VA awards $3.2M for IT modernization support, focusing on electronic computer manufacturing services

Contract Overview

Contract Amount: $3,235,602 ($3.2M)

Contractor: Sewp Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-18

End Date: 2026-03-18

Contract Duration: 365 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FAST TOOL BENEFITS MODERNIZATION SUPPORT SERVICES

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to SEWP SOLUTIONS LLC for work described as: FAST TOOL BENEFITS MODERNIZATION SUPPORT SERVICES Key points: 1. Contract value appears reasonable for specialized IT modernization support. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of one year provides flexibility for evolving needs. 5. Focus on electronic computer manufacturing aligns with critical VA IT infrastructure.

Value Assessment

Rating: good

The contract value of $3.2 million for a one-year period for IT modernization support services seems within a reasonable range for specialized technical assistance. Benchmarking against similar contracts for IT modernization and electronic computer manufacturing support would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for controlling costs, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offering. The open competition suggests a robust market for these types of IT modernization services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive bids, maximizing the value of federal dollars spent.

Public Impact

Veterans will benefit from modernized IT systems, leading to improved access to healthcare and benefits. The contract supports critical IT infrastructure within the Department of Veterans Affairs. Services will be delivered primarily within Maryland, supporting the local IT sector. The contract may indirectly support a specialized IT workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps control costs and manage budget.
Contract duration of one year allows for agile adaptation to evolving IT needs.

Sector Analysis

The IT services sector is a significant area of federal spending, with agencies continually investing in modernization to improve efficiency and security. This contract falls within the broader category of IT support and services, specifically related to electronic computer manufacturing, which is crucial for maintaining and upgrading hardware and software infrastructure. Comparable spending benchmarks for similar IT modernization projects within federal agencies can vary widely based on scope and complexity.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the use of a large contract vehicle like SEWP (Solutions for Enterprise-Wide Procurement) often facilitates opportunities for small businesses to participate as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

IT Modernization
Electronic Computer Manufacturing
Software Development Services
Cloud Computing Services
Cybersecurity Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to SEWP SOLUTIONS LLC. FAST TOOL BENEFITS MODERNIZATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEWP SOLUTIONS 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 $3.2 million.

What is the period of performance?

Start: 2025-03-18. End: 2026-03-18.

What is the specific nature of the 'FAST TOOL BENEFITS MODERNIZATION SUPPORT SERVICES' being provided?

The contract title 'FAST TOOL BENEFITS MODERNIZATION SUPPORT SERVICES' suggests that the services procured are aimed at improving or updating existing IT tools and systems that support the delivery of benefits to veterans. This could encompass a range of activities, including software upgrades, system integration, data migration, process automation, and potentially the development of new functionalities. The 'FAST' acronym might refer to a specific VA initiative or system. Without further details on the specific 'tools' and 'benefits' systems, the exact scope remains broad but clearly centers on enhancing the operational efficiency and effectiveness of VA benefit delivery through technological advancements.

How does the $3.2 million contract value compare to similar IT modernization contracts within the VA or other federal agencies?

Benchmarking the $3.2 million contract value requires comparing it to similar IT modernization support services contracts awarded by the Department of Veterans Affairs (VA) or other federal agencies over the past 1-3 years. Factors such as contract duration (1 year in this case), specific services (e.g., software development, system integration, hardware support), and the complexity of the systems being modernized are crucial for a fair comparison. Generally, IT modernization projects can range from hundreds of thousands to tens or hundreds of millions of dollars. A $3.2 million contract for a one-year support service is considered a mid-tier value, suggesting a focused scope rather than a large-scale, multi-year system overhaul. Further analysis would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (like 334111 for Electronic Computer Manufacturing or related IT service codes) and similar service descriptions.

What are the potential risks associated with a firm fixed-price contract for IT modernization services?

While firm fixed-price (FFP) contracts are generally favored for cost control, they can introduce risks for both the government and the contractor in IT modernization projects. For the government, the primary risk is that the contractor may cut corners on quality or scope to maintain profitability if the initial price was underestimated or if unforeseen technical challenges arise. This could lead to suboptimal performance or a system that doesn't fully meet requirements. Conversely, the contractor bears the risk of cost overruns if the project scope expands beyond initial estimates or if technical difficulties prove more complex than anticipated. Effective risk mitigation for FFP IT contracts relies heavily on a clearly defined Statement of Work (SOW), robust change control processes, and diligent government oversight to ensure the contractor delivers the agreed-upon quality and functionality within the fixed price.

What is the significance of the contract being awarded under 'full and open competition' for the VA's IT modernization efforts?

Awarding this IT modernization support contract under 'full and open competition' is significant because it signals that the Department of Veterans Affairs (VA) sought the widest possible range of qualified vendors. This approach maximizes the potential for receiving competitive bids, which typically leads to better pricing and a wider selection of innovative solutions. For the VA's IT modernization efforts, which are often complex and critical, open competition increases the likelihood of selecting a contractor with the best technical expertise and value proposition. It also enhances transparency and public trust by demonstrating that taxpayer funds are being used efficiently and that the government is not unduly favoring specific providers. The absence of set-aside requirements suggests that the market for these specific services is sufficiently robust to support broad competition.

How does this contract align with the VA's broader IT modernization strategy and historical spending patterns in this area?

This $3.2 million contract for IT modernization support services aligns with the VA's ongoing strategic imperative to modernize its IT infrastructure to better serve veterans. Historically, the VA has faced significant challenges and invested heavily in IT modernization, particularly in areas like electronic health records (EHR), data management, and digital service delivery. Contracts like this, focused on specific support services for electronic computer manufacturing and system upgrades, represent tactical investments within a larger strategic framework. Analyzing historical spending patterns would reveal trends in IT investment, identifying whether the VA is shifting towards more agile development, cloud migration, or specific technology upgrades. This particular contract, with its one-year duration and fixed-price structure, suggests a focused, near-term objective within the broader, often multi-year, modernization roadmap.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4050 LEGATO RD #700, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $3,235,602

Exercised Options: $3,235,602

Current Obligation: $3,235,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC19B

IDV Type: GWAC

Timeline