VA's $110M IT Help Desk Contract Awarded to ASM Research, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $110,203,567 ($110.2M)

Contractor: ASM Research, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-03-28

End Date: 2018-04-13

Contract Duration: 746 days

Daily Burn Rate: $147.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL SERVICE DESK HELP DESK IGF::OT::IGF

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 73301

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $110.2 million to ASM RESEARCH, LLC for work described as: NATIONAL SERVICE DESK HELP DESK IGF::OT::IGF Key points: 1. Contract value represents a significant investment in IT support services for the VA. 2. The fixed-price contract structure aims to control costs and provide predictable spending. 3. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 4. The duration of the contract (over two years) indicates a need for sustained IT support. 5. The award to a single contractor highlights the importance of specialized IT service delivery. 6. The contract's focus on Computer Systems Design Services points to critical infrastructure support.

Value Assessment

Rating: good

The contract value of approximately $110 million over its period of performance is substantial for IT help desk services. Benchmarking against similar large-scale IT support contracts within federal agencies, this award appears to be within a reasonable range, especially considering the scope and duration. The firm-fixed-price structure is a positive indicator for cost control, as it shifts risk to the contractor. Without specific per-unit data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this significant IT support requirement. A competitive bidding process generally leads to more favorable pricing and service offerings for the government, as contractors vie to win the award by presenting their best value propositions.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to provide these essential IT services at the best possible price.

Public Impact

Veterans Affairs employees will benefit from improved IT support, leading to increased productivity and efficiency in delivering services to veterans. The contract ensures the continuous operation and maintenance of critical IT help desk functions for the Department of Veterans Affairs. The geographic impact is nationwide, as the VA operates numerous facilities across the United States. The contract supports IT professionals and potentially other roles within the contractor's organization, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single contractor for critical IT support could pose risks if performance degrades.
Ensuring consistent service quality across all VA locations and user types requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm-fixed-price contract type helps manage cost certainty for the government.
The contractor, ASM Research, LLC, has experience in government IT services.
The contract duration suggests a stable, long-term IT support solution.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under Computer Systems Design Services, a segment focused on providing expertise in the design, development, and implementation of IT systems. The federal government is a major consumer of these services, with significant spending allocated annually to maintain and upgrade its complex IT infrastructure. Comparable spending benchmarks for large-scale IT help desk and support contracts often run into tens or hundreds of millions of dollars, depending on the agency's size and scope of operations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is ASM Research, LLC, the extent of small business subcontracting is not detailed in the provided data. Federal regulations encourage the use of small businesses in subcontracting opportunities, and it would be beneficial to understand if and how small businesses are involved in fulfilling the requirements of this significant IT support contract to ensure broader economic participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement (PWS) and service level agreements (SLAs), which define expected performance standards and remedies for non-compliance. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were identified.

Related Government Programs

IT Help Desk Services
Computer Systems Design Services
Department of Veterans Affairs IT Contracts
Federal IT Support Services
Large-Scale IT Service Delivery

Risk Flags

Performance Risk
Cost Overrun Potential
Vendor Lock-in
Service Level Agreement Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $110.2 million to ASM RESEARCH, LLC. NATIONAL SERVICE DESK HELP DESK IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ASM RESEARCH, LLC.

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 $110.2 million.

What is the period of performance?

Start: 2016-03-28. End: 2018-04-13.

What is the track record of ASM Research, LLC in delivering similar IT help desk services to federal agencies?

ASM Research, LLC has a history of performing IT and technical services for various government agencies. While specific details on their performance for large-scale IT help desk operations within the VA are not fully elaborated in this data snippet, their presence as a contractor suggests prior experience. A deeper dive into their past performance evaluations, contract history with the VA and other departments, and any reported issues or commendations would provide a clearer picture of their capabilities and reliability in delivering complex IT support solutions. Understanding their experience with firm-fixed-price contracts and managing large teams is also crucial for assessing their suitability for this role.

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

The provided data does not include specific per-unit cost breakdowns (e.g., cost per ticket, cost per user supported), making a direct comparison to industry benchmarks challenging. The total contract value of $110 million over approximately two years suggests a significant investment. To assess value for money on a per-unit basis, one would need to know the number of users supported, the volume of tickets handled, and the complexity of issues addressed. Industry benchmarks for IT help desk services vary widely based on service level agreements, geographic location, and the scope of support. Without these granular details, it's difficult to definitively state if the per-unit cost is competitive, though the full and open competition is a positive indicator for price discovery.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance degradation by the contractor, leading to disruptions in IT support for VA personnel, and the risk of vendor lock-in if future procurements are not managed competitively. Another risk is the potential for cost overruns if the firm-fixed-price model is not adequately managed or if unforeseen technical challenges arise. Mitigation strategies typically involve robust performance monitoring, clearly defined service level agreements with penalties for non-performance, regular contract reviews, and ensuring a competitive environment for any follow-on contracts. The VA's contracting and program management teams are responsible for actively managing these risks throughout the contract lifecycle.

How effective has the VA been in managing its IT help desk services historically, and how does this contract fit into that strategy?

This contract represents a significant commitment by the VA to outsource or consolidate its IT help desk operations. Historically, federal agencies have utilized a mix of in-house and contracted IT support. The decision to award a large, multi-year contract under full and open competition suggests a strategic move towards leveraging external expertise for efficiency and potentially cost savings. The effectiveness of this specific contract will depend on the VA's ability to clearly define requirements, monitor performance rigorously, and ensure the contractor meets or exceeds service level expectations. Past VA IT initiatives have faced challenges, making the oversight and management of this contract critical for its success.

What is the historical spending pattern for IT help desk services at the Department of Veterans Affairs?

The provided data focuses on a single contract award. To understand historical spending patterns, one would need to analyze the VA's IT budget and contract awards over several fiscal years. This would involve looking at previous contracts for similar IT help desk and support services, their values, durations, and the contractors involved. Analyzing this trend would reveal whether the VA has consistently relied on external contractors, the average spending levels, and any shifts in strategy, such as moving towards larger, consolidated contracts like this one, or increasing/decreasing reliance on specific types of IT support.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 4050 LEGATO RD STE 1100, 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: $291,957,583

Exercised Options: $110,203,567

Current Obligation: $110,203,567

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1011

IDV Type: IDC

Timeline