VA awards $87M for wireless network installation across medical centers and regional offices

Contract Overview

Contract Amount: $86,999,350 ($87.0M)

Contractor: Catapult Technology, Ltd.

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-10-06

End Date: 2013-05-10

Contract Duration: 1,677 days

Daily Burn Rate: $51.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTALLATION OF WIRELESS IN ALL VA MED CENTERS AND REGIONAL OFFICES TO INCLUDE ALL HARDWARE & SOFTWARE NEEDED TO MAKE THE TECHNOLOGY USABLE.

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $87.0 million to CATAPULT TECHNOLOGY, LTD. for work described as: INSTALLATION OF WIRELESS IN ALL VA MED CENTERS AND REGIONAL OFFICES TO INCLUDE ALL HARDWARE & SOFTWARE NEEDED TO MAKE THE TECHNOLOGY USABLE. Key points: 1. Contract focuses on comprehensive wireless network installation, including necessary hardware and software. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration spans over four years, indicating a significant, long-term project. 4. The fixed-price contract type aims to control costs for the government. 5. The contractor, Catapult Technology, Ltd., is responsible for making the technology usable. 6. This initiative aims to modernize IT infrastructure within the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract value of approximately $87 million for a nationwide wireless network installation appears reasonable given the scope. While specific per-unit cost benchmarks for such a large-scale deployment are not readily available, the fixed-price nature of the contract provides cost certainty. Comparing this to similar large-scale IT infrastructure projects within federal agencies, the pricing seems to be within expected ranges for comprehensive hardware, software, and installation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely invited to bid. The presence of three bidders suggests a moderate level of competition for this significant IT infrastructure project. A competitive process generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

Veterans receiving care at VA medical centers will benefit from improved wireless connectivity. Regional offices will see enhanced network capabilities, supporting administrative functions. The project impacts IT infrastructure nationwide, improving the digital experience for staff and potentially patients. The installation of new hardware and software will require skilled IT professionals, potentially creating or sustaining jobs in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during installation.
Dependence on a single contractor for a critical IT infrastructure upgrade.
Risk of technology obsolescence during the multi-year deployment period.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Comprehensive scope includes hardware, software, and usability, ensuring a complete solution.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT industry. The market for network infrastructure and wireless solutions is highly competitive, with numerous vendors offering specialized hardware, software, and installation services. The Department of Veterans Affairs represents a significant client within this sector, with substantial investments in modernizing its IT infrastructure to support its vast network of facilities and users.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of a small business set-aside. However, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific aspects of the installation or hardware/software provision. The impact on the small business ecosystem would depend on the extent of any subcontracting efforts by Catapult Technology, Ltd.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for IT projects, including regular progress reporting and performance reviews. The fixed-price nature of the contract inherently includes accountability for delivering the specified services within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though specific details of ongoing oversight may not be publicly detailed.

Related Government Programs

VA IT Modernization Initiatives
Federal Network Infrastructure Upgrades
Healthcare IT Services
Computer Systems Design Services

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of vendor lock-in if proprietary solutions are implemented.
Cybersecurity vulnerabilities associated with widespread network deployment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $87.0 million to CATAPULT TECHNOLOGY, LTD.. INSTALLATION OF WIRELESS IN ALL VA MED CENTERS AND REGIONAL OFFICES TO INCLUDE ALL HARDWARE & SOFTWARE NEEDED TO MAKE THE TECHNOLOGY USABLE.

Who is the contractor on this award?

The obligated recipient is CATAPULT TECHNOLOGY, LTD..

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 $87.0 million.

What is the period of performance?

Start: 2008-10-06. End: 2013-05-10.

What is the track record of Catapult Technology, Ltd. with large-scale federal IT infrastructure projects?

Catapult Technology, Ltd. has a history of performing IT services for the federal government. While specific details on their track record with projects of this exact scale and complexity (nationwide wireless network installation) would require deeper analysis of their past performance evaluations and contract history, their ability to win a full and open competition for an $87 million contract with the VA suggests they possess the necessary qualifications and experience. Further investigation into their past performance metrics, client satisfaction, and any past performance issues would provide a more complete picture of their reliability for this specific project.

How does the $87 million cost compare to similar nationwide wireless network installations in other federal agencies?

Benchmarking the $87 million cost requires comparing it to similar large-scale wireless network deployments across federal agencies. Factors such as the number of facilities, square footage, existing infrastructure, and the specific technology requirements (e.g., Wi-Fi standards, security protocols) significantly influence cost. Without access to detailed cost breakdowns and specific scope comparisons for other agencies' projects, a precise benchmark is difficult. However, for a project encompassing all VA medical centers and regional offices, which is a substantial undertaking, $87 million appears to be within a plausible range for comprehensive hardware, software, and installation services, especially considering the fixed-price nature which often includes contingency.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential technical challenges during installation across diverse facility types, integration issues with existing IT systems, and the possibility of technology becoming outdated during the multi-year deployment. Mitigation strategies likely involve detailed site surveys, phased rollouts, robust project management by the VA and Catapult Technology, adherence to strict technical specifications, and potentially incorporating upgrade paths within the contract. The fixed-price nature also incentivizes the contractor to manage risks effectively to maintain profitability. The VA's oversight and performance monitoring will be crucial in identifying and addressing risks as they emerge.

How effective is the chosen wireless technology likely to be in meeting the VA's long-term needs?

The effectiveness of the chosen wireless technology will depend on the specific hardware and software selected, which are not detailed in the provided data. However, the contract's scope, including 'all hardware & software needed to make the technology usable,' suggests a comprehensive solution. For the VA, effective wireless technology should provide reliable, secure, and high-speed connectivity across its facilities to support clinical operations, administrative tasks, and potentially patient services. The long-term effectiveness will also hinge on the scalability of the chosen solution to accommodate future growth in users and data demands, as well as its compatibility with evolving cybersecurity threats and standards.

What has been the historical spending trend for wireless network infrastructure at the VA?

Analyzing historical spending trends for wireless network infrastructure at the VA would require access to detailed budget allocations and contract awards over several fiscal years. This $87 million contract represents a significant investment, suggesting a strategic push towards modernizing the VA's network capabilities. Without prior data, it's difficult to ascertain if this is an increase, a continuation, or a shift in spending priorities. However, the general trend across federal agencies has been towards increased investment in robust wireless infrastructure to support mobility, IoT devices, and enhanced data access in healthcare settings.

What are the implications of a 'full and open competition after exclusion of sources' for the quality of service received?

The 'full and open competition after exclusion of sources' indicates that the VA sought bids from all responsible sources but may have excluded certain sources based on specific criteria or prior determinations, though the primary intent is broad competition. This approach generally aims to maximize the pool of potential bidders while ensuring that only qualified vendors participate. For the quality of service, this method implies that the VA likely established detailed performance requirements and evaluation criteria, and the winning bid was selected not just on price but also on technical merit and capability. This competitive pressure, combined with clear performance standards, should drive the contractor to deliver high-quality services to meet the contract's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7500 OLD GEORGETOWN RD, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,999,350

Exercised Options: $86,999,350

Current Obligation: $86,999,350

Parent Contract

Parent Award PIID: GS06F0511Z

IDV Type: GWAC

Timeline