VA Renews Apptio SaaS for $16.4M, Extending Support Through 2026

Contract Overview

Contract Amount: $16,425,449 ($16.4M)

Contractor: I3 Federal LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-06

End Date: 2026-05-05

Contract Duration: 729 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT. THIS SOLUTION PROVIDES FOR THE RENEWAL OF BRAND NAME APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT.

Place of Performance

Location: FAIRFAX STATION, FAIRFAX County, VIRGINIA, 22039

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.4 million to I3 FEDERAL LLC for work described as: APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT. THIS SOLUTION PROVIDES FOR THE RENEWAL OF BRAND NAME APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT. Key points: 1. Contract value of $16.4M for Apptio SaaS subscriptions and support. 2. Competition method is 'Full and Open Competition After Exclusion of Sources'. 3. Risk of vendor lock-in due to brand-name software renewal. 4. Sector is IT Services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract price of $16.4M for a 2-year term appears reasonable for specialized SaaS, but a direct comparison to similar Apptio contracts is needed for definitive pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was conducted 'Full and Open Competition After Exclusion of Sources', suggesting some initial limitations or specific requirements that narrowed the field. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding a significant renewal for essential IT management software, with the potential for cost savings if competitive pricing was effectively leveraged.

Public Impact

Ensures continued access to critical IT financial management and operations tools for the VA. Supports VA's ability to track IT investments, optimize spending, and improve service delivery. Potential for disruption if renewal was not secured, impacting VA's IT operational visibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Brand-name software renewal may limit competitive pricing.
Reliance on a single vendor for critical SaaS.
Potential for price increases in future renewals.

Positive Signals

Contract supports essential IT operations.
Clear contract duration and end date.
Utilizes a fixed-price contract type.

Sector Analysis

This contract falls within the IT Services sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar SaaS renewals vary widely based on software functionality and user base, but $16.4M for a 2-year term for a comprehensive platform like Apptio is substantial.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses in this particular contract action. Further analysis would be needed to determine if small businesses were excluded or had opportunities.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money throughout the subscription period.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for price escalation in future renewals.
Limited competition may result in suboptimal pricing.
Dependency on a single vendor for critical IT management functions.
Lack of transparency on specific reasons for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.4 million to I3 FEDERAL LLC. APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT. THIS SOLUTION PROVIDES FOR THE RENEWAL OF BRAND NAME APPTIO SOFTWARE AS A SERVICE SUBSCRIPTIONS AND SUPPORT.

Who is the contractor on this award?

The obligated recipient is I3 FEDERAL 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 $16.4 million.

What is the period of performance?

Start: 2024-05-06. End: 2026-05-05.

What is the specific functionality Apptio provides to the VA and how critical is it to their operations?

Apptio is a leading SaaS solution for IT financial management and operations. It enables organizations like the VA to understand their IT costs, optimize investments, and align IT spending with business objectives. Its criticality lies in providing visibility and control over a vast IT budget, supporting strategic decision-making and efficient resource allocation.

What were the specific reasons for excluding other sources in the 'Full and Open Competition After Exclusion of Sources' method?

Excluding other sources typically occurs when a specific brand-name product is required, or when a unique capability is needed that only one vendor can provide. For Apptio, this could be due to proprietary technology, existing integration dependencies within the VA's IT infrastructure, or specific features essential for their unique operational requirements.

How does the VA ensure they are receiving competitive pricing for Apptio SaaS renewals, especially given potential vendor lock-in?

The VA likely leverages market research, benchmarks against similar contracts, and negotiates terms based on usage data and anticipated future needs. The 'Exclusion of Sources' clause suggests a need for strong justification and potentially a limited competitive process. Future strategies might include exploring alternative solutions or seeking multi-year discounts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 HENDERSON RD, CLIFTON, VA, 20124

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,515,742

Exercised Options: $25,268,634

Current Obligation: $16,425,449

Actual Outlays: $14,398,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline