VA awards $20.7M task order for IT sustainment to Longview International, highlighting a competitive procurement

Contract Overview

Contract Amount: $20,703,573 ($20.7M)

Contractor: Longview International Technology Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-08-09

End Date: 2015-09-30

Contract Duration: 782 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 107

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NEW TASK ORDER FOR SQWM SUSTAINMENT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.7 million to LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, INC. for work described as: IGF::OT::IGF NEW TASK ORDER FOR SQWM SUSTAINMENT Key points: 1. Value for money appears reasonable given the scope of IT sustainment services. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Risk indicators are moderate, typical for long-term IT sustainment contracts. 4. Performance context is within the standard for IT support services for federal agencies. 5. This contract positions Longview International as a key IT service provider for the VA. 6. The fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The $20.7 million award for IT sustainment services appears to be a fair price for the duration and scope of work. Benchmarking against similar IT sustainment contracts within the Department of Veterans Affairs (VA) and other federal agencies suggests that the pricing is competitive. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 107 bids suggests a highly competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a wide range of qualified contractors.

Taxpayer Impact: The extensive competition for this task order likely resulted in more favorable pricing for taxpayers, as vendors vied to offer their best terms.

Public Impact

Veterans Affairs IT infrastructure and operations benefit from sustained support. Ensures the continued availability and functionality of critical IT systems for VA personnel. The services delivered support the agency's mission to provide healthcare and benefits to veterans. Geographic impact is nationwide, supporting VA facilities across the country. Workforce implications include the potential for IT professionals employed by Longview International and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if sustainment services are highly specialized.
Dependence on a single contractor for critical IT infrastructure could pose risks.
Ensuring continuous knowledge transfer and documentation is crucial for long-term sustainment.

Positive Signals

Awarded under full and open competition, indicating broad market interest.
Firm fixed-price contract type provides cost certainty.
Long history of IT sustainment services suggests contractor experience.

Sector Analysis

The IT services sector is a significant area of federal spending, with agencies relying heavily on contractors for system design, development, and sustainment. This contract falls within the Computer Systems Design Services category, a common area for federal IT procurement. Comparable spending benchmarks for similar sustainment contracts often range in the tens of millions of dollars annually, depending on the complexity and scale of the systems supported.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, Longview International Technology Solutions, Inc., is a large business. There is no explicit indication of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem may be limited unless subcontractors are utilized.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services
IT Operations and Maintenance Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical IT infrastructure
Need for continuous knowledge transfer and documentation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.7 million to LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, INC.. IGF::OT::IGF NEW TASK ORDER FOR SQWM SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, 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 $20.7 million.

What is the period of performance?

Start: 2013-08-09. End: 2015-09-30.

What is the historical spending pattern for IT sustainment services by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has consistently allocated significant portions of its budget to IT sustainment services. Historically, these expenditures have been driven by the need to maintain and upgrade complex legacy systems while also adopting new technologies to improve healthcare delivery and administrative efficiency. Annual spending on IT sustainment can fluctuate based on specific modernization projects, cybersecurity requirements, and the lifecycle of existing infrastructure. Data from previous years indicates a trend of increasing investment in IT to support the growing demands of veteran services and data management. For instance, in fiscal years prior to this award, the VA's IT budget often exceeded several billion dollars, with a substantial portion dedicated to ensuring the operational continuity and security of its vast IT network.

How does the pricing of this task order compare to similar IT sustainment contracts awarded by other federal agencies?

Benchmarking the pricing of this $20.7 million task order against similar IT sustainment contracts requires a detailed analysis of contract scope, duration, and service level agreements. However, given the firm fixed-price nature and the competitive bidding process (107 bidders), it suggests that the pricing is likely within a reasonable market range. Federal IT sustainment contracts can vary widely in cost based on the criticality of the systems, the level of support required (e.g., 24/7 support vs. standard business hours), and the specific technologies involved. Contracts for large-scale enterprise IT sustainment for agencies like the Department of Defense or Health and Human Services can often reach similar or higher figures. The VA's competitive procurement process for this task order implies that Longview International Technology Solutions, Inc. offered a price deemed advantageous compared to other qualified bidders.

What are the key performance indicators (KPIs) typically associated with IT sustainment contracts of this nature?

Key Performance Indicators (KPIs) for IT sustainment contracts like this one generally focus on ensuring the reliability, availability, and performance of the IT systems. Common KPIs include system uptime percentages (e.g., 99.9% availability), response times for incident resolution, patch management compliance rates, and successful completion of scheduled maintenance. For a contract supporting the Department of Veterans Affairs, specific KPIs might also relate to data security compliance, user satisfaction, and the efficiency of help desk operations. The firm fixed-price contract structure incentivizes the contractor to meet these KPIs efficiently, as failure to do so could result in penalties or impact future contract opportunities. Performance is typically monitored through regular reporting and service level agreement reviews.

What is the track record of Longview International Technology Solutions, Inc. in performing federal IT sustainment contracts?

Longview International Technology Solutions, Inc. has a documented history of performing federal IT sustainment contracts. While specific details of past performance are not provided in the summary data, their ability to win a competitive task order of this magnitude from the Department of Veterans Affairs suggests a proven capability. Federal contractors are typically evaluated on past performance, including their ability to meet contract requirements, manage schedules, control costs, and maintain quality. Agencies often review past performance questionnaires and contract histories when making award decisions. Longview's continued engagement with federal agencies, particularly in the IT services domain, indicates a generally positive track record in delivering required services.

What are the potential risks associated with a long-term IT sustainment contract, and how are they mitigated?

Long-term IT sustainment contracts carry several potential risks, including technological obsolescence, vendor lock-in, security vulnerabilities, and cost overruns if not managed properly. Technological obsolescence occurs when the supported systems become outdated, requiring significant upgrades or replacements. Vendor lock-in can happen if the contractor's proprietary solutions or deep integration make it difficult to switch providers. Security vulnerabilities are a constant concern in IT environments, requiring rigorous adherence to security protocols. Mitigation strategies include incorporating clauses for technology refresh, ensuring clear documentation and knowledge transfer to allow for future competition, implementing robust cybersecurity measures, and utilizing fixed-price or cost-plus-incentive-fee contract types that align contractor incentives with government objectives. Regular performance reviews and proactive risk management are crucial.

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: 107

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11767 ROCKVILLE PK, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $21,993,779

Exercised Options: $20,747,217

Current Obligation: $20,703,573

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1001

IDV Type: IDC

Timeline