VA awards $21.7M for Citrix maintenance, highlighting competition challenges and potential cost concerns

Contract Overview

Contract Amount: $21,692,687 ($21.7M)

Contractor: Veteran Technology Partners LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-29

End Date: 2027-03-27

Contract Duration: 728 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CITRIX SOFTWARE, HARDWARE MAINTENANCE AND SUPPORT

Place of Performance

Location: DES PLAINES, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.7 million to VETERAN TECHNOLOGY PARTNERS LLC for work described as: CITRIX SOFTWARE, HARDWARE MAINTENANCE AND SUPPORT Key points: 1. The contract focuses on essential software and hardware maintenance for Citrix, a critical but potentially costly IT component. 2. Competition was limited after excluding sources, raising questions about price discovery and taxpayer value. 3. The award to Veteran Technology Partners LLC warrants scrutiny regarding the justification for source exclusion. 4. The sector is IT services, specifically software maintenance, which can be prone to vendor lock-in and price escalation.

Value Assessment

Rating: questionable

The contract's value of $21.7M for 2 years of maintenance appears high, especially given the limited competition. Benchmarking against similar enterprise software maintenance contracts is crucial to assess if this price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that potential competitors were not considered. This method significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The limited competition raises concerns about whether the VA secured the best possible price, potentially resulting in millions of dollars in unnecessary spending.

Public Impact

Veterans may experience disruptions if critical Citrix systems are not adequately maintained. Taxpayers could be overpaying for software maintenance due to a lack of competitive bidding. The VA's reliance on a single vendor for essential IT support could create future vulnerabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential overpricing
Vendor lock-in risk

Positive Signals

Essential IT support secured
Fixed-price contract

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software and hardware maintenance for enterprise solutions like Citrix. Spending benchmarks in this area often show significant variation, but competitive bidding is key to controlling costs.

Small Business Impact

The award went to Veteran Technology Partners LLC, a small business. However, the limited competition aspect raises questions about whether other small businesses with relevant capabilities were excluded from bidding.

Oversight & Accountability

The justification for excluding other sources needs thorough review by oversight bodies to ensure accountability and prevent potential misuse of taxpayer funds. The VA should provide clear documentation for the exclusion.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of robust competition
Potential for inflated pricing
Limited transparency in source selection
Risk of vendor lock-in
High contract value for maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.7 million to VETERAN TECHNOLOGY PARTNERS LLC. CITRIX SOFTWARE, HARDWARE MAINTENANCE AND SUPPORT

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 $21.7 million.

What is the period of performance?

Start: 2025-03-29. End: 2027-03-27.

What was the specific justification for excluding other sources in this full and open competition?

The justification for excluding other sources is critical for understanding the procurement's integrity. Typically, such exclusions require a compelling reason, such as a unique capability, urgent need, or specific government requirement that only one vendor can meet. Without this justification, the 'limited' competition appears to be a procedural choice that may not serve the government's best interest in achieving optimal pricing and value.

How does the per-unit cost of this Citrix maintenance compare to industry benchmarks for similar enterprise software support?

A detailed cost-benefit analysis comparing this contract's pricing to industry benchmarks for similar enterprise Citrix maintenance and support is essential. Factors like the specific software versions, support levels, and vendor overhead contribute to pricing. If this contract significantly exceeds benchmarks, it indicates potential overspending and a failure to leverage competitive market forces effectively.

What is the risk of vendor lock-in and future price increases given the limited competition for this essential IT service?

The risk of vendor lock-in is substantial when competition is limited, especially for critical IT infrastructure like Citrix. The incumbent vendor, knowing the agency's reliance and the difficulty of switching, may leverage this position to demand higher prices in future contract renewals. This necessitates proactive management and exploration of alternative solutions to mitigate long-term cost escalation.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $32,963,641

Exercised Options: $21,692,687

Current Obligation: $21,692,687

Actual Outlays: $10,421,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD43B

IDV Type: GWAC

Timeline