VA awards $54.2M for Enterprise Cloud Fax Services, with 3 bidders competing under T4NG

Contract Overview

Contract Amount: $54,251,121 ($54.3M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-20

End Date: 2026-09-19

Contract Duration: 1,825 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE CLOUD FAX (ECFAX) SERVICE IN SUPPORT OF THE OFFICE OF INFORMATION AND TECHNOLOGY (OIT), ENTERPRISE PROGRAM MANAGEMENT OFFICE (EPMO) UNDER TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) CONTRACT VA118-16-D-1001

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54.3 million to COGNOSANTE MVH LLC for work described as: ENTERPRISE CLOUD FAX (ECFAX) SERVICE IN SUPPORT OF THE OFFICE OF INFORMATION AND TECHNOLOGY (OIT), ENTERPRISE PROGRAM MANAGEMENT OFFICE (EPMO) UNDER TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) CONTRACT VA118-16-D-1001 Key points: 1. The contract value of $54.2M over five years suggests a significant investment in modernizing communication infrastructure. 2. Competition dynamics indicate a healthy market for cloud fax solutions, with three bidders vying for this award. 3. The firm-fixed-price contract type helps mitigate cost overruns, aligning contractor incentives with government objectives. 4. This service supports the Office of Information and Technology's Enterprise Program Management Office, highlighting its strategic importance. 5. The contract's duration of 1825 days (5 years) allows for sustained service delivery and potential for future enhancements. 6. The award was made under the Transformation Twenty-One Total Technology Program (T4NG), a large, established IT vehicle.

Value Assessment

Rating: good

The total contract value of $54.2M over five years equates to approximately $10.85M annually. Benchmarking this against similar enterprise cloud fax solutions is challenging without specific service level agreements and user counts. However, the competitive nature of the award suggests that the pricing is likely within a reasonable range for a large federal agency. The firm-fixed-price structure provides cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible vendors had the opportunity to bid. The presence of three bidders suggests a competitive marketplace for enterprise cloud fax services. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The Office of Information and Technology (OIT) and its Enterprise Program Management Office (EPMO) are the primary beneficiaries, receiving essential cloud fax services. This contract delivers critical enterprise cloud fax capabilities, likely replacing or augmenting legacy fax systems. The geographic impact is primarily within the Department of Veterans Affairs' operations, supporting its nationwide IT infrastructure. The contract supports the federal IT workforce by ensuring access to modern communication tools necessary for program management and service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future contract renewals are not competitively bid.
Reliance on a single vendor for a critical communication service could pose a risk if the vendor experiences service disruptions.
Ensuring the cloud fax solution meets evolving data security and privacy requirements for sensitive veteran information.

Positive Signals

The use of a cloud-based solution offers scalability and potential cost savings compared to on-premise infrastructure.
The firm-fixed-price contract type provides budget predictability for the VA.
Awarding under a large IT vehicle like T4NG streamlines the procurement process and leverages existing contract structures.

Sector Analysis

The market for cloud-based communication services, including fax, is a rapidly growing segment within the broader IT sector. Federal agencies are increasingly migrating from traditional on-premise solutions to cloud services for enhanced flexibility, scalability, and cost-efficiency. This contract fits within the government's broader push towards cloud adoption and digital transformation, aiming to modernize legacy systems and improve service delivery. Comparable spending benchmarks would depend on the specific features and scale of the service, but enterprise-level cloud fax solutions for large organizations can range from several million to tens of millions of dollars annually.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is Cognosante MVH LLC, there is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Cognosante MVH LLC actively seeks small business partners for specialized services or components related to this contract.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs' contracting officers and program managers within the Office of Information and Technology. The T4NG contract vehicle itself likely has established oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, with performance expectations tied to payment. The VA's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Transformation Twenty-One Total Technology Program (T4NG)
Enterprise IT Services
Cloud Computing Services
Communication Services
IT Modernization Programs

Risk Flags

Potential for data security breaches.
Risk of service disruption impacting critical operations.
Dependency on vendor for essential communication infrastructure.
Ensuring compliance with evolving federal regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54.3 million to COGNOSANTE MVH LLC. ENTERPRISE CLOUD FAX (ECFAX) SERVICE IN SUPPORT OF THE OFFICE OF INFORMATION AND TECHNOLOGY (OIT), ENTERPRISE PROGRAM MANAGEMENT OFFICE (EPMO) UNDER TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) CONTRACT VA118-16-D-1001

Who is the contractor on this award?

The obligated recipient is COGNOSANTE MVH 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 $54.3 million.

What is the period of performance?

Start: 2021-09-20. End: 2026-09-19.

What is the specific functionality and scope of the Enterprise Cloud Fax (ECFAX) service being provided?

The Enterprise Cloud Fax (ECFAX) service is designed to provide secure, reliable, and scalable cloud-based faxing capabilities to support the Department of Veterans Affairs' (VA) Office of Information and Technology (OIT) and its Enterprise Program Management Office (EPMO). While the provided data does not detail specific features, such services typically include sending and receiving faxes electronically via email, web portals, or integrated applications, eliminating the need for traditional fax machines and dedicated phone lines. The scope likely encompasses support for various VA departments and potentially nationwide operations, ensuring compliance with federal regulations like HIPAA for handling sensitive veteran information. The service aims to modernize communication workflows, improve efficiency, and reduce the operational overhead associated with legacy fax systems.

How does the annual cost of this contract compare to industry benchmarks for similar enterprise cloud fax solutions?

The annual cost for this contract is approximately $10.85 million ($54.2M / 5 years). Benchmarking this figure against industry standards for enterprise cloud fax solutions is complex without detailed service level agreements (SLAs), user volumes, and feature sets. However, for a large federal agency like the VA, this annual expenditure appears to be within a reasonable range, especially considering the scale and security requirements. Many commercial cloud fax providers offer tiered pricing based on volume and features. For large enterprises, costs can range significantly, but a figure around $10M annually for comprehensive, secure, and compliant services is plausible. The competitive award process suggests the VA likely secured pricing that reflects market value.

What are the key performance indicators (KPIs) used to measure the success of this ECFAX service contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this Enterprise Cloud Fax (ECFAX) service contract. However, typical KPIs for such services would likely include metrics related to service availability (uptime), fax transmission success rates, transmission delivery times, system response times, and customer support responsiveness. For a federal contract, adherence to security protocols and data privacy regulations (e.g., HIPAA) would also be critical performance areas. The VA's program managers would monitor these KPIs to ensure the contractor, Cognosante MVH LLC, is meeting the agreed-upon service levels and delivering value for the $54.2 million investment over the contract's five-year duration.

What is the track record of Cognosante MVH LLC in delivering similar IT services to the federal government?

Cognosante MVH LLC has a significant track record of providing IT services to the federal government, particularly within the Department of Veterans Affairs. They are a known entity within the VA's IT landscape, often involved in large-scale technology programs. Their portfolio typically includes health IT solutions, data analytics, and various IT support services. While specific details on their past performance for cloud fax services are not in the provided data, their presence as a prime contractor on the T4NG vehicle and their substantial contract awards suggest a demonstrated capability to manage complex federal IT projects. Agencies often rely on past performance evaluations and contractor capabilities when making award decisions, indicating a level of trust in Cognosante's ability to execute.

Are there any identified risks associated with the transition to or ongoing use of this cloud fax service?

Potential risks associated with this Enterprise Cloud Fax (ECFAX) service include data security and privacy, especially given the sensitive nature of veteran health information. Ensuring continuous compliance with federal regulations like HIPAA and FISMA is paramount. Another risk is service availability and reliability; any disruption to the cloud fax service could impact critical communication workflows within the VA. Vendor lock-in is also a consideration, as migrating away from a deeply integrated cloud service can be complex and costly. Furthermore, the successful integration of the ECFAX service with existing VA IT systems is crucial; interoperability issues could hinder adoption and effectiveness. Finally, ensuring the long-term cost-effectiveness and value for money throughout the contract's duration requires ongoing monitoring.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,324,563

Exercised Options: $54,251,121

Current Obligation: $54,251,121

Actual Outlays: $33,934,301

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $14,390,960

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1001

IDV Type: IDC

Timeline