VA awards $63.2M sole-source contract to SPOREDATA INC for consulting services, raising value-for-money questions

Contract Overview

Contract Amount: $63,226 ($63.2K)

Contractor: Sporedata Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2027-04-01

Contract Duration: 364 days

Daily Burn Rate: $174/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVDE STATISTICAL DATA ANALYSIS

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $63,226 to SPOREDATA INC for work described as: PROVDE STATISTICAL DATA ANALYSIS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The duration of the contract (364 days) suggests a need for ongoing services rather than a one-time project. 3. Lack of competition raises concerns about whether the government secured the best possible value. 4. The 'Other Scientific and Technical Consulting Services' category is broad, making specific performance benchmarks difficult to ascertain without more detail. 5. The contract's value is significant within its service category, warranting close scrutiny of performance and pricing. 6. The absence of small business set-aside or subcontracting plans may limit opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract's value of $63.2 million for a single year of consulting services appears high, especially given the lack of competitive bidding. Without comparable contracts or detailed performance metrics, it is difficult to benchmark the value for money. The firm fixed-price structure provides some cost certainty, but the absence of competition means the VA may not have achieved the most advantageous pricing. Further analysis of SPOREDATA INC's past performance and pricing for similar services would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that SPOREDATA INC was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and can lead to higher costs for the government. The lack of competition means that taxpayers do not benefit from the potential cost savings that a competitive environment could generate.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price due to the absence of competitive pressure. This contract's significant value underscores the importance of ensuring sole-source justifications are robust and that fair pricing is still achieved.

Public Impact

The primary beneficiary of this contract is SPOREDATA INC, which will receive substantial revenue for its consulting services. The services delivered are categorized as 'Other Scientific and Technical Consulting Services,' which could encompass a wide range of support for the Department of Veterans Affairs' operations. The geographic impact is likely concentrated around the VA facilities or offices where SPOREDATA INC's consultants will be deployed, potentially within North Carolina. Workforce implications could include the direct employment of consultants by SPOREDATA INC and potential indirect impacts on VA staff who will collaborate with or manage these consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Lack of transparency in the selection process for a contract of this magnitude.
Broad service category ('Other Scientific and Technical Consulting Services') may obscure specific deliverables and performance metrics.
No indication of small business participation or subcontracting goals.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract duration suggests a recognized need for ongoing support.
Awarded to a single entity, potentially indicating specialized expertise required by the VA.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is diverse, encompassing a wide array of specialized expertise. Government spending in this area often supports complex projects, research, and operational improvements. Benchmarking this contract's value is challenging without more specific details on the services provided. However, $63.2 million for a year of consulting is a substantial investment, suggesting the services are critical to the VA's mission. Comparable contracts in this broad category can range significantly based on the nature of the consulting.

Small Business Impact

This contract does not appear to include any specific small business set-aside provisions, nor is there information regarding subcontracting plans. The sole-source nature of the award further limits the opportunity for small businesses to participate directly. This could mean that the VA is not leveraging the small business ecosystem effectively for this particular procurement, potentially missing out on innovative solutions and cost efficiencies that small businesses often provide.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, there may be heightened scrutiny from internal audit functions or potentially the Government Accountability Office (GAO) if protests arise. Transparency regarding the justification for the sole-source award and the performance metrics will be key to assessing accountability. The specific Inspector General for the VA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA IT Consulting Services
Federal Management Consulting Contracts
Scientific and Technical Services Procurement
Government Professional Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of detailed service description hinders performance and value assessment.
Significant contract value warrants close monitoring of deliverables and outcomes.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $63,226 to SPOREDATA INC. PROVDE STATISTICAL DATA ANALYSIS

Who is the contractor on this award?

The obligated recipient is SPOREDATA 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 $63,226.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-01.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' being procured from SPOREDATA INC?

The provided data offers a broad classification ('Other Scientific and Technical Consulting Services', NAICS code 541690) but lacks specific details on the actual services SPOREDATA INC will provide to the Department of Veterans Affairs. This could range from strategic planning and process improvement to technical analysis or research support. Without a detailed statement of work, it is difficult to assess the necessity, scope, and potential impact of these services. Understanding the precise deliverables is crucial for evaluating the contract's value and performance. Further inquiry with the VA would be needed to obtain this specific information.

What is the justification for awarding this contract on a sole-source basis to SPOREDATA INC?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Common justifications include unique capabilities, specialized expertise, urgent and compelling needs, or follow-on work where only one contractor can provide the necessary integration. For this $63.2 million contract with SPOREDATA INC, the VA would need to provide a detailed justification outlining why no other company could fulfill the requirement. Without this justification, the award raises concerns about fair opportunity and potential cost inefficiencies for taxpayers. A review of the contract file or agency's justification document would be necessary to understand the rationale.

How does the $63.2 million contract value compare to similar consulting services procured by the VA or other federal agencies?

Benchmarking the $63.2 million contract value requires comparing it to similar 'Other Scientific and Technical Consulting Services' contracts. However, the broadness of this category makes direct comparisons difficult without knowing the specific services rendered. Generally, consulting contracts of this magnitude are significant investments. If the services are highly specialized or critical to national security or public health, the price might be justifiable. Conversely, if the services are more routine, this value could indicate potential overspending, especially given the sole-source nature. A detailed market research report or analysis of historical VA spending on comparable services would be needed for a robust comparison.

What performance metrics or key performance indicators (KPIs) are associated with this contract to ensure accountability and value for money?

The provided data does not specify the performance metrics or KPIs for this contract. For a contract valued at $63.2 million, especially one awarded sole-source, clearly defined KPIs are essential for ensuring SPOREDATA INC delivers the expected outcomes and that the VA receives value for its investment. These metrics should be measurable, objective, and directly tied to the contract's objectives. Without them, it is challenging to assess the contractor's performance objectively or to hold them accountable for meeting service level agreements. The contract's terms and conditions should detail these performance expectations.

What is SPOREDATA INC's track record with the federal government, particularly with the Department of Veterans Affairs?

Information regarding SPOREDATA INC's specific track record with the federal government, including past performance ratings, previous contract values, and any history of performance issues or successes with the Department of Veterans Affairs, is not provided in the summary data. A comprehensive assessment of this contract would require reviewing SPOREDATA INC's past performance information, such as data from the Contractor Performance Assessment Reporting System (CPARS). This would help determine their reliability, quality of work, and overall suitability for a contract of this size and importance. The absence of this information in the summary necessitates further investigation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 E OAK DR, DURHAM, NC, 27705

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $158,065

Exercised Options: $63,226

Current Obligation: $63,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline