VA awards $12.1M IT contract for database administration to Data Networks, Inc

Contract Overview

Contract Amount: $12,126,568 ($12.1M)

Contractor: Data Networks, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-04-02

End Date: 2012-04-30

Contract Duration: 1,855 days

Daily Burn Rate: $6.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACT IT SERVICES FOR VBA CORPORATE DATABASE ADMINISTRATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.1 million to DATA NETWORKS, INC. for work described as: CONTRACT IT SERVICES FOR VBA CORPORATE DATABASE ADMINISTRATION Key points: 1. Contract awarded competitively, suggesting potential for good value. 2. Firm-fixed-price contract type mitigates cost overrun risks. 3. Long duration (over 5 years) may indicate a stable, ongoing need. 4. Contractor has a track record with the VA. 5. Focus on database administration is a critical IT function. 6. Geographic location in DC may impact local IT labor costs.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is a positive indicator for value, as it caps the government's financial exposure. Benchmarking against similar custom computer programming services contracts would provide a clearer picture of whether the $12.1 million total award represents a competitive price. The long performance period suggests a sustained need, and the competitive award mechanism implies that multiple vendors were considered, potentially driving a more favorable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating a full and open competition. With 9 bidders, the level of competition appears robust. This suggests that the VA sought multiple proposals and evaluated them to select the best value, which typically leads to more favorable pricing and service offerings for the government compared to sole-source or limited competitions.

Taxpayer Impact: A high number of bidders in a competitive award process generally benefits taxpayers by fostering price discovery and encouraging vendors to offer their best terms to secure the contract.

Public Impact

Veterans Affairs benefits from enhanced corporate database administration. Ensures the stability and performance of critical VA IT systems. Services delivered primarily within the District of Columbia. Supports IT professionals employed by Data Networks, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical database functions poses a risk if performance falters.
Potential for scope creep over the contract's extended period.

Positive Signals

Competitive award process suggests a fair evaluation of multiple vendors.
Firm-fixed-price contract type provides cost certainty.
Contractor's established presence with the VA may indicate familiarity with agency needs.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for IT services, particularly database administration and custom development, is large and competitive. This contract represents a portion of the federal government's significant spending on IT infrastructure and maintenance, aiming to ensure the efficient operation of agency databases. Comparable spending benchmarks would typically be found within IT services categories for federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, Data Networks, Inc., is likely a larger entity given the contract value. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities were mandated or encouraged, and their potential impact on the small business IT ecosystem.

Oversight & Accountability

As a competitive delivery order, this contract likely falls under the oversight of the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VBA IT Services
Custom Computer Programming Services
Federal IT Infrastructure Support
Database Management Systems

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Performance monitoring is crucial for extended IT service contracts.
Potential for scope creep over the contract's lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.1 million to DATA NETWORKS, INC.. CONTRACT IT SERVICES FOR VBA CORPORATE DATABASE ADMINISTRATION

Who is the contractor on this award?

The obligated recipient is DATA NETWORKS, 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 $12.1 million.

What is the period of performance?

Start: 2007-04-02. End: 2012-04-30.

What is the track record of Data Networks, Inc. with the Department of Veterans Affairs prior to this award?

Data Networks, Inc. has a history of receiving contracts from the Department of Veterans Affairs. While this specific award is for $12.1 million over five years for VBA corporate database administration, a deeper dive into FPDS or other federal procurement databases would reveal the full scope of their past performance with the VA. This includes the types of services previously rendered, contract values, and any performance evaluations or disputes. Understanding their prior engagement helps assess their familiarity with VA systems and requirements, potentially mitigating risks associated with a new vendor.

How does the total contract value of $12.1 million compare to similar IT database administration contracts awarded by the VA or other agencies?

Benchmarking the $12.1 million total contract value requires comparing it against similar IT services contracts, specifically those for custom computer programming and database administration, awarded over comparable periods (approximately 5 years). Factors such as the specific services required (e.g., maintenance, development, support), the complexity of the databases, and the labor categories involved significantly influence pricing. Without access to detailed pricing structures and market rate data for comparable services, a precise value-for-money assessment is difficult. However, the competitive nature of the award suggests an effort to achieve a fair market price.

What are the primary risks associated with a firm-fixed-price contract of this duration for IT services?

The primary risks with a firm-fixed-price (FFP) contract of this duration (over 5 years) for IT services revolve around potential scope creep and the contractor's ability to maintain performance over an extended period. While FFP protects the government from cost overruns, it can incentivize the contractor to minimize effort or cut corners if not rigorously managed. For the contractor, unforeseen technological changes or increased labor costs could erode profit margins. The government must ensure clear performance standards and robust oversight to mitigate risks of declining service quality or unmet requirements as the contract matures.

What does the number of bidders (9) indicate about the effectiveness of the competition for this contract?

The fact that 9 bidders participated in this competitive delivery order suggests a healthy level of competition for the IT services required for VBA corporate database administration. A higher number of bidders generally indicates that the contract opportunity was attractive and that the solicitation was accessible and well-defined. This robust competition likely pressured bidders to offer competitive pricing and demonstrate strong capabilities, increasing the likelihood that the VA secured a good value. It also reduces the risk of vendor lock-in and provides the agency with a broader pool of potential future contractors.

What are the potential implications of this contract on the IT workforce, both within the government and the contractor's organization?

This contract primarily impacts the IT workforce by creating demand for specialized skills in database administration and custom computer programming. Data Networks, Inc. will likely need to allocate or hire personnel with expertise in managing and maintaining corporate databases for the VA. This could lead to job creation or reallocation within the contractor's organization. For the government, it signifies a reliance on external expertise for a critical function, potentially reducing the need for in-house specialized database administrators, though government oversight personnel will still be required.

How does this contract fit into the broader landscape of federal IT spending, particularly within the Department of Veterans Affairs?

This $12.1 million contract for database administration is a component of the Department of Veterans Affairs' overall IT spending, which is substantial given the agency's mission and the complexity of its systems. Federal IT spending is consistently a large portion of agency budgets, focused on maintaining legacy systems, modernizing infrastructure, and developing new digital services. Contracts like this are essential for ensuring the operational integrity of critical data repositories that support veteran services. Its value and duration place it as a significant, but not exceptionally large, IT service contract within the VA's portfolio.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1821 MICHAEL FARADAY DR STE 401, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,126,568

Exercised Options: $12,126,568

Current Obligation: $12,126,568

Parent Contract

Parent Award PIID: GS06F0067Z

IDV Type: GWAC

Timeline