VA awards $44M for IT infrastructure upgrades across remote facilities, impacting 8 locations

Contract Overview

Contract Amount: $43,991,043 ($44.0M)

Contractor: Veteran Technology Partners LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-12-08

End Date: 2023-12-07

Contract Duration: 1,094 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE ALL SWITCHES, CABLES, CONNECTIVE INTERFACES, ANCILLARY COMPONENTS, WARRANTY SUPPORT, INSTALLATION, AND SERVICES TO INCLUDE TESTING, TRAINING AND VALIDATION SERVICES FOR ALL VA PRIMARY FACILITIES REMOTE OFFICES.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60654

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $44.0 million to VETERAN TECHNOLOGY PARTNERS LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL SWITCHES, CABLES, CONNECTIVE INTERFACES, ANCILLARY COMPONENTS, WARRANTY SUPPORT, INSTALLATION, AND SERVICES TO INCLUDE TESTING, TRAINING AND VALIDATION SERVICES FOR ALL VA PRIMARY FACILITIES REMOTE OFFICES. Key points: 1. Contract focuses on essential IT hardware and installation services, indicating a need for modernization. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. Competition was full and open, suggesting a potentially competitive bidding environment. 4. The contract duration of nearly three years allows for phased implementation and support. 5. This award falls under IT services, a critical area for government operations. 6. The contractor, Veteran Technology Partners LLC, is tasked with a significant infrastructure project.

Value Assessment

Rating: good

The contract value of $43.99 million for IT infrastructure and services appears reasonable given the scope of work, which includes switches, cables, installation, testing, and training for multiple VA facilities. Benchmarking against similar large-scale IT infrastructure projects for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price contract type helps to mitigate cost overruns, provided the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and multiple bids were considered. The presence of 8 bids suggests a healthy level of competition for this IT infrastructure project. This competitive environment is generally favorable for achieving fair market prices and ensuring the government receives quality services.

Taxpayer Impact: A competitive bidding process for this contract helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple vendors.

Public Impact

Veterans and VA staff at remote facilities will benefit from improved IT infrastructure, leading to better access to services and operational efficiency. The contract delivers essential IT hardware, including switches and cables, along with installation and support services. The geographic impact is focused on VA primary facilities' remote offices, specifically noted as being in Illinois (IL). Workforce implications include potential needs for IT technicians for installation, testing, and training, both from the contractor and potentially within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT infrastructure upgrades could pose a risk if performance issues arise.
Ensuring seamless integration with existing VA IT systems requires careful planning and execution.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration allows for structured implementation and comprehensive support.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network infrastructure and related support. The market for federal IT services is substantial, with agencies consistently investing in upgrading and maintaining their technological capabilities. This award represents a significant investment in modernizing the IT backbone for critical VA facilities, ensuring reliable connectivity and operational continuity. Comparable spending benchmarks in this area often involve multi-million dollar awards for hardware, software, and integration services.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit requirements for subcontracting with small businesses mentioned in the provided data. The award to Veteran Technology Partners LLC, a single entity, suggests that small business participation may be limited unless they are a subcontractor. Further review of the contract details would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Veterans Affairs. Performance monitoring, quality assurance, and adherence to the firm-fixed-price terms are key oversight mechanisms. Transparency is facilitated through contract award databases, and the Inspector General's office at the VA would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Federal Network Infrastructure Procurement
IT Services for Healthcare Agencies
Computer Systems Design Services
Telecommunications Equipment Installation

Risk Flags

Potential for performance issues
Risk of cost overruns if scope is not managed
Integration challenges with existing systems
Dependence on contractor's technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $44.0 million to VETERAN TECHNOLOGY PARTNERS LLC. THE CONTRACTOR SHALL PROVIDE ALL SWITCHES, CABLES, CONNECTIVE INTERFACES, ANCILLARY COMPONENTS, WARRANTY SUPPORT, INSTALLATION, AND SERVICES TO INCLUDE TESTING, TRAINING AND VALIDATION SERVICES FOR ALL VA PRIMARY FACILITIES REMOTE OFFICES.

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 $44.0 million.

What is the period of performance?

Start: 2020-12-08. End: 2023-12-07.

What is the track record of Veteran Technology Partners LLC in delivering similar IT infrastructure projects for the federal government?

Assessing the track record of Veteran Technology Partners LLC requires a deeper dive into their past performance on federal contracts. Specifically, one would look for previous awards for network hardware installation, system integration, and comprehensive IT support services, particularly within large federal agencies like the VA. Key performance indicators to examine would include on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. A history of successful, similar projects would increase confidence in their ability to execute this current contract effectively. Conversely, a lack of relevant experience or a history of performance issues would raise concerns about potential risks.

How does the awarded price of $43.99 million compare to similar IT infrastructure upgrade contracts awarded by the VA or other federal agencies?

To benchmark the $43.99 million award, a comparative analysis of similar IT infrastructure upgrade contracts is necessary. This involves identifying contracts with comparable scopes of work (e.g., network hardware, installation, support services) and durations, awarded to agencies of similar size and complexity. Factors such as the number of facilities covered, the specific types of hardware procured (switches, cables), and the level of ancillary services (testing, training) must be considered. If data shows that similar projects have been awarded at significantly lower or higher price points, it would indicate whether this contract represents particularly good value, is overpriced, or is in line with market rates. The firm-fixed-price nature also suggests an expectation of cost control, making price comparisons crucial.

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

Primary risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and delays. Technical risks involve ensuring compatibility with existing VA systems and the successful integration of new hardware. Performance risks relate to the contractor's ability to deliver quality services on time and within budget. Mitigation strategies likely include robust project management by the VA, clear definition and control of the statement of work, regular progress reviews, and performance monitoring. The firm-fixed-price contract itself acts as a cost mitigation tool, shifting some financial risk to the contractor. Strong contract administration and clear communication channels are vital.

How effective is the current IT infrastructure at the VA's remote facilities, and what is the expected impact of this contract on program effectiveness?

The effectiveness of the current IT infrastructure at VA remote facilities is implied to be insufficient, necessitating this significant investment. This contract is expected to enhance program effectiveness by providing reliable, modern IT systems. Improved network performance, stability, and security can lead to better access to electronic health records, more efficient communication, and enhanced telehealth capabilities, ultimately benefiting both VA staff and the veterans they serve. The successful implementation of new hardware and services should reduce downtime, improve data processing speeds, and support the VA's mission more effectively. Measuring effectiveness post-award would involve tracking system uptime, user satisfaction, and the successful delivery of VA programs reliant on this infrastructure.

What are the historical spending patterns for IT infrastructure upgrades at the VA, and how does this award fit within those trends?

Analyzing historical spending patterns for IT infrastructure upgrades at the VA would reveal trends in investment levels, technology focus areas, and procurement strategies. This $43.99 million award needs to be viewed in that context. If the VA has consistently allocated significant budgets to network modernization, this contract aligns with established trends. Conversely, if this represents a sudden surge in spending, it might indicate a new strategic priority or a response to previously identified infrastructure deficiencies. Understanding past spending helps assess whether this award is a sustainable investment or an anomaly, and whether it reflects a proactive approach to maintaining a modern IT environment or a reactive measure to address aging systems.

What specific IT components and services are included in this $43.99 million contract, and are they considered standard or specialized?

The contract specifies the provision of 'all switches, cables, connective interfaces, ancillary components, warranty support, installation, and services to include testing, training and validation services.' These components and services are generally considered standard for IT infrastructure upgrades, particularly for network backbone and connectivity. Switches, cables, and interfaces are fundamental networking hardware. Installation, testing, and warranty support are typical service requirements for such projects. Training ensures proper utilization of the new systems. While the specific models or quantities might vary, the nature of the deliverables points towards a standard, albeit large-scale, IT infrastructure refresh rather than highly specialized or cutting-edge technology procurement.

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

Offers Received: 8

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: $48,666,549

Exercised Options: $43,991,043

Current Obligation: $43,991,043

Actual Outlays: $553,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD43B

IDV Type: GWAC

Timeline