VA Awards $24M VR Training License to SIMX, Inc. for 2 Years

Contract Overview

Contract Amount: $24,000 ($24.0K)

Contractor: Simx, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-15

End Date: 2027-05-14

Contract Duration: 729 days

Daily Burn Rate: $33/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SIMX VR TRAINING LICENSE AND SUPPORT

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,000 to SIMX, INC for work described as: SIMX VR TRAINING LICENSE AND SUPPORT Key points: 1. Spending on VR training is a growing sector, with potential for efficiency gains. 2. SIMX, Inc. is the sole provider, raising questions about price competitiveness. 3. The firm fixed-price contract limits risk for the government but may not capture cost savings. 4. Educational support services spending is generally stable, but specific technology investments can fluctuate.

Value Assessment

Rating: questionable

The $24 million contract over two years for VR training suggests a significant investment. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or if it reflects a fair market value for specialized VR training solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This lack of competition limits the government's ability to discover the lowest possible price and may lead to a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pricing, potentially diverting funds from other critical VA needs.

Public Impact

Veterans may receive enhanced training through advanced VR technology, potentially improving skills and outcomes. The VA's investment in specialized technology could set a precedent for future training programs. Limited competition raises concerns about the efficient use of taxpayer funds for this specific program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for overpayment

Positive Signals

Investment in advanced training technology
Potential for improved veteran skills

Sector Analysis

The IT sector, particularly in specialized areas like VR training, can see significant price variations based on technology maturity and vendor exclusivity. Benchmarks for similar large-scale VR training deployments are scarce, making direct comparison challenging.

Small Business Impact

The award to SIMX, Inc. does not appear to involve small businesses, either as prime contractors or subcontractors, based on the provided data. This represents a missed opportunity to support small business participation in government contracting.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving value for money and that the contract terms are being met. Accountability for the expenditure is crucial given the lack of competitive validation.

Related Government Programs

Educational Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of market validation.
Limited transparency on pricing justification.
No apparent small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,000 to SIMX, INC. SIMX VR TRAINING LICENSE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is SIMX, 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 $24,000.

What is the period of performance?

Start: 2025-05-15. End: 2027-05-14.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The VA should have conducted a price analysis, comparing the proposed price to historical prices, other government contracts, or commercial prices for similar services to ensure it was fair and reasonable, despite the lack of competition.

What are the specific performance metrics for this VR training, and how will their achievement be measured to ensure effectiveness?

Performance metrics should be clearly defined in the contract, focusing on measurable outcomes such as skill acquisition rates, training completion times, user satisfaction, and the impact on job performance or patient care. The VA must establish a robust monitoring system to track these metrics and ensure the VR training is effectively meeting its intended objectives.

Are there plans to explore competitive procurement for future VR training needs or similar technological investments?

Given the significant investment and the potential for cost savings through competition, the VA should evaluate the market for future VR training requirements. Developing a strategy that encourages broader vendor participation, perhaps through phased procurements or by breaking down requirements, could lead to better value and innovation.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 99 S ALMADEN BLVD, SAN JOSE, CA, 95113

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

Financial Breakdown

Contract Ceiling: $48,000

Exercised Options: $24,000

Current Obligation: $24,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline