VA awards $26.6M for Enterprise Data Warehouse Support, a significant investment in IT infrastructure

Contract Overview

Contract Amount: $26,663,564 ($26.7M)

Contractor: Peraton Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-04-05

End Date: 2017-07-31

Contract Duration: 1,578 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 107

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF AWARD OF TASK ORDER FOR ENTERPRISE DATA WAREHOUSE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.7 million to PERATON INC. for work described as: IGF::OT::IGF AWARD OF TASK ORDER FOR ENTERPRISE DATA WAREHOUSE SUPPORT SERVICES Key points: 1. The contract represents a substantial commitment to maintaining and enhancing critical data infrastructure. 2. Competition dynamics for this task order suggest a robust market for enterprise data services. 3. Performance risk appears moderate given the nature of IT support services. 4. The duration of the contract indicates a long-term need for these services. 5. This spending aligns with broader government efforts to modernize data management capabilities. 6. The fixed-price contract type provides cost certainty for the agency.

Value Assessment

Rating: good

The award of $26.6 million for Enterprise Data Warehouse Support Services by the VA appears reasonable for a multi-year IT support contract. Benchmarking against similar large-scale data management and IT support contracts within federal agencies suggests that this figure is within expected ranges for the scope and duration. The firm fixed-price nature of the contract helps to control costs and provides predictability for the agency, indicating a focus on value for money.

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 had the opportunity to bid. The high number of offers (107) suggests a competitive marketplace for enterprise data warehouse support services. This level of competition is generally favorable for price discovery and can lead to better value for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

Veterans will benefit from improved data management, potentially leading to better service delivery and program administration. The contract supports the maintenance and enhancement of the VA's Enterprise Data Warehouse, a critical IT system. The geographic impact is primarily within the District of Columbia, where the contractor is located. This contract supports IT professionals and data specialists, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly data management and computer systems design, is a significant area of federal spending. Agencies like the VA rely heavily on robust data infrastructure to manage vast amounts of information related to healthcare, benefits, and operations. This contract fits within the broader trend of federal agencies investing in modernizing their IT systems to improve efficiency and service delivery. Comparable spending benchmarks for large-scale IT support contracts often run into tens of millions of dollars annually.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the high number of bidders suggests that smaller firms may have participated in the bidding process or could potentially be involved as subcontractors. The prime contractor, Peraton Inc., is a large entity, and the implications for small business subcontracting would depend on the specific terms negotiated within the contract, which are not detailed here.

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 cost control. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

it-services, data-management, veterans-affairs, delivery-order, firm-fixed-price, full-and-open-competition, district-of-columbia, computer-systems-design, enterprise-data-warehouse, it-support

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.7 million to PERATON INC.. IGF::OT::IGF AWARD OF TASK ORDER FOR ENTERPRISE DATA WAREHOUSE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PERATON 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: 2013-04-05. End: 2017-07-31.

What is the historical spending trend for Enterprise Data Warehouse Support Services at the VA?

Analyzing historical spending for Enterprise Data Warehouse (EDW) support services at the Department of Veterans Affairs (VA) requires examining contract data over several fiscal years. While this specific task order runs from April 2013 to July 2017, the VA has consistently invested in its data infrastructure. Prior to this award, the VA likely had existing contracts for data warehousing and management. Post-2017, further investments would have been made to maintain and upgrade the EDW. Federal procurement data indicates a sustained need for EDW support, with annual spending fluctuating based on specific project needs, technology upgrades, and contract renewals. Without access to a comprehensive historical database filtered specifically for 'Enterprise Data Warehouse Support Services' across all VA contracts, a precise year-over-year spending trend is difficult to establish. However, the nature of EDW implies continuous investment to manage growing data volumes and evolving analytical requirements.

How does the cost per year for this contract compare to industry benchmarks for similar IT support services?

This task order has an estimated value of $26.6 million over approximately 4 years (April 2013 - July 2017), equating to roughly $6.65 million per year. Benchmarking this against industry standards for large-scale enterprise data warehouse support services requires considering the complexity, scope, and specific technologies involved. For comprehensive IT support encompassing data management, system maintenance, and potential upgrades for a federal agency of the VA's size, this annual cost is generally considered within a reasonable range. Industry reports and IT consulting firms often cite annual IT support costs for large enterprises ranging from 5% to 15% of the total IT budget, or specific figures for managed services contracts. Given the critical nature of the EDW and the extensive data it manages, the VA's investment appears aligned with market expectations for specialized, high-level IT support services.

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

While the specific Key Performance Indicators (KPIs) for this particular task order are not publicly detailed in the provided data, typical KPIs for Enterprise Data Warehouse (EDW) support services contracts focus on system availability, performance, data integrity, and user support. Common metrics include: System Uptime/Availability (e.g., 99.9% availability), Data Load Success Rates (e.g., >98% successful data ingestions), Query Performance (e.g., average query response times below a defined threshold), Data Accuracy and Completeness, Help Desk Response and Resolution Times for user issues, and successful completion of scheduled maintenance and upgrades. The contracting agency (VA) would establish these KPIs in the Performance Work Statement (PWS) to ensure the contractor meets defined service levels and delivers the expected outcomes for the EDW.

What is Peraton Inc.'s track record with the VA and other federal agencies for similar IT services?

Peraton Inc. has a significant track record of providing IT and mission support services to various U.S. federal agencies, including the Department of Veterans Affairs (VA). Prior to and following this specific task order (2013-2017), Peraton has been awarded numerous contracts across different departments for services ranging from cybersecurity and cloud computing to enterprise IT infrastructure management and data analytics. Their experience with the VA likely includes support for critical systems beyond the EDW. A review of federal procurement databases would reveal the breadth and depth of their contract history with the VA and other agencies, highlighting their performance on similar large-scale IT programs. Generally, Peraton is recognized as a major federal contractor with substantial experience in complex IT environments.

What risks are associated with relying on a single vendor for long-term Enterprise Data Warehouse support?

Relying on a single vendor for long-term Enterprise Data Warehouse (EDW) support, even if initially procured through competition, introduces several risks. A primary concern is vendor lock-in, where the agency becomes heavily dependent on the vendor's proprietary knowledge, processes, and technology, making it difficult and costly to switch providers in the future. This can reduce competitive pressure on pricing and service quality over time. Another risk is the potential for knowledge drain if the vendor's key personnel depart, taking critical institutional knowledge with them. Furthermore, the vendor's strategic direction or financial stability could diverge from the agency's needs, potentially impacting service continuity or innovation. To mitigate these risks, agencies often implement robust knowledge transfer requirements, phased transition plans, and ensure contract language allows for competitive re-procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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

Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)

Address: 2235 MONROE ST, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $37,298,206

Exercised Options: $26,663,564

Current Obligation: $26,663,564

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1009

IDV Type: IDC

Timeline

Start Date: 2013-04-05

Current End Date: 2017-07-31

Potential End Date: 2017-07-31 00:00:00

Last Modified: 2017-06-27

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