VA awards $35.6M IT contract to Cognosante MVH LLC for computer systems design services

Contract Overview

Contract Amount: $35,571,442 ($35.6M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-30

End Date: 2027-03-29

Contract Duration: 1,825 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESD CCI

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.6 million to COGNOSANTE MVH LLC for work described as: ESD CCI Key points: 1. Contract value represents a significant investment in IT infrastructure for the VA. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (5 years) indicates a long-term need for these services. 5. The award to a single contractor suggests specialized capabilities were sought. 6. The geographic focus on Virginia may indicate a regional IT support requirement.

Value Assessment

Rating: good

The contract value of $35.6 million over five years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts within the federal government suggests that pricing is likely competitive, especially considering the full and open competition. The firm-fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were invited to bid. The presence of four bidders suggests a healthy level of interest and competition for this significant IT services requirement. This broad competition is generally expected to drive down prices and ensure the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely resulted in a more favorable price than a sole-source or limited competition award. The multiple bids provide assurance that the selected contractor's price is aligned with market rates.

Public Impact

Veterans will benefit from improved IT systems and services managed under this contract. The contract supports the delivery of essential computer systems design and integration services for the VA. The primary geographic impact is within Virginia, where the contractor is based and likely where services will be primarily delivered or managed. The contract supports jobs within the IT services sector, particularly in computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is inadequate at contract end.
Reliance on a single vendor for critical IT systems design could pose risks if performance falters.
Scope creep could increase costs if not managed tightly within the firm-fixed-price structure.

Positive Signals

Full and open competition suggests a robust selection process and potential for high-quality service.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration allows for stability and deep integration of services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. This sector is characterized by rapid technological advancements and a high demand for specialized expertise. The federal government is a major consumer of these services, with significant spending allocated to maintaining and upgrading its complex IT infrastructure. Comparable spending benchmarks for similar IT design and integration contracts within federal agencies often range in the tens to hundreds of millions of dollars over multi-year periods.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to a single, likely larger, prime contractor may limit direct opportunities for small businesses to participate in this specific contract's execution, although they may be involved in the broader IT ecosystem supporting the VA.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which penalizes cost overruns for the contractor. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical systems
Risk of technological obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.6 million to COGNOSANTE MVH LLC. ESD CCI

Who is the contractor on this award?

The obligated recipient is COGNOSANTE MVH 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 $35.6 million.

What is the period of performance?

Start: 2022-03-30. End: 2027-03-29.

What is the track record of COGNOSANTE MVH LLC with the Department of Veterans Affairs and similar federal contracts?

COGNOSANTE MVH LLC has a history of performing contracts with the Department of Veterans Affairs, particularly in areas related to healthcare IT and support services. Their experience often includes managing large-scale IT projects and providing technical solutions. Analyzing their past performance on similar federal contracts, especially those with the VA, would involve reviewing contract performance reports (CPARs), any past performance issues or commendations, and the overall value and duration of previous awards. This specific contract, valued at $35.6 million over five years, suggests a level of trust and demonstrated capability by the VA in COGNOSANTE MVH LLC's ability to handle significant IT design and services requirements.

How does the awarded price compare to market rates for similar computer systems design services?

The awarded contract value of $35.6 million over five years, for computer systems design services, needs to be benchmarked against market rates. Given the firm-fixed-price nature and full and open competition with four bidders, it suggests the price is likely competitive. To perform a detailed comparison, one would analyze the specific labor categories, hours, and complexity of services required against industry pricing data from sources like the Bureau of Labor Statistics for IT professionals, or commercial IT consulting rate surveys. Without specific details on the service mix, a precise comparison is difficult, but the competitive award process implies the VA believes the price is fair and reasonable relative to the market.

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

Key risks include potential performance failures by the contractor, cost overruns (though mitigated by firm-fixed-price), and technological obsolescence. Performance risks are addressed through the competitive selection process and ongoing VA oversight. The firm-fixed-price structure shifts financial risk to COGNOSANTE MVH LLC. Mitigation for technological obsolescence would rely on the contract's scope including provisions for incorporating new technologies or requiring the contractor to propose upgrades. The 5-year duration also presents a risk of the technology becoming outdated if not managed proactively.

How effective is the VA's IT infrastructure expected to be following the execution of this contract?

The effectiveness of the VA's IT infrastructure post-contract execution hinges on the successful delivery of computer systems design services by COGNOSANTE MVH LLC. The contract aims to enhance or maintain the functionality, reliability, and security of VA's IT systems. Success will be measured by the contractor's ability to meet performance standards, deliver solutions that align with VA's strategic IT goals, and improve user experience for VA staff and potentially veterans. The contract's focus on 'Computer Systems Design Services' suggests improvements in system architecture, integration, and potentially the development of new IT capabilities.

What are the historical spending patterns for computer systems design services at the VA?

Historical spending patterns for computer systems design services at the VA are substantial, reflecting the agency's vast and complex IT needs. The VA consistently invests significant amounts in IT modernization, infrastructure support, and system development. Analyzing past VA spending on similar North American Industry Classification System (NAICS) codes, such as 541512 (Computer Systems Design Services), would reveal trends in contract values, types of services procured, and key contractors. This $35.6 million award fits within the typical range for major IT service contracts awarded by large federal agencies like the VA, indicating a sustained commitment to IT infrastructure.

What is the potential impact of this contract on competition within the federal IT services market?

This contract, awarded through full and open competition to COGNOSANTE MVH LLC, contributes to the overall dynamic of the federal IT services market. While it represents a significant award to one prime contractor, the initial competitive process ensures that multiple firms had the opportunity to bid. The success of COGNOSANTE MVH LLC on this contract could enhance its position and future bidding prospects. Conversely, it signifies a missed opportunity for the other three bidders, potentially influencing their strategies for future federal pursuits. The overall impact is a reinforcement of the market's reliance on established IT service providers for large-scale government 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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: T4NG-0623

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,672,219

Exercised Options: $35,571,442

Current Obligation: $35,571,442

Actual Outlays: $17,375,801

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $12,197,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1001

IDV Type: IDC

Timeline