VA Awards $106.5M T4NG Cloud Services Contract to Cognosante MVH LLC

Contract Overview

Contract Amount: $106,532,300 ($106.5M)

Contractor: Cognosante MVH LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-09

End Date: 2026-08-08

Contract Duration: 1,095 days

Daily Burn Rate: $97.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) - CLOUD OPERATIONS AND MIGRATION SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $106.5 million to COGNOSANTE MVH LLC for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) - CLOUD OPERATIONS AND MIGRATION SERVICES Key points: 1. Contract focuses on cloud operations and migration services for the VA. 2. Significant award value suggests a substantial project scope. 3. Competition method is 'Full and Open', indicating broad market access. 4. The sector is IT services, specifically Computer Systems Design. 5. Potential risks include vendor lock-in and data security during migration.

Value Assessment

Rating: good

The award value of $106.5M over three years for cloud services appears reasonable given the scope. Benchmarking against similar large-scale cloud migration contracts is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, allowing all eligible vendors to bid. This method generally promotes competitive pricing and innovation.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential IT services.

Public Impact

Veterans will benefit from improved IT infrastructure and potentially more efficient access to VA services. The contract supports modernization efforts within the Department of Veterans Affairs. This award could lead to job creation in the IT sector, particularly in cloud computing and systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if migration complexity is underestimated.
Dependence on a single vendor for critical cloud infrastructure.
Data security and privacy during cloud migration are paramount concerns.

Positive Signals

Full and open competition should drive competitive pricing.
Modernization of VA IT systems can lead to improved service delivery.
Contract duration allows for phased implementation and stabilization.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for large-scale cloud migration and operations projects vary widely but are typically in the tens to hundreds of millions of dollars.

Small Business Impact

While the prime contractor is Cognosante MVH LLC, the contract details do not specify any small business subcontracting goals. Further investigation into subcontracting plans would be beneficial.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's duration and complexity necessitate robust project management and performance monitoring to ensure successful delivery and accountability.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in with cloud services.
Complexity of cloud migration can lead to unforeseen costs.
Ensuring robust data security during transition is critical.
Performance monitoring is essential for service level adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $106.5 million to COGNOSANTE MVH LLC. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY PROGRAM (T4NG) - CLOUD OPERATIONS AND MIGRATION SERVICES

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 $106.5 million.

What is the period of performance?

Start: 2023-08-09. End: 2026-08-08.

What are the specific performance metrics and KPIs tied to this contract to ensure successful cloud migration and ongoing operations?

The contract likely includes specific performance metrics and Key Performance Indicators (KPIs) related to uptime, migration timelines, data integrity, security compliance, and cost efficiency. These would be detailed in the contract's Statement of Work (SOW) and performance clauses. Regular performance reviews between the VA and Cognosante MVH LLC would track adherence to these metrics, ensuring the vendor meets its obligations and taxpayer funds are used effectively.

How will the VA ensure data security and compliance with regulations like HIPAA during the cloud migration process?

The VA will likely mandate strict security protocols and compliance measures within the contract, requiring Cognosante MVH LLC to adhere to federal data protection standards (e.g., FedRAMP). This includes encryption, access controls, regular audits, and incident response plans. The VA's contracting officers and security teams will actively monitor the migration process and ongoing operations to ensure continuous compliance and mitigate risks to sensitive veteran data.

What is the long-term strategy for cloud adoption beyond this initial migration, and how does this contract fit into that vision?

This contract represents a significant step in the VA's broader cloud adoption strategy, focusing on essential operations and migration. The long-term vision likely involves leveraging cloud capabilities for enhanced data analytics, improved application performance, and greater scalability. The success of this contract will inform future cloud investments and potentially lead to further engagements for advanced cloud services and optimization.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: T4NG-0683

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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: $186,152,867

Exercised Options: $106,532,300

Current Obligation: $106,532,300

Actual Outlays: $82,592,619

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $71,237,581

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