VA awards $20.6M for IT IV&V services, with 2 bidders competing

Contract Overview

Contract Amount: $20,588,535 ($20.6M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-04-15

End Date: 2013-10-31

Contract Duration: 1,295 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IV&V SERVICES FOR CHAPTER 33, VONAPP, VETNETS, CWINRS, VBMS, VIRTUAL VA

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.6 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: IV&V SERVICES FOR CHAPTER 33, VONAPP, VETNETS, CWINRS, VBMS, VIRTUAL VA Key points: 1. The contract value represents a significant investment in IT oversight and validation. 2. Competition was limited, with only two bidders participating in the procurement. 3. The fixed-price contract type aims to control costs and define scope clearly. 4. The duration of the contract suggests a long-term need for these services. 5. The services provided are critical for the successful implementation of veteran-facing IT systems.

Value Assessment

Rating: good

The contract value of approximately $20.6 million for IT IV&V services appears reasonable given the scope of supporting multiple complex veteran-facing applications like VONAPP and VBMS. Benchmarking against similar IT oversight contracts within the federal government would provide a more precise value-for-money assessment. However, the fixed-price nature suggests a defined scope, which can aid in cost control. The limited competition, while noted, does not inherently indicate poor value without further analysis of the market and bidder qualifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initially intended for broad competition, specific circumstances led to the exclusion of some potential bidders. With only two bidders participating, the level of competition was limited. This suggests that the market for these specialized IV&V services might be concentrated, or that the specific requirements of the solicitation narrowed the field of eligible contractors. The limited competition could potentially impact price discovery, as fewer offers may lead to less downward pressure on pricing.

Taxpayer Impact: For taxpayers, limited competition can sometimes result in higher prices than would be achieved in a more robustly contested procurement. However, if the two bidders were highly qualified and the agency secured a fair price, the impact might be mitigated.

Public Impact

Veterans will benefit from improved reliability and functionality of critical IT systems such as VONAPP, VETNETS, CWINRS, and VBMS. The services ensure that IT projects are delivered on time and within budget, enhancing the user experience for veterans. The geographic impact is national, as these IT systems serve veterans across the United States. The contract supports a specialized segment of the IT services workforce, including quality assurance and testing professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce price negotiation leverage for the government.
The 'after exclusion of sources' clause warrants understanding the rationale to ensure fairness.
Reliance on a small number of bidders could pose a risk if one contractor fails to perform.

Positive Signals

The fixed-price contract type provides cost certainty for the government.
The contract supports critical IT infrastructure for veteran services.
The duration of the contract indicates a stable, long-term need for these essential services.

Sector Analysis

The Information Technology (IT) sector, particularly within government services, is characterized by a constant need for specialized support in areas like Independent Verification and Validation (IV&V). This contract fits within the broader market for IT consulting and systems design services, which is a multi-billion dollar industry. Government spending in this area is driven by the need to ensure the successful development, implementation, and maintenance of complex IT systems that deliver essential public services. Comparable spending benchmarks would involve looking at other agencies' contracts for similar IV&V or IT quality assurance services.

Small Business Impact

This contract was awarded to Innovative Management Concepts, Inc. and does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the IV&V services, depending on their subcontracting plan. The overall impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created by this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specific IV&V services. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract performance period.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization
VA IT Infrastructure Modernization Program
Federal Civilian IT Services
IT Program Management Support
Software Development Lifecycle Support

Risk Flags

Limited Competition
Potential for Price Inflation due to Limited Bidders
Contract Performance Risk
Justification for Exclusion of Sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.6 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. IV&V SERVICES FOR CHAPTER 33, VONAPP, VETNETS, CWINRS, VBMS, VIRTUAL VA

Who is the contractor on this award?

The obligated recipient is INNOVATIVE MANAGEMENT CONCEPTS, 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 $20.6 million.

What is the period of performance?

Start: 2010-04-15. End: 2013-10-31.

What is the track record of Innovative Management Concepts, Inc. with the Department of Veterans Affairs?

Innovative Management Concepts, Inc. (IMC) has a history of performing IT services for the Department of Veterans Affairs (VA). This specific contract, valued at approximately $20.6 million, was awarded in 2010 and completed in 2013, focusing on IV&V services for several key VA applications. Reviewing IMC's contract history with the VA, beyond this single award, would reveal the breadth and consistency of their performance across different projects and contract types. Analyzing past performance evaluations and any documented issues or successes would provide a more comprehensive understanding of their reliability and capability in supporting the VA's IT initiatives.

How does the $20.6 million contract value compare to similar IV&V services procured by the VA or other federal agencies?

The $20.6 million contract value for IV&V services over a period of roughly three years (April 2010 - October 2013) appears to be within a reasonable range for supporting multiple complex IT systems like VONAPP, VBMS, and others. However, a precise comparison requires benchmarking against contracts with similar scopes, durations, and service complexities. Factors such as the number of systems supported, the criticality of those systems, and the specific IV&V methodologies employed can significantly influence contract value. Without access to detailed scope-of-work documents for comparable contracts, it's challenging to definitively state if this represents exceptional value, but it does not appear to be an outlier for the type of services rendered.

What are the primary risks associated with this specific contract award and the services provided?

The primary risks associated with this contract include the limited competition (only two bidders), which could impact price negotiation and potentially indicate a concentrated market for these specialized services. Another risk is the reliance on a single contractor (Innovative Management Concepts, Inc.) to provide critical IV&V services for essential veteran-facing IT systems; any performance issues or contractor instability could jeopardize project timelines and system integrity. Furthermore, the complexity of the systems being validated (VONAPP, VBMS, etc.) presents inherent technical risks, as does the potential for scope creep if requirements are not tightly managed. The 'after exclusion of sources' aspect of the procurement also warrants scrutiny to ensure the exclusion was justified and did not unduly limit competition.

How effective were these IV&V services in ensuring the successful delivery of the targeted VA IT systems?

Assessing the effectiveness of these IV&V services requires examining project outcomes, such as whether the targeted VA IT systems (Chapter 33, VONAPP, VETNETS, CWINRS, VBMS, Virtual VA) were delivered on time, within budget, and met their functional and performance requirements. Post-implementation reviews, user satisfaction data, and the number of post-launch defects or issues would provide indicators of IV&V effectiveness. Without specific performance reports or outcome data tied directly to this contract's IV&V activities, a definitive judgment on effectiveness is difficult. However, the VA's continued reliance on IV&V services suggests an acknowledgment of their importance in mitigating risks and improving IT project success rates.

What were the historical spending patterns for IV&V services at the VA around the time of this contract award (2010-2013)?

During the period of 2010-2013, the Department of Veterans Affairs (VA) was actively engaged in modernizing its IT infrastructure and developing new veteran-facing applications. Spending on IT services, including Independent Verification and Validation (IV&V), was likely substantial as the agency sought to improve its systems' reliability, security, and user experience. This $20.6 million contract for IV&V services aligns with a broader trend of federal agencies investing in oversight and quality assurance for complex IT projects. Historical spending patterns would likely show consistent or increasing investment in such services as the VA navigated its digital transformation initiatives.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: VA118-10-RP-0090

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21400 RIDGETOP CIR STE 210, STERLING, VA, 10

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

Financial Breakdown

Contract Ceiling: $20,588,535

Exercised Options: $20,588,535

Current Obligation: $20,588,535

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0529Z

IDV Type: GWAC

Timeline