VA awards $35.3M for Achilles platform integration, facing limited competition

Contract Overview

Contract Amount: $35,321,324 ($35.3M)

Contractor: Amida Technology Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-19

End Date: 2026-08-18

Contract Duration: 729 days

Daily Burn Rate: $48.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL INTEGRATE THE REFACTORED GRAPH COMPONENTS OF THE ACHILLES PLATFORM INTO THE SDP SYSTEM. THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT, REQUIREMENTS DISCOVERY, DESIGN, IMPLEMENTATION, TESTING, AND PLATFORM SUSTAINMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.3 million to AMIDA TECHNOLOGY SOLUTIONS, INC. for work described as: THE CONTRACTOR SHALL INTEGRATE THE REFACTORED GRAPH COMPONENTS OF THE ACHILLES PLATFORM INTO THE SDP SYSTEM. THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT, REQUIREMENTS DISCOVERY, DESIGN, IMPLEMENTATION, TESTING, AND PLATFORM SUSTAINMENT. Key points: 1. Contract focuses on critical IT infrastructure integration for the VA's SDP system. 2. Limited competition raises questions about optimal pricing and value for taxpayer funds. 3. Potential risks include vendor lock-in and challenges in ensuring robust performance. 4. The contract duration of 729 days suggests a significant integration effort. 5. This award falls within the custom computer programming services sector. 6. Performance is tied to the successful integration of graphical components.

Value Assessment

Rating: fair

The contract value of $35.3 million for custom computer programming services appears substantial. Benchmarking against similar IT integration projects within the federal government is difficult without more detailed scope information. However, the 'NOT AVAILABLE FOR COMPETITION' status suggests potential for overpricing compared to a fully competed contract. The fixed-price nature provides some cost certainty, but the overall value proposition is weakened by the lack of competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed openly, indicated by 'NOT AVAILABLE FOR COMPETITION'. This suggests that only one or a very limited number of vendors were considered or solicited. While specific reasons for limited competition are not provided, it often stems from unique capabilities, existing system knowledge, or urgent needs. The lack of broad competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Limited competition means taxpayers may not be receiving the most cost-effective solution. Without multiple bids, there's less incentive for the awarded contractor to offer the lowest price, potentially leading to higher overall expenditure for the government.

Public Impact

Veterans will benefit from improved functionality and integration within the VA's systems. The services delivered include project management, requirements discovery, design, implementation, testing, and platform sustainment. The geographic impact is primarily within the District of Columbia, where the contractor is based. This contract supports IT professionals and project managers involved in system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of open bidding could restrict innovation and alternative solutions.
Vendor lock-in is a potential risk with sole-source or limited competition awards.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Contractor is responsible for a comprehensive set of services from discovery to sustainment.
Awarded to a single entity, potentially streamlining communication and project execution.

Sector Analysis

This contract falls within the Custom Computer Programming Services (NAICS 541511) sector, a significant segment of the federal IT market. This sector involves developing, modifying, and supporting software and IT systems. The federal government is a major consumer of these services, with spending often driven by modernization efforts, cybersecurity enhancements, and the integration of complex platforms like the VA's Achilles and SDP systems. Comparable spending benchmarks are highly variable, depending on the complexity and duration of the integration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or subcontracting goals explicitly mentioned in the provided data. The award to Amida Technology Solutions, Inc., a single entity, suggests that small business participation may be limited unless subcontracting opportunities are actively pursued by the prime contractor. Further analysis would be needed to determine if any small business subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price structure, requiring delivery of specified services. Transparency is dependent on the VA's public reporting practices and any Inspector General (IG) reviews related to IT system development and integration. The contract's duration and scope suggest ongoing monitoring will be crucial.

Related Government Programs

VA Health Information Systems
Federal IT Modernization Programs
Software Development Services
System Integration Contracts
Department of Veterans Affairs IT Infrastructure

Risk Flags

Limited Competition
Potential for Cost Overruns
Vendor Lock-in Risk
Complex System Integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.3 million to AMIDA TECHNOLOGY SOLUTIONS, INC.. THE CONTRACTOR SHALL INTEGRATE THE REFACTORED GRAPH COMPONENTS OF THE ACHILLES PLATFORM INTO THE SDP SYSTEM. THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT, REQUIREMENTS DISCOVERY, DESIGN, IMPLEMENTATION, TESTING, AND PLATFORM SUSTAINMENT.

Who is the contractor on this award?

The obligated recipient is AMIDA TECHNOLOGY SOLUTIONS, 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 $35.3 million.

What is the period of performance?

Start: 2024-08-19. End: 2026-08-18.

What is the track record of Amida Technology Solutions, Inc. with the Department of Veterans Affairs?

Amida Technology Solutions, Inc. has a history of contracting with the Department of Veterans Affairs. While the provided data does not detail specific past performance metrics or the value of previous contracts, the VA's decision to award this significant contract suggests a level of confidence in the company's capabilities. Further investigation into their contract history with the VA, including performance reviews and any past issues, would provide a more comprehensive understanding of their reliability and effectiveness in delivering IT services to the agency.

How does the $35.3 million contract value compare to similar IT integration projects within the VA or other federal agencies?

Direct comparison of the $35.3 million contract value for integrating the Achilles platform into the SDP system is challenging without specific details on the scope, complexity, and duration of comparable projects. However, for large-scale IT integration and platform sustainment efforts within federal agencies, this value is within a common range. The key differentiator here is the limited competition, which typically inflates costs compared to fully competed, best-value awards. A benchmark against similar, competitively awarded contracts would likely show this award to be on the higher end of the cost spectrum for the services rendered.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract of this magnitude?

The primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract of this magnitude include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or optimize performance, and the risk of vendor lock-in. Taxpayers may bear a higher cost than necessary. Furthermore, without a competitive process, there's a reduced assurance that the chosen solution is the most effective or that alternative, potentially superior, solutions were overlooked. The government also loses the opportunity to foster a broader base of capable contractors.

How will the success of the Achilles platform integration be measured and ensured?

The success of the Achilles platform integration will be measured through the successful completion of the defined scope of work, which includes project management, requirements discovery, design, implementation, testing, and platform sustainment. The firm-fixed-price contract type implies that the contractor must deliver these services within the agreed-upon budget. Key performance indicators (KPIs) would typically be established in the contract's statement of work, focusing on aspects like system uptime, successful data migration, user acceptance testing, and adherence to security protocols. The VA's program managers will be responsible for monitoring progress against these metrics and ensuring the delivered system meets the specified requirements.

What is the historical spending pattern for custom computer programming services by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently spends significant amounts on custom computer programming services, reflecting its reliance on complex IT systems to manage healthcare, benefits, and administrative functions. Historical data indicates a trend of increasing investment in IT modernization and system integration to improve efficiency and veteran services. While specific annual figures fluctuate based on agency priorities and project lifecycles, the VA's IT budget typically includes substantial allocations for software development, system integration, and maintenance, making contracts like this a recurring component of their spending.

What are the implications of the 729-day duration for this integration project?

A contract duration of 729 days (approximately two years) for the integration of the Achilles platform into the SDP system suggests a complex and substantial undertaking. This timeframe allows for thorough planning, development, rigorous testing, and phased implementation, which are crucial for large IT projects. It also implies that the contractor will be engaged for an extended period, requiring sustained project management and technical expertise. From a financial perspective, it spreads the cost over a longer period but also indicates the significant resources required to achieve the project's objectives. This duration also increases the potential for scope creep or requirement changes, necessitating strong contract management.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B24R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1133 15TH ST NW STE 703, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $76,479,788

Exercised Options: $35,321,324

Current Obligation: $35,321,324

Actual Outlays: $25,859,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline