VA awards $32K for EPACS server emergency repairs to Penguin Solutions Corp

Contract Overview

Contract Amount: $32,301 ($32.3K)

Contractor: Penguin Solutions Corporation (DE)

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-18

End Date: 2026-05-31

Contract Duration: 13 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACTOR SHALL PROVIDE EMERGENCY REPAIR SERVICES OF THE EPACS LENELS2 ONGUARD SERVERS.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32,301.4 to PENGUIN SOLUTIONS CORPORATION (DE) for work described as: CONTRACTOR SHALL PROVIDE EMERGENCY REPAIR SERVICES OF THE EPACS LENELS2 ONGUARD SERVERS. Key points: 1. Emergency repair services for critical EPACS servers. 2. Sole-source award to Penguin Solutions Corporation. 3. Short duration contract (13 days) with immediate need. 4. Focus on electronic and precision equipment repair.

Value Assessment

Rating: fair

The contract value of $32,301.40 for 13 days of emergency repair services appears reasonable given the critical nature of the equipment. However, without specific details on the scope of work or comparable repair costs for similar server systems, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than if competitive bids were solicited. The urgency of the emergency likely drove this decision.

Taxpayer Impact: The taxpayer impact is potentially higher due to the lack of competition, but the cost is relatively small for essential IT infrastructure.

Public Impact

Ensures continued operation of critical VA healthcare IT systems. Addresses potential disruption to veteran services if servers fail. Supports the maintenance of sensitive electronic equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for higher cost due to sole-source award
Limited time for vendor performance

Positive Signals

Addresses an urgent need
Maintains critical IT infrastructure
Short contract duration minimizes long-term commitment

Sector Analysis

This contract falls within the IT services sector, specifically focusing on the repair and maintenance of electronic equipment. Spending benchmarks for emergency server repairs can vary widely based on the complexity of the system and the vendor's expertise.

Small Business Impact

This contract was awarded to Penguin Solutions Corporation, which is not indicated as a small business. There is no analysis of small business participation in this specific emergency repair.

Oversight & Accountability

The award was made via a purchase order by the Department of Veterans Affairs. Oversight would focus on ensuring the emergency repairs are completed effectively within the short timeframe and at a reasonable cost, despite the sole-source nature.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
Short performance period may indicate rushed work or limited scope.
Urgency of the repair could be exploited by the vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,301.4 to PENGUIN SOLUTIONS CORPORATION (DE). CONTRACTOR SHALL PROVIDE EMERGENCY REPAIR SERVICES OF THE EPACS LENELS2 ONGUARD SERVERS.

Who is the contractor on this award?

The obligated recipient is PENGUIN SOLUTIONS CORPORATION (DE).

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 $32,301.4.

What is the period of performance?

Start: 2026-05-18. End: 2026-05-31.

What is the justification for the sole-source award, and were any attempts made to solicit bids from other qualified vendors, even on an expedited basis?

The justification for a sole-source award typically stems from urgent, compelling circumstances where only one vendor can meet the immediate need, or if the cost of competition would outweigh the potential savings. For this emergency repair, the VA likely determined that soliciting bids would cause unacceptable delays, potentially impacting critical veteran services. Further documentation would clarify if alternative, albeit expedited, competitive approaches were considered.

What is the potential risk to VA operations if these EPACS LenelS2 OnGuard servers were to fail completely, and how does this repair mitigate that risk?

EPACS (Electronic Patient Care Reporting System) servers are critical for managing patient care data and operations within the VA. A failure could lead to disruptions in patient tracking, medical record access, and emergency response coordination, potentially impacting the quality and timeliness of care. This emergency repair directly mitigates the risk of such a failure by addressing immediate issues with the server hardware.

How does the $32,301.40 price point compare to typical emergency repair costs for similar enterprise-level server systems in the current market?

Benchmarking this price requires detailed knowledge of the specific server model, the nature of the 'emergency repair,' and prevailing market rates for specialized IT maintenance. Generally, emergency services command a premium. Without knowing the exact components or labor involved, it's difficult to definitively assess if $32,301.40 is high or low. However, for critical infrastructure, agencies often prioritize rapid resolution over cost minimization in emergencies.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24826Q0382

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stratus Technologies, Inc.

Address: 5 MILL AND MAIN PL, MAYNARD, MA, 01754

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,301

Exercised Options: $32,301

Current Obligation: $32,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline