VA awards $517.8M contract for Franchise Fund Support Services to TISTA Science and Technology Corporation

Contract Overview

Contract Amount: $517,828,449 ($517.8M)

Contractor: Tista Science and Technology Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-29

End Date: 2026-09-26

Contract Duration: 1,823 days

Daily Burn Rate: $284.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FRANCHISE FUND SUPPORT SERVICES

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78742

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $517.8 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: FRANCHISE FUND SUPPORT SERVICES Key points: 1. The contract value is substantial at $517.8 million over its potential duration. 2. TISTA Science and Technology Corporation is the awardee for these computer systems design services. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. This spending falls within the IT sector, specifically computer systems design services.

Value Assessment

Rating: fair

The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed closely. The award amount of $517.8M over 5 years suggests a significant investment, and the pricing needs careful monitoring against industry benchmarks for similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offering.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

Veterans will benefit from improved IT infrastructure and support services provided under this contract. The contract supports a significant IT services provider, contributing to the technology sector's growth. Government agencies rely on such services for efficient operations and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation.
Potential for scope creep without strict oversight.
Dependence on a single vendor for critical IT support.

Positive Signals

Awarded under full and open competition.
Significant investment in IT infrastructure for the VA.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract is for Computer Systems Design Services (NAICS 541512), a critical component of the IT sector. Spending in this area is generally high across federal agencies to maintain and upgrade technological capabilities. Benchmarks for similar contracts vary widely based on scope and duration.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses would primarily be through subcontracting, which is not detailed here.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency, responsible for oversight. The contract type (Time and Materials) necessitates robust monitoring to ensure costs remain within budget and services are delivered as specified. Regular performance reviews are crucial.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of detail on specific performance metrics and KPIs.
No indication of small business subcontracting goals.
Long duration could lead to technology obsolescence if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $517.8 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. FRANCHISE FUND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TISTA SCIENCE AND TECHNOLOGY 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 $517.8 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-26.

What is the estimated cost per hour or per service unit, and how does it compare to market rates for similar IT support services?

The contract is Time and Materials, making a fixed per-unit cost difficult to ascertain without detailed task orders. However, the total award of $517.8M over 1823 days (approx. 5 years) implies an average annual value of roughly $103.5M. A detailed analysis would require comparing the blended hourly rates for various labor categories against industry benchmarks for comparable IT systems design and support services to ensure fair and reasonable pricing.

What are the key performance indicators (KPIs) for this contract, and how will TISTA's performance be measured to ensure effective service delivery and value for money?

Specific KPIs are not detailed in the provided data. However, for a contract of this nature, typical KPIs would include system uptime, response times for issue resolution, successful implementation of upgrades, and adherence to security protocols. The VA's Contracting Officer's Representative (COR) would be responsible for monitoring these metrics and ensuring TISTA meets its contractual obligations, thereby safeguarding taxpayer investment and ensuring effective IT support.

Given the T&M contract type, what mechanisms are in place to prevent cost overruns and ensure the $517.8M ceiling is not exceeded without justification?

Time and Materials contracts require stringent oversight. The VA must implement mechanisms such as CLIN (Contract Line Item Number) ceilings, regular reviews of labor hours and material costs, and clear definitions of what constitutes a billable hour or material. A strong COR and program management team are essential to scrutinize invoices, approve necessary work, and prevent unauthorized expenditures, ensuring the contract remains within its allocated budget and delivers true value.

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 › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1201 SEVEN LOCKS RD, STE 350, ROCKVILLE, MD, 20854

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $540,588,372

Exercised Options: $517,828,449

Current Obligation: $517,828,449

Actual Outlays: $360,604,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1005

IDV Type: IDC

Timeline