VA awards $40M for IBM mainframe and virtual tape hardware, with a 5-year term

Contract Overview

Contract Amount: $39,961,743 ($40.0M)

Contractor: Sirius Computer Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-16

End Date: 2026-09-15

Contract Duration: 2,190 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSA MULTIPLE AWARD SCHEDULE ORDER FOR CAPACITY SERVICES FOR IBM MAINFRAME AND VIRTUAL TAPE SYSTEM HARDWARE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.0 million to SIRIUS COMPUTER SOLUTIONS, LLC for work described as: GSA MULTIPLE AWARD SCHEDULE ORDER FOR CAPACITY SERVICES FOR IBM MAINFRAME AND VIRTUAL TAPE SYSTEM HARDWARE Key points: 1. Contract value of $39.96M over 5 years suggests a significant investment in IT infrastructure. 2. The contract was awarded using full and open competition, indicating a broad market search. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The duration of 2190 days (5 years) provides long-term stability for hardware provision. 5. The North American Industry Classification System (NAICS) code 334111 points to electronic computer manufacturing. 6. The contract is a delivery order under a GSA Multiple Award Schedule (MAS).

Value Assessment

Rating: good

The contract value of approximately $40 million over five years for mainframe and virtual tape hardware appears reasonable given the specialized nature of the equipment and services. Benchmarking against similar GSA MAS orders for mainframe hardware suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the VA, though it relies on the contractor's ability to manage costs effectively. The absence of specific performance metrics makes a direct value-for-money assessment challenging without further detail.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, likely through the GSA Multiple Award Schedule (MAS). This means that all responsible sources were permitted to submit offers. The GSA MAS program generally fosters competition by establishing pre-negotiated contract terms and pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive process was intended and executed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can lead to better pricing and a wider selection of qualified vendors, ultimately driving value for government spending.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, ensuring continued access to critical IT infrastructure. The contract supports the operation and maintenance of IBM mainframe and virtual tape systems, essential for data storage and processing. The geographic impact is primarily within the VA's operational footprint, likely supporting data centers and IT operations nationwide. Workforce implications may include IT specialists involved in managing and maintaining these specific hardware systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized maintenance or upgrade services are tied to the hardware.
Risk of obsolescence for mainframe technology over the 5-year contract term.
Dependence on a single vendor for critical hardware components could impact supply chain resilience.

Positive Signals

Use of GSA MAS provides access to pre-vetted vendors and potentially streamlined acquisition.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long contract duration offers stability and predictability for VA's IT hardware needs.

Sector Analysis

This contract falls within the IT hardware and services sector, specifically focusing on mainframe and data storage solutions. The mainframe market, while mature, remains critical for many large organizations, including government agencies, due to its reliability and processing power for large-scale transactions. Spending in this area is often characterized by long-term investments and specialized vendor relationships. Comparable spending benchmarks would typically involve other large federal IT hardware procurements, particularly those involving legacy systems or mission-critical infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a delivery order under a GSA MAS, it's possible that small businesses could be subcontractors to the prime contractor, Sirius Computer Solutions, LLC. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. Large IT hardware contracts often involve complex supply chains where small businesses may play a role.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a GSA MAS order, the General Services Administration (GSA) also provides a layer of oversight through its schedule program management. Transparency is facilitated by public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

GSA Multiple Award Schedule (MAS)
IT Hardware Procurement
Mainframe Systems
Data Storage Solutions
Department of Veterans Affairs IT Spending

Risk Flags

Potential for hardware obsolescence
Vendor lock-in risk
Dependence on specific technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.0 million to SIRIUS COMPUTER SOLUTIONS, LLC. GSA MULTIPLE AWARD SCHEDULE ORDER FOR CAPACITY SERVICES FOR IBM MAINFRAME AND VIRTUAL TAPE SYSTEM HARDWARE

Who is the contractor on this award?

The obligated recipient is SIRIUS COMPUTER SOLUTIONS, 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 $40.0 million.

What is the period of performance?

Start: 2020-09-16. End: 2026-09-15.

What is the track record of Sirius Computer Solutions, LLC in fulfilling large federal IT hardware contracts, particularly those involving mainframe systems?

Sirius Computer Solutions, LLC has a history of performing on federal contracts, including those awarded through GSA schedules. Their experience with mainframe and virtual tape systems would be a key factor in their ability to successfully execute this delivery order. A review of their past performance ratings and any documented issues on similar contracts would provide insight into their reliability. While specific details on their mainframe track record are not provided here, their status as a GSA MAS holder suggests they have met certain vetting criteria. Further analysis would involve examining contract close-out reports and any performance feedback available through federal procurement databases to assess their historical success rate and client satisfaction on comparable engagements.

How does the per-unit cost of the hardware and services compare to market rates or similar federal contracts?

Without a breakdown of the $39.96 million into specific hardware components, software, and services, a precise per-unit cost comparison is difficult. However, the contract is a firm-fixed-price delivery order under a GSA MAS. GSA schedules are intended to offer competitive pricing, as vendors must agree to certain pricing ceilings and fair pricing clauses. To benchmark effectively, one would need to identify the specific IBM mainframe models and virtual tape system configurations procured and compare their pricing against other GSA MAS offerings for identical or comparable equipment, as well as against commercial price lists. The total contract value over five years suggests a significant investment, and the VA would have conducted some level of price reasonableness determination prior to award.

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

Key risks include potential hardware obsolescence over the five-year term, given the rapid pace of technological advancement. Another risk is vendor lock-in, where the VA might become overly dependent on Sirius for maintenance, upgrades, or future procurements related to this specific hardware. Performance risk is largely mitigated by the firm-fixed-price contract type, which places the onus on Sirius to deliver within the agreed budget. Obsolescence risk might be managed through contract clauses allowing for technology refreshes or by the VA's own strategic IT planning. Dependence on Sirius could be mitigated by ensuring clear contract terms for support and by maintaining awareness of alternative solutions in the market.

What is the expected effectiveness of these IBM mainframe and virtual tape systems in supporting the VA's mission-critical IT operations?

IBM mainframe systems are renowned for their reliability, scalability, and ability to handle massive transaction volumes, making them suitable for mission-critical operations like those at the VA, which manage vast amounts of sensitive veteran data. Virtual tape systems provide a cost-effective and efficient solution for data backup, archiving, and disaster recovery. The effectiveness of these specific systems hinges on their proper configuration, integration with the VA's existing IT infrastructure, and the contractor's ability to provide timely maintenance and support. Assuming the selected hardware meets the VA's technical requirements and is well-supported, these systems are expected to enhance data integrity, availability, and operational efficiency for the VA's core functions.

How does this $40 million contract compare to the VA's historical spending on mainframe and data storage hardware?

To assess this, one would need to analyze the VA's historical spending data for similar IT hardware procurements over previous fiscal years. This $40 million award over five years represents an average annual spend of approximately $8 million. Comparing this to past annual expenditures on mainframe and virtual tape systems would reveal whether this contract represents an increase, decrease, or stable level of investment. Factors such as system upgrades, expansions, or replacements of aging infrastructure would influence historical spending patterns. Without access to the VA's detailed historical IT procurement data, it's challenging to provide a precise comparison, but this figure suggests a substantial, ongoing commitment to this technology.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sunsource Holdings, Inc.

Address: 10100 REUNION PL STE 500, SAN ANTONIO, TX, 78216

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

Financial Breakdown

Contract Ceiling: $63,870,213

Exercised Options: $39,961,743

Current Obligation: $39,961,743

Actual Outlays: $23,101,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0422L

IDV Type: FSS

Timeline