VA awards $58.6M IT services task order to Cognosante MVH LLC for VATAS O&M

Contract Overview

Contract Amount: $58,633,311 ($58.6M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-07-29

End Date: 2024-07-28

Contract Duration: 1,826 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW TASK ORDER - VATAS O&M

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.6 million to COGNOSANTE MVH LLC for work described as: NEW TASK ORDER - VATAS O&M Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the VA. 3. Task order duration of 1826 days (5 years) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. The contract is managed by the Department of Veterans Affairs (VA) and performed in Virginia. 6. No small business set-aside or subcontracting was indicated, potentially limiting small business participation.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides a clear cost ceiling. While specific value-for-money metrics are not provided, the competitive award process suggests that the VA likely received a fair price. Benchmarking against similar IT O&M contracts would provide further insight into whether the pricing is competitive within the market for these specialized services. The duration of the contract also implies a sustained need and potential for economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bidders (as indicated by 'no': 2) suggests a moderate level of competition for this specific task order. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from contractors.

Public Impact

The Department of Veterans Affairs benefits from ongoing operational and maintenance services for its IT systems. Veterans and VA staff will experience continued access to and functionality of critical IT systems. The contract supports IT infrastructure and services within Virginia. The contract likely supports a workforce of IT professionals employed by Cognosante MVH LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the lowest possible price.
Lack of small business set-aside could limit opportunities for smaller, specialized IT firms.
Firm-fixed-price contracts can sometimes lead to contractors cutting corners on quality if not properly managed.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
Firm-fixed-price contract provides cost certainty and predictability for the VA.
Long-term duration (5 years) suggests a stable and reliable service provider for critical IT functions.
Contract managed by the VA, an agency with significant experience in IT procurement and oversight.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for IT operations and maintenance (O&M) is substantial within the federal government, with agencies like the VA being major spenders. Comparable spending benchmarks for IT O&M services can vary widely based on system complexity, scope of services, and contract type. The $58.6 million value over five years places this task order in the mid-to-large range for IT service contracts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that larger, established companies were the primary focus of the competition. While this can sometimes lead to more streamlined execution, it may limit opportunities for smaller, innovative IT firms to participate in federal contracting and contribute to the VA's IT infrastructure.

Oversight & Accountability

The Department of Veterans Affairs, as the contracting agency, is responsible for the oversight of this contract. Oversight mechanisms would typically include regular performance reviews, monitoring of deliverables, and adherence to the firm-fixed-price terms. Accountability is ensured through contractual clauses and performance standards. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA IT Modernization
Federal Civilian IT Services
IT Operations and Maintenance Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in due to long-term single-contractor reliance.
Limited competition (2 bidders) may not guarantee optimal pricing.
Lack of explicit small business subcontracting could limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.6 million to COGNOSANTE MVH LLC. NEW TASK ORDER - VATAS O&M

Who is the contractor on this award?

The obligated recipient is COGNOSANTE MVH 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 $58.6 million.

What is the period of performance?

Start: 2019-07-29. End: 2024-07-28.

What is the track record of Cognosante MVH LLC with the Department of Veterans Affairs and other federal agencies?

Cognosante MVH LLC has a history of performing IT and healthcare-related services for the federal government, including significant work with the Department of Veterans Affairs. Their contract portfolio often includes areas such as health IT, data analytics, and program management support. Examining their past performance ratings, any past performance issues or awards, and the types of services they have successfully delivered can provide insight into their reliability and capability. A review of their federal contract history would reveal the scale and complexity of previous engagements, helping to assess their capacity to manage a task order of this magnitude and duration.

How does the per-unit cost or pricing structure of this contract compare to similar IT O&M contracts awarded by the VA or other agencies?

Without specific line-item details or labor rates, a direct per-unit cost comparison is challenging. However, the firm-fixed-price nature of this contract provides cost certainty for the VA. To benchmark value, one would typically compare the total contract value against the scope of services and duration. If similar contracts for IT O&M services for large-scale systems (like VATAS) were awarded competitively with comparable service levels, we could assess if the $58.6 million over five years represents a competitive market rate. Factors like the complexity of the VATAS system, the specific O&M tasks required, and the prevailing labor costs in Virginia would influence this comparison.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this task order, and how is performance monitored?

The specific KPIs and SLAs for this VATAS O&M task order are not detailed in the provided data. However, for IT O&M contracts, typical KPIs often include system uptime, response times for issue resolution, patch management adherence, and data security compliance. SLAs define the acceptable performance thresholds for these KPIs. The VA's contract management team would be responsible for monitoring Cognosante MVH LLC's performance against these metrics, likely through regular reporting, system audits, and performance review meetings. Failure to meet KPIs or SLAs could result in contractual remedies or penalties.

What is the historical spending pattern for VATAS O&M services, and how does this award compare to previous expenditures?

Historical spending data for VATAS O&M services prior to this task order award is not provided. To assess this, one would need to examine previous contracts related to the VATAS system's operations and maintenance. This would involve looking at contract awards from the same or previous fiscal years, identifying the incumbent contractor (if any), and comparing the total amounts obligated. Understanding past spending levels helps determine if this $58.6 million award represents an increase, decrease, or stable level of investment in VATAS O&M, and whether the shift in contractor (if applicable) correlates with changes in cost or service scope.

What are the potential risks associated with relying on a single contractor for a five-year period for critical IT O&M services?

Relying on a single contractor for five years for critical IT O&M services presents several potential risks. These include vendor lock-in, where the government becomes overly dependent on the contractor's proprietary knowledge or systems, making transitions difficult and costly. There's also the risk of complacency or reduced innovation from the contractor over time, especially if competition is limited in subsequent procurements. Furthermore, the contractor's financial stability or strategic business shifts could impact service continuity. Finally, if the contractor fails to perform adequately, the government may face significant disruption while seeking a replacement or remediation.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,604,978

Exercised Options: $58,633,311

Current Obligation: $58,633,311

Actual Outlays: $23,265,088

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $39,787,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1001

IDV Type: IDC

Timeline