VA awards Deloitte $25.6M for VICCS program, exercising Option Year 4

Contract Overview

Contract Amount: $25,591,779 ($25.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-28

End Date: 2027-03-27

Contract Duration: 1,276 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. EXERCISE OPTION YEAR 4.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.6 million to DELOITTE CONSULTING LLP for work described as: MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. EXERCISE OPTION YEAR 4. Key points: 1. Contract value of $25.6M for Option Year 4. 2. Deloitte Consulting LLP is the incumbent contractor. 3. The contract supports the Veterans Intake, Conversion, and Communication Services (VICCS) program. 4. NAICS code 518210 indicates services related to computing infrastructure and data processing.

Value Assessment

Rating: good

The contract value of $25.6M for Option Year 4 appears reasonable for a multi-year IT services contract of this nature. Benchmarking against similar VA IT contracts would provide a more precise assessment.

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 leads to better price discovery and value for the government.

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

Public Impact

Enhances veteran services through improved intake, conversion, and communication. Supports critical IT infrastructure for the Department of Veterans Affairs. Ensures continuity of essential services for veterans. Potential for improved efficiency and accessibility of VA services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends to March 2027, requiring ongoing monitoring.
Reliance on a single contractor for critical services.

Positive Signals

Awarded under full and open competition.
Incumbent contractor has existing knowledge of the program.
Option year exercise suggests satisfaction with performance.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across federal agencies, with significant investments in modernizing IT systems.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Future contracts should explore opportunities for small business involvement where feasible.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The exercise of an option year suggests performance has met expectations, but continued monitoring of service delivery and cost is crucial.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration extends to March 2027.
Potential for vendor lock-in.
Reliance on a single contractor for critical services.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.6 million to DELOITTE CONSULTING LLP. MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. EXERCISE OPTION YEAR 4.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $25.6 million.

What is the period of performance?

Start: 2023-09-28. End: 2027-03-27.

What specific performance metrics are used to evaluate Deloitte's success in the VICCS program, and how do they align with VA's strategic goals for veteran services?

Performance metrics likely include system uptime, data accuracy and conversion rates, response times for communication services, and user satisfaction surveys from VA staff and potentially veterans. These metrics should directly correlate with the VA's objectives of improving veteran outreach, streamlining administrative processes, and ensuring timely access to benefits and healthcare information.

Are there any identified risks associated with the continued reliance on Deloitte for these critical VICCS functions, particularly concerning data security and potential vendor lock-in?

Risks include potential data breaches if security protocols are not rigorously maintained, and vendor lock-in if the system architecture is proprietary or difficult to transition. Mitigation strategies involve regular security audits, clear data ownership clauses in the contract, and planning for future contract competitions or transitions to ensure flexibility and competitive pricing.

How does the cost of this contract option year compare to industry benchmarks for similar IT infrastructure and data processing services, and what is the justification for any variance?

A detailed cost-benefit analysis comparing the contract's per-unit costs for services like data processing, hosting, and communication management against GSA schedules or other government-wide contracts would be necessary. Justification for variances might include specialized requirements of the VICCS program, the incumbent's established infrastructure, or the value-added services provided beyond basic IT support.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,532,251

Exercised Options: $25,591,779

Current Obligation: $25,591,779

Actual Outlays: $16,390,452

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,418,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10E19D0016

IDV Type: IDC

Timeline