VA awards $20.7M contract for IT verification and validation services to Innovet Health LLC

Contract Overview

Contract Amount: $20,697,996 ($20.7M)

Contractor: Innovet Health LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-24

End Date: 2026-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDER PROVIDES FOR INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR THE FMBT PROGRAM IN SUPPORT OF VA OIT OFFICE OF QUALITY, PERFORMANCE AND RISK (QPR), SYSTEMS QUALITY ASSURANCE SERVICE (SQAS).

Place of Performance

Location: CHEYENNE, LARAMIE County, WYOMING, 82001

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.7 million to INNOVET HEALTH LLC for work described as: ORDER PROVIDES FOR INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR THE FMBT PROGRAM IN SUPPORT OF VA OIT OFFICE OF QUALITY, PERFORMANCE AND RISK (QPR), SYSTEMS QUALITY ASSURANCE SERVICE (SQAS). Key points: 1. Contract focuses on independent verification and validation (IV&V) for the FMBT program. 2. Services are critical for ensuring the quality and performance of VA IT systems. 3. The contract is a firm-fixed-price delivery order, indicating predictable costs. 4. Competition was full and open, suggesting a potentially competitive pricing environment. 5. The duration of the contract is five years, aligning with long-term IT program needs. 6. The awardee, Innovet Health LLC, is positioned to support a key VA quality assurance function.

Value Assessment

Rating: good

The contract value of $20.7 million over five years for IT IV&V services appears reasonable, especially considering the critical nature of ensuring the quality and performance of the VA's FMBT program. Benchmarking against similar large-scale IT support contracts within the federal government suggests that this level of investment is typical for comprehensive verification and validation efforts. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

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 5 bids indicates a healthy level of interest and competition for these specialized IT services. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the VA is receiving competitive pricing for essential IT verification and validation services.

Public Impact

Veterans will benefit from improved reliability and performance of VA IT systems, particularly the FMBT program. The contract delivers essential independent verification and validation services, enhancing IT project quality. Services are primarily delivered to the VA Office of Information and Technology (OIT), supporting national IT infrastructure. The contract supports IT professionals and quality assurance specialists within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly beyond initial IV&V parameters.
Dependence on a single contractor for critical quality assurance functions could pose a risk if performance falters.
Ensuring continuous alignment between IV&V findings and actual system improvements requires robust government oversight.

Positive Signals

Firm-fixed-price contract provides cost predictability and limits the government's exposure to cost overruns.
Full and open competition suggests a robust selection process and potentially competitive pricing.
Long-term, five-year duration allows for deep integration and understanding of the FMBT program's lifecycle.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the federal IT landscape. This sector encompasses a wide range of services aimed at designing, developing, and supporting complex IT systems. The federal government is a significant consumer of these services, with spending often concentrated in areas like defense, healthcare, and administrative systems. The VA's investment in IV&V for its FMBT program is indicative of the broader trend towards ensuring the integrity and effectiveness of large-scale IT modernization efforts across government.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a small business set-aside component. There is no explicit information regarding subcontracting plans for small businesses. 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

Oversight for this contract will primarily reside with the Department of Veterans Affairs' Office of Information and Technology (OIT), specifically the Office of Quality, Performance and Risk (QPR) and its Systems Quality Assurance Service (SQAS). As a delivery order under a larger contract vehicle, the underlying contract likely has established oversight mechanisms. Transparency is expected through regular reporting requirements and performance reviews. The Inspector General's office may conduct audits or investigations if performance issues or concerns arise.

Related Government Programs

VA IT Modernization Programs
Federal Independent Verification and Validation (IV&V) Services
IT Program Management Support
Software Quality Assurance Contracts
Department of Veterans Affairs IT Services

Risk Flags

Contract Duration
Scope of Services
Contractor Performance History
Program Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.7 million to INNOVET HEALTH LLC. ORDER PROVIDES FOR INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR THE FMBT PROGRAM IN SUPPORT OF VA OIT OFFICE OF QUALITY, PERFORMANCE AND RISK (QPR), SYSTEMS QUALITY ASSURANCE SERVICE (SQAS).

Who is the contractor on this award?

The obligated recipient is INNOVET HEALTH 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 $20.7 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-09-23.

What is the specific scope of the IV&V services required for the FMBT program?

The Independent Verification and Validation (IV&V) services for the FMBT (Financial Management Business Transformation) program are designed to provide an objective assessment of the program's progress, quality, and risks. This typically includes reviewing project documentation, testing software and systems, evaluating adherence to requirements, assessing project management processes, and identifying potential issues or deviations from planned outcomes. The goal is to ensure the FMBT program meets its objectives, delivers reliable functionality, and stays within budget and schedule by providing early warnings and actionable recommendations to the VA OIT's Office of Quality, Performance and Risk (QPR).

How does the $20.7 million contract value compare to similar federal IV&V contracts?

The $20.7 million contract value for five years of IV&V services for a major program like the VA's FMBT is within the expected range for federal IT support contracts of this nature. Large-scale IT modernization programs often require significant investment in independent oversight to mitigate risks. Comparable contracts for IV&V services on programs of similar complexity and duration within agencies like the Department of Defense or HHS can range from several million to tens of millions of dollars annually, depending on the scope and criticality. This award appears to be a standard investment for ensuring the success of a significant financial IT transformation.

What are the key performance indicators (KPIs) or metrics used to evaluate Innovet Health LLC's performance?

While specific KPIs are not detailed in the provided data, typical performance metrics for IV&V contracts include the number and severity of defects identified, the timeliness of reporting findings, the accuracy and actionability of recommendations, adherence to project schedules for IV&V tasks, and client satisfaction ratings from the VA OIT QPR and SQAS teams. Performance is often assessed through regular progress reports, review meetings, and formal performance evaluations conducted at specified intervals throughout the contract's duration. The firm-fixed-price nature also implies that meeting the defined scope and quality standards is paramount.

What is Innovet Health LLC's track record with the VA or similar federal agencies for IT services?

Information on Innovet Health LLC's specific track record with the VA or similar federal agencies for IT services, particularly IV&V, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any publicly available information on their project history. However, winning a competitive bid for a significant five-year contract with the VA suggests they possess the necessary qualifications, experience, and capabilities deemed sufficient by the agency to fulfill the requirements.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include the complexity of the FMBT program itself, potential changes in requirements leading to scope creep, contractor performance issues, or integration challenges with other VA systems. Mitigation strategies are likely embedded within the contract's structure and oversight. The firm-fixed-price nature helps control cost risks. The full and open competition suggests a thorough vetting of bidders. The VA's established quality assurance processes and the IV&V role itself are designed to identify and mitigate risks proactively. Clear communication channels and defined performance standards are crucial for managing these risks throughout the contract lifecycle.

How does this contract align with the VA's broader IT modernization goals?

This contract directly supports the VA's broader IT modernization goals by ensuring the integrity and effectiveness of the Financial Management Business Transformation (FMBT) program. Modernizing financial systems is a critical component of improving the VA's operational efficiency and its ability to manage resources effectively. By providing independent verification and validation, this contract helps de-risk the FMBT program, ensuring that the new financial systems are reliable, secure, and meet the needs of the agency. This aligns with the VA's strategic objective to leverage modern technology to better serve veterans and manage its vast operations.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1908 THOMES AVE, CHEYENNE, WY, 82001

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,592,106

Exercised Options: $20,733,460

Current Obligation: $20,697,996

Actual Outlays: $11,570,153

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,976,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D00BU

IDV Type: FSS

Timeline