VA awards $62M DevSecOps contract to Veterans EZ Info Inc. for IT support

Contract Overview

Contract Amount: $61,976,509 ($62.0M)

Contractor: Veterans EZ Info Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-09

End Date: 2026-12-08

Contract Duration: 729 days

Daily Burn Rate: $85.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: COMMUNITY CARE DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SUPPORT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $62.0 million to VETERANS EZ INFO INC. for work described as: COMMUNITY CARE DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SUPPORT Key points: 1. Contract focuses on critical IT development, security, and operations for the VA. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 4. The duration of 729 days indicates a significant, ongoing need for these services. 5. The award amount of approximately $62 million over two years suggests a substantial investment in IT infrastructure. 6. The contractor, Veterans EZ Info Inc., is a new entity for this specific contract, requiring performance monitoring.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants close monitoring to ensure value for money. While the total award is $62 million, the actual spend will depend on hours worked and material costs. Benchmarking T&M rates against industry standards and similar VA contracts for custom computer programming services would be crucial. Without specific unit rates or detailed cost breakdowns, a definitive value assessment is challenging, but the potential for cost overruns exists if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a reasonable level of competition. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through vendor rivalry, leading to potentially better value for the funds expended.

Public Impact

Veterans benefit from improved IT systems supporting their care and benefits. The contract delivers essential DevSecOps support, enhancing the security and functionality of VA IT infrastructure. Services are likely to have a nationwide impact, supporting the VA's distributed network of facilities and users. The contract supports IT professionals and developers, potentially creating or sustaining jobs in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely managed.
Performance of a new contractor (Veterans EZ Info Inc.) on a contract of this scale requires diligent oversight.
The broad scope of DevSecOps support could lead to scope creep if not clearly defined and managed.

Positive Signals

Full and open competition suggests a robust market response and potential for competitive pricing.
The contract addresses critical IT needs for the Department of Veterans Affairs, supporting a vital mission.
The award is for a significant duration, indicating a stable and ongoing requirement for these services.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT operations support. The DevSecOps (Development, Security, and Operations) focus highlights a modern approach to software development and deployment, integrating security throughout the lifecycle. The market for such services is large and competitive, with significant government spending allocated to modernizing IT infrastructure and ensuring cybersecurity. Comparable spending benchmarks would involve looking at other large-scale IT support contracts within federal agencies, particularly those focused on software development and cloud integration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific services required. The impact on the small business ecosystem will be indirect, primarily through potential subcontracting roles rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures will be embedded in the contract's performance work statement, requiring adherence to specific deliverables, timelines, and quality standards. Transparency will be facilitated through contract award data and potentially through performance reporting, though detailed operational transparency may be limited. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA IT Modernization Initiatives
Federal Cybersecurity Contracts
Custom Software Development Services
Cloud Computing Support Services
IT Operations and Maintenance Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Uncertainty regarding the prime contractor's specific experience with large-scale DevSecOps.
Need for robust oversight to manage scope and performance effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62.0 million to VETERANS EZ INFO INC.. COMMUNITY CARE DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SUPPORT

Who is the contractor on this award?

The obligated recipient is VETERANS EZ INFO 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 $62.0 million.

What is the period of performance?

Start: 2024-12-09. End: 2026-12-08.

What is the track record of Veterans EZ Info Inc. in performing similar DevSecOps contracts for the federal government?

As Veterans EZ Info Inc. is listed as the contractor, and no prior contract history is immediately apparent for this specific entity in public databases for large-scale federal IT services, its track record on similar DevSecOps contracts is currently unknown or limited. Further investigation into the company's background, past performance on smaller contracts, or any parent/affiliated companies would be necessary to assess their experience. The VA's source selection process would have included an evaluation of the contractor's past performance, but public details on this specific entity's history are not readily available from the provided data. This lack of established performance history on comparable contracts represents a potential risk that requires diligent oversight during contract execution.

How does the awarded amount compare to similar DevSecOps support contracts within the VA or other federal agencies?

The awarded amount of approximately $62 million over two years for DevSecOps support is substantial, reflecting the complexity and critical nature of IT development, security, and operations. To benchmark this value, one would compare it to other large-scale IT services contracts awarded by the VA or agencies like the Department of Defense or HHS for similar custom computer programming and IT operational support. Factors such as contract duration, scope of work (e.g., cloud migration, cybersecurity enhancements, application development), and the specific technologies involved would influence comparability. Without access to a broader database of comparable contract values and detailed scopes, a precise comparison is difficult, but this figure suggests a significant investment in modernizing and securing the VA's IT infrastructure.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($62 million) revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can lead to cost overruns if labor hours are not efficiently managed, if rates are higher than anticipated, or if the scope of work expands without adequate oversight. For the VA, this means diligent monitoring of timesheets, material invoices, and the overall progress against defined objectives is crucial. Effective project management, clear task definitions, and robust oversight mechanisms are essential to mitigate these risks and ensure the contract delivers value within budget.

How will the success of this DevSecOps support contract be measured, and what are the key performance indicators (KPIs)?

The success of this DevSecOps support contract will likely be measured through a Performance Work Statement (PWS) that outlines specific deliverables, service levels, and quality standards. Key Performance Indicators (KPIs) would typically include metrics related to software development cycle times, system uptime and availability, security vulnerability remediation rates, incident response times, and user satisfaction. For example, KPIs might track the percentage of critical vulnerabilities resolved within a defined timeframe, the number of successful deployments per sprint, or the reduction in system downtime. The VA's contracting officer and technical team will monitor these KPIs to ensure the contractor meets its obligations and delivers effective IT support.

What is the historical spending trend for DevSecOps or similar IT support services at the Department of Veterans Affairs?

Historical spending trends for DevSecOps and similar IT support services at the Department of Veterans Affairs have generally shown a consistent and increasing investment in modernizing its IT infrastructure. The VA, like many large federal agencies, has been undergoing significant digital transformation efforts, which include enhancing cybersecurity, improving veteran-facing applications, and migrating services to more agile and secure platforms. This $62 million award aligns with broader government initiatives to adopt DevSecOps practices for more efficient and secure software development. Analyzing past VA IT spending, particularly in areas like custom programming, cybersecurity, and cloud services, would reveal a pattern of substantial resource allocation towards these critical functions to meet the evolving needs of veterans and the agency.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1901 1ST AVE, SAN DIEGO, CA, 92101

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

Financial Breakdown

Contract Ceiling: $158,350,284

Exercised Options: $61,976,509

Current Obligation: $61,976,509

Actual Outlays: $31,681,759

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $9,621,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22D009N

IDV Type: FSS

Timeline