VA awards $43.1M IT contract for enterprise data management to Halfaker and Associates, LLC

Contract Overview

Contract Amount: $43,124,601 ($43.1M)

Contractor: Halfaker and Associates, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-07-14

End Date: 2021-09-16

Contract Duration: 1,525 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE IT DEVELOPMENT SUPPORT SERVICES TO DEVELOP, DEPLOY AND MAINTAIN AN ENTERPRISE DATA MANAGEMENT CAPABILITY.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43.1 million to HALFAKER AND ASSOCIATES, LLC for work described as: IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE IT DEVELOPMENT SUPPORT SERVICES TO DEVELOP, DEPLOY AND MAINTAIN AN ENTERPRISE DATA MANAGEMENT CAPABILITY. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1525 days indicates a significant, long-term need for IT development support. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving requirements. 4. The award to Halfaker and Associates, LLC, a known IT services provider, suggests a focus on established capabilities. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The total award amount of $43.1 million over approximately four years for enterprise data management IT support appears reasonable given the scope. Benchmarking against similar large-scale IT development contracts within the federal government suggests this falls within a typical spending range for such services. The firm fixed-price structure provides a degree of cost predictability for the agency. However, a detailed cost breakdown and comparison to market rates for specific services like data architecture, development, and maintenance would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The agency's approach to competition appears to have allowed for a selection from multiple qualified vendors.

Taxpayer Impact: A full and open competition, even with two bidders, generally offers better value to taxpayers than sole-source or limited competition contracts by encouraging competitive pricing.

Public Impact

Veterans Affairs (VA) will benefit from improved enterprise data management capabilities, potentially leading to better service delivery. The contract supports the development, deployment, and maintenance of critical IT infrastructure for data handling. The geographic impact is primarily within the VA's operational sphere, affecting its internal data processing and accessibility. Workforce implications may include the need for specialized IT personnel for data management and development, both within the contractor and potentially within the VA for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical data management functions could pose a risk if performance issues arise.
The firm fixed-price nature might disincentivize innovation or flexibility if unforeseen technical challenges emerge.

Positive Signals

Awarded to a known IT services provider, suggesting established expertise.
Full and open competition indicates a structured procurement process.
The contract duration suggests a commitment to long-term data management strategy.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the VA consistently investing in modernizing their data management capabilities. This contract falls within the computer systems design and related services sector, which is a significant portion of federal IT spending. Comparable contracts often involve developing and maintaining complex software systems, databases, and data analytics platforms. The total spending on IT services by the federal government runs into billions annually, making this contract a notable, but not exceptionally large, investment within that context.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting goals were mentioned. The award to Halfaker and Associates, LLC, a company that may or may not be classified as a small business (further verification needed), suggests the primary focus was on technical capability and price for this specific requirement. The absence of small business set-aside provisions means opportunities for small business participation through subcontracting are not mandated by this contract's structure.

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, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally facilitated through contract award databases and public reporting mechanisms. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA IT Modernization Initiatives
Enterprise Data Warehouse Projects
Cloud Computing Services for Federal Agencies
Data Analytics and Business Intelligence Support
IT Development and Modernization Contracts

Risk Flags

Potential for vendor lock-in if not managed carefully.
Risk of performance degradation if contractor resources are not consistently adequate.
Dependency on specific technologies that may become obsolete.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43.1 million to HALFAKER AND ASSOCIATES, LLC. IGF::OT::IGF THIS REQUIREMENT IS TO PROVIDE IT DEVELOPMENT SUPPORT SERVICES TO DEVELOP, DEPLOY AND MAINTAIN AN ENTERPRISE DATA MANAGEMENT CAPABILITY.

Who is the contractor on this award?

The obligated recipient is HALFAKER AND ASSOCIATES, 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 $43.1 million.

What is the period of performance?

Start: 2017-07-14. End: 2021-09-16.

What is the track record of Halfaker and Associates, LLC with the Department of Veterans Affairs and other federal agencies?

Halfaker and Associates, LLC has a significant history of contracting with the Department of Veterans Affairs (VA), primarily focused on IT modernization and support services. They have been awarded numerous contracts across various VA administrations, including areas like electronic health records, data analytics, and system integration. Their performance history with the VA generally indicates a capability to deliver complex IT solutions. Beyond the VA, Halfaker has also secured contracts with other federal agencies, demonstrating a broader reach within the federal IT landscape. A detailed review of past performance evaluations and contract close-out reports would provide a more granular understanding of their specific successes and any challenges encountered on previous engagements.

How does the pricing of this contract compare to similar IT development support services awarded by the VA or other agencies?

Benchmarking the pricing of this $43.1 million contract requires a detailed analysis of the specific services rendered, the labor categories involved, and the contract duration. Without access to the detailed cost breakdown and labor rates, a precise comparison is difficult. However, for large-scale IT development and maintenance contracts supporting enterprise-level capabilities, this award amount appears to be within a reasonable range for a four-year period. Factors such as the complexity of the data management requirements, the level of security needed, and the specific technologies employed would influence the overall cost. Comparing it to other VA contracts for similar system design and integration services, or to contracts from agencies like HHS or DoD for comparable IT support, would provide a more robust benchmark.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential technical challenges in developing and maintaining an enterprise data management capability, the possibility of scope creep if requirements are not tightly managed, and contractor performance issues. Mitigation strategies likely involve robust project management by both the contractor and the VA, clear definition and adherence to scope, regular performance reviews, and the use of a firm fixed-price contract which incentivizes the contractor to manage costs effectively. The VA's contracting officer and technical team would be responsible for monitoring progress and addressing any deviations or performance deficiencies promptly. Contingency planning for unforeseen technical hurdles or security threats would also be crucial.

How effective is the enterprise data management capability being developed likely to be for the VA?

The effectiveness of the enterprise data management capability hinges on several factors, including the clarity and completeness of the requirements, the technical expertise of Halfaker and Associates, LLC, and the VA's own internal capacity to leverage the new system. If successfully implemented, this capability could significantly improve data accessibility, integrity, and usability across the VA, leading to better-informed decision-making, enhanced operational efficiency, and potentially improved veteran services. The contract's focus on development, deployment, and maintenance suggests a comprehensive approach. However, ongoing user adoption, data governance, and continuous improvement will be critical for sustained effectiveness beyond the initial deployment phase.

What has been the historical spending trend for similar IT development support services at the VA?

The Department of Veterans Affairs has consistently allocated substantial funding towards IT modernization and support services over the past decade. Spending on IT development, system integration, and data management has been a significant component of the VA's budget as it strives to modernize its infrastructure and improve services. Historical data indicates a trend of increasing investment in enterprise-wide IT solutions, including data management platforms, to address legacy system challenges and enhance data analytics capabilities. This $43.1 million contract aligns with that broader trend of significant and sustained investment in IT infrastructure and services by the VA.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 2900 S QUINCY ST STE 410, ARLINGTON, VA, 22206

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $50,118,232

Exercised Options: $43,124,601

Current Obligation: $43,124,601

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $13,656,864

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1002

IDV Type: IDC

Timeline