VA awards $21.4M IT software development contract to SOFTRAMS LLC for 364 days

Contract Overview

Contract Amount: $21,408,998 ($21.4M)

Contractor: Softrams LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-10

End Date: 2026-07-09

Contract Duration: 364 days

Daily Burn Rate: $58.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE OBJECTIVE OF THIS ACQUISITION IS TO ACQUIRE IT SOFTWARE DEVELOPMENT SERVICES TO INCLUDE SOFTWARE ENGINEERING AND DEVELOPMENT, AND DEVELOPER AND ARCHITECT EXPERTISE TO PERFORM SDLC TASKS IN THE DEVELOPMENT AND SUPPORT OF APPLICATIONS AND SYSTEMS.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78772

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.4 million to SOFTRAMS LLC for work described as: THE OBJECTIVE OF THIS ACQUISITION IS TO ACQUIRE IT SOFTWARE DEVELOPMENT SERVICES TO INCLUDE SOFTWARE ENGINEERING AND DEVELOPMENT, AND DEVELOPER AND ARCHITECT EXPERTISE TO PERFORM SDLC TASKS IN THE DEVELOPMENT AND SUPPORT OF APPLICATIONS AND SYSTEMS. Key points: 1. Contract focuses on IT software engineering and development, including SDLC tasks. 2. The awardee is SOFTRAMS LLC, with the VA as the contracting agency. 3. This is a Time and Materials contract, potentially leading to higher costs if not managed. 4. The North American Industry Classification System (NAICS) code is 541511 for Custom Computer Programming Services.

Value Assessment

Rating: fair

The contract value is $21.4M for a 364-day period. Without specific benchmarks for similar custom software development services, it's difficult to definitively assess pricing. However, the Time and Materials pricing model can lead to cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the Time and Materials structure requires diligent oversight to control costs.

Public Impact

Veterans will benefit from improved and supported applications and systems. The contract supports the VA's mission to provide services to veterans. This award contributes to the IT services sector, specifically custom software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model
Potential for scope creep without strict management

Positive Signals

Full and open competition
Clear objective for software development services

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, with significant variation based on project complexity and duration. Benchmarks are highly project-specific.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business participation in this particular award. Further analysis would be needed to determine if small business subcontracting goals were set or met.

Oversight & Accountability

The Time and Materials contract type necessitates robust oversight from the VA to ensure efficient use of funds and prevent cost overruns. Regular performance reviews and detailed tracking of labor hours and materials are crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics in the provided data.
Need for strong oversight to manage scope and budget.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.4 million to SOFTRAMS LLC. THE OBJECTIVE OF THIS ACQUISITION IS TO ACQUIRE IT SOFTWARE DEVELOPMENT SERVICES TO INCLUDE SOFTWARE ENGINEERING AND DEVELOPMENT, AND DEVELOPER AND ARCHITECT EXPERTISE TO PERFORM SDLC TASKS IN THE DEVELOPMENT AND SUPPORT OF APPLICATIONS AND SYSTEMS.

Who is the contractor on this award?

The obligated recipient is SOFTRAMS 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 $21.4 million.

What is the period of performance?

Start: 2025-07-10. End: 2026-07-09.

What is the estimated hourly rate for the developer and architect expertise, and how does it compare to industry averages for similar skill sets?

The provided data does not detail specific hourly rates. To assess value, a comparison of the blended hourly rates implied by the total contract value and estimated labor hours against industry benchmarks for custom software development professionals in the relevant geographic or skill market would be necessary. This would reveal if the government is obtaining competitive rates for the required expertise.

What are the specific metrics and key performance indicators (KPIs) used to measure the success and effectiveness of the software development services provided under this contract?

The contract details do not specify the performance metrics or KPIs. Effective oversight requires clearly defined deliverables, quality standards, and timelines. The VA should establish measurable objectives related to software functionality, bug resolution rates, adherence to development schedules, and user satisfaction to ensure the contractor's performance aligns with the acquisition's objectives.

How will the VA manage potential scope creep and ensure the Time and Materials contract remains within the estimated $21.4M budget?

Managing scope creep in a Time and Materials contract requires stringent change control processes and proactive project management. The VA must clearly define the initial scope, establish a formal process for evaluating and approving any changes, and continuously monitor progress against the budget. Regular reporting from the contractor on hours expended and tasks completed is essential for early detection of potential overruns.

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

Solicitation ID: 36C10B25Q0086

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3100 CLARENDON BLVD STE 1400, ARLINGTON, VA, 22201

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $174,347,390

Exercised Options: $21,408,998

Current Obligation: $21,408,998

Actual Outlays: $9,384,496

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $13,138,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F372DA

IDV Type: FSS

Timeline