VA awards $3.5M sole-source contract for decision support software maintenance to Strata Decision Technology

Contract Overview

Contract Amount: $3,531,933 ($3.5M)

Contractor: Strata Decision Technology, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-04

End Date: 2026-12-03

Contract Duration: 364 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DECISION SUPPORT SOFTWARE MAINTENANCE AND SUPPORT

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60601

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to STRATA DECISION TECHNOLOGY, L.L.C. for work described as: DECISION SUPPORT SOFTWARE MAINTENANCE AND SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract duration is one year, with a total value of $3.5 million. 3. The agency is the Department of Veterans Affairs (VA). 4. The North American Industry Classification System (NAICS) code is 513210 (Software Publishers). 5. The contract type is Firm Fixed Price, which shifts risk to the contractor. 6. The contractor, Strata Decision Technology, L.L.C., is the incumbent provider. 7. The contract is for maintenance and support of decision support software.

Value Assessment

Rating: fair

The contract value of $3.5 million for a one-year maintenance and support agreement for specialized decision support software appears to be within a reasonable range for such services, especially given the sole-source nature. Without direct comparisons to similar sole-source contracts for this specific software or comparable systems, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty for the VA. The benchmark for this type of specialized software maintenance is difficult to establish without more market data, but the absence of competition suggests potential for higher pricing than in a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific product or service is only available from a single source, or when there are unique circumstances justifying a non-competitive award. The absence of competition means there were no other bidders, and therefore no price discovery through a bidding process. This approach can be efficient for maintaining continuity of essential services but may result in higher costs compared to a fully competed contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the benefit of competitive pricing, potentially leading to a higher overall expenditure for the software maintenance and support.

Public Impact

The Department of Veterans Affairs benefits from continued access to critical decision support software. This contract ensures the ongoing functionality and maintenance of software used for strategic planning and resource allocation within the VA. The primary beneficiaries are VA program managers and analysts who rely on this software for data-driven decision-making. The geographic impact is national, supporting VA operations across all its facilities. There are no direct workforce implications mentioned, but the software supports the work of existing VA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of competition makes it difficult to benchmark pricing against market alternatives.
Reliance on a single vendor for critical software maintenance can create vendor lock-in.
The contract value is substantial for a one-year term, warranting scrutiny of ongoing necessity and potential for competition in the future.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
The contract ensures continuity of essential decision support capabilities for the VA.
The contractor, Strata Decision Technology, L.L.C., is likely experienced with the specific software, ensuring efficient maintenance.
The contract is for a defined period, allowing for future re-evaluation of procurement strategy.

Sector Analysis

The software publishing industry (NAICS 513210) is characterized by companies that develop, publish, and distribute software. This contract falls within the IT services sector, specifically focusing on specialized decision support software. Such software is crucial for government agencies to manage complex operations, allocate resources effectively, and make informed strategic decisions. The market for specialized decision support software can be niche, with a limited number of providers capable of offering maintenance and support for proprietary systems. Comparable spending benchmarks are difficult to ascertain without knowing the specific software's capabilities and market penetration, but IT maintenance and support contracts can range significantly in cost depending on complexity and criticality.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the award is made to Strata Decision Technology, L.L.C. There is no information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal for this specific award, as it is a sole-source contract for specialized software maintenance.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs contracting and program officials. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract actions. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

VA IT Modernization Initiatives
Government Software Licensing and Maintenance
Decision Support Systems Procurement
Federal IT Services Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher pricing
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to STRATA DECISION TECHNOLOGY, L.L.C.. DECISION SUPPORT SOFTWARE MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is STRATA DECISION TECHNOLOGY, L.L.C..

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 $3.5 million.

What is the period of performance?

Start: 2025-12-04. End: 2026-12-03.

What is the track record of Strata Decision Technology, L.L.C. with the Department of Veterans Affairs?

Strata Decision Technology, L.L.C. has a history of providing services to the Department of Veterans Affairs, as indicated by this sole-source award for decision support software maintenance and support. While this specific award is for a one-year period, further investigation into FPDS data would reveal the extent and nature of their previous contracts with the VA. Understanding the performance history, including any past issues or successes, is crucial for assessing the reliability of the contractor for this ongoing requirement. A review of past performance evaluations, if available, would provide deeper insights into their ability to meet contractual obligations and deliver quality services.

How does the $3.5 million contract value compare to similar decision support software maintenance contracts within the federal government?

Benchmarking the $3.5 million contract value for one year of decision support software maintenance is challenging without specific details on the software's capabilities and the scope of services. However, for specialized enterprise-level software maintenance and support, this figure is not unusual, particularly for sole-source awards where competition is absent. Comparable contracts for widely used enterprise resource planning (ERP) systems or advanced analytics platforms can range from hundreds of thousands to millions of dollars annually, depending on the vendor, modules licensed, user base, and support level. The VA's specific needs for decision support software, which likely involves complex data integration and analytical functions, could justify this investment. A more precise comparison would require identifying contracts with similar NAICS codes and service descriptions, ideally from competitive procurements.

What are the primary risks associated with a sole-source award for critical software maintenance?

The primary risks associated with a sole-source award for critical software maintenance include potential overpricing due to the lack of competitive pressure, vendor lock-in which makes switching providers difficult and costly, and a reduced incentive for the vendor to innovate or improve service quality. Taxpayers may bear a higher cost than if the contract were competed. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences financial instability, undergoes significant organizational changes, or discontinues the product or support. The government's negotiating power is also diminished in a sole-source scenario. For the VA, this means ensuring robust contract management and performance monitoring to mitigate these inherent risks.

What is the expected effectiveness of this contract in ensuring the continuity of VA's decision support capabilities?

This contract is expected to be highly effective in ensuring the continuity of the VA's decision support capabilities, given that it is a sole-source award to the incumbent provider, Strata Decision Technology, L.L.C. This implies that the software is likely critical and potentially proprietary, with the incumbent possessing the necessary expertise and access for maintenance and support. The firm fixed-price structure provides cost certainty and incentivizes the contractor to maintain the system effectively to avoid incurring additional costs. The one-year duration allows the VA to maintain operational stability while potentially exploring future competitive strategies or alternative solutions, but the immediate focus is on uninterrupted service delivery.

How has the VA's spending on decision support software maintenance evolved over recent years?

Analyzing the VA's spending evolution on decision support software maintenance requires access to historical contract data beyond this single award. Typically, spending in this area can fluctuate based on the lifecycle of software systems, modernization efforts, and changes in agency priorities. If the VA is undergoing significant digital transformation or adopting new analytical tools, spending might increase. Conversely, if systems are aging and being phased out, spending could decrease. Without historical data, it's difficult to determine if this $3.5 million award represents an increase, decrease, or stable level of spending compared to previous years for similar services. A trend analysis over 3-5 years would provide valuable context.

Are there any alternative decision support software solutions that the VA could consider in the future to foster competition?

The VA could explore alternative decision support software solutions in the future to foster competition, depending on the specific functionalities required. This would involve market research to identify other vendors offering comparable capabilities, potentially through open-source solutions or commercial off-the-shelf (COTS) software that meets agency needs. A phased approach, perhaps starting with a pilot program for an alternative system, could mitigate risks. However, the transition costs, data migration challenges, and the need for retraining staff are significant considerations. The current sole-source award suggests that Strata Decision Technology's software may be highly specialized or deeply integrated, making direct replacement complex. Future procurements should aim to define requirements in a way that allows for broader competition.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B26Q0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roper Technologies, Inc.

Address: 200 E RANDOLPH ST FL 49, CHICAGO, IL, 60601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,134,417

Exercised Options: $3,531,933

Current Obligation: $3,531,933

Actual Outlays: $3,531,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline