without this justification, the lack of competition raises concerns about potential price inflation and missed opportunities for better value through competitive bidding.

How does the $63M contract value compare to industry benchmarks for similar professional IT licenses?

Benchmarking this $63M contract against industry standards for comparable professional IT licenses is essential. Without this comparison, it's difficult to ascertain if the VA is receiving fair market value. A significant deviation from benchmarks could indicate overpricing or unique, high-value services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10A23Q0169

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8455 COLESVILLE ROAD, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $78,750

Exercised Options: $63,000

Current Obligation: $63,000

Actual Outlays: $47,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline