VA's $9.4M Spruce IDIQ for Agile Services Awarded to Magnum Opus, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $9,391,021 ($9.4M)

Contractor: Magnum Opus, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-08

End Date: 2027-01-07

Contract Duration: 729 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.4 million to MAGNUM OPUS, LLC for work described as: THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS. Key points: 1. The Spruce IDIQ aims to streamline enterprise-wide agile product design and delivery for the VA. 2. Magnum Opus, LLC secured the contract, valued at $9.4 million. 3. Competition was conducted under a 'Full and Open Competition After Exclusion of Sources' model. 4. The contract duration is 729 days, ending January 7, 2027. 5. This award falls under Other Computer Related Services (NAICS 541519).

Value Assessment

Rating: fair

The contract value of $9.4 million for agile services appears moderate for an enterprise-wide IDIQ. Benchmarking against similar VA or other agency IDIQs for agile development services would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process. However, the specific exclusion criteria and their impact on price discovery warrant further investigation.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary agile services.

Public Impact

Veterans may experience improved digital services and product delivery due to enhanced agile capabilities. The IDIQ structure allows the VA to efficiently procure a range of agile services as needed. The contract's focus on agile methodologies could lead to faster development cycles and better adaptability to changing requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Clarity on 'Exclusion of Sources' in competition.
Potential for scope creep in agile projects.
Dependence on a single awardee for enterprise-wide services.

Positive Signals

Streamlined procurement process for agile services.
Focus on modern agile development practices.
Clear end date for contract services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on agile product design and delivery. Spending benchmarks for similar enterprise-wide agile IDIQs within government agencies can vary significantly based on scope and duration.

Small Business Impact

The provided data indicates that small business participation was not a stated factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The IDIQ structure itself provides a framework for oversight by allowing multiple task orders to be managed. However, specific oversight mechanisms for individual task orders and performance monitoring are not detailed in this summary.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in if not managed properly.
Risk of cost overruns if agile scope is not tightly controlled.
Dependence on contractor's ability to scale resources.
Need for strong VA project management to guide agile efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.4 million to MAGNUM OPUS, LLC. THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS.

Who is the contractor on this award?

The obligated recipient is MAGNUM OPUS, 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 $9.4 million.

What is the period of performance?

Start: 2025-01-08. End: 2027-01-07.

What specific agile product design and delivery services are encompassed by this IDIQ, and how do they align with the VA's strategic technology goals?

The IDIQ is designed to provide a broad range of agile product design and delivery services. This includes, but is not limited to, software development, user experience design, and iterative development methodologies. The alignment with VA's strategic goals would depend on the specific task orders issued under the IDIQ and their contribution to modernizing veteran-facing systems and internal processes.

What are the key performance indicators (KPIs) used to measure the success and value delivered by Magnum Opus, LLC under this IDIQ?

Key performance indicators for agile development contracts typically include metrics such as sprint velocity, defect density, on-time delivery of features, customer satisfaction, and adherence to budget. The specific KPIs for this IDIQ would be defined in the individual delivery orders and managed by the VA contracting officer to ensure the contractor meets performance expectations.

How does the 'Full and Open Competition After Exclusion of Sources' mechanism ensure fair pricing and prevent potential anti-competitive outcomes?

This procurement method allows for broad competition but permits the exclusion of specific sources based on defined criteria, often related to capability or past performance. To ensure fair pricing, the VA would typically use techniques like competitive range determinations, cost realism analyses, and negotiation. Preventing anti-competitive outcomes relies on transparent justification for exclusions and robust evaluation of all submitted proposals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2425 E CAMELBACK RD STE 150, PHOENIX, AZ, 85016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,796,245

Exercised Options: $18,656,789

Current Obligation: $9,391,021

Actual Outlays: $5,135,875

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B25D0003

IDV Type: IDC

Timeline