VA Awards $147M Computer Systems Design Contract to Cognosante MVH LLC Under Full and Open Competition

Contract Overview

Contract Amount: $147,284,853 ($147.3M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-30

End Date: 2026-08-29

Contract Duration: 1,460 days

Daily Burn Rate: $100.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE AWARD

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $147.3 million to COGNOSANTE MVH LLC for work described as: BASE AWARD Key points: 1. Significant contract value of $147.3 million. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract is for computer systems design services, a critical IT function. 4. No small business participation noted in this award.

Value Assessment

Rating: good

The contract value of $147.3 million for computer systems design services appears reasonable given the duration and scope. Benchmarking against similar large-scale IT service contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

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

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers by leveraging market forces.

Public Impact

Veterans will benefit from improved IT systems supporting their healthcare and benefits. The contract supports critical infrastructure for the Department of Veterans Affairs. The award signifies continued investment in modernizing VA's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.

Positive Signals

Awarded via full and open competition.
Long-term contract providing stable IT support.
Significant investment in VA's technological infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, with significant competition among large IT service providers.

Small Business Impact

This specific award did not include small business participation. Agencies are encouraged to seek out small business prime contractors or include them as subcontractors to foster economic growth.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The VA's contracting office is responsible for ensuring compliance and performance throughout the contract lifecycle.

Related Government Programs

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

Risk Flags

No small business participation.
Potential for vendor lock-in over the contract's duration.
Reliance on a single vendor for critical IT design services.
Complexity of managing large IT contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $147.3 million to COGNOSANTE MVH LLC. BASE AWARD

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 $147.3 million.

What is the period of performance?

Start: 2022-08-30. End: 2026-08-29.

What specific computer systems design services are included in this $147 million contract, and how do they align with VA's strategic IT modernization goals?

The contract likely encompasses a broad range of services such as system architecture, software development, integration, testing, and maintenance for various VA IT systems. These services are crucial for modernizing legacy systems, enhancing data security, improving user experience for veterans and staff, and enabling new digital services that support healthcare delivery and benefits administration.

Given the full and open competition, what was the range of bids received, and how did Cognosante MVH LLC's proposal demonstrate superior value or technical capability?

While specific bid ranges are not provided, full and open competition implies multiple proposals were evaluated. Cognosante MVH LLC likely demonstrated superior value through a combination of competitive pricing, a technically sound approach to meeting VA's requirements, a strong past performance record, and potentially innovative solutions that addressed VA's specific challenges in computer systems design and implementation.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure the effectiveness of Cognosante MVH LLC's services in improving IT systems?

Key performance indicators would likely include metrics related to system uptime, response times, defect resolution rates, project completion timelines, cybersecurity compliance, and user satisfaction. The VA will measure effectiveness through regular performance reviews, audits, and feedback mechanisms to ensure the contractor is meeting or exceeding the defined service levels and contributing to the overall improvement of VA's IT infrastructure.

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: 1

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: $214,367,151

Exercised Options: $147,284,853

Current Obligation: $147,284,853

Actual Outlays: $102,191,735

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $178,885,875

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