VA awards $185M for IT storage, with SMARTRONIX, LLC securing the largest portion

Contract Overview

Contract Amount: $185,142,142 ($185.1M)

Contractor: Smartronix, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-05-01

End Date: 2022-08-14

Contract Duration: 2,662 days

Daily Burn Rate: $69.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF STORAGE ON DEMAND

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78772

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $185.1 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF STORAGE ON DEMAND Key points: 1. The contract value of $185.1 million represents a significant investment in IT infrastructure. 2. SMARTRONIX, LLC, the primary contractor, has a substantial role in this IT services award. 3. The contract duration of over 7 years suggests a long-term need for these services. 4. The award was made under full and open competition, indicating a broad market solicitation. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. The primary NAICS code (541512) points to a focus on computer systems design. 7. The contract was awarded as a delivery order, suggesting it's part of a larger vehicle.

Value Assessment

Rating: good

The total award of $185.1 million over approximately 7 years for computer systems design services appears reasonable given the duration and scope. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage costs effectively. Without specific per-unit data or detailed service breakdowns, a definitive value assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 7 bidders indicates a healthy level of competition for this IT services requirement. A competitive environment generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders suggests the market has sufficient capacity and interest in providing these services to the Department of Veterans Affairs.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in more favorable pricing and a wider range of service options compared to a sole-source or limited competition award.

Public Impact

Veterans Affairs IT infrastructure and data management capabilities are enhanced. Federal employees and potentially veterans will benefit from improved IT services. The contract supports IT services delivery, crucial for modern government operations. The geographic impact is primarily within the Department of Veterans Affairs' operational footprint, likely nationwide. Workforce implications include IT professionals employed by SMARTRONIX, LLC and potentially other subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are heavily utilized.
Reliance on a single primary contractor (SMARTRONIX, LLC) for a significant duration.
Ensuring continued innovation and adaptation to evolving IT needs over the contract's lifespan.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Firm-fixed-price contract type helps manage cost overruns.
Long contract duration suggests a stable and ongoing need for these critical IT services.
The Department of Veterans Affairs is a major federal agency with significant IT requirements.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and potentially cloud or storage solutions. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by agencies like the Department of Defense or GSA. The $185 million award over 7 years places it as a substantial contract within this domain.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the primary awardee, SMARTRONIX, LLC, is not listed as a small business. This suggests that small businesses may not have been the primary focus for the prime contract. However, opportunities for small businesses could exist through subcontracting roles, depending on the prime contractor's subcontracting plan and the specific technical requirements of the services provided. Further analysis of subcontracting data would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Data Storage Solutions
Computer Systems Design Services
Department of Veterans Affairs IT Support Contracts

Risk Flags

Long-term contract duration may lead to technology obsolescence.
Potential for vendor lock-in with specific storage technologies.
Ensuring consistent performance and service quality over 7+ years.
Reliance on a single primary contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $185.1 million to SMARTRONIX, LLC. IGF::OT::IGF STORAGE ON DEMAND

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, 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 $185.1 million.

What is the period of performance?

Start: 2015-05-01. End: 2022-08-14.

What is the specific nature of the 'Storage on Demand' services provided under this contract?

The data indicates the contract is for 'IGF STORAGE ON DEMAND' under NAICS code 541512 (Computer Systems Design Services). While the specific technical details are not fully elaborated in the provided data, 'Storage on Demand' typically refers to flexible, scalable, and often cloud-based solutions that allow users to access storage capacity as needed, rather than provisioning fixed amounts. This could encompass services like cloud storage, network-attached storage (NAS), storage area networks (SAN), backup and disaster recovery solutions, and data archiving. The 'IGF' prefix might denote an internal VA initiative or platform name. The contract's duration and value suggest a comprehensive and ongoing requirement for these storage capabilities, likely supporting a wide range of VA applications and data.

How does the pricing of this contract compare to similar IT storage solutions in the federal market?

Benchmarking the pricing of this $185.1 million contract for 'Storage on Demand' requires detailed cost breakdowns and comparisons with similar services. Given it's a firm-fixed-price contract awarded under full and open competition with 7 bidders, there's a reasonable expectation that the pricing is competitive. However, without specific per-unit costs (e.g., cost per terabyte, cost per IOPS, or cost per GB/month for cloud storage), a direct comparison is difficult. Federal IT storage contracts can vary widely based on performance requirements (speed, availability, redundancy), security certifications, included support, and the specific technology deployed. A thorough analysis would involve comparing the contract's unit economics against GSA schedules, other agency solicitations for similar services, and industry cloud pricing models.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract focused on 'Storage on Demand' and computer systems design services, typical SLAs would likely revolve around storage availability (e.g., 99.9% uptime), data durability, retrieval times (latency), backup and recovery success rates, and potentially response times for technical support. Performance metrics would be crucial for ensuring the reliability and efficiency of the VA's IT infrastructure. These KPIs would be defined in the contract's statement of work and monitored throughout the contract's performance period, with potential penalties or incentives tied to meeting or exceeding them.

What is SMARTRONIX, LLC's track record with the Department of Veterans Affairs and similar federal contracts?

SMARTRONIX, LLC has a history of performing IT services for the federal government, including the Department of Veterans Affairs. While this specific award of $185.1 million is substantial, it's important to examine their broader contract portfolio. A review of federal procurement data would reveal other contracts awarded to SMARTRONIX, LLC, their values, performance ratings, and the types of services rendered. Their experience with VA and other agencies in areas like cloud computing, cybersecurity, and IT infrastructure management would be relevant indicators of their capability to fulfill this 'Storage on Demand' requirement. Positive past performance is often a key factor in contract awards, especially for large, complex IT projects.

How has the spending on IT storage solutions evolved within the Department of Veterans Affairs over the past five years?

Analyzing the spending evolution on IT storage solutions within the VA over the past five years would provide context for this $185.1 million award. This would involve examining historical contract data for storage hardware, software, cloud storage services, and related support. Trends might show a shift from on-premises solutions to cloud-based storage, an increase in data volume necessitating greater capacity, or a move towards more sophisticated data management and analytics capabilities. Understanding these trends helps assess whether the current contract aligns with the VA's strategic IT direction and whether the spending level is consistent with or represents a significant change in investment in this area.

What are the potential risks associated with a long-term (7+ year) contract for IT storage services?

Long-term contracts for IT storage services, like this 7+ year award, carry several potential risks. Technological obsolescence is a primary concern; IT evolves rapidly, and storage solutions procured today might be outdated or less efficient in a few years. Vendor lock-in can occur if the solution relies on proprietary technology, making it difficult and costly to switch providers. Performance degradation or failure to meet evolving SLAs over time is another risk, potentially impacting critical VA operations. Budgetary risks also exist, as fixed-price contracts may not always account for unforeseen market price fluctuations or significant increases in demand beyond initial projections. Furthermore, ensuring consistent service quality and innovation from the contractor over an extended period requires diligent oversight.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smartronix LLC

Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636

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

Financial Breakdown

Contract Ceiling: $189,775,308

Exercised Options: $185,142,142

Current Obligation: $185,142,142

Actual Outlays: $603,559

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $205,009,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0050

IDV Type: GWAC

Timeline