VA Awards $16.5M Contract for Business Transformation and PMO Support to Sigma Health Consulting, LLC

Contract Overview

Contract Amount: $16,488,259 ($16.5M)

Contractor: Sigma Health Consulting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-21

End Date: 2024-03-20

Contract Duration: 1,276 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUSINESS TRANSFORMATION AND PMO SUPPORT SERVICES FOR THE LGY

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20904

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.5 million to SIGMA HEALTH CONSULTING, LLC for work described as: BUSINESS TRANSFORMATION AND PMO SUPPORT SERVICES FOR THE LGY Key points: 1. Contract awarded to a single vendor, Sigma Health Consulting, LLC. 2. The contract is for Business Transformation and PMO Support Services. 3. The Department of Veterans Affairs is the awarding agency. 4. The contract was not competed, raising potential value concerns. 5. The NAICS code 541990 indicates 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: questionable

The contract value of $16.5 million over approximately 4 years for PMO and business transformation support is difficult to benchmark without specific deliverables. The lack of competition makes it challenging to assess if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may not result in the most cost-effective solution for the government.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Veterans may experience improvements in VA business processes and project management. The contract supports the Department of Veterans Affairs' internal operations. Taxpayer funds are being utilized for professional services to enhance agency efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award
Limited transparency on specific service outcomes

Positive Signals

Supports critical VA business transformation efforts
Long-term contract provides stability for service provider

Sector Analysis

The professional, scientific, and technical services sector is broad. This contract falls under 'All Other Professional, Scientific, and Technical Services,' which can encompass a wide range of support functions. Benchmarking requires detailed understanding of the specific services provided.

Small Business Impact

The contract was awarded to Sigma Health Consulting, LLC, and there is no indication of small business participation or subcontracting requirements. Further analysis would be needed to determine if small businesses were excluded or had opportunities.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services are necessary, effectively delivered, and priced appropriately. The VA should have robust internal controls to justify non-competitive procurements.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition may lead to inflated costs.
Sole-source award limits market-based price discovery.
Potential for vendor lock-in.
Oversight needed to ensure service necessity and effectiveness.
Limited transparency on specific deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.5 million to SIGMA HEALTH CONSULTING, LLC. BUSINESS TRANSFORMATION AND PMO SUPPORT SERVICES FOR THE LGY

Who is the contractor on this award?

The obligated recipient is SIGMA HEALTH CONSULTING, 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 $16.5 million.

What is the period of performance?

Start: 2020-09-21. End: 2024-03-20.

What specific business transformation and PMO services are being provided, and how do they align with VA strategic goals?

The contract details are limited, but 'Business Transformation and PMO Support Services' typically involve process improvement, strategic planning, project management, and organizational change initiatives. These services are intended to enhance the efficiency and effectiveness of the VA's operations and help achieve its strategic objectives. A deeper dive into the contract's statement of work would clarify the precise deliverables and their alignment.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award is not provided in the data. Typically, such justifications require demonstrating that only one source can meet the requirement, often due to unique capabilities or urgent needs. Without this justification, it's impossible to assess the fairness of the pricing or the necessity of the sole-source approach. The government should have conducted a price analysis to ensure reasonableness.

How will the effectiveness of Sigma Health Consulting's services be measured, and what are the key performance indicators?

The provided data does not specify the key performance indicators (KPIs) or the method for measuring the effectiveness of Sigma Health Consulting's services. For a contract of this nature and value, clear KPIs related to process improvements, project completion rates, cost savings, or stakeholder satisfaction should be established and monitored by the VA to ensure value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10X20R0078

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 204 ELDRID DR, SILVER SPRING, MD, 20904

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,488,259

Exercised Options: $16,488,259

Current Obligation: $16,488,259

Actual Outlays: $15,318,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline