VA awards $98M contract for EDI TAS software engineering support to Science Applications International Corporation
Contract Overview
Contract Amount: $98,090,409 ($98.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-07-22
End Date: 2024-10-21
Contract Duration: 1,918 days
Daily Burn Rate: $51.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF:OT:IGF SOFTWARE ENGINEERING SUPPORT SERVICES FOR ELECTRONIC DATA INTERCHANGE (EDI) TRANSACTIONS APPLICATION SUITE (TAS)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $98.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF:OT:IGF SOFTWARE ENGINEERING SUPPORT SERVICES FOR ELECTRONIC DATA INTERCHANGE (EDI) TRANSACTIONS APPLICATION SUITE (TAS) Key points: 1. Contract provides essential software engineering support for critical electronic data interchange transactions. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of over 5 years indicates a long-term need for these services. 5. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Focus on software engineering for EDI transactions highlights a specialized IT service requirement.
Value Assessment
Rating: good
The contract value of approximately $98 million over its period of performance appears reasonable for specialized software engineering support. Benchmarking against similar IT services contracts for system development and maintenance within the federal government suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the agency, although it relies on the contractor's ability to accurately estimate and manage costs. Without specific per-unit data, a direct cost comparison is difficult, but the overall value seems aligned with the scope of work.
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 offers. The data shows two bids were received. While two bids represent some level of competition, it is on the lower end for a contract of this value and duration. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. However, the specialized nature of the services may limit the pool of qualified offerors.
Taxpayer Impact: The full and open competition, despite receiving only two bids, aims to ensure the government receives competitive pricing. Taxpayers benefit from the opportunity for multiple companies to vie for the contract, theoretically driving down costs and improving service quality.
Public Impact
Veterans Affairs (VA) benefits through improved functionality and reliability of its Electronic Data Interchange (EDI) systems. The contract ensures the continued operation and enhancement of the Electronic Data Interchange Transactions Application Suite (TAS). This supports the seamless exchange of critical healthcare and benefits information for veterans. Workforce implications are primarily within the IT and software engineering sectors, potentially supporting specialized roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition if only two qualified bidders were available.
- Risk of cost overruns if contractor's estimates are inaccurate under fixed-price terms.
- Dependence on a single contractor for critical EDI TAS software engineering support.
Positive Signals
- Firm-fixed-price contract type provides budget certainty.
- Full and open competition process allows for a broad range of potential offerors.
- Long-term contract duration suggests a stable and ongoing need for these services.
Sector Analysis
The federal IT services market is vast, with significant spending on software development, maintenance, and systems integration. This contract falls within the Computer Systems Design Services category, focusing on specialized software engineering for electronic data interchange. The VA's reliance on robust IT infrastructure for managing veteran benefits and healthcare data makes this a critical component of its technology ecosystem. Comparable spending benchmarks for similar IT support services often range from tens to hundreds of millions of dollars, depending on the complexity and duration.
Small Business Impact
This contract was not set aside for small businesses and was awarded to a large business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs, which has established procurement and oversight processes. As a delivery order under an IDIQ, it likely falls under the purview of the VA's contracting officers and program managers. Oversight would typically involve monitoring contractor performance against contract requirements, delivery schedules, and quality standards. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Veterans Affairs IT Modernization
- Electronic Health Record (EHR) Systems
- Healthcare Information Exchange
- Federal IT Services Procurement
- Software Engineering Services
Risk Flags
- Potential for limited competition
- Contract duration exceeds 5 years
- Reliance on a single contractor for critical system support
Tags
it, software-engineering, department-of-veterans-affairs, delivery-order, firm-fixed-price, full-and-open-competition, large-business, information-exchange, healthcare-it, veteran-affairs, systems-design, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $98.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF:OT:IGF SOFTWARE ENGINEERING SUPPORT SERVICES FOR ELECTRONIC DATA INTERCHANGE (EDI) TRANSACTIONS APPLICATION SUITE (TAS)
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 $98.1 million.
What is the period of performance?
Start: 2019-07-22. End: 2024-10-21.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar software engineering services to the federal government?
Science Applications International Corporation (SAIC) has a substantial track record as a government contractor, frequently securing large IT and engineering contracts across various federal agencies. Their portfolio often includes complex software development, systems integration, and IT support services. For the VA specifically, SAIC has historically been involved in numerous IT initiatives. Analyzing their past performance on similar-sized contracts, particularly those involving mission-critical systems and long-term support, would provide insight into their capability to meet the demands of this EDI TAS contract. Key performance indicators from previous VA contracts, such as on-time delivery, adherence to budget, and quality of deliverables, would be crucial for a comprehensive assessment.
How does the awarded price compare to market rates for comparable software engineering support services?
Benchmarking the $98 million contract value against market rates for comparable software engineering support services requires detailed analysis of labor categories, skill sets, and service levels. Given the firm-fixed-price nature, the contractor has assumed the risk of cost estimation. Industry reports and salary surveys for IT professionals in software engineering roles, particularly those with expertise in electronic data interchange and government systems, can provide a baseline. Comparing the estimated labor hours and rates implied by the contract value to average market rates for similar roles in the Washington D.C. metropolitan area (where VA headquarters is located) or other relevant geographic locations would be informative. Without specific breakdown of labor categories and hours, a precise comparison is challenging, but the overall value appears consistent with specialized, long-term IT support contracts.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential performance issues, cost overruns (despite the fixed-price structure, scope creep can be a risk), and contractor dependency. Performance risks involve the contractor's ability to deliver high-quality software engineering support, meet deadlines, and maintain the stability of the EDI TAS. Cost risks, while mitigated by the firm-fixed-price type, can still arise from unforeseen technical challenges or changes in requirements. Contractor dependency is a risk if SAIC's performance falters, potentially disrupting critical VA operations. Mitigation strategies likely include robust contract management by the VA, clear performance metrics and deliverables, regular progress reviews, and contingency planning for potential disruptions. The limited number of bids (two) could also indicate a risk of insufficient competition, potentially impacting long-term value.
How effective is the Electronic Data Interchange Transactions Application Suite (TAS) in supporting the VA's mission, and how does this contract contribute to its effectiveness?
The Electronic Data Interchange Transactions Application Suite (TAS) is crucial for the VA's mission as it facilitates the secure and efficient exchange of vital information, such as healthcare claims, eligibility data, and benefit information, between the VA and external entities like healthcare providers and other government agencies. Its effectiveness directly impacts the VA's ability to process claims, manage veteran care, and disburse benefits accurately and promptly. This contract, by providing dedicated software engineering support, aims to ensure the TAS remains operational, secure, and up-to-date with evolving technological standards and regulatory requirements. Continued software engineering support is essential for maintaining system integrity, enhancing functionality, and addressing any performance bottlenecks, thereby directly contributing to the overall effectiveness of the VA's information exchange capabilities and its mission to serve veterans.
What are the historical spending patterns for software engineering support services related to EDI at the VA?
Historical spending patterns for software engineering support related to EDI at the VA would likely show a consistent and significant investment in maintaining and upgrading these critical systems. The VA handles a massive volume of transactions, making robust EDI capabilities a necessity. Over the years, the VA has undertaken various IT modernization efforts, which would have included dedicated funding for software development and maintenance of systems like TAS. Analyzing past contracts for similar services, including their values, durations, and the contractors involved, would reveal trends in spending. This could indicate whether the current $98 million award represents an increase, decrease, or stable level of investment compared to previous periods, and whether the VA is consolidating or diversifying its EDI support contracts.
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: 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: $100,432,047
Exercised Options: $98,090,409
Current Obligation: $98,090,409
Actual Outlays: $26,202,978
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $50,552,541
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA11816D1002
IDV Type: IDC
Timeline
Start Date: 2019-07-22
Current End Date: 2024-10-21
Potential End Date: 2024-11-21 00:00:00
Last Modified: 2025-10-20
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