VA awards $20M for IT systems maintenance and updates, focusing on healthcare domains

Contract Overview

Contract Amount: $19,981,949 ($20.0M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-10-22

End Date: 2017-10-21

Contract Duration: 1,460 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE RESOURCES TO ENSURE ONGOING MAINTENANCE (UPDATES, PATCHES), ADMINISTRATION AND ULTIMATELY, THE TRANSITION OF STS SYSTEMS AND ASSOCIATED CODE SETS RELATED TO MULTIPLE VA HEALTH CARE DOMAINS. THE CONTRACTOR SHALL ALSO PREPARE UPDATES AND PATCHES TO INCLUDE: ENSURING COMPLIANCE WITH EXISTING REQUIREMENTS (RSD, SDD ETC.), OR, IN THE EVENT OF NON-COMPLIANCE, PROPOSED REVISIONS OF REQUIREMENTS FOR SUBMISSION TO AUTHORITATIVE ENTITIES (IPTS, CHANGE BOARDS ETC.); PROVIDING ANALYSIS, DESIGN, DEVELOPMENT (AS RELATED TO CORRECTING LEGACY DOMAIN/SYSTEM ISSUES TO ACCOMMODATE UPDATE/PATCH FUNCTIONALITY; CONFIGURATION MANAGEMENT; TESTING (PER PROPATH); AND PROVIDING ACCEPTABLE TECHNICAL AND USER DOCUMENTATION. THE CONTRACTOR IS EXPECTED TO IMPLEMENT REVISIONS TO LEGACY DOMAINS/SYSTEMS ON AN AS NEEDED BASIS IN THE EVENT EXTERNAL DATA FILES/PROTOCOLS ARE CHANGED AND CURRENT CONSUMING SYSTEMS CANNOT PROCESS NEW FORMATS/PROTOCOLS.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21044

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE RESOURCES TO ENSURE ONGOING MAINTENANCE (UPDATES, PATCHES), ADMINISTRATION AND ULTIMATELY, THE TRANSITION OF STS SYSTEMS AND ASSOCIATED CODE SETS RELATED TO MULTIPLE VA HEALTH CARE DOMAINS. THE CONTRACTOR SHALL ALSO PREPARE UPDATES AND PA… Key points: 1. Contract focuses on critical IT infrastructure for VA healthcare systems, ensuring ongoing maintenance and updates. 2. The award represents a significant investment in the stability and compliance of veteran healthcare IT. 3. Performance period spans over four years, indicating a need for sustained support. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The services encompass a broad range of IT functions including analysis, design, development, and testing. 6. This contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $20 million over four years for IT systems maintenance and development appears reasonable given the scope of work. While direct comparisons are difficult without knowing the specific IDIQ vehicle and its pricing structure, the per-year cost is in line with similar government IT support contracts. The firm-fixed-price nature suggests that the government has a clear understanding of the requirements and has negotiated a price that includes contractor profit and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though more bidders would typically lead to greater price discovery and potentially lower costs. The fact that it was competed openly is a positive sign for value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation.

Public Impact

Veterans will benefit from more stable and up-to-date healthcare IT systems, leading to improved access to care and data integrity. The services delivered will ensure the ongoing functionality and compliance of critical systems supporting multiple VA healthcare domains. The geographic impact is nationwide, as the VA's healthcare systems serve veterans across the United States. The contract supports IT professionals and developers, potentially creating or sustaining jobs in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed.
Dependence on a single contractor for critical system maintenance could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract structure helps control costs.
Full and open competition suggests a competitive bidding process.
Long-term contract duration allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services market. The government's IT spending is substantial, with a significant portion allocated to maintaining and modernizing existing systems. This contract represents a typical investment in ensuring the operational readiness and compliance of essential government IT infrastructure, particularly within the healthcare domain where data security and system uptime are paramount.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature provides a degree of accountability for performance against agreed-upon deliverables. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

VA Electronic Health Record Modernization (EHRM)
VA IT Modernization Initiatives
Federal Health IT Services
Government IT Maintenance and Support Contracts

Risk Flags

Potential for vendor lock-in if transition is not managed effectively.
Risk of outdated technology being maintained longer than optimal.
Dependence on contractor expertise for critical system knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE RESOURCES TO ENSURE ONGOING MAINTENANCE (UPDATES, PATCHES), ADMINISTRATION AND ULTIMATELY, THE TRANSITION OF STS SYSTEMS AND ASSOCIATED CODE SETS RELATED TO MULTIPLE VA HEALTH CARE DOMAINS. THE CONTRACTOR SHALL ALSO PREPARE UPDATES AND PATCHES TO INCLUDE: ENSURING COMPLIANCE WITH EXISTING REQUIREMENTS (RSD, SDD ETC.), OR, IN THE EVENT OF NON-COMPLIANCE, PROPOSED REVISIONS OF REQUIREMENTS FOR SUBMISSION TO AUTHORITATIVE ENTITIES (IPTS, CHANGE BOARDS ETC.)

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $20.0 million.

What is the period of performance?

Start: 2013-10-22. End: 2017-10-21.

What is the historical spending trend for similar IT maintenance and development contracts within the VA?

Analyzing historical spending on IT maintenance and development within the VA reveals a consistent and significant investment. The department has historically allocated substantial funds to ensure the operational integrity and modernization of its vast IT infrastructure, which supports millions of veterans. Trends show an increasing emphasis on cloud migration, cybersecurity enhancements, and the integration of new technologies to improve healthcare delivery and administrative efficiency. Specific to systems maintenance and updates, the VA has often utilized multi-year contracts, similar to this one, to ensure continuity of service and leverage economies of scale. The approximate $20 million awarded here for a four-year period aligns with the typical annual spending for such specialized IT support services, reflecting the ongoing need to manage complex legacy systems while adopting newer solutions.

How does the contractor's past performance on similar VA contracts compare to the requirements of this award?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a track record of performing IT services for the federal government, including the Department of Veterans Affairs. Evaluating their past performance requires a detailed review of contract close-out reports, performance evaluations (e.g., CPARS), and any documented issues or successes on previous engagements. For a contract focused on system maintenance, updates, and transition of healthcare IT domains, key performance indicators would include system uptime, successful deployment of patches and updates, adherence to compliance requirements, and timely delivery of documentation. Without access to specific performance data for MANTECH on prior VA IT contracts, a definitive assessment is challenging. However, the award of this contract suggests that the VA found their past performance to be satisfactory or superior relative to other bidders during the competitive process.

What are the primary risks associated with the maintenance and transition of legacy healthcare IT systems, and how are they mitigated in this contract?

The primary risks associated with maintaining and transitioning legacy healthcare IT systems include data integrity issues, cybersecurity vulnerabilities, system incompatibilities, and potential disruptions to critical healthcare operations. Legacy systems may lack modern security features, making them targets for cyberattacks, and their outdated architecture can hinder integration with newer technologies. Furthermore, the transition process itself carries risks of data loss or corruption and requires careful planning and execution to minimize downtime. This contract attempts to mitigate these risks through several mechanisms. The firm-fixed-price structure incentivizes the contractor to manage costs and deliver within budget. The defined scope of work, encompassing analysis, design, development, testing, and documentation, provides a structured approach. The requirement for compliance with existing regulations (RSD, SDD) and the process for proposing revisions to authoritative entities (IPTS, Change Boards) aim to ensure that updates maintain or improve system integrity and security. The multi-year duration also allows for a phased approach to transition and ongoing maintenance, reducing the risk of abrupt service interruptions.

What is the potential impact of this contract on the VA's overall IT modernization strategy?

This contract plays a crucial role in the VA's broader IT modernization strategy by ensuring the continued functionality and compliance of existing critical systems while facilitating their eventual transition. Modernization efforts often involve integrating new platforms and technologies, but this cannot occur effectively if the foundational systems are unstable or non-compliant. By focusing on maintenance, updates, and preparing for transition, this contract addresses the "keeping the lights on" aspect of IT operations, which is essential for any modernization initiative. It allows the VA to manage its current environment effectively, reducing immediate risks, while simultaneously laying the groundwork for future upgrades or replacements. The success of this contract in maintaining system health and facilitating updates can directly impact the feasibility and timeline of larger modernization projects, ensuring that the VA can adopt new technologies without compromising ongoing healthcare services.

How does the pricing structure (Firm Fixed Price) influence the value proposition for the government in this contract?

The Firm Fixed Price (FFP) pricing structure in this contract significantly influences the value proposition for the government by shifting cost risk to the contractor. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of the actual costs incurred. This provides the government with cost certainty, making budgeting more predictable and protecting against cost overruns. For the VA, this means they know the total expenditure for the services outlined. The value proposition is enhanced because the contractor is incentivized to manage their resources efficiently and control costs to maximize their profit margin. This encourages the contractor to be proactive in identifying potential issues and delivering the work effectively within the agreed-upon budget. However, the initial price negotiated must be competitive and reflect a fair market value, as the contractor will build in a contingency for unforeseen challenges.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,981,949

Exercised Options: $19,981,949

Current Obligation: $19,981,949

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,313,414

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1003

IDV Type: IDC

Timeline