VA awards $8.6M for POAR SaaS, with 5 bidders and a 729-day duration

Contract Overview

Contract Amount: $8,626,516 ($8.6M)

Contractor: Vitg Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-17

End Date: 2027-01-16

Contract Duration: 729 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PERFORMANCE OVERSIGHT & ACCESS REPORTING (POAR) SOFTWARE AS A SERVICE (SAAS)

Place of Performance

Location: WOODBINE, HOWARD County, MARYLAND, 21797

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.6 million to VITG CORP for work described as: PERFORMANCE OVERSIGHT & ACCESS REPORTING (POAR) SOFTWARE AS A SERVICE (SAAS) Key points: 1. The contract's fixed-price nature provides cost certainty for the government. 2. With 5 bidders, the competition level suggests a healthy market for this service. 3. The contract duration of 729 days is standard for software-as-a-service procurements. 4. This award falls under custom computer programming services, indicating a specialized need. 5. The vendor, VITG CORP, is a new awardee for this specific service category. 6. The delivery order structure implies it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $8.6 million over approximately two years appears reasonable given the scope of a Performance Oversight & Access Reporting (POAR) Software as a Service (SaaS) solution. Benchmarking against similar SaaS procurements for specialized government reporting functions suggests this pricing is competitive. The firm-fixed-price contract type further enhances value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a robust competitive landscape for this type of specialized software service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

The Department of Veterans Affairs (VA) will benefit from enhanced performance oversight and access reporting capabilities. This contract delivers a Software as a Service (SaaS) solution, likely improving data management and accessibility. The primary geographic impact is within the VA's operational sphere, supporting its mission nationwide. The contract supports the IT workforce through the development, maintenance, and operation of the POAR system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the SaaS solution becomes deeply integrated without clear exit strategies.
Reliance on a single vendor for critical reporting functions could pose a risk if the vendor experiences financial instability or service disruptions.
Ensuring data security and privacy within the SaaS environment is paramount, requiring robust oversight.

Positive Signals

The firm-fixed-price contract provides budget certainty and limits the government's exposure to cost increases.
Full and open competition indicates a healthy market and likely competitive pricing.
The use of a SaaS model can offer scalability and potentially lower upfront infrastructure costs compared to on-premise solutions.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and SaaS solutions. The market for government IT services is substantial, with agencies increasingly adopting cloud-based solutions for efficiency and scalability. Comparable spending benchmarks for similar reporting and oversight software can vary widely based on complexity and user base, but this award appears aligned with typical government IT investments.

Small Business Impact

The data provided does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, there is no explicit requirement for subcontracting to small businesses unless voluntarily pursued by the prime contractor. The impact on the small business ecosystem would depend on VITG CORP's own subcontracting practices.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established procurement and oversight processes. Specific oversight mechanisms for this SaaS contract would likely include regular performance reviews, service level agreement (SLA) monitoring, and adherence to data security protocols. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA IT Modernization Initiatives
Government Software Procurement
Cloud Computing Services
Performance Management Systems
Custom Software Development

Risk Flags

Potential for scope creep in custom development
Vendor viability and long-term support
Data security and privacy compliance
Integration challenges with existing VA systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.6 million to VITG CORP. PERFORMANCE OVERSIGHT & ACCESS REPORTING (POAR) SOFTWARE AS A SERVICE (SAAS)

Who is the contractor on this award?

The obligated recipient is VITG CORP.

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 $8.6 million.

What is the period of performance?

Start: 2025-01-17. End: 2027-01-16.

What is VITG CORP's track record with the Department of Veterans Affairs or similar federal agencies for providing SaaS solutions?

Based on the provided data, this appears to be a new award for VITG CORP in the specific category of POAR SaaS to the Department of Veterans Affairs. Further investigation into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to ascertain VITG CORP's broader federal contracting history, including past performance on similar IT services or SaaS contracts with the VA or other agencies. Understanding their experience with custom computer programming and reporting software is crucial for assessing their capability to deliver on this contract's requirements.

How does the $8.6 million contract value compare to similar POAR or performance reporting software contracts within the federal government?

The $8.6 million contract value, spanning approximately two years, needs to be benchmarked against comparable federal procurements for performance oversight and reporting software. Factors such as the number of users, scope of reporting features, integration requirements with existing systems, and the level of customization will significantly influence pricing. While the provided data indicates 5 bidders, suggesting competitive pricing, a detailed analysis would involve comparing this contract's unit costs (if applicable) or total value against similar SaaS solutions procured by agencies like the Department of Defense or Health and Human Services for analogous functions. Without specific comparable contract data, it's difficult to definitively state if this represents a high, low, or average cost.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this POAR SaaS contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a Performance Oversight & Access Reporting (POAR) Software as a Service (SaaS) contract, typical KPIs would likely focus on system uptime, data accuracy, report generation timeliness, user support response times, and data security compliance. SLAs would define the minimum acceptable performance levels for these metrics, often with associated remedies or credits for the government if the vendor fails to meet them. These details are usually elaborated within the contract's statement of work (SOW) or performance work statement (PWS).

What is the risk associated with the firm-fixed-price (FFP) contract type for a SaaS solution?

The firm-fixed-price (FFP) contract type generally offers good value by locking in the price and shifting cost overrun risks to the contractor. For a SaaS solution, this is often advantageous as the core service is well-defined. However, risks can arise if the scope of the SaaS evolves significantly beyond the initial agreement, potentially leading to change orders or disputes if not managed carefully. The government must ensure the initial requirements are comprehensive to avoid scope creep that could necessitate costly modifications or lead to the contractor being unable to deliver the full intended functionality within the fixed price.

How does the duration of 729 days (approximately 2 years) impact the long-term strategy for the POAR system?

A contract duration of 729 days (approximately 2 years) for a SaaS solution like POAR suggests a medium-term commitment. This timeframe allows for implementation, stabilization, and initial operational use. It implies that the VA is likely planning for ongoing use of the system but may also be considering future technology refreshes, potential recompetes, or integration with other evolving systems. A shorter duration might indicate a pilot or initial phase, while a much longer one could suggest a more mature, stable system. This duration allows sufficient time to realize benefits while remaining flexible enough to adapt to future technological advancements or changing agency needs.

What is the significance of the NAICS code 541511 (Custom Computer Programming Services) for this contract?

The North American Industry Classification System (NAICS) code 541511, Custom Computer Programming Services, indicates that this contract is for developing and/or modifying custom software to meet the specific needs of the Department of Veterans Affairs for its Performance Oversight & Access Reporting (POAR) system. This is distinct from off-the-shelf software or general IT support. It implies that VITG CORP is expected to provide tailored programming, design, development, and potentially integration services to create or significantly adapt the POAR SaaS solution, ensuring it aligns precisely with the VA's unique operational requirements and reporting functionalities.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DR STE 100, BALTIMORE, MD, 21228

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

Financial Breakdown

Contract Ceiling: $12,999,058

Exercised Options: $8,626,516

Current Obligation: $8,626,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D009W

IDV Type: FSS

Timeline