VA Awards $120M IT Legacy Sustainment Contract to CivitasDX LLC for 5 Years

Contract Overview

Contract Amount: $119,752,757 ($119.8M)

Contractor: Civitasdx LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-29

End Date: 2026-04-02

Contract Duration: 1,646 days

Daily Burn Rate: $72.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICES TO SUPPORT IT LEGACY SUSTAINMENT APPLICATIONS AND DEVSECOPS FOR CORP PORTFOLIO PRODUCT LINES.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $119.8 million to CIVITASDX LLC for work described as: SERVICES TO SUPPORT IT LEGACY SUSTAINMENT APPLICATIONS AND DEVSECOPS FOR CORP PORTFOLIO PRODUCT LINES. Key points: 1. Contract focuses on critical IT legacy sustainment and DevSecOps for VA's corporate portfolio. 2. CivitasDX LLC, a single awardee, will provide these services. 3. The contract value is substantial at $119.76 million over its duration. 4. This award falls under the Computer Systems Design Services NAICS code.

Value Assessment

Rating: good

The contract's fixed price structure provides cost certainty. Benchmarking against similar IT sustainment contracts is recommended to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price.

Public Impact

Ensures continued operation and modernization of critical VA IT systems. Supports DevSecOps practices for enhanced software development and security. Impacts veterans through reliable access to IT services. Provides stability for IT infrastructure supporting VA operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specialized.
Reliance on a single vendor for critical IT functions.
Need for ongoing performance monitoring to ensure service quality.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type offers cost predictability.
Long-term contract provides stability for essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on legacy application sustainment and modern DevSecOps practices. Spending benchmarks for similar IT support contracts vary widely based on complexity and scope, but this award appears within a reasonable range for a multi-year, comprehensive support agreement.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, CivitasDX LLC, is not listed as a small business in this context. There is no explicit indication of small business subcontracting goals within the provided data.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Regular performance reviews and adherence to contract terms will be crucial for accountability and ensuring value delivery.

Related Government Programs

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

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of security vulnerabilities in legacy systems.
Dependence on a single vendor for critical IT functions.
Challenges in integrating legacy sustainment with modern DevSecOps.
Ensuring adequate knowledge transfer to VA staff.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $119.8 million to CIVITASDX LLC. SERVICES TO SUPPORT IT LEGACY SUSTAINMENT APPLICATIONS AND DEVSECOPS FOR CORP PORTFOLIO PRODUCT LINES.

Who is the contractor on this award?

The obligated recipient is CIVITASDX 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 $119.8 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-04-02.

What is the specific scope of 'legacy sustainment' and how does it align with the VA's long-term IT modernization strategy?

The scope of 'legacy sustainment' typically involves maintaining, repairing, and updating older IT systems and applications that are still critical to operations but may be nearing or past their end-of-life. This contract likely covers bug fixes, security patching, performance tuning, and minor enhancements for these systems. Its alignment with modernization depends on whether these sustainment efforts include pathways for eventual migration to newer platforms or if they are purely aimed at extending the life of existing systems.

How will the VA ensure that the DevSecOps practices implemented by CivitasDX LLC enhance security and efficiency, rather than just maintaining the status quo?

The VA can ensure enhanced security and efficiency through clearly defined performance metrics and Service Level Agreements (SLAs) within the contract. Regular audits of DevSecOps processes, code reviews, and security vulnerability assessments will be critical. The VA should also foster collaboration between CivitasDX and its internal IT teams to facilitate knowledge transfer and ensure that best practices are adopted and continuously improved upon throughout the contract period.

Given the $119.76 million value, what are the key performance indicators (KPIs) being used to measure the success and effectiveness of CivitasDX LLC's support?

Key performance indicators likely include system uptime percentages, response times for issue resolution, patch deployment success rates, security incident reduction, and successful implementation of DevSecOps pipelines. User satisfaction surveys from VA personnel relying on these systems, and metrics related to the efficiency of development cycles (e.g., deployment frequency, lead time for changes) would also be crucial. The contract should specify these KPIs and the acceptable thresholds for performance.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9444 WAPLES ST STE 200, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $121,171,641

Exercised Options: $119,752,757

Current Obligation: $119,752,757

Actual Outlays: $86,802,975

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $111,215,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1011

IDV Type: IDC

Timeline