VA Awards $162M for Enterprise Testing Services to Planned Systems International

Contract Overview

Contract Amount: $162,447,950 ($162.4M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-06-14

End Date: 2021-06-13

Contract Duration: 364 days

Daily Burn Rate: $446.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENTERPRISE TESTING SERVICE SUPPORT SERVICES

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $162.4 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: ENTERPRISE TESTING SERVICE SUPPORT SERVICES Key points: 1. Significant contract value of $162.4 million for testing services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the Time and Materials pricing structure. 4. Sector is IT services, specifically custom computer programming.

Value Assessment

Rating: good

The contract was awarded using a Time and Materials pricing structure, which can be less predictable than fixed-price contracts. Benchmarking against similar custom computer programming services is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of delivery orders under this contract allows for flexibility in tasking.

Taxpayer Impact: Taxpayer funds are being used for essential IT testing services, with competition aiming to ensure value for money.

Public Impact

Ensures critical IT systems used by veterans are thoroughly tested. Supports the Department of Veterans Affairs' mission to provide services to veterans. Creates jobs in the IT services sector. Potential for cost overruns due to Time and Materials pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty.
Contract duration is one year, with potential for extensions.
Small business participation is not explicitly stated as a goal.

Positive Signals

Awarded under full and open competition.
Supports a critical government function.
Experienced contractor likely to deliver services.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for similar services vary widely based on complexity and scope, but $162 million represents a substantial investment.

Small Business Impact

The data does not indicate specific small business participation goals or achievements for this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Standard procurement regulations and contract management practices would apply to ensure performance and accountability.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Time and Materials pricing risk
Potential for scope creep
Lack of explicit small business goals
Limited detail on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $162.4 million to PLANNED SYSTEMS INTERNATIONAL INC. ENTERPRISE TESTING SERVICE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PLANNED SYSTEMS INTERNATIONAL 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 $162.4 million.

What is the period of performance?

Start: 2020-06-14. End: 2021-06-13.

What is the estimated cost per hour or per deliverable under the Time and Materials structure?

The provided data does not specify the hourly rates or unit costs for the Time and Materials (T&M) pricing. T&M contracts typically reimburse the contractor for direct labor hours at specified rates and for the cost of materials used. To assess value, a detailed breakdown of these rates and an estimate of total hours and materials would be necessary.

What are the key performance indicators (KPIs) for this testing service contract?

Key performance indicators are not detailed in the provided data. Effective oversight would require clearly defined KPIs related to test coverage, defect detection rates, test cycle times, and overall system stability post-testing. These metrics are crucial for evaluating the contractor's performance and the value delivered to the VA.

How does the VA ensure cost control with a Time and Materials contract for such a large amount?

The VA likely employs several cost control measures for T&M contracts. These can include establishing ceiling prices, requiring detailed timesheets and material receipts, conducting regular audits, and closely monitoring the scope of work to prevent scope creep. The contracting officer's representative (COR) plays a vital role in managing the day-to-day execution and cost adherence.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKWY, COLUMBIA, MD, 21044

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $164,235,861

Exercised Options: $162,447,950

Current Obligation: $162,447,950

Actual Outlays: $7,213,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F598GA

IDV Type: FSS

Timeline