VA awards $3.26M for IT power systems maintenance at Austin ITC, with full and open competition

Contract Overview

Contract Amount: $3,255,048 ($3.3M)

Contractor: Eaton Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-02-04

End Date: 2026-08-03

Contract Duration: 2,006 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS CONTRACT PROVIDES SERVICE TO UNINTERRUPTIBLE POWER SUPPLY SYSTEMS, INPUT/OUTPUT ELECTRICAL SWITCHGEAR, VALVE-REGULATED LEAD-ACID BATTERIES, AND BATTERY MANAGEMENT SYSTEM AT THE AUSTIN INFORMATION TECHNOLOGY CENTER.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to EATON CORPORATION for work described as: THIS CONTRACT PROVIDES SERVICE TO UNINTERRUPTIBLE POWER SUPPLY SYSTEMS, INPUT/OUTPUT ELECTRICAL SWITCHGEAR, VALVE-REGULATED LEAD-ACID BATTERIES, AND BATTERY MANAGEMENT SYSTEM AT THE AUSTIN INFORMATION TECHNOLOGY CENTER. Key points: 1. The contract focuses on critical IT infrastructure maintenance, including UPS, switchgear, and batteries. 2. Eaton Corporation is the awardee, suggesting a strong incumbent or specialized provider. 3. The contract utilizes firm-fixed-price terms, providing cost certainty for the government. 4. Awarded by the Department of Veterans Affairs, highlighting their commitment to IT infrastructure reliability.

Value Assessment

Rating: good

The total award of $3.26M over approximately 5 years appears reasonable for specialized IT power system maintenance. Benchmarking against similar contracts for UPS and switchgear maintenance would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: Full and open competition likely resulted in a fair market price, maximizing taxpayer value for essential IT infrastructure services.

Public Impact

Ensures uninterrupted IT services for the Austin Information Technology Center, crucial for VA operations. Supports the reliability of critical power systems, preventing data loss and service disruptions. Maintains essential components like batteries and switchgear, extending their operational lifespan. Contributes to the overall cybersecurity posture by ensuring stable power for IT equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for maintenance.
Reliance on a single awardee for critical infrastructure maintenance.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Full and open competition suggests competitive pricing.
Long-term contract ensures continuity of essential services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on the maintenance of critical power infrastructure. Spending benchmarks for IT maintenance vary widely, but consistent funding for UPS and battery systems is common for agencies with significant data center operations.

Small Business Impact

The data indicates this was a delivery order under a larger contract, and it does not specify if small businesses were involved in the subcontracting. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Critical infrastructure maintenance
Long-term service contract
Single awardee for specialized services
Potential for price escalation in future renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to EATON CORPORATION. THIS CONTRACT PROVIDES SERVICE TO UNINTERRUPTIBLE POWER SUPPLY SYSTEMS, INPUT/OUTPUT ELECTRICAL SWITCHGEAR, VALVE-REGULATED LEAD-ACID BATTERIES, AND BATTERY MANAGEMENT SYSTEM AT THE AUSTIN INFORMATION TECHNOLOGY CENTER.

Who is the contractor on this award?

The obligated recipient is EATON CORPORATION.

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 $3.3 million.

What is the period of performance?

Start: 2021-02-04. End: 2026-08-03.

What is the specific scope of work for the uninterruptible power supply systems and switchgear maintenance?

The scope likely includes preventative maintenance, diagnostics, repairs, and potential component replacements for UPS units, input/output electrical switchgear, and associated battery management systems. This ensures the continuous operation of critical IT infrastructure at the Austin Information Technology Center, safeguarding data integrity and service availability.

What are the potential risks associated with relying on Eaton Corporation for this critical maintenance?

Risks include potential price increases in future contract renewals if competition is limited, or service disruptions if Eaton faces internal issues. Dependence on a single vendor for specialized maintenance could also lead to a lack of competitive pressure on pricing and service quality over time.

How does this contract contribute to the overall effectiveness of the VA's IT infrastructure?

This contract is vital for the effectiveness of the VA's IT infrastructure by ensuring the reliability and uptime of essential power systems. Consistent maintenance prevents costly outages, protects sensitive data, and supports the seamless delivery of services to veterans and personnel.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

Address: 8609 SIX FORKS RD, RALEIGH, NC, 27615

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $3,279,989

Exercised Options: $3,255,048

Current Obligation: $3,255,048

Actual Outlays: $2,003,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F0023R

IDV Type: FSS

Timeline