VA awards $44.8M IT contract for custom programming, competed under SAP

Contract Overview

Contract Amount: $44,770 ($44.8K)

Contractor: Draeger Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $123/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SOFTWARE AND INSTALL

Place of Performance

Location: TELFORD, BUCKS County, PENNSYLVANIA, 18969

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $44,769.98 to DRAEGER INC for work described as: IT SOFTWARE AND INSTALL Key points: 1. Contract awarded via BPA Call under Schedule, suggesting a streamlined procurement process. 2. The fixed-price contract type aims to control costs and provide budget certainty. 3. Competition under SAP indicates a potentially efficient but possibly less broad bidding process. 4. The contract duration of 364 days suggests a focused, short-term project. 5. The vendor, Draeger Inc., is the sole awardee for this specific task order. 6. This award falls within the custom computer programming services NAICS code.

Value Assessment

Rating: fair

The contract value of $44.8 million for custom computer programming services over approximately one year appears to be within a reasonable range for IT solutions of this nature. However, without specific details on the scope of work, a direct comparison to similar contracts is challenging. The firm fixed-price structure provides cost predictability for the VA. Benchmarking the per-unit cost would require a detailed breakdown of services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Schedule (likely GSA Schedule) using a Blanket Purchase Agreement (BPA) Call. While this indicates some level of competition, it is typically less broad than full and open competition. The number of bidders is not specified, but competition under Schedule can sometimes be limited to pre-vetted vendors, potentially impacting price discovery compared to a wider solicitation.

Taxpayer Impact: Competition under Schedule, while offering some price discovery, may not always yield the lowest possible price for taxpayers compared to a full and open solicitation. The efficiency of the procurement process is a benefit, but taxpayers may not be realizing the maximum value if competition was restricted.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving custom IT software and installation services. This contract will likely support the VA's internal IT infrastructure and operational needs. The services delivered are expected to enhance the VA's ability to manage its systems and data. The geographic impact is primarily within the VA's operational footprint, likely nationwide. Workforce implications may include IT professionals involved in the development and implementation of the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could mean higher prices than a full and open bid.
Lack of detailed scope of work makes value-for-money assessment difficult.
Sole awardee for this BPA call might indicate limited market engagement.
The contract's fixed-price nature could lead to scope creep issues if not managed tightly.

Positive Signals

Firm fixed-price contract provides cost certainty for the VA.
Procurement via BPA Call suggests an efficient and potentially faster award process.
Award to Draeger Inc. indicates they meet the VA's pre-qualification criteria for Schedule contracts.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending allocated to software development and system integration. The NAICS code 541511 represents a core segment of IT services. Government spending in this area often focuses on modernizing legacy systems, developing new applications, and ensuring cybersecurity, making contracts like this crucial for agency operations.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). As it was competed under a BPA Call, it's possible that small businesses could have participated if they were on the relevant GSA Schedule. However, without further information on subcontracting plans or the specific Schedule used, the direct impact on the small business ecosystem is unclear. Larger IT firms often hold GSA Schedules, which may limit direct opportunities for smaller, specialized companies unless they are part of a subcontracting effort.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a BPA Call, the underlying GSA Schedule contract likely has its own oversight mechanisms. Transparency is facilitated by contract award databases, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA IT Modernization Programs
Custom Software Development Services
GSA Schedule IT Contracts
IT Services for Federal Agencies

Risk Flags

Limited competition concerns
Lack of detailed scope information
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $44,769.98 to DRAEGER INC. IT SOFTWARE AND INSTALL

Who is the contractor on this award?

The obligated recipient is DRAEGER 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 $44,769.98.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the specific nature of the custom computer programming services being procured?

The provided data indicates the contract is for 'IT SOFTWARE AND INSTALL' under NAICS code 541511 (Custom Computer Programming Services). However, the specific functionalities, applications, or systems to be developed or installed are not detailed. This could range from developing new patient management software, enhancing existing IT infrastructure, creating data analytics tools, or integrating new hardware with existing software. A more granular understanding of the Statement of Work (SOW) would be necessary to fully grasp the scope and impact of the services.

How does the $44.8 million award compare to historical spending on similar custom programming services by the VA?

To assess this, one would need to analyze the VA's historical spending data for NAICS code 541511 or similar custom programming service contracts over the past several fiscal years. Comparing the total value and duration of this $44.8 million contract against the average award size, number of awards, and total spending in this category would provide context. If this award is significantly larger or smaller than typical awards, it might indicate a shift in strategy, a particularly large project, or potentially an outlier in terms of pricing or scope.

What are the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for custom programming services, KPIs might include adherence to project timelines, successful completion of development milestones, system uptime post-installation, user acceptance testing results, defect rates, and performance benchmarks. The firm fixed-price nature suggests that meeting the defined scope within budget and schedule are primary success factors. The VA's program office would be responsible for monitoring these metrics.

What is Draeger Inc.'s track record with the Department of Veterans Affairs and similar federal contracts?

Assessing Draeger Inc.'s track record would involve reviewing their past performance on contracts with the VA and other federal agencies. This includes examining past performance evaluations, any documented issues or disputes, and the types and values of previous contracts they have held. A history of successful project delivery, particularly in custom programming and IT installation for healthcare or large government organizations, would be a positive indicator. Conversely, a history of performance problems or contract terminations could raise concerns.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include scope creep, technical challenges in development or integration, vendor performance issues, and budget overruns (though mitigated by fixed-price). Mitigation strategies typically involve robust project management, clear SOW definition, regular progress reviews, strong vendor oversight, and contingency planning. The limited competition aspect could also pose a risk if it leads to suboptimal pricing or limited innovation. The VA's contracting and program management teams are responsible for identifying and mitigating these risks throughout the contract lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 648-26-2-1601-0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3135 QUARRY RD, TELFORD, PA, 18969

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $44,770

Exercised Options: $44,770

Current Obligation: $44,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10G23A0004

IDV Type: BPA

Timeline