VA awards $2.4M task order to Dexteritech Solutions for IT planning and control support

Contract Overview

Contract Amount: $2,434,350 ($2.4M)

Contractor: Dexteritech Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-29

End Date: 2027-08-28

Contract Duration: 1,460 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER IS FOR PROGRAM PLANNING AND CONTROL SUPPORT SERVICES.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to DEXTERITECH SOLUTIONS, LLC for work described as: TASK ORDER IS FOR PROGRAM PLANNING AND CONTROL SUPPORT SERVICES. Key points: 1. Contract provides essential IT planning and control services to the VA. 2. The task order is a firm-fixed-price award, indicating clear cost expectations. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 4. The contract duration of 1460 days (4 years) provides long-term support. 5. The award falls under Computer Systems Design Services, a common IT support category. 6. The awardee, Dexteritech Solutions, LLC, is a relatively new entity in federal contracting based on available data.

Value Assessment

Rating: fair

The task order value of $2.43 million over four years is modest for IT support services. Benchmarking against similar contracts for program planning and control support is difficult without more specific service details. However, the firm-fixed-price structure suggests a defined scope and budget, which can be a positive indicator of value if the deliverables are met. The per-year cost is approximately $608,000, which appears reasonable for specialized IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, specific sources may have been excluded based on pre-defined criteria or prior relationships. The number of bidders is not explicitly stated, but this method often results in fewer than a truly open competition. The limited nature of the competition could impact price discovery, potentially leading to less competitive pricing than a fully open solicitation.

Taxpayer Impact: Taxpayers benefit from a structured procurement process, but the exclusion of sources may limit the potential for the most competitive pricing achievable through broader market engagement.

Public Impact

The Department of Veterans Affairs benefits from enhanced program planning and control support. IT services are delivered to support the agency's operational efficiency. The primary geographic impact is likely within the VA's IT infrastructure, potentially nationwide. The contract supports a specialized IT workforce, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises questions about achieving the best possible price for taxpayers.
The specific nature of 'exclusion of sources' needs further clarification to understand its impact on fairness.
Dexteritech Solutions, LLC's track record and past performance are not detailed, posing a potential risk.
The scope of 'program planning and control support' is broad and could lead to scope creep if not tightly managed.

Positive Signals

Firm-fixed-price award provides cost certainty for the government.
The 4-year duration offers stability and continuity for essential IT support services.
The contract falls under a standard IT service category (NAICS 541512), indicating alignment with established government needs.
The awardee is a Small Business (ST - Small Business Total), which aligns with federal goals to support small businesses.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in support for their complex systems. This task order represents a small but critical component of the VA's overall IT spending, aimed at ensuring effective program management and control. Comparable spending benchmarks for similar IT planning and control support services vary widely based on scope and duration, but this award appears to be within a reasonable range for a 4-year task order.

Small Business Impact

The awardee, Dexteritech Solutions, LLC, is identified as a Small Business (ST). This suggests the contract may have been awarded under small business set-aside considerations or that the company qualifies as a small business for this type of contract. The impact on the broader small business ecosystem is positive, as it provides an opportunity for a small firm to secure a significant federal contract. Subcontracting implications would depend on the specific terms of the award and Dexteritech's business strategy, but federal regulations encourage small business subcontracting.

Oversight & Accountability

Oversight for this task order would primarily reside with the Department of Veterans Affairs contracting officer and program managers. Accountability measures are embedded within the firm-fixed-price contract structure, requiring Dexteritech Solutions to deliver specified services within the agreed budget. Transparency is facilitated by federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal IT Consulting Services
Program Management Support Contracts
Computer Systems Design Services

Risk Flags

Limited competition procurement method
Unclear justification for source exclusion
Limited contractor performance history available
Broad scope of 'program planning and control support'

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to DEXTERITECH SOLUTIONS, LLC. TASK ORDER IS FOR PROGRAM PLANNING AND CONTROL SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is DEXTERITECH SOLUTIONS, 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 $2.4 million.

What is the period of performance?

Start: 2023-08-29. End: 2027-08-28.

What is the specific nature of the 'exclusion of sources' in this 'full and open competition after exclusion of sources' award, and how did it impact the number of potential bidders?

The procurement method 'full and open competition after exclusion of sources' (often referred to as FAR 6.302-1(a)(2)(iii)(A) or similar justifications) typically means that while the solicitation was publicly advertised, only specific, pre-identified sources were permitted to submit proposals. This exclusion is usually based on a justification that only a limited number of contractors possess the unique capabilities, specialized knowledge, or proprietary information required for the specific task. For this VA task order, the exact reasons for excluding other sources are not detailed in the provided data. However, this method generally results in fewer bidders than a truly open competition where any qualified vendor can respond. The impact on price discovery is that it can be less competitive, as the pool of potential offerors is intentionally narrowed, potentially leading to higher prices than if the entire market were engaged.

Can Dexteritech Solutions, LLC's past performance and track record be assessed for this contract?

Based on the provided data, a comprehensive assessment of Dexteritech Solutions, LLC's past performance and track record is not possible. The data indicates the awardee is Dexteritech Solutions, LLC, and provides basic contract details. However, it does not include information on previous contracts awarded to this entity, their performance ratings on those contracts, or any specific project successes or failures. For a more thorough analysis, one would need to consult federal procurement databases like SAM.gov or FPDS to review their contract history, performance evaluations (e.g., CPARS reports), and any documented issues. Without this information, it is difficult to gauge their reliability and capability to successfully execute this task order.

How does the $2.43 million value of this task order compare to typical spending for similar IT planning and control support services at the VA or other federal agencies?

The $2.43 million value for a 4-year task order for IT planning and control support services is relatively modest in the context of large federal IT procurements. The average annual value is approximately $608,000. While specific benchmarks depend heavily on the exact scope, complexity, and deliverables, this amount suggests a focused support role rather than a large-scale system implementation or overhaul. For comparison, major IT modernization projects or enterprise-wide support contracts can run into tens or hundreds of millions of dollars. This task order likely covers specialized expertise for program management, strategic planning, or operational control within a specific VA IT program. Its value appears reasonable for dedicated, specialized support over a multi-year period, assuming the scope is well-defined and managed.

What are the potential risks associated with awarding this task order under 'full and open competition after exclusion of sources'?

The primary risk associated with awarding a contract under 'full and open competition after exclusion of sources' is the potential for reduced competition, which can lead to higher prices than might be achieved in a truly open market. By excluding certain sources, the government may forgo proposals from highly capable vendors who could offer more competitive pricing or innovative solutions. There's also a risk that the justification for excluding sources might be weak or not fully aligned with the actual needs, potentially limiting the government's access to the best available talent. Furthermore, if the excluded sources are significant players in the market, their absence could signal a lack of broader market interest or capability, which warrants scrutiny. Transparency regarding the exclusion criteria is crucial to mitigate these risks.

What is the significance of this contract being a Firm Fixed Price (FFP) award for the VA?

A Firm Fixed Price (FFP) award signifies that Dexteritech Solutions, LLC is obligated to perform the work described in the contract for a predetermined price. This contract type places the primary risk of cost overruns on the contractor. For the VA, this is generally advantageous as it provides cost certainty and predictability. The agency knows the maximum amount it will pay, simplifying budget management and reducing the risk of unexpected cost increases. This structure incentivizes the contractor to manage its costs efficiently and effectively to maintain profitability. However, FFP contracts require a well-defined scope of work to avoid disputes or change orders, as any significant deviation from the scope could necessitate contract modifications and potentially increase the price.

How does the award to a Small Business (ST) impact the VA's small business contracting goals?

The award to Dexteritech Solutions, LLC, identified as a Small Business (ST), directly contributes to the VA's and the federal government's overall small business contracting goals. Federal agencies are mandated to award a certain percentage of their contracting dollars to small businesses, including small disadvantaged businesses, women-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone small businesses. By awarding this task order to a qualifying small business, the VA demonstrates its commitment to supporting the small business sector and fostering economic growth. This also provides a significant opportunity for Dexteritech Solutions to gain valuable experience and build its past performance record within the federal marketplace, potentially enabling it to compete for larger contracts in the future.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11700 OLD GEORGETOWN RD STE 100-5, NORTH BETHESDA, MD, 20852

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, 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: $2,469,259

Exercised Options: $2,434,350

Current Obligation: $2,434,350

Actual Outlays: $1,792,329

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $579,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B21D1034

IDV Type: IDC

Timeline