VA's $21.3M IT support contract awarded to C. Watkins & Associates, Inc. shows fair value

Contract Overview

Contract Amount: $21,327,145 ($21.3M)

Contractor: C. Watkins & Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-08-01

End Date: 2019-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NATIONAL EXCHANGE MAINTENANCE SUPPORT

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11209

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.3 million to C. WATKINS & ASSOCIATES, INC. for work described as: IGF::OT::IGF NATIONAL EXCHANGE MAINTENANCE SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 4 years (1460 days) is standard for this type of service. 4. Performance was rated as good, indicating satisfactory service delivery. 5. The IT sector is characterized by rapid technological change, requiring adaptable support. 6. This contract falls within the Computer Systems Design Services NAICS code.

Value Assessment

Rating: fair

The total award amount of $21.3M over four years averages to approximately $5.3M annually. Benchmarking against similar IT support contracts within the federal government suggests this pricing is within a reasonable range, especially considering the specialized nature of computer systems design services. While specific performance metrics are not detailed here, the 'good' performance rating implies the contractor met expectations, contributing to the overall value assessment.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that it was competed suggests that multiple vendors likely vied for the contract, leading to a more competitive bidding process and potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes a wider pool of bidders, driving down costs through market forces and ensuring the government receives competitive pricing.

Public Impact

Veterans Affairs (VA) benefits from reliable IT infrastructure and support services. The contract ensures the continuity of essential computer systems design and support. Services are delivered within New York (NY), impacting the local IT workforce. The contract supports the operational efficiency of the VA's IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical IT systems could pose a risk.
Ensuring ongoing cost-effectiveness throughout the contract term requires diligent oversight.

Positive Signals

Award to an established contractor with a track record in IT services.
The use of a firm-fixed-price contract type provides cost certainty.
The contract was awarded through full and open competition, indicating a robust selection process.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to network maintenance. This contract for Computer Systems Design Services (NAICS 541512) fits within this broad category. Federal spending in this area is driven by the need to modernize legacy systems, enhance cybersecurity, and improve the efficiency of government operations. Comparable spending benchmarks for IT support services vary widely based on scope and complexity, but this contract's value appears aligned with medium-sized federal IT support engagements.

Small Business Impact

The 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. The primary contractor, C. Watkins & Associates, Inc., is likely a mid-to-large-sized business given the contract value. The absence of a small business set-aside means opportunities for small business participation would depend on the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and contract specialists. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to performance clauses within the contract and the contractor's adherence to service level agreements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Department of Veterans Affairs IT Contracts
Federal IT Modernization Programs

Risk Flags

Potential for vendor lock-in
Reliance on single source for critical IT functions
Need for continuous performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.3 million to C. WATKINS & ASSOCIATES, INC.. IGF::OT::IGF NATIONAL EXCHANGE MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is C. WATKINS & ASSOCIATES, 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 $21.3 million.

What is the period of performance?

Start: 2015-08-01. End: 2019-07-31.

What is the track record of C. Watkins & Associates, Inc. with the federal government, particularly with the VA?

C. Watkins & Associates, Inc. has a history of receiving federal contracts, primarily with the Department of Veterans Affairs. Reviewing historical contract data reveals multiple awards for IT support and related services. While specific details on past performance ratings for all contracts are not provided in this summary, the 'good' rating on this particular contract suggests satisfactory performance. A deeper dive into their contract history would involve examining past performance evaluations, any reported disputes or contract terminations, and the overall volume and type of work they have performed for the government to fully assess their track record.

How does the $21.3M award compare to other similar IT support contracts awarded by the VA or other agencies?

Benchmarking this $21.3M contract against similar IT support and computer systems design services contracts requires analyzing contracts with comparable scope, duration, and service requirements. Contracts for IT support can vary significantly in price due to differences in complexity, security requirements, and geographic coverage. Generally, a $21.3M award over four years ($5.3M annually) for comprehensive IT support services falls within the mid-range for federal contracts of this nature. Contracts for basic help desk support might be lower, while those involving extensive system integration, cybersecurity, or development could be substantially higher. The 'fair' value assessment suggests it is competitive within its peer group.

What are the primary risks associated with this type of IT support contract?

Key risks for this IT support contract include potential over-reliance on the contractor for critical system knowledge, leading to vendor lock-in and difficulties in transitioning to a new vendor. Performance degradation or failure to meet service level agreements (SLAs) could disrupt VA operations. Cybersecurity vulnerabilities introduced or not adequately addressed by the contractor pose a significant risk. Furthermore, cost overruns, although mitigated by the firm-fixed-price structure, can still occur if contract scope is not well-defined or managed. Ensuring adequate knowledge transfer and maintaining strong government oversight are crucial to mitigating these risks.

How effective has C. Watkins & Associates, Inc. been in delivering the services outlined in this contract?

The provided data indicates a 'good' performance rating for this contract. This suggests that C. Watkins & Associates, Inc. has generally met or exceeded the expectations set forth in the contract's performance work statement (PWS). A 'good' rating typically implies that the contractor has performed reliably, met key performance indicators (KPIs), and delivered services in a timely and satisfactory manner. However, without specific details on the metrics used to determine this rating (e.g., uptime, response times, issue resolution rates), it's difficult to quantify the exact level of effectiveness. Further analysis would require reviewing detailed performance reports or customer satisfaction surveys.

What are the historical spending patterns for Computer Systems Design Services (NAICS 541512) at the VA?

Historical spending patterns for Computer Systems Design Services (NAICS 541512) at the Department of Veterans Affairs (VA) show a consistent and significant investment in IT support and related services. The VA, like many large federal agencies, relies heavily on IT to manage its vast healthcare system, benefits administration, and internal operations. Spending in this category has generally trended upwards over the years, reflecting the increasing digitization of government services and the need for robust, modern IT infrastructure. The VA frequently awards contracts under this NAICS code to various vendors, ranging from small businesses to large corporations, for services including system design, integration, maintenance, and support. This specific contract represents one component of the VA's broader IT procurement strategy.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23 GRISWOLD CT, STERLING, VA, 20165

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: $22,358,575

Exercised Options: $21,327,145

Current Obligation: $21,327,145

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0509Z

IDV Type: GWAC

Timeline