VA awards $2.55M contract to IT Cadre LLC for claims automation visualization

Contract Overview

Contract Amount: $2,553,314 ($2.6M)

Contractor: IT Cadre LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLAIMS AUTOMATION VISUALIZATION SBIR PHASE III

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to IT CADRE LLC for work described as: CLAIMS AUTOMATION VISUALIZATION SBIR PHASE III Key points: 1. Contract focuses on enhancing claims processing through visualization tools. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is one year, indicating a focused scope. 4. Fixed-price contract type aims to control costs and manage financial risk. 5. This award falls within the IT services sector, specifically computer systems design. 6. The awardee, IT Cadre LLC, has experience in government contracting.

Value Assessment

Rating: good

The contract value of $2.55 million for a one-year period for computer systems design services appears reasonable. Benchmarking against similar contracts for IT visualization and automation solutions is necessary for a definitive assessment. However, the fixed-price nature of the contract suggests a degree of cost certainty for the government. Without specific per-unit metrics or detailed service breakdowns, a precise value-for-money comparison is challenging, but the competitive award process provides some assurance.

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, indicating that the solicitation was broadly advertised and multiple vendors were likely considered. The specific details of the exclusion of sources are not provided, but the 'full and open' designation generally implies a robust competitive environment. The number of bidders is not specified, but the process suggests that the VA sought the best value from a wide range of qualified offerors.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple vendors to submit competitive bids.

Public Impact

Veterans will benefit from potentially faster and more accurate claims processing. The contract will deliver enhanced visualization tools for the VA's claims automation system. The primary geographic impact is within the Department of Veterans Affairs' operational framework. Workforce implications may include the need for IT specialists to implement and manage the new visualization tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if visualization requirements are not clearly defined.
Dependence on a single vendor for a critical claims automation component.
Integration challenges with existing VA IT infrastructure.

Positive Signals

Fixed-price contract helps mitigate cost overruns.
Full and open competition suggests a market-driven price.
Award to an experienced IT services provider.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and services. The market for IT solutions in government, particularly for enhancing administrative processes like claims management, is substantial. Comparable spending benchmarks would involve looking at other federal agencies' investments in similar automation and visualization technologies for large-scale data processing and workflow management. The size of this contract is moderate within the broader IT services landscape.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition after exclusion of sources' and the 'small business' flag is false. This suggests that small businesses were not specifically targeted or set aside for this particular award. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific contract appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Claims Processing Modernization
Federal IT Modernization Programs
Government Visualization Software Contracts
IT Services for Healthcare Administration

Risk Flags

SBIR Phase III designation implies prior R&D success, but requires validation of current applicability.
Potential integration challenges with legacy VA systems.
Need for clear performance metrics to ensure value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to IT CADRE LLC. CLAIMS AUTOMATION VISUALIZATION SBIR PHASE III

Who is the contractor on this award?

The obligated recipient is IT CADRE 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 $2.6 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

What is the specific nature of the 'claims automation visualization' being developed or implemented under this contract?

The contract specifies 'CLAIMS AUTOMATION VISUALIZATION SBIR PHASE III' and falls under NAICS code 541512 (Computer Systems Design Services). While the exact visualization features are not detailed in the provided data, it implies the development or enhancement of systems that visually represent the status, workflow, or data related to the processing of claims. This could include dashboards, graphical representations of claim stages, analytics visualizations, or user interfaces designed to make complex claims data more understandable and actionable for VA personnel. The 'SBIR Phase III' designation suggests this is a continuation of work funded by the Small Business Innovation Research program, indicating a focus on commercializing innovative technology developed by a small business, now being scaled or implemented by the VA.

How does the $2.55 million award compare to similar IT visualization contracts within the federal government?

Benchmarking this $2.55 million contract requires comparing it to similar IT visualization and automation projects within federal agencies. Contracts for developing custom dashboards, business intelligence tools, or workflow visualization platforms can vary significantly in price based on complexity, duration, and the specific technologies employed. For a one-year contract focused on computer systems design, this value is within a typical range for specialized IT services. However, a more precise comparison would necessitate analyzing contracts with similar scope, such as those involving data analytics visualization for large datasets or automation of complex administrative processes, considering factors like the number of users supported and the level of integration required.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for a contract focused on claims automation visualization would likely include metrics related to the efficiency and effectiveness of the claims process. Examples could be: reduction in average claims processing time, decrease in claims processing errors, improvement in user satisfaction with the visualization tools, successful integration with existing VA systems, and adherence to project timelines and budget. The firm fixed-price nature of the contract implies that meeting the defined deliverables and performance standards is crucial for the contractor's success and payment.

What is IT Cadre LLC's track record with the Department of Veterans Affairs and similar government contracts?

IT Cadre LLC has a history of performing work for the federal government, including the Department of Veterans Affairs. The 'SBIR PHASE III' designation on this contract suggests a prior relationship or successful development phase, potentially originating from earlier Small Business Innovation Research grants. While specific details of past performance are not in the provided data, SBIR Phase III contracts typically indicate a successful transition from research and development to a more mature product or service ready for implementation. Further investigation into their contract history, past performance reviews, and experience with similar IT systems for government agencies would provide a more comprehensive understanding of their track record.

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

Potential risks include technical challenges in integrating new visualization tools with existing VA systems, potential for scope creep if requirements are not tightly managed, and the possibility of vendor lock-in if the solution is highly proprietary. Mitigation strategies are likely embedded within the contract's structure. The firm fixed-price nature helps mitigate cost overruns. The 'full and open competition' suggests a thorough vetting of potential solutions and vendors. The one-year duration allows for iterative development and assessment, and the SBIR Phase III context implies a degree of technological maturity. Clear statement of work and defined deliverables are crucial for managing scope.

How does this contract align with the VA's broader IT modernization goals and strategy?

This contract appears to align with the VA's broader IT modernization goals by focusing on improving the efficiency and effectiveness of its claims processing system through advanced visualization and automation. Modernizing claims processing is critical for serving veterans efficiently. By investing in visualization tools, the VA aims to gain better insights into its operations, identify bottlenecks, and potentially improve decision-making. This initiative likely supports the VA's strategic objectives of leveraging technology to enhance service delivery, reduce administrative burdens, and improve the overall experience for both veterans and VA staff.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B25Q0526

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 43777 CENTRAL STATION DR, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $2,553,314

Exercised Options: $2,553,314

Current Obligation: $2,553,314

Actual Outlays: $835,511

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline