VA awards $20.3M for virtual application support, highlighting IT services for veterans

Contract Overview

Contract Amount: $20,331,617 ($20.3M)

Contractor: Engineering Services Network Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-03-12

End Date: 2016-06-20

Contract Duration: 2,292 days

Daily Burn Rate: $8.9K/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: BASE PLUS THREE OPTION YEARS FOR VIRTUAL VETERANS AFFAIRS (VA) APPLICATION OPERATIONS AND MAINTENANCE SUPPORT.

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 $20.3 million to ENGINEERING SERVICES NETWORK INC for work described as: BASE PLUS THREE OPTION YEARS FOR VIRTUAL VETERANS AFFAIRS (VA) APPLICATION OPERATIONS AND MAINTENANCE SUPPORT. Key points: 1. Contract focuses on essential IT operations and maintenance for virtual VA applications. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (2292 days) indicates a long-term need for these services. 4. The firm fixed-price contract type aims to control costs and provide predictable spending. 5. This contract supports the Department of Veterans Affairs' mission to serve veterans. 6. The geographic location is Washington D.C., indicating a concentration of federal IT support.

Value Assessment

Rating: good

The contract value of $20.3 million over approximately 6.3 years for IT application operations and maintenance appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the overall price is within expected ranges for comprehensive support services. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. While the specific number of bids is not provided, this procurement method generally fosters a competitive environment, which should lead to better pricing and service offerings for the government. The exclusion of sources clause might warrant further investigation into its justification.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Veterans benefit from reliable access to virtual VA applications, improving their ability to receive services. The contract ensures the continuous operation and maintenance of critical IT infrastructure. The primary geographic impact is within the District of Columbia, where the services are likely managed. The contract supports IT professionals and potentially other roles involved in application support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits full assessment of competition intensity.
The 'exclusion of sources' clause, while potentially justified, could indicate a narrowed competitive field.
Performance metrics and quality assurance details are not readily available in the provided data.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost predictability.
Long contract duration (over 6 years) indicates a stable, ongoing need and potential for contractor efficiency.
Supports a critical government function for veteran services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, with substantial annual spending on IT operations, maintenance, and development. This contract for virtual application support aligns with the broader trend of agencies modernizing and maintaining their digital infrastructure to deliver services more effectively. Comparable spending benchmarks for similar IT support contracts can vary widely based on scope, complexity, and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, ENGINEERING SERVICES NETWORK INC, may engage small businesses as subcontractors, though this information is not detailed here. The absence of a small business set-aside means larger, established firms were likely the primary participants in the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within a set budget. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or integrity.

Related Government Programs

VA IT Modernization Programs
Federal Cloud Computing Strategy Initiatives
IT Operations and Maintenance Support Contracts
Virtual Healthcare IT Services

Risk Flags

Potential for cybersecurity vulnerabilities.
Risk of service disruptions impacting veteran access.
Dependency on contractor performance for critical IT functions.
Possibility of technical obsolescence of supported applications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.3 million to ENGINEERING SERVICES NETWORK INC. BASE PLUS THREE OPTION YEARS FOR VIRTUAL VETERANS AFFAIRS (VA) APPLICATION OPERATIONS AND MAINTENANCE SUPPORT.

Who is the contractor on this award?

The obligated recipient is ENGINEERING SERVICES NETWORK 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 $20.3 million.

What is the period of performance?

Start: 2010-03-12. End: 2016-06-20.

What is the track record of ENGINEERING SERVICES NETWORK INC with the Department of Veterans Affairs?

ENGINEERING SERVICES NETWORK INC (ESN) has a history of receiving contracts from the Department of Veterans Affairs (VA). This specific contract, valued at approximately $20.3 million, represents a significant award for virtual application operations and maintenance support. Examining ESN's broader contract portfolio with the VA would reveal the types and scale of services they have provided previously. A deeper analysis would involve reviewing past performance evaluations, any documented disputes or contract modifications, and the overall volume of business ESN has conducted with the VA to assess their reliability and effectiveness in supporting the agency's IT needs.

How does the $20.3 million contract value compare to similar VA IT support contracts?

The $20.3 million contract value for virtual VA application operations and maintenance support, spanning over six years, appears to be a moderate to large-sized award within the context of federal IT services. To benchmark effectively, one would compare this value against other VA contracts for similar IT operations, maintenance, and application support services, particularly those awarded through full and open competition. Factors such as the number of applications supported, the complexity of the systems, and the specific service level agreements would influence comparability. Without access to a comprehensive database of all VA IT contracts and their specific scopes, a precise comparison is difficult, but the value suggests a substantial commitment to ensuring the functionality of critical veteran-facing applications.

What are the primary risks associated with this virtual application support contract?

Key risks for this virtual application support contract include potential performance issues if the contractor, ENGINEERING SERVICES NETWORK INC, fails to meet service level agreements, leading to disruptions in veteran services. Cybersecurity risks are also significant, as the contract involves managing sensitive veteran data, making it a target for breaches. Technical obsolescence is another risk; the applications supported may become outdated, requiring costly upgrades or replacements not fully accounted for in the contract. Furthermore, vendor lock-in could occur if the VA becomes overly reliant on ESN's specific expertise, making future transitions difficult or expensive. Finally, cost overruns, despite the firm fixed-price structure, could arise from scope creep or unforeseen technical challenges.

How effective is this contract in ensuring the availability of virtual VA applications for veterans?

The effectiveness of this contract in ensuring application availability hinges on the contractor's performance and the clarity of the service level agreements (SLAs) outlined in the contract. As a firm fixed-price contract awarded through full and open competition, there is an expectation of reliable service delivery. The long duration suggests the VA anticipates sustained operational support. However, effectiveness is best measured by metrics such as application uptime, response times for issue resolution, and user satisfaction surveys from veterans and VA staff. Without specific performance data or post-award reviews, it's challenging to definitively assess effectiveness, but the contract's structure aims to promote it.

What are the historical spending patterns for similar IT support services at the VA?

Historical spending patterns for IT support services at the VA have generally shown a consistent and significant investment in maintaining and upgrading its technology infrastructure. The VA, like many large federal agencies, relies heavily on IT to deliver services to millions of veterans. Spending in this area typically includes contracts for software development, system maintenance, network operations, cybersecurity, and help desk support. Over the years, there has been a trend towards consolidating contracts and leveraging cloud-based solutions, but the fundamental need for robust application operations and maintenance support remains a constant driver of federal IT expenditures. The $20.3 million for this specific contract aligns with the VA's ongoing commitment to its digital services.

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-0085

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13580 GROUPE DRIVE SUITE 402, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,331,617

Exercised Options: $20,331,617

Current Obligation: $20,331,617

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0514Z

IDV Type: GWAC

Timeline