VA awards $20M for VBMS-R development and operational support, highlighting IT services for veterans

Contract Overview

Contract Amount: $20,080,512 ($20.1M)

Contractor: Pro-Sphere TEK, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-05-19

End Date: 2016-03-19

Contract Duration: 670 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF T4 TASK ORDER VA118-1015-0009 - VBMS-R DEVELOPMENT AND OPERATIONAL SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.1 million to PRO-SPHERE TEK, INC. for work described as: IGF::OT::IGF T4 TASK ORDER VA118-1015-0009 - VBMS-R DEVELOPMENT AND OPERATIONAL SUPPORT SERVICES Key points: 1. Contract focuses on critical IT infrastructure for the Department of Veterans Affairs. 2. Competition was full and open, suggesting a robust bidding process. 3. The contract duration of 670 days indicates a medium-term project. 4. Fixed-price contract type aims to control costs for the government. 5. The award to PRO-SPHERE TEK, INC. contributes to IT service delivery within the federal sector. 6. This task order falls under broader IT modernization efforts for veteran services.

Value Assessment

Rating: good

The total award amount of approximately $20 million for a 670-day period suggests a reasonable investment for specialized IT development and support. Benchmarking against similar IT service contracts for system development and operational support within federal agencies indicates that this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value for money, assuming the contractor can deliver within scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of four bidders indicates a healthy level of competition for this specific task order. This competitive environment is generally favorable for price discovery and ensures the government receives proposals from multiple qualified vendors, potentially leading to more competitive pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for the services rendered. Full and open competition increases the likelihood of obtaining the best value and quality for the allocated funds.

Public Impact

Veterans will benefit from improved functionality and reliability of the VBMS-R system, which is crucial for managing their benefits and claims. The contract supports the development and operational maintenance of a key IT system for the Department of Veterans Affairs. The geographic impact is primarily national, as the VBMS-R system serves veterans across the United States. The contract supports IT professionals and developers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical system support could pose a risk if performance issues arise.
Ensuring timely delivery of development milestones within the fixed-price structure requires diligent project management.

Positive Signals

Full and open competition suggests a strong pool of qualified bidders.
Firm fixed-price contract type provides cost predictability.
Award to a specific company indicates a selection based on demonstrated capabilities.
Focus on operational support alongside development ensures system continuity.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including custom software development, IT integration, and operational support. Spending in this area is driven by the government's continuous need to modernize legacy systems, enhance cybersecurity, and improve the efficiency of its digital infrastructure. Comparable spending benchmarks for similar IT development and support contracts often range from tens to hundreds of millions of dollars annually across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business or a company that did not meet small business criteria for this specific procurement. The absence of small business set-aside provisions means that opportunities for small businesses to directly participate in this contract may be limited, though they could potentially engage as subcontractors if the prime contractor pursues such avenues.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specific services and functionalities by agreed-upon deadlines. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Benefits Administration (VBA) IT Modernization
Department of Veterans Affairs Core Systems
Federal Civilian IT Services
Software Development and Maintenance Contracts

Risk Flags

Potential for vendor lock-in if not managed carefully.
Reliance on contractor for critical system functionality.
Cybersecurity risks associated with IT development and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.1 million to PRO-SPHERE TEK, INC.. IGF::OT::IGF T4 TASK ORDER VA118-1015-0009 - VBMS-R DEVELOPMENT AND OPERATIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PRO-SPHERE TEK, 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 $20.1 million.

What is the period of performance?

Start: 2014-05-19. End: 2016-03-19.

What is the track record of PRO-SPHERE TEK, INC. with the Department of Veterans Affairs and similar federal contracts?

PRO-SPHERE TEK, INC. has a history of performing IT services for the federal government, including the Department of Veterans Affairs. Analyzing their past performance on similar contracts, particularly those involving system development and operational support, is crucial. This includes reviewing past performance evaluations, any contract modifications, and the timeliness and quality of their deliverables. A strong track record with the VA suggests familiarity with their systems, processes, and specific needs, which can be a positive indicator for this current task order. Conversely, any history of performance issues or disputes would raise concerns about their ability to successfully execute this contract.

How does the $20 million award compare to other IT development and support contracts awarded by the VA or similar agencies?

The $20 million award for a 670-day period for VBMS-R development and operational support is a significant but not extraordinary sum for specialized IT services within a large federal agency like the VA. Comparable contracts for developing and maintaining complex case management or benefits administration systems can range from several million to tens or even hundreds of millions of dollars, depending on the scope, duration, and technological complexity. The firm fixed-price nature of this contract suggests a defined scope, which helps in comparing its value. However, a precise benchmark requires detailed analysis of the specific services rendered, the technical requirements, and the market rates for similar skill sets and project complexities within the federal IT landscape.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technical challenges in developing or supporting the VBMS-R system, contractor performance issues leading to delays or subpar quality, and cybersecurity vulnerabilities. Mitigation strategies likely involve robust project management by the VA, clear performance metrics and milestones defined in the contract, regular progress reviews, and adherence to strict cybersecurity protocols. The firm fixed-price structure incentivizes the contractor to manage costs and timelines effectively, but it also requires careful scope definition to prevent disputes. The VA's oversight mechanisms, including technical experts and contracting officers, are critical for identifying and addressing risks proactively.

How effective is the VBMS-R system, and how does this contract contribute to its overall program effectiveness?

The Veterans Benefits Management System - Replacement (VBMS-R) is a critical system for the Department of Veterans Affairs, aimed at modernizing and streamlining the processing of veterans' claims and benefits. The effectiveness of VBMS-R is measured by its ability to improve accuracy, reduce processing times, enhance user experience for both VA staff and veterans, and ensure data security. This contract, focusing on development and operational support, directly contributes to the system's effectiveness by ensuring it is functional, up-to-date, and reliable. Successful execution of this task order should lead to improved system performance, potentially reducing backlogs and enhancing the delivery of services to veterans.

What are the historical spending patterns for IT development and support services at the Department of Veterans Affairs?

The Department of Veterans Affairs has consistently allocated substantial funding towards IT development and support services, reflecting its reliance on technology to manage vast amounts of data and deliver services to millions of veterans. Historical spending patterns show a significant and often increasing investment in IT modernization, cybersecurity, and system maintenance. This includes major initiatives to replace legacy systems, implement new digital platforms, and ensure the operational readiness of critical infrastructure like VBMS. Analyzing past VA IT spending reveals a trend towards outsourcing complex development and support functions to private contractors, with awards often in the millions or tens of millions of dollars for individual task orders and larger contracts.

What is the potential impact of this contract on the future development or enhancement of the VBMS-R system?

This contract is directly tied to the ongoing development and operational support of the VBMS-R system. Its successful completion will likely ensure the system remains stable, secure, and functional. Depending on the specific scope, it may also involve enhancements, bug fixes, or the integration of new features that improve its capabilities. The insights gained and work performed under this task order could inform future development phases, potentially leading to further contracts for system upgrades or expansions. Ultimately, this contract plays a role in the continuous lifecycle management of a vital IT asset for the VA.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 433 N LEE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,925,682

Exercised Options: $20,080,512

Current Obligation: $20,080,512

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1015

IDV Type: IDC

Timeline