VA awards $95.7M for Testing Support Services to Oracle Health Government Services, Inc

Contract Overview

Contract Amount: $95,738,490 ($95.7M)

Contractor: Oracle Health Government Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-20

End Date: 2026-12-19

Contract Duration: 1,460 days

Daily Burn Rate: $65.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TESTING SUPPORT SERVICES: THE CONTRACTOR SHALL PROVIDE ONGOING MANAGEMENT AND OVERSIGHT OF TESTING SERVICES.

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66111

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $95.7 million to ORACLE HEALTH GOVERNMENT SERVICES, INC. for work described as: TESTING SUPPORT SERVICES: THE CONTRACTOR SHALL PROVIDE ONGOING MANAGEMENT AND OVERSIGHT OF TESTING SERVICES. Key points: 1. Contract awarded for essential testing support services. 2. Sole-source award to Oracle Health Government Services, Inc. 3. Significant contract value of $95.7 million over 4 years. 4. IT sector spending focused on system design services.

Value Assessment

Rating: fair

The contract value of $95.7 million for testing support services appears high given the 'NOT COMPETED' status. Benchmarking against similar IT support contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers for these essential IT support services.

Public Impact

Veterans will benefit from improved testing of IT systems. Oracle Health Government Services, Inc. secures a large, long-term contract. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Essential service provision
Long-term contract duration

Sector Analysis

This contract falls under IT services, specifically Computer Systems Design Services (NAICS 541512). Spending in this sector is substantial across government, with a focus on maintaining and improving technological infrastructure.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The lack of competition raises questions about the effectiveness of oversight in ensuring fair pricing and value.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Limited transparency on service specifics and value.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $95.7 million to ORACLE HEALTH GOVERNMENT SERVICES, INC.. TESTING SUPPORT SERVICES: THE CONTRACTOR SHALL PROVIDE ONGOING MANAGEMENT AND OVERSIGHT OF TESTING SERVICES.

Who is the contractor on this award?

The obligated recipient is ORACLE HEALTH GOVERNMENT SERVICES, INC..

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 $95.7 million.

What is the period of performance?

Start: 2022-12-20. End: 2026-12-19.

What was the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. The contracting officer must still perform a price analysis to ensure the price is fair and reasonable, often by comparing to historical prices, other government contracts, or commercial price lists, even without direct competition.

What are the specific testing services provided under this contract, and how do they align with VA's IT modernization goals?

The data only states 'ONGOING MANAGEMENT AND OVERSIGHT OF TESTING SERVICES.' Without further detail, it's impossible to assess the alignment with VA's IT modernization goals. Understanding the scope of testing (e.g., software, hardware, cybersecurity) is crucial for evaluating its strategic importance and effectiveness.

What is the projected cost savings or efficiency gain for the VA by using Oracle Health Government Services, Inc. for these services?

Given the sole-source nature and lack of competitive bidding, it is difficult to project cost savings. The primary benefit would be the continuity of essential testing services. Any efficiency gains would be internal to the VA's operations facilitated by these services, rather than direct savings from the contract itself.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oracle Health Government Services Inc.

Address: 10200 ABILITIES WAY, KANSAS CITY, KS, 66111

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,041,977

Exercised Options: $95,738,490

Current Obligation: $95,738,490

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B18D5000

IDV Type: IDC

Timeline