VA awards $3.6M IT contract for VTC and network services to Mind Computing, Inc

Contract Overview

Contract Amount: $3,611,159 ($3.6M)

Contractor: Mind Computing, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-06

End Date: 2027-02-05

Contract Duration: 1,187 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EO14042 - VACO TIER II VIDEO TELECONFERENCING (VTC) AND NETWORK IT SERVICES

Place of Performance

Location: EAST THETFORD, ORANGE County, VERMONT, 05043

State: Vermont Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to MIND COMPUTING, INC. for work described as: EO14042 - VACO TIER II VIDEO TELECONFERENCING (VTC) AND NETWORK IT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 4 years indicates a need for sustained IT support. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The award to a single vendor, Mind Computing, Inc., warrants a review of performance and pricing. 5. The IT services category is crucial for modern government operations and communication. 6. The contract's value is moderate within the context of federal IT spending.

Value Assessment

Rating: good

The contract value of $3.61 million over approximately 3.3 years (1187 days) for IT services, specifically video teleconferencing and network support, appears reasonable. Without specific benchmarks for similar VTC and network IT services contracts within the VA or across government, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The number of bids received (5) indicates some level of market interest, which can contribute to competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. Five bids were received, suggesting a healthy level of competition for this requirement. The open competition is generally a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair and reasonable price by allowing multiple vendors to compete.

Public Impact

Veterans and VA staff will benefit from improved video teleconferencing and network capabilities, facilitating communication and access to services. The contract supports essential IT infrastructure for the Department of Veterans Affairs. The services are likely to have a nationwide impact, supporting VA facilities across the country. The contract supports IT professionals employed by Mind Computing, Inc., contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is not closely monitored.
Reliance on a single vendor for critical IT infrastructure could pose a risk if the vendor faces financial or operational challenges.

Positive Signals

Firm-fixed-price contract helps control costs and provides budget predictability.
Awarded through full and open competition, indicating a competitive process.
Contract duration of nearly four years suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in network infrastructure, cybersecurity, and communication tools like VTC. This contract aligns with the government's ongoing efforts to modernize its IT systems and enhance digital services for citizens and employees. Comparable spending benchmarks for similar VTC and network IT services contracts can vary significantly based on scope, duration, and specific technical requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The competition was full and open, meaning large and small businesses could compete. The impact on the small business ecosystem would be indirect, primarily through potential prime opportunities if Mind Computing, Inc. chooses to subcontract, or through competition with other large businesses that may utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for IT infrastructure. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining deliverables, service levels, and quality standards. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal VTC Services
Network Infrastructure Support Contracts
Computer Systems Design Services

Risk Flags

Contract Performance Risk
Cybersecurity Risk
Vendor Viability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to MIND COMPUTING, INC.. EO14042 - VACO TIER II VIDEO TELECONFERENCING (VTC) AND NETWORK IT SERVICES

Who is the contractor on this award?

The obligated recipient is MIND COMPUTING, 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 $3.6 million.

What is the period of performance?

Start: 2023-11-06. End: 2027-02-05.

What is the track record of Mind Computing, Inc. in performing similar federal IT contracts?

A review of federal procurement data would be necessary to assess Mind Computing, Inc.'s track record. Key indicators to examine include past performance evaluations on similar contracts, any history of contract disputes or terminations, and the company's experience with video teleconferencing (VTC) and network IT services. Understanding their performance on previous government contracts, particularly with the Department of Veterans Affairs, would provide insight into their capability to successfully execute this current award. Without specific past performance data, it is difficult to definitively assess their reliability and expertise for this particular requirement.

How does the awarded price compare to market rates for similar VTC and network IT services?

Benchmarking this $3.61 million contract against market rates requires detailed analysis of the specific services, service levels, and geographic coverage. Factors such as the number of users supported, uptime guarantees, and specific hardware/software requirements influence pricing. Comparing the estimated annual cost (approximately $1.1 million) to industry reports or government-wide contract vehicles for similar IT support services would be necessary. The fact that five bids were received suggests some level of competitive pricing, but a deeper dive into the specifics of the Statement of Work (SOW) and comparing it to publicly available pricing for comparable services is needed for a definitive assessment of value for money.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential performance issues from the contractor (Mind Computing, Inc.), technological obsolescence of VTC and network equipment, and cybersecurity threats. Mitigation strategies typically involve robust contract oversight, clearly defined performance metrics in the Performance Work Statement (PWS), regular performance reviews, and adherence to strict cybersecurity protocols mandated by the VA. The firm-fixed-price nature of the contract also mitigates financial risk for the government by establishing a set cost. However, the government must ensure the PWS is comprehensive and that monitoring mechanisms are in place to address any deviations or failures promptly.

How effective is the VA's use of full and open competition for IT services like VTC and network support?

The VA's utilization of full and open competition for IT services is generally an effective strategy for maximizing competition and achieving competitive pricing. In this case, receiving five bids indicates that the market was receptive to the solicitation. This approach allows a wider range of vendors, including potentially innovative smaller businesses, to compete, fostering a dynamic marketplace. However, the effectiveness also depends on the clarity and realism of the solicitation's requirements and the agency's ability to evaluate proposals fairly and efficiently. Over time, analyzing trends in bid counts and price competitiveness across various IT procurements can further assess the overall effectiveness.

What is the historical spending pattern for VTC and network IT services within the VA?

Analyzing historical spending patterns for VTC and network IT services within the VA is crucial for context. This involves examining prior contracts for similar services, including their values, durations, and awarded contractors. Understanding whether spending has been consistent, increasing, or decreasing can indicate evolving needs or shifts in technology adoption. For instance, a significant increase in spending might signal a push for greater connectivity or adoption of new VTC technologies. Conversely, a decrease could suggest consolidation or a shift towards different service delivery models. This contract's $3.61 million value should be viewed against this historical backdrop to gauge its relative scale and significance.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: T4NG-0711

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 741 ROUTE 113, EAST THETFORD, VT, 05043

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,540,375

Exercised Options: $3,611,159

Current Obligation: $3,611,159

Actual Outlays: $2,695,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B21D1033

IDV Type: IDC

Timeline