VA awards $5.4M contract for IT lifecycle refresh, highlighting need for updated infrastructure

Contract Overview

Contract Amount: $5,386,686 ($5.4M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-21

End Date: 2026-06-20

Contract Duration: 729 days

Daily Burn Rate: $7.4K/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: VISN 1 LIFECYCLE REFRESH CISCO

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: VISN 1 LIFECYCLE REFRESH CISCO Key points: 1. Contract focuses on essential IT infrastructure upgrades, ensuring operational continuity. 2. Competition was open after exclusion of sources, suggesting a potentially narrowed but still competitive field. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. This award addresses the ongoing need for modernizing federal IT systems. 5. The duration of the contract suggests a phased approach to the refresh. 6. Performance is expected to align with VA's broader digital transformation goals.

Value Assessment

Rating: good

The contract value of $5.4 million for a two-year IT lifecycle refresh appears reasonable given the scope of updating core Cisco infrastructure. Benchmarking against similar IT refresh contracts within federal agencies suggests this pricing is within expected ranges for specialized hardware and services. The firm fixed-price structure provides cost predictability for the VA, mitigating risks associated with potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, potentially limiting the pool of bidders. The specific reasons for exclusion would be critical to understanding the true level of competition and its impact on price discovery.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources suggests a deliberate process to ensure qualified bidders participated. Taxpayers benefit from a structured procurement that aims for qualified vendors, though the impact on price competitiveness requires further scrutiny of the exclusion rationale.

Public Impact

Veterans will benefit from improved reliability and performance of IT systems supporting their care. The contract delivers essential IT infrastructure refresh services, ensuring network stability. The geographic impact is primarily within the VISN 1 network, supporting its operational efficiency. This contract supports IT professionals and technicians involved in the deployment and maintenance of network equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' needs further investigation.
Reliance on specific vendor technology (Cisco) could create future lock-in risks.
The contract duration may not fully account for unforeseen technological obsolescence.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Focus on lifecycle refresh addresses critical infrastructure needs.
Award to a single vendor suggests specialized expertise is being leveraged.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network hardware and lifecycle management. The federal IT market is vast, with significant spending on infrastructure modernization and maintenance. Comparable spending benchmarks for IT refreshes vary widely based on scope, but contracts for enterprise-level network equipment and services often range in the millions. This award represents a targeted investment in maintaining the operational integrity of the VA's network infrastructure.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the award was not set aside for small businesses and the prime contractor is not identified as a small business. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized technical capabilities, and the impact on the small business ecosystem may be indirect unless subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization
Department of Veterans Affairs Network Infrastructure Upgrades
Federal Information Technology Acquisition Reform Act (FITARA) Compliance
General Services Administration (GSA) Schedule Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Reliance on specific vendor technology (Cisco)
Need for robust performance monitoring and acceptance testing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.4 million to MINBURN TECHNOLOGY GROUP, LLC. VISN 1 LIFECYCLE REFRESH CISCO

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $5.4 million.

What is the period of performance?

Start: 2024-06-21. End: 2026-06-20.

What is the specific nature of the 'exclusion of sources' in this procurement, and what was the justification?

The justification for 'exclusion of sources' in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award typically stems from specific technical requirements, existing infrastructure compatibility, or unique capabilities that only a limited number of vendors can meet. For this VISN 1 LIFECYCLE REFRESH CISCO contract, the exclusion likely relates to the need for deep expertise with Cisco's specific product lines and integration within the existing VA network architecture. Without the specific documentation (e.g., Justification for Other Than Full and Open Competition - JOFOC), it's difficult to ascertain the precise reasons. However, such exclusions aim to ensure the government obtains the best value by allowing competition among those uniquely qualified, rather than opening it to all potential bidders who may lack the necessary specialized skills or product knowledge, thereby potentially compromising the project's success or increasing risks.

How does the $5.4 million cost compare to similar IT lifecycle refresh contracts within the VA or other federal agencies?

The $5.4 million cost for a two-year IT lifecycle refresh, specifically for Cisco equipment within VISN 1, appears to be within a reasonable range for federal IT infrastructure projects of this nature. Comparable contracts for enterprise network hardware and associated services can vary significantly based on the scale of the deployment, the specific technologies involved (e.g., routers, switches, firewalls), and the level of support required. For instance, larger agency-wide network overhauls can run into tens or hundreds of millions. However, for a specific VISN or regional network refresh focusing on core components, a $5.4 million outlay over two years suggests a substantial but not exorbitant investment. Factors like the number of sites, the quantity and type of equipment, and the inclusion of installation, configuration, and ongoing support services all influence the final cost. Without detailed scope comparisons, it's challenging to provide a precise benchmark, but the figure aligns with typical mid-sized IT infrastructure modernization efforts.

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

Primary risks associated with this contract include potential vendor lock-in due to reliance on Cisco technology, the possibility of unforeseen technical challenges during the refresh process, and the risk that the chosen technology may become obsolete faster than anticipated within the contract's two-year duration. Mitigation strategies likely involve robust contract management by the VA, including clear performance metrics and acceptance criteria. The firm fixed-price nature of the contract helps mitigate cost overrun risks. Furthermore, the 'exclusion of sources' competition, while potentially limiting, suggests that the selected vendor possesses specific expertise, which could reduce technical implementation risks. The VA may also have contingency plans for future upgrades or alternative solutions should technological advancements outpace the current refresh cycle.

What is the expected impact of this contract on the VA's overall IT modernization goals?

This contract is expected to have a direct and positive impact on the VA's IT modernization goals by ensuring that a critical component of its network infrastructure—Cisco equipment within VISN 1—is up-to-date and performing optimally. Modernizing network hardware is foundational to supporting advanced digital services, improving data security, and enhancing the overall user experience for both healthcare providers and potentially veterans accessing digital services. By refreshing the lifecycle of this equipment, the VA reduces the risk of system failures, security vulnerabilities associated with outdated technology, and performance bottlenecks that could hinder the delivery of care. This investment supports the broader objective of creating a more agile, secure, and efficient IT environment capable of supporting the VA's mission.

How has the VA's spending on IT lifecycle refreshes evolved over the past few years?

Analyzing the VA's spending evolution on IT lifecycle refreshes requires access to historical contract data beyond this single award. Generally, federal agencies, including the VA, have faced increasing pressure to modernize their IT infrastructure to keep pace with technological advancements and evolving cybersecurity threats. This often translates to consistent or increasing investment in lifecycle management and refresh programs. The VA, in particular, has undergone significant digital transformation initiatives, which necessitate ongoing capital outlays for hardware and software upgrades. Trends likely show a shift towards more agile procurement methods and a focus on cloud integration, but the fundamental need for hardware refreshes remains a constant expenditure. Specific year-over-year spending trends for IT refreshes would be detailed in the VA's budget justifications and historical contract databases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - END USER

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: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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: $5,386,686

Exercised Options: $5,386,686

Current Obligation: $5,386,686

Actual Outlays: $4,889,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline