VA awards $21.2M for software licenses and maintenance to GMC TEK LLC, spanning three years

Contract Overview

Contract Amount: $21,234,638 ($21.2M)

Contractor: GMC TEK LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-12-15

End Date: 2018-12-14

Contract Duration: 1,095 days

Daily Burn Rate: $19.4K/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 DSS ICB SOFTWARE LICENSES AND SOFTWARE MAINTENANCE SUPPORT

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.2 million to GMC TEK LLC for work described as: IGF::OT::IGF DSS ICB SOFTWARE LICENSES AND SOFTWARE MAINTENANCE SUPPORT Key points: 1. Contract value appears reasonable for a three-year software licensing and maintenance agreement. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. The contract duration of three years aligns with typical software support cycles. 5. This contract falls within the broader IT services sector for the VA. 6. The award was made via a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $21.2 million over three years for software licenses and maintenance is within a reasonable range for enterprise-level IT support. Benchmarking against similar multi-year software support contracts for federal agencies would provide a more precise value-for-money assessment. Given the firm-fixed-price structure, the government has a defined cost for the services, which aids in predictability.

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 the solicitation was broadly advertised and multiple bids were likely considered. This method generally promotes competitive pricing and allows for a wide range of potential contractors to participate, leading to a more robust selection process.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives competitive rates for its software licensing and maintenance needs.

Public Impact

Veterans Affairs (VA) benefits from continued access to essential software licenses and maintenance. The contract ensures the operational continuity of critical IT systems supporting VA operations. The services delivered are primarily IT-related, supporting the agency's digital infrastructure. The geographic impact is national, supporting VA facilities and personnel across the United States. Workforce implications include ensuring IT staff have the necessary tools and support to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded via full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty.
Contract duration of three years is standard for software maintenance.
Contract awarded to a single entity, GMC TEK LLC, suggesting they met all requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and maintenance. The IT services market for the federal government is substantial, with agencies like the VA being major consumers of software solutions. Comparable spending benchmarks would involve analyzing other large-scale software support contracts awarded by federal agencies for similar types of software.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses would depend on GMC TEK LLC's internal policies and the specific requirements of the software support, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS, where this award is recorded.

Related Government Programs

VA IT Modernization Initiatives
Federal Software Licensing Programs
IT Infrastructure Support Services

Risk Flags

Potential for vendor lock-in
Risk of software obsolescence
Dependence on contractor performance for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.2 million to GMC TEK LLC. IGF::OT::IGF DSS ICB SOFTWARE LICENSES AND SOFTWARE MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is GMC TEK LLC.

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 $21.2 million.

What is the period of performance?

Start: 2015-12-15. End: 2018-12-14.

What is the track record of GMC TEK LLC in performing similar IT support contracts for the federal government?

GMC TEK LLC has a history of performing IT services for the federal government, including contracts with the Department of Veterans Affairs. Analyzing their past performance on similar software licensing and maintenance contracts, including contract values, durations, and customer satisfaction ratings, would provide a clearer picture of their capabilities and reliability. A review of their contract history in FPDS and other federal procurement databases would reveal the scope and success of their previous engagements. This information is crucial for assessing their ability to meet the current contract's requirements effectively and efficiently.

How does the awarded price compare to market rates for similar software licenses and maintenance services?

The awarded price of approximately $21.2 million over three years for software licenses and maintenance needs to be benchmarked against prevailing market rates. This involves comparing the per-unit costs of the software licenses and the annual maintenance fees to those offered by other vendors for comparable products and services. Factors such as the specific software vendor, the number of users or installations, and the level of support included (e.g., 24/7 support, response times) significantly influence pricing. Without detailed information on the specific software and support levels, a precise market comparison is challenging, but the firm-fixed-price nature suggests a negotiated rate.

What are the potential risks associated with this contract, such as vendor lock-in or obsolescence?

Potential risks associated with this contract include vendor lock-in, where the VA becomes heavily reliant on GMC TEK LLC and the specific software, making it difficult or costly to switch to alternative solutions. Software obsolescence is another risk; if the software is nearing the end of its lifecycle or if newer, more advanced versions are released, the value of the current licenses and maintenance could diminish. Furthermore, performance risks exist if GMC TEK LLC fails to provide timely and effective support, potentially disrupting VA operations. The firm-fixed-price nature mitigates some financial risks but does not eliminate performance or obsolescence concerns.

How effective has the VA been in managing its software licensing and maintenance contracts historically?

The effectiveness of the VA's management of software licensing and maintenance contracts can be assessed by examining several factors. These include the agency's ability to track software assets, ensure compliance with license agreements, negotiate favorable pricing, and receive adequate support services. Historical data on contract renewals, disputes, and audits related to software procurement can provide insights. Reviews by the VA's Office of Inspector General (OIG) often highlight areas for improvement in IT asset management and contract oversight. A proactive approach to managing these contracts is essential to avoid overspending and ensure that the software meets the evolving needs of the VA.

What is the historical spending pattern of the VA on software licenses and maintenance, and how does this contract fit within that pattern?

The VA is a large federal agency with significant IT needs, and its spending on software licenses and maintenance has historically been substantial. This $21.2 million contract over three years represents a portion of that overall spending. To understand how it fits, one would need to analyze the VA's total IT budget and its allocation to software procurement and support over previous fiscal years. Examining trends in spending on similar types of software or services, as well as the number and value of contracts awarded in this category, would provide context. This specific contract appears to be a standard, multi-year agreement for essential IT support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 211 CHURCH ST SE STE 115-A, LEESBURG, VA, 20175

Business Categories: Asian Pacific American Owned Business, Category Business, Community Developed Corporation Owned Firm, Community Development Corporation, HUBZone Firm, Minority Owned Business, Nonprofit Organization, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,234,638

Exercised Options: $21,234,638

Current Obligation: $21,234,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC76B

IDV Type: GWAC

Timeline