VA awards $237M IT support contract to IT Concepts, Inc. for endpoint services

Contract Overview

Contract Amount: $237,081,504 ($237.1M)

Contractor: IT Concepts, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $325.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENDPOINT SUPPORT AND OPERATIONS MONITORING (ESOM)-IT SUPPORT SERVICES TO ASSIST EUS IN ACHIEVING ITS MISSION OF SERVING VETERANS AND THE PUBLIC BY DELIVERING EFFECTIVE ENDPOINT SUPPORT AND OPERATIONS MONITORING.

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $237.1 million to IT CONCEPTS, INC. for work described as: ENDPOINT SUPPORT AND OPERATIONS MONITORING (ESOM)-IT SUPPORT SERVICES TO ASSIST EUS IN ACHIEVING ITS MISSION OF SERVING VETERANS AND THE PUBLIC BY DELIVERING EFFECTIVE ENDPOINT SUPPORT AND OPERATIONS MONITORING. Key points: 1. The contract focuses on IT support and operations monitoring for the VA's mission to serve veterans. 2. IT Concepts, Inc. is the awardee for this significant IT services contract. 3. The contract duration is 729 days, ending September 29, 2026. 4. This award represents a substantial investment in IT infrastructure for the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract value of $237,081,504.33 for a 729-day period suggests a competitive pricing strategy. Benchmarking against similar IT support contracts of this scale is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT support services.

Public Impact

Veterans will benefit from improved IT services supporting the VA's mission. The contract ensures continuity of critical IT operations for the Department of Veterans Affairs. IT Concepts, Inc. will play a key role in maintaining and enhancing VA's technological infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing.
Dependence on a single vendor for critical IT support.
Scope creep could increase the overall cost beyond initial estimates.

Positive Signals

Awarded through full and open competition.
Supports the critical mission of serving veterans.
Clear contract end date provides future planning opportunities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government operations. Spending in this sector is consistently high as agencies modernize and maintain IT infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for IT service contracts, including performance monitoring and financial reviews, should be in place.

Related Government Programs

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

Risk Flags

Time and Materials pricing increases cost risk.
Potential for scope creep impacting budget.
Dependence on vendor performance for critical services.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $237.1 million to IT CONCEPTS, INC.. ENDPOINT SUPPORT AND OPERATIONS MONITORING (ESOM)-IT SUPPORT SERVICES TO ASSIST EUS IN ACHIEVING ITS MISSION OF SERVING VETERANS AND THE PUBLIC BY DELIVERING EFFECTIVE ENDPOINT SUPPORT AND OPERATIONS MONITORING.

Who is the contractor on this award?

The obligated recipient is IT CONCEPTS, 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 $237.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the projected cost per user or per endpoint for the IT support services provided under this contract?

The provided data does not specify a per-user or per-endpoint cost. The contract is valued at $237,081,504.33 for 729 days. To determine a per-unit cost, the total number of endpoints or users supported would need to be known, along with a breakdown of services rendered. This information is crucial for detailed cost-effectiveness analysis.

What are the key performance indicators (KPIs) used to measure the effectiveness of IT Concepts, Inc.'s endpoint support and operations monitoring?

The contract details do not explicitly list the Key Performance Indicators (KPIs) for measuring effectiveness. Typically, such contracts would include metrics related to response times, resolution rates, system uptime, user satisfaction, and security compliance. The VA's contracting officers would monitor these KPIs to ensure IT Concepts, Inc. meets its obligations and delivers value.

How does the Time and Materials pricing structure impact the overall risk of cost escalation for this contract?

Time and Materials (T&M) pricing inherently carries a higher risk of cost escalation compared to fixed-price contracts. Without clear ceilings or robust oversight, the vendor could incur more hours or use more expensive materials than initially anticipated, driving up the total cost. Effective management and monitoring by the VA are essential to mitigate this risk.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B24Q0506

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD STE 305, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $664,964,568

Exercised Options: $237,081,504

Current Obligation: $237,081,504

Actual Outlays: $126,637,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0441Y

IDV Type: FSS

Timeline