DoD's $24.3M IT contract for computing environment maintenance awarded to VETS, Inc. under full and open competition

Contract Overview

Contract Amount: $24,274,345 ($24.3M)

Contractor: Veterans Enterprise Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-10-22

End Date: 2019-09-30

Contract Duration: 2,169 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF COMMON COMPUTING ENVIRONMENT MAINTENANCE AND SUSTAINMENT OTHER DIRECT COSTS (ODCS) - SOFTWARE/HARDWARE

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC. for work described as: IGF::OT::IGF COMMON COMPUTING ENVIRONMENT MAINTENANCE AND SUSTAINMENT OTHER DIRECT COSTS (ODCS) - SOFTWARE/HARDWARE Key points: 1. Contract value of $24.3M over 6 years suggests a significant investment in IT infrastructure. 2. Awarded via full and open competition, indicating a potentially competitive pricing environment. 3. The contract's duration of 2169 days (approx. 6 years) implies a need for sustained IT support. 4. Focus on 'Computer Systems Design Services' highlights the critical nature of IT infrastructure for USTRANSCOM. 5. The contract's performance period spans a significant portion of the last decade, offering historical data for analysis. 6. Firm Fixed Price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract's total value of $24.3 million over approximately six years averages to about $4 million annually. Benchmarking this against similar IT maintenance and sustainment contracts for large federal agencies is crucial. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (10) indicates a degree of market interest, which can be a positive sign for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The solicitation received 10 offers, suggesting a healthy level of interest from the market. A competitive bidding process like this generally leads to better price discovery and can result in more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially driving down costs and improving the overall value received for public funds.

Public Impact

The Department of Defense, specifically USTRANSCOM, benefits from sustained and reliable IT infrastructure. Services delivered include maintenance and sustainment of the IGF Common Computing Environment. The contract is geographically focused on Illinois, where USTRANSCOM is based. The contract supports the operational readiness and efficiency of military logistics and transportation command and control systems. It ensures the availability of critical IT systems for military personnel involved in global logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are heavily relied upon.
Risk of cost overruns if the scope of 'maintenance and sustainment' is not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially fair pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term nature of the contract (approx. 6 years) allows for stable IT support and potential for economies of scale.
The contractor, VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC., has experience in IT services, as indicated by the contract award.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services, computer systems design, and maintenance. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Contracts like this are essential for agencies to ensure the operational continuity and security of their digital systems. Comparable spending benchmarks would involve looking at other large-scale IT sustainment contracts awarded by DoD or other federal agencies for similar services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC. may be a small business itself, the award was made under full and open competition, not a specific small business set-aside. This means large businesses were also eligible to bid. There is no explicit information on subcontracting plans for small businesses within this data, which would typically be detailed in the contract's statement of work or award documentation. The lack of a small business set-aside suggests that the primary focus was on obtaining the best value through broad market competition.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within USTRANSCOM. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported. Performance reviews and regular reporting requirements would also be part of the oversight mechanism.

Related Government Programs

DoD IT Modernization Programs
USTRANSCOM Logistics IT Support
Federal Civilian IT Infrastructure Maintenance
Cloud Computing Services Contracts
Cybersecurity Support Services

Risk Flags

Long contract duration may lead to technology obsolescence if not managed proactively.
Reliance on a single contractor for critical infrastructure requires robust oversight.
Scope creep potential in 'maintenance and sustainment' contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC.. IGF::OT::IGF COMMON COMPUTING ENVIRONMENT MAINTENANCE AND SUSTAINMENT OTHER DIRECT COSTS (ODCS) - SOFTWARE/HARDWARE

Who is the contractor on this award?

The obligated recipient is VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2013-10-22. End: 2019-09-30.

What is the historical spending trend for IGF Common Computing Environment maintenance and sustainment under USTRANSCOM?

Analyzing historical spending requires access to more granular data beyond this single award. This contract, valued at approximately $24.3 million and spanning from October 2013 to September 2019 (2169 days), represents a significant portion of spending during that period. To understand trends, one would need to examine prior contracts for the same or similar services, as well as any subsequent contracts awarded after September 2019. Factors such as technological advancements, changes in operational requirements, and shifts in agency IT strategy could influence spending patterns over time. Without data on previous contract values, durations, and scope, it's difficult to establish a definitive spending trend solely from this award.

How does the per-unit cost of this contract compare to industry benchmarks for similar IT sustainment services?

Determining a precise per-unit cost for comparison is challenging without a detailed breakdown of services rendered (e.g., per server, per user, per software license, per hour of support). The total contract value is $24,274,345.04 over approximately 2169 days. If we consider an average annual cost, it's roughly $4 million per year. Industry benchmarks for IT maintenance and sustainment vary widely based on the complexity of the environment, service level agreements (SLAs), and the specific technologies involved. For large-scale enterprise environments, costs can range significantly. Given the 'full and open competition' and 10 offers, it suggests the pricing was likely competitive within the market for the defined scope of services. However, a definitive benchmark comparison would require access to proprietary industry cost data and a more granular understanding of the services provided under this specific contract.

What is the track record of VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC. in fulfilling large federal IT contracts?

VETERANS ENTERPRISE TECHNOLOGY SOLUTIONS, INC. (VETS, Inc.) has a history of performing federal IT contracts. This specific contract with USTRANSCOM, valued at over $24 million and lasting nearly six years, indicates a capacity to manage and execute significant IT sustainment and maintenance tasks. Examining other contracts awarded to VETS, Inc. by various federal agencies would provide a broader picture of their performance, including on-time delivery, adherence to budget, and customer satisfaction. While this award suggests capability, a comprehensive assessment of their track record would involve reviewing performance evaluations (e.g., CPARS) on multiple contracts across different agencies and service types.

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

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for IT maintenance and sustainment contracts, typical KPIs often include system uptime/availability (e.g., 99.9% availability), response times for issue resolution, patch management compliance rates, security vulnerability remediation timelines, and adherence to service level agreements (SLAs). For a contract like this, USTRANSCOM would likely have established specific metrics related to the reliability, performance, and security of the IGF Common Computing Environment. Performance would be monitored through regular reporting and potentially through formal reviews.

How has the scope of 'Computer Systems Design Services' evolved within USTRANSCOM over the contract period?

The scope of 'Computer Systems Design Services' can evolve significantly over a nearly six-year contract period (October 2013 - September 2019). During this time, the IT landscape experienced rapid changes, including advancements in cloud computing, virtualization, cybersecurity threats, and data analytics. It is probable that the contract accommodated these changes through contract modifications or task orders, potentially expanding or shifting the focus of services. For instance, initial services might have focused on traditional on-premise infrastructure, while later phases could have incorporated cloud migration strategies or enhanced cybersecurity measures. A detailed analysis would require reviewing contract modification history and associated documentation.

What is the potential impact of this contract on the broader IT services market, particularly for small businesses?

As this contract was awarded under full and open competition and not specifically set aside for small businesses, its direct impact on the small business ecosystem is limited unless VETS, Inc. (the prime contractor) actively engages small businesses as subcontractors. The primary competition likely involved established mid-to-large sized IT service providers. However, the existence of a significant contract like this can signal market demand for specific IT sustainment capabilities, potentially encouraging small businesses to specialize in niche areas or develop expertise that could make them attractive partners for larger prime contractors on future bids. The overall effect is indirect, influencing market dynamics rather than providing direct opportunities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2057 WOODFORD RD STE 200, VIENNA, VA, 22182

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: $24,305,142

Exercised Options: $24,274,345

Current Obligation: $24,274,345

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0603V

IDV Type: FSS

Timeline