VA IT support contract awarded to SBG Technology Solutions Inc. for over $31.4 million

Contract Overview

Contract Amount: $31,425,161 ($31.4M)

Contractor: SBG Technology Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-30

End Date: 2016-03-29

Contract Duration: 911 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM, FINANCIAL, AND ACQUISITION SUPPORT TO THE VA VISTA EVOLUTION PROGRAM EXECUTIVE OFFICE IGF::OT::IGF

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.4 million to SBG TECHNOLOGY SOLUTIONS INC for work described as: PROGRAM, FINANCIAL, AND ACQUISITION SUPPORT TO THE VA VISTA EVOLUTION PROGRAM EXECUTIVE OFFICE IGF::OT::IGF Key points: 1. Contract provides essential IT support for the VA's VISTA Evolution Program. 2. Performance period spanned over two years, indicating a sustained need for services. 3. The contract was awarded using full and open competition, suggesting a robust bidding process. 4. SBG Technology Solutions Inc. has a track record with the VA, implying familiarity with agency needs. 5. The use of Time and Materials pricing may present cost control challenges if not closely managed. 6. This contract falls within the Computer Systems Design Services NAICS code, a common area for federal IT spending.

Value Assessment

Rating: fair

The total award amount of $31.4 million over approximately two years suggests a significant investment in IT support. Benchmarking this against similar contracts for IT program support within the VA or other large federal agencies would be necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. Without detailed performance metrics or cost breakdowns, it's challenging to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial intent might have been a different procurement method, it ultimately allowed for broad participation. The presence of 18 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. A higher number of bidders typically correlates with better market research and a wider range of technical solutions being considered.

Taxpayer Impact: The competitive nature of this award, with 18 bidders, likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition scenario. This level of competition helps ensure that the government is receiving services at or near market rates.

Public Impact

Veterans benefit indirectly through improved IT systems supporting the VISTA Evolution Program. The contract delivered critical computer systems design and integration services. Services were primarily delivered to the Department of Veterans Affairs, with a focus on their internal IT infrastructure. The contract supported the modernization and evolution of the VA's IT systems, potentially impacting healthcare delivery and administrative efficiency. Workforce implications include the employment of IT professionals by SBG Technology Solutions Inc. and potentially by the VA in oversight roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not strictly managed.
The duration of the contract (911 days) suggests a long-term reliance on these services, requiring ongoing performance monitoring.
The specific nature of 'VISTA Evolution Program' support implies a complex and potentially critical IT system, increasing the impact of any performance issues.

Positive Signals

Awarded through full and open competition, indicating a healthy bidding process.
18 bids received, suggesting significant market interest and a competitive landscape.
Contractor (SBG Technology Solutions Inc.) has prior experience with the VA, potentially leading to smoother execution.
The contract directly supports a key VA IT modernization program.

Sector Analysis

This contract falls under the Computer Systems Design Services (NAICS 541512) sector, a significant segment of federal IT spending. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. Federal spending in this area is consistently high as agencies modernize their infrastructure and digital services. Comparable contracts often involve large sums, reflecting the complexity and criticality of IT systems for government operations. The VA, in particular, is a major investor in IT to support its vast network of healthcare facilities and veteran services.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. The award to SBG Technology Solutions Inc., a company that may or may not be classified as small depending on specific criteria and year, suggests it was competed broadly. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The lack of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract were limited unless they were prime contractors or chose to subcontract with the awardee.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a definitive contract, it implies a structured process for monitoring performance, deliverables, and expenditures. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract databases like FPDS, which record award details, though detailed performance reports are often internal.

Related Government Programs

VA Electronic Health Record Modernization (EHRM)
VA IT Infrastructure Modernization Programs
Federal Civilian IT Services Contracts
Department of Veterans Affairs Acquisition Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Complexity of supporting a critical federal IT program like VISTA Evolution.
Need for sustained, high-level IT expertise over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.4 million to SBG TECHNOLOGY SOLUTIONS INC. PROGRAM, FINANCIAL, AND ACQUISITION SUPPORT TO THE VA VISTA EVOLUTION PROGRAM EXECUTIVE OFFICE IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SBG TECHNOLOGY SOLUTIONS 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 $31.4 million.

What is the period of performance?

Start: 2013-09-30. End: 2016-03-29.

What is the track record of SBG Technology Solutions Inc. with the Department of Veterans Affairs?

SBG Technology Solutions Inc. has a history of contracts with the Department of Veterans Affairs, as indicated by its presence as the awardee for this significant IT support contract. Federal procurement data typically shows multiple awards to companies that successfully perform on initial contracts. This suggests a level of familiarity with VA's procurement processes, operational environment, and specific IT needs. While this specific contract was for IT support to the VISTA Evolution Program, their broader engagement with the VA could span various IT services, project management, or consulting roles. A deeper dive into FPDS or other federal procurement databases would reveal the full scope and value of their past performance with the VA, helping to assess their reliability and expertise in serving the agency.

How does the $31.4 million award compare to similar IT support contracts for large federal agencies?

The $31.4 million award for IT support to the VA's VISTA Evolution Program is a substantial sum, reflecting the complexity and scale of federal IT initiatives. For context, large federal agencies like the Department of Defense, Health and Human Services, or Homeland Security often award contracts in the tens to hundreds of millions of dollars for comprehensive IT program support, system integration, and modernization efforts. Contracts for similar computer systems design services can vary widely based on scope, duration, and specific technologies involved. While this figure is significant, it is not unusual within the landscape of major federal IT procurements. A precise comparison would require analyzing contracts with similar NAICS codes (541512), service descriptions, and performance periods across different agencies to establish a robust benchmark for value.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract, especially one valued at over $31 million, is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If not managed rigorously, this can lead to the government paying more than anticipated if the project takes longer than expected or requires more resources. Key risks include scope creep, inefficient contractor performance, and difficulties in accurately forecasting the total expenditure. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?

The 'Full and Open Competition After Exclusion of Sources' (F&OAEOS) method aims to balance the benefits of broad competition with specific circumstances that might initially limit the pool of eligible bidders. While 'Full and Open Competition' is generally the gold standard for ensuring competitive pricing, the 'after exclusion of sources' qualifier suggests that certain initial restrictions were lifted to allow more vendors to participate. This approach is intended to maximize the number of potential offerors while still adhering to specific regulatory requirements or justifications. With 18 bids received, as indicated in the data, this method appears to have been effective in generating significant competition, which typically drives down prices and encourages innovation, ultimately benefiting taxpayers.

What are the potential performance implications of supporting the VA's VISTA Evolution Program?

Supporting the VA's VISTA Evolution Program implies a critical role in the modernization and enhancement of the Veterans Information Systems and Technology Architecture (VISTA). VISTA is a foundational electronic health record system for the VA, and its evolution is crucial for improving healthcare delivery, data management, and administrative efficiency for millions of veterans. The performance implications of this contract are therefore significant. Any shortcomings in IT support, such as system integration issues, delays in upgrades, or security vulnerabilities, could directly impact the VA's ability to provide timely and effective care. Conversely, successful support contributes to a more robust, efficient, and modern healthcare IT infrastructure for the nation's veterans.

What does the contract award value of $31.4 million suggest about the scope and complexity of the services provided?

An award value of $31.4 million for computer systems design services over a period of approximately two years (911 days) indicates a substantial and complex undertaking. This level of funding typically covers a broad range of activities, potentially including system analysis, design, integration, testing, and implementation of IT solutions. It suggests that the VISTA Evolution Program required significant technical expertise, project management resources, and potentially the development or modification of complex software and hardware systems. Such contracts often involve managing multiple workstreams, coordinating with various stakeholders within the agency, and ensuring compliance with stringent federal IT standards and security protocols.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA118-13-R-0273

Offers Received: 18

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2 BRITTANY LN, STAFFORD, VA, 22554

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned 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: $31,646,673

Exercised Options: $31,425,161

Current Obligation: $31,425,161

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline