VA awards $47.4M IT contract to ASM RESEARCH, LLC for computer systems design services

Contract Overview

Contract Amount: $47,423,409 ($47.4M)

Contractor: ASM Research, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-05-03

End Date: 2020-01-15

Contract Duration: 257 days

Daily Burn Rate: $184.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF CRISP RSS BRIDGE TASK ODER

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.4 million to ASM RESEARCH, LLC for work described as: IGF::OT::IGF CRISP RSS BRIDGE TASK ODER Key points: 1. Contract value represents a significant investment in IT infrastructure for the VA. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The delivery order period is relatively short, indicating a focused scope of work. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. ASM RESEARCH, LLC is the sole awardee for this specific delivery order. 6. The contract falls under the IT sector, specifically computer systems design.

Value Assessment

Rating: fair

The contract value of $47.4 million for computer systems design services is substantial. Benchmarking against similar contracts for IT services requires detailed analysis of scope and duration. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously monitored. Without specific performance metrics or comparison data for this exact service, it's difficult to definitively assess value for money, but the T&M structure warrants careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows one award, suggesting that while competition was open, only one offer was selected for this specific delivery order. A robust competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of vendors to compete, driving down prices and fostering innovation.

Public Impact

Veterans will benefit from improved IT systems and services managed under this contract. The contract supports the delivery of computer systems design services, crucial for VA's operational efficiency. The primary geographic impact is likely within the VA's operational footprint, supporting its national mission. This contract supports IT professionals and potentially other roles within ASM RESEARCH, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not managed effectively.
Sole awardee for this delivery order might indicate limited competition for this specific task, despite open competition.
The contract duration is relatively short, which could imply a need for future follow-on contracts and potential re-competition challenges.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
The contract supports critical IT infrastructure for the Department of Veterans Affairs.
ASM RESEARCH, LLC is a known entity in the government contracting space.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is vast, with agencies like the VA being major consumers. Contracts for system design and integration are essential for maintaining and upgrading complex government IT infrastructures. Comparable spending benchmarks would typically involve analyzing other IT service contracts awarded by the VA and other large federal agencies for similar scope and complexity.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business participation. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside means that opportunities for small businesses would likely arise through subcontracting if ASM RESEARCH, LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The Inspector General's office within the VA may also conduct audits or investigations into contract performance and financial management. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance details may not always be publicly available.

Related Government Programs

VA IT Modernization
Federal Civilian IT Services
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to ensure efficient use of funds.
Dependence on a single awardee for this specific delivery order.
Scope definition and management critical for T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.4 million to ASM RESEARCH, LLC. IGF::OT::IGF CRISP RSS BRIDGE TASK ODER

Who is the contractor on this award?

The obligated recipient is ASM RESEARCH, 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 $47.4 million.

What is the period of performance?

Start: 2019-05-03. End: 2020-01-15.

What is the track record of ASM RESEARCH, LLC in performing similar IT services for the federal government?

ASM RESEARCH, LLC has a history of performing IT services for the federal government. Analyzing their past performance on contracts with similar scope, such as computer systems design, network integration, or software development, would be crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to meet deadlines and budget requirements. A review of their contract history with the VA and other agencies can provide insights into their reliability and expertise in delivering complex IT solutions. Their experience with Time and Materials contracts specifically would also be a key indicator of their ability to manage costs and deliver value under such pricing structures.

How does the awarded amount of $47.4 million compare to similar computer systems design contracts awarded by the VA or other agencies?

To benchmark the $47.4 million award, one would need to compare it against contracts for computer systems design services with similar scope, complexity, duration, and pricing models (e.g., Time and Materials) awarded by the Department of Veterans Affairs and other large federal agencies. Factors such as the number of users supported, the criticality of the systems, and the specific technologies involved significantly influence contract value. If this contract is for a large-scale system overhaul or the development of a new mission-critical application, the amount might be within a reasonable range. Conversely, if it's for a smaller, more defined task, it could be considered high. Detailed analysis of contract databases and market research reports would be necessary for a precise comparison.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed with rigorous oversight, this can lead to inflated costs as the contractor may have less incentive to control labor hours or material expenses. For the government, this necessitates strong project management, detailed tracking of hours and resources, and clear definition of work requirements to prevent scope creep and ensure efficient execution. Without effective monitoring, T&M contracts can become significantly more expensive than initially anticipated, impacting the overall value for money.

What is the expected impact of this contract on the VA's IT infrastructure and service delivery to veterans?

This contract is expected to enhance the VA's IT infrastructure by providing essential computer systems design services. These services are critical for modernizing, maintaining, and improving the reliability and efficiency of the systems that support veteran healthcare, benefits, and administrative functions. Improved IT infrastructure can lead to better data management, enhanced cybersecurity, streamlined workflows for VA staff, and ultimately, a more responsive and effective service delivery experience for veterans. The specific impact will depend on the precise nature of the systems being designed or improved, but the overall goal is to ensure the VA's technological capabilities align with its mission to serve veterans.

How has the VA's spending on computer systems design services trended over the past five years?

Analyzing the VA's historical spending on computer systems design services over the past five years would reveal trends in IT investment. This would involve examining annual contract awards for NAICS code 541512 and similar codes. An increasing trend might indicate a strategic focus on IT modernization and infrastructure development, potentially driven by evolving veteran needs or technological advancements. Conversely, a decreasing trend could suggest budget constraints or a shift in IT strategy. Understanding these historical patterns provides context for the current $47.4 million award, helping to determine if it represents a continuation of established spending levels, a significant increase, or a decrease.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 4050 LEGATO RD STE 1100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $60,540,651

Exercised Options: $47,423,409

Current Obligation: $47,423,409

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $978,945,219

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F611GA

IDV Type: FSS

Timeline