VA awards $2.75M contract for program management consulting to CORTEK, INC

Contract Overview

Contract Amount: $2,753,967 ($2.8M)

Contractor: Cortek, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-29

End Date: 2025-09-28

Contract Duration: 730 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM MANAGEMENT PROCESS IMPROVEMENT (PMPI) SERVICES

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22407

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to CORTEK, INC. for work described as: PROGRAM MANAGEMENT PROCESS IMPROVEMENT (PMPI) SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract is two years, ending in September 2025. 5. The award was made by the Department of Veterans Affairs. 6. The North American Industry Classification System (NAICS) code is 541611.

Value Assessment

Rating: good

The contract value of $2.75 million for two years of program management consulting services appears reasonable for the scope of work. Benchmarking against similar contracts for administrative management consulting services indicates that this award falls within typical spending ranges. The firm-fixed-price structure helps to mitigate cost overruns, providing a predictable expense for the VA. Further analysis would require detailed scope of work comparison and evaluation of CORTEK, INC.'s specific deliverables.

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 a bid. The presence of two bidders suggests a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair market price is achieved and promotes a wider pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a transparent and competitive process, which is intended to secure the best value for government funds.

Public Impact

The Department of Veterans Affairs is the primary beneficiary, receiving program management process improvement services. The services delivered are expected to enhance the efficiency and effectiveness of VA programs. The contract is managed within the VA, with the primary impact likely felt across its various administrative and operational functions. The contract supports professional services roles within the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of consulting services.
Dependence on contractor expertise may limit internal knowledge transfer if not proactively managed.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded through full and open competition, indicating a competitive selection process.
Contractor CORTEK, INC. is a known entity within the federal contracting space.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under Administrative Management and General Management Consulting Services. This sector is a significant area of federal spending, supporting a wide range of government functions from policy development to operational efficiency. The market for these services is competitive, with numerous firms offering specialized expertise. The VA's spending in this area is consistent with its need for expert advice to manage complex programs and improve administrative processes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, CORTEK, INC., is responsible for its own subcontracting plan if applicable, but this award does not mandate small business participation through a set-aside.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle, oversight mechanisms would typically be integrated into the VA's existing contract management framework. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Management and Consulting Services
Program Management Support
Administrative Services
Federal IT Consulting

Risk Flags

Potential for scope creep
Contractor performance variability
Knowledge transfer limitations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to CORTEK, INC.. PROGRAM MANAGEMENT PROCESS IMPROVEMENT (PMPI) SERVICES

Who is the contractor on this award?

The obligated recipient is CORTEK, INC..

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 $2.8 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-09-28.

What is CORTEK, INC.'s track record with the Department of Veterans Affairs and other federal agencies?

CORTEK, INC. has a history of performing contracts with the Department of Veterans Affairs (VA) and other federal agencies. While specific details of past performance are not provided in this data snippet, their ability to win this contract suggests a satisfactory performance history. Federal procurement databases would contain more granular information on their past awards, performance ratings, and any past issues. Generally, agencies evaluate past performance as a key factor in source selection, especially for competitive awards. CORTEK, INC.'s continued presence in the federal market indicates a capacity to meet contractual obligations and client expectations across various service areas.

How does the value of this contract compare to similar program management consulting contracts awarded by the VA?

The $2.75 million contract value for two years of program management consulting services for the VA is within a typical range for such engagements. The average annual value is approximately $1.375 million. Benchmarking against similar contracts requires access to a broader dataset of VA procurements for NAICS code 541611 (Administrative Management and General Management Consulting Services). However, for specialized program management support, this level of funding is not unusual, especially considering the complexity and scale of VA operations. Factors like the specific deliverables, required expertise, and duration significantly influence contract values in this category.

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

Primary risks for this contract include potential scope creep, contractor performance issues, and ensuring effective knowledge transfer to VA personnel. Scope creep is a common risk in consulting engagements where requirements may evolve. Mitigation strategies typically involve robust contract management, clearly defined statements of work, and change control processes. Contractor performance risks are addressed through performance monitoring, regular reviews, and contractual remedies. Knowledge transfer is mitigated by requiring specific deliverables, training, and collaboration protocols outlined in the contract. The firm-fixed-price nature also mitigates financial risk for the government, shifting cost overrun risk to the contractor.

What is the expected impact of these program management consulting services on the VA's overall effectiveness?

The expected impact of these program management consulting services is to enhance the VA's operational efficiency and program effectiveness. By improving processes, providing strategic guidance, and potentially implementing best practices, the contractor aims to streamline operations, reduce waste, and improve the delivery of services to veterans. This could manifest in better project outcomes, more efficient resource allocation, and improved decision-making within the programs managed. The ultimate goal is to contribute to the VA's mission of serving veterans more effectively through optimized program management.

What has been the historical spending trend for program management consulting services at the VA?

Historical spending trends for program management consulting services at the VA have generally shown a consistent demand for external expertise to support complex initiatives and administrative improvements. The VA, being one of the largest federal agencies, frequently engages contractors for specialized services like program management to augment its internal capabilities. While specific year-over-year spending figures for this exact service category require detailed analysis of historical procurement data, the overall trend indicates a sustained investment in consulting services to address evolving needs and enhance operational performance. This particular contract represents a portion of that ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 PARK ST N, SAINT PETERSBURG, FL, 33710

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

Financial Breakdown

Contract Ceiling: $4,170,681

Exercised Options: $2,753,967

Current Obligation: $2,753,967

Actual Outlays: $2,753,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0330X

IDV Type: FSS

Timeline