VA awards $26.7M contract for training and development to Veterans Management Services, Inc

Contract Overview

Contract Amount: $26,740,928 ($26.7M)

Contractor: Veterans Management Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TRAINING AND DEVELOPMENT FOR CONTRACTING AND PROGRAM MANAGEMENT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.7 million to VETERANS MANAGEMENT SERVICES, INC. for work described as: TRAINING AND DEVELOPMENT FOR CONTRACTING AND PROGRAM MANAGEMENT Key points: 1. Contract focuses on specialized training for contracting and program management personnel. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of 1460 days indicates a long-term need for these services. 4. The contract type is labor hours, which can be flexible but requires careful monitoring. 5. The awardee, Veterans Management Services, Inc., has a specific focus on veteran support. 6. This contract aligns with the VA's mission to support its workforce and improve program execution.

Value Assessment

Rating: good

The contract value of $26.7 million over approximately four years for specialized training services appears reasonable. Benchmarking against similar government training contracts is challenging without more specific service details, but the per-year cost is around $6.7 million. The labor hours (PT) contract type allows for flexibility in service delivery, which can be cost-effective if managed efficiently. However, it also necessitates robust oversight to ensure labor hours are utilized appropriately and not inflated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. This method generally fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The presence of multiple bidders, though the exact number is not specified here, typically leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price. It ensures that the government is not limited to a single provider, thereby promoting efficiency and potentially driving down costs through competitive pressures.

Public Impact

The primary beneficiaries are VA personnel involved in contracting and program management, who will receive enhanced skills and knowledge. The services delivered will improve the effectiveness and efficiency of VA's procurement and program execution processes. The geographic impact is likely nationwide, as VA personnel across various locations may benefit from this training. Workforce implications include upskilling of existing VA employees, potentially leading to better career development and retention within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely monitored and managed.
Risk of scope creep if training objectives are not clearly defined and adhered to.
Dependence on a single contractor for critical training services over a multi-year period.

Positive Signals

Focus on specialized training addresses a critical need within the VA for skilled personnel.
Award to a company with a name suggesting a focus on veteran employment aligns with VA's mission.
Long-term contract provides stability and ensures continuity of essential training programs.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on training and development. The market for government training services is substantial, encompassing a wide range of specialized skills required by various agencies. Comparable spending benchmarks for similar large-scale training initiatives within federal agencies can vary significantly based on the subject matter, duration, and number of personnel trained. The IT and program management focus suggests a need for highly specialized expertise.

Small Business Impact

This contract does not appear to have a small business set-aside (SB=false) and the awardee is Veterans Management Services, Inc., which may or may not be a small business. Further investigation into the size status of the awardee and any subcontracting plans would be necessary to assess the impact on the small business ecosystem. Without specific set-aside provisions, the primary impact on small businesses would be through potential subcontracting opportunities if VMS, Inc. engages them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures will be tied to the performance metrics outlined in the contract, including the delivery of training modules and the achievement of learning objectives. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is identified.

Related Government Programs

Federal Acquisition Training Programs
Program Management Professional Development
Government Contracting Workforce Training
VA Employee Training Initiatives
Professional Services Contracts

Risk Flags

Potential for cost overruns due to labor hours contract type.
Need for robust oversight to ensure efficient use of labor hours.
Risk of scope creep if training objectives are not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.7 million to VETERANS MANAGEMENT SERVICES, INC.. TRAINING AND DEVELOPMENT FOR CONTRACTING AND PROGRAM MANAGEMENT

Who is the contractor on this award?

The obligated recipient is VETERANS MANAGEMENT SERVICES, 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 $26.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the specific track record of Veterans Management Services, Inc. in delivering similar training programs to federal agencies?

Assessing the specific track record of Veterans Management Services, Inc. (VMSI) requires a deep dive into their past performance on federal contracts. While the award data indicates VMSI received this $26.7 million contract, details on their prior experience with similar training and development for contracting and program management are crucial. Federal procurement databases and past performance reviews, if available, would shed light on their success rate, client satisfaction, and ability to meet complex requirements. Without this granular data, it's difficult to definitively gauge their expertise beyond the information provided in this single award. Agencies often rely on past performance evaluations as a key factor in source selection, so understanding VMSI's history in this niche is vital for evaluating the risk and potential success of this contract.

How does the awarded amount of $26.7 million compare to the typical spending on similar federal training contracts?

The $26.7 million awarded to Veterans Management Services, Inc. for training and development over approximately four years represents a significant investment. To benchmark this value, one would typically compare it to contracts for similar services across different federal agencies. For instance, contracts focused on IT project management training, acquisition workforce development, or leadership programs within agencies like the Department of Defense or GSA could serve as comparators. The average annual spend of roughly $6.7 million suggests a substantial program, likely involving a large number of personnel or highly specialized, intensive training. Without access to a comprehensive database of all federal training contracts and their specific scopes, a precise comparison is difficult, but this figure indicates a high-value, long-term commitment to workforce development within the VA.

What are the key performance indicators (KPIs) used to measure the success of this training contract?

Key Performance Indicators (KPIs) for this training contract would likely focus on the effectiveness and efficiency of the training delivered. Common KPIs might include trainee completion rates, post-training assessment scores, and the application of learned skills in the workplace, measured through supervisor feedback or performance reviews. For contracting and program management training, KPIs could also involve improvements in contract award timeliness, reduction in contract disputes, or enhanced program budget adherence. The contract's labor hours (PT) structure implies that tracking the hours spent on training activities and ensuring they align with the planned curriculum and objectives is also a critical performance metric. The VA contracting officer would establish these KPIs to ensure the contractor meets the required standards and delivers tangible value.

What is the historical spending pattern of the VA on training and development services over the past five years?

Analyzing the VA's historical spending on training and development services over the past five years would provide crucial context for the $26.7 million award. This would involve examining aggregate spending data for training categories, identifying trends in contract types (e.g., labor hours vs. fixed-price), and noting any significant shifts in focus areas like IT, program management, or leadership. Understanding whether this $26.7 million represents an increase, decrease, or steady level of investment compared to previous years is important. It could indicate evolving training needs, budget adjustments, or a strategic prioritization of workforce development. Without direct access to historical VA procurement data filtered for training services, this analysis remains speculative, but such a review is standard practice for assessing the significance of a new, large contract.

Are there any identified risks associated with the labor hours contract type for this specific training requirement?

The labor hours (PT) contract type for this $26.7 million training and development requirement introduces specific risks that require careful management. The primary risk is the potential for cost overruns if the number of labor hours required exceeds initial estimates or if hours are not diligently tracked and justified. Unlike fixed-price contracts, the government pays for the actual time spent by contractor personnel, making oversight critical. This necessitates robust monitoring of timesheets, verification of work performed, and strong communication between the VA and the contractor to ensure efficient service delivery. Scope creep can also be a risk, as the flexible nature of labor hours might inadvertently lead to expanded training objectives if not tightly controlled. Conversely, labor hours can offer flexibility when the exact scope or duration of work is uncertain at the outset.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 14 PIDGEON HILL DR STE 500, STERLING, VA, 20165

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,740,928

Exercised Options: $26,740,928

Current Obligation: $26,740,928

Actual Outlays: $19,480,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F128DA

IDV Type: FSS

Timeline