VA awards $33.3M contract for Cisco LAN equipment and enterprise licensing to Veteran Technology Partners

Contract Overview

Contract Amount: $33,292,237 ($33.3M)

Contractor: Veteran Technology Partners LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-01

End Date: 2025-09-24

Contract Duration: 1,849 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO LAN EQUIPMENT AND AN ENTERPRISE LICENSE AGREEMENT

Place of Performance

Location: ALTON, MADISON County, ILLINOIS, 62002

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.3 million to VETERAN TECHNOLOGY PARTNERS LLC for work described as: CISCO LAN EQUIPMENT AND AN ENTERPRISE LICENSE AGREEMENT Key points: 1. Contract value of $33.3M over approximately 5 years represents a significant investment in network infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The delivery order structure indicates a phased approach to equipment and license deployment. 5. The primary contractor, Veteran Technology Partners LLC, is a key player in this award. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services.

Value Assessment

Rating: good

The contract value of $33.3 million for Cisco LAN equipment and an enterprise license agreement over nearly five years appears reasonable given the scope of network infrastructure and licensing. Benchmarking against similar large-scale IT procurements for federal agencies suggests that pricing for such comprehensive solutions can range significantly, but this award falls within expected parameters for enterprise-level Cisco deployments. The firm-fixed-price structure provides cost predictability for the Department of Veterans Affairs.

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 made available to all responsible prospective contractors. While the specific number of bidders is not provided in the abbreviated data, the 'full and open' designation suggests a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide pool of potential suppliers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider range of innovative solutions, potentially leading to more cost-effective outcomes.

Public Impact

Veterans Affairs medical centers and administrative facilities will benefit from enhanced network capabilities and updated software licenses. The contract supports the delivery of essential IT infrastructure, crucial for the VA's mission of serving veterans. The geographic impact is likely nationwide, covering various VA locations that rely on robust network connectivity. The contract may indirectly support IT professionals and technicians involved in network deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Cisco-specific hardware and software, requiring careful management of future refresh cycles and interoperability.
Reliance on a single primary contractor for a critical IT infrastructure component necessitates strong performance monitoring and contract management.
The duration of the contract (nearly 5 years) means that technology advancements could outpace the deployed solutions by the end of the term.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarding to Veteran Technology Partners LLC aligns with federal initiatives to support veteran-owned businesses.
The 'full and open competition' process suggests a commitment to achieving competitive pricing and best value.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network infrastructure and enterprise software licensing. The market for Cisco equipment and related services is substantial, with numerous vendors competing to supply federal agencies. Comparable spending benchmarks for large federal IT network procurements often run into tens or hundreds of millions of dollars, depending on the scope and duration. This contract represents a significant, but not unusually large, investment for an agency of the VA's size and operational complexity.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Veteran Technology Partners LLC is a veteran-owned business, its size classification is not detailed here. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside means that larger prime contractors were eligible to bid, and the direct impact on the small business ecosystem may be limited unless subcontracting opportunities are actively pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/technical point of contact within the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are reported. The Inspector General's office for the VA may conduct audits or investigations into contract performance and financial management if concerns arise.

Related Government Programs

VA IT Infrastructure Modernization Programs
Federal Enterprise Software Licensing Agreements
Department of Defense Network Modernization Contracts
GSA IT Schedule Contracts
Other Federal Agency Network Equipment Procurements

Risk Flags

Potential for technology obsolescence
Reliance on a single vendor's ecosystem
Contract performance monitoring challenges
Adequacy of competition justification (if 'exclusion of sources' was significant)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.3 million to VETERAN TECHNOLOGY PARTNERS LLC. CISCO LAN EQUIPMENT AND AN ENTERPRISE LICENSE AGREEMENT

Who is the contractor on this award?

The obligated recipient is VETERAN TECHNOLOGY PARTNERS 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 $33.3 million.

What is the period of performance?

Start: 2020-09-01. End: 2025-09-24.

What is the track record of Veteran Technology Partners LLC in delivering similar large-scale Cisco network solutions to federal agencies?

The provided data does not detail the specific track record of Veteran Technology Partners LLC in delivering large-scale Cisco network solutions. While the award itself is a significant data point, further research into the company's past performance, client references, and history with similar contract vehicles would be necessary to fully assess their capabilities and reliability for this specific type of procurement. Federal procurement databases and past performance reviews would be key resources for this analysis. Without this additional context, it is difficult to definitively gauge their experience beyond this single award.

How does the per-unit cost of the Cisco equipment and licensing compare to market rates or similar federal contracts?

The provided data does not include specific per-unit costs for the Cisco equipment or licensing, making a direct comparison to market rates or similar federal contracts impossible. The total award amount of $33.3 million is for a comprehensive solution over approximately five years, encompassing numerous components and services. To perform a meaningful benchmark, a detailed breakdown of the equipment models, quantities, software versions, license types, and associated support services would be required. This granular information would then need to be compared against publicly available pricing from other federal contracts (e.g., through GSA schedules) or commercial price lists, adjusted for volume discounts and federal purchasing power.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technology obsolescence over the contract's nearly five-year term, vendor lock-in with Cisco's ecosystem, and performance issues from the contractor. Mitigation strategies likely involve robust contract management by the VA, including clear performance metrics and acceptance criteria. The firm-fixed-price nature mitigates financial risk for the government. For technology obsolescence, the VA may have clauses for upgrades or future refresh cycles. Vendor lock-in is an inherent risk with proprietary systems, managed through careful planning for future procurements and ensuring interoperability where possible. Performance risks are addressed through standard contract oversight and remedies for non-performance.

How effective is the 'full and open competition after exclusion of sources' method in ensuring the best value for this type of IT procurement?

The 'full and open competition after exclusion of sources' method is generally considered effective for ensuring best value in IT procurements, especially for complex solutions like enterprise network equipment and licensing. It maximizes the pool of potential bidders, fostering competition that can lead to lower prices and more innovative solutions. The 'exclusion of sources' aspect implies that specific sources might have been excluded based on pre-defined criteria, which could be a point of scrutiny if not well-justified. However, the core principle of broad competition allows the VA to evaluate a wide range of offerings against defined requirements, increasing the likelihood of selecting a technically suitable and cost-effective solution.

What is the historical spending pattern for Cisco LAN equipment and enterprise licensing within the Department of Veterans Affairs?

The provided data focuses on a single contract award and does not offer historical spending patterns for Cisco LAN equipment and enterprise licensing within the VA. To analyze historical spending, one would need to examine procurement data over several fiscal years, identifying all contracts related to Cisco networking hardware, software, and support services awarded by the VA. This would involve querying federal procurement databases (like FPDS) using relevant keywords, NAICS codes, and PSC codes. Such an analysis would reveal trends in spending levels, average contract values, and the prevalence of different contract types and competition levels over time.

What are the implications of the 'delivery order' (aw: DELIVERY ORDER) contract type for the VA's budget and project management?

The 'delivery order' (DO) contract type, used here within a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar framework (implied by the structure), allows the VA to order specific quantities of goods and services as needed over the contract's period of performance. This provides flexibility in managing the rollout of Cisco equipment and licenses, aligning procurement with actual deployment schedules and budget availability. For the VA's budget, it means costs are incurred incrementally as orders are placed, rather than requiring the full amount upfront. This can aid in budget planning and cash flow management. Project management benefits from the ability to phase implementation, test components, and adapt to evolving network requirements.

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

Solicitation ID: 36C10A20Q0240

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 340 HOWARD AVE., DES PLAINES, IL, 60018

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

Financial Breakdown

Contract Ceiling: $33,292,237

Exercised Options: $33,292,237

Current Obligation: $33,292,237

Actual Outlays: $9,193,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD43B

IDV Type: GWAC

Timeline