VA's $35M VALERI-R contract with Accenture for IT services awarded under full and open competition

Contract Overview

Contract Amount: $35,043,470 ($35.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-22

End Date: 2020-08-31

Contract Duration: 1,074 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM CONTRACT NUMBER VA118-16-D-1013 TASK ORDER NUMBER VA11816F10130002, VA LOAN ELECTRONIC REPORTING INTERFACE-REDESIGN (VALERI-R)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM CONTRACT NUMBER VA118-16-D-1013 TASK ORDER NUMBER VA11816F10130002, VA LOAN ELECTRONIC REPORTING INTERFACE-REDESIGN (VALERI-R) Key points: 1. The contract supports the VA Loan Electronic Reporting Interface (VALERI) redesign, a critical IT system. 2. Accenture Federal Services LLC, a large IT contractor, holds the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The total value of $35M over approximately three years indicates a significant IT investment.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty for the VA. Benchmarking against similar large-scale IT redesign projects is difficult without more granular cost data, but the per-year cost appears reasonable for a complex system modernization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method likely fostered competitive pricing. The VA sought proposals from multiple vendors, allowing for price discovery and selection of the most advantageous offer.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT modernization.

Public Impact

Improved efficiency and user experience for VA loan reporting. Modernization of a key IT system supporting housing benefits for veterans. Potential for cost savings through streamlined processes and reduced system maintenance. Ensures continued support and functionality for a vital veteran service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope creep potential in IT modernization projects.
Vendor lock-in risk if not managed effectively.
Integration challenges with existing VA systems.

Positive Signals

Clear contract type (Firm Fixed Price) for cost control.
Awarded via full and open competition.
Supports a critical mission for veteran services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant area of federal IT spending. Benchmarks for similar large-scale IT system redesigns vary widely, but this contract's value is substantial within the VA's IT portfolio.

Small Business Impact

The contract was awarded to Accenture Federal Services LLC, a large business. There is no indication that small businesses were specifically subcontracted or involved in the prime award, which is common for large IT contracts.

Oversight & Accountability

The contract was awarded via a delivery order under a larger program (T4NG). Oversight would likely involve program management reviews, performance monitoring, and adherence to contract terms by both the VA and Accenture.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for scope creep in complex IT projects.
Dependency on a single large vendor for a critical system.
Risk of integration issues with other VA systems.
Ensuring long-term system maintainability and adaptability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM CONTRACT NUMBER VA118-16-D-1013 TASK ORDER NUMBER VA11816F10130002, VA LOAN ELECTRONIC REPORTING INTERFACE-REDESIGN (VALERI-R)

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES 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 $35.0 million.

What is the period of performance?

Start: 2017-09-22. End: 2020-08-31.

What specific performance metrics were established to measure the success of the VALERI-R redesign in improving user experience and operational efficiency?

The contract likely includes performance work statements (PWS) with specific metrics related to system uptime, response times, user satisfaction surveys, and reduction in manual processing steps. Measuring these against baseline data before the redesign is crucial for demonstrating value and effectiveness.

How did the VA ensure that the firm fixed price adequately covered the scope of the VALERI-R redesign, and what mechanisms are in place to manage potential cost overruns due to unforeseen technical ch

The firm fixed price suggests the VA and Accenture agreed on a defined scope and cost. However, robust change control processes are essential. Any deviations requiring additional funding would necessitate formal change order proposals, justification, and approval, ensuring transparency and accountability for any cost increases.

What is the long-term strategy for maintaining and updating the redesigned VALERI system to ensure its continued effectiveness and security against evolving technological threats?

Post-implementation, the VA will need a sustainment plan, potentially involving follow-on contracts for maintenance, updates, and security patching. This plan should address technology refresh cycles, cybersecurity best practices, and adaptation to new federal IT standards to ensure the system remains effective and secure over its lifecycle.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,680,952

Exercised Options: $35,043,470

Current Obligation: $35,043,470

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $12,975,728

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1013

IDV Type: IDC

Timeline