VA awards $31.7M IT Security Engineering Support Task Order to Cerner Federal Solutions LLC

Contract Overview

Contract Amount: $31,707,580 ($31.7M)

Contractor: Cerner Federal Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-22

End Date: 2021-09-24

Contract Duration: 1,463 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY ENGINEERING SUPPORT TASK ORDER

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.7 million to CERNER FEDERAL SOLUTIONS LLC for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY ENGINEERING SUPPORT TASK ORDER Key points: 1. Significant contract value of $31.7 million for IT security engineering. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the long duration and fixed-price nature. 4. Sector is IT, specifically computer systems design services.

Value Assessment

Rating: good

The contract value of $31.7 million over four years appears reasonable for specialized IT security engineering support. Benchmarking against similar large-scale IT service contracts 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, which generally promotes competitive pricing and allows for a wide range of qualified vendors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price.

Public Impact

Ensures critical IT security infrastructure for the Department of Veterans Affairs. Supports the operational readiness and protection of veteran data. Contributes to the overall cybersecurity posture of a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (4 years) may lead to scope creep or evolving technology risks.
Reliance on a single vendor for critical security services.
Fixed-price contract may not fully account for unforeseen technical challenges.

Positive Signals

Awarded through full and open competition.
Clear statement of work for security engineering support.
Experienced vendor likely possesses relevant expertise.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, with significant investment in cybersecurity solutions to protect sensitive data and systems.

Small Business Impact

The contract was awarded to Cerner Federal Solutions LLC, a large business. There is no indication of small business participation in this specific task order, which is common for highly specialized and large-value contracts.

Oversight & Accountability

The Department of Veterans Affairs managed this contract. Oversight would typically involve regular performance reviews, technical monitoring, and financial audits to ensure compliance with contract terms and effective service delivery.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long-term duration
Fixed-price contract
Sole vendor for specific services (potential)
Cybersecurity is a constantly evolving threat landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.7 million to CERNER FEDERAL SOLUTIONS LLC. IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY ENGINEERING SUPPORT TASK ORDER

Who is the contractor on this award?

The obligated recipient is CERNER FEDERAL SOLUTIONS 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 $31.7 million.

What is the period of performance?

Start: 2017-09-22. End: 2021-09-24.

What specific IT security engineering services were included in this task order?

The task order focused on IT security engineering support, likely encompassing a range of services such as system security design, vulnerability assessments, security architecture development, implementation of security controls, and potentially incident response planning. The exact scope would be detailed in the contract's statement of work.

What are the primary risks associated with a long-term, fixed-price IT security contract?

Long-term fixed-price contracts for IT security carry risks of technological obsolescence, where the contracted solutions become outdated before the contract ends. There's also a risk of underestimating the complexity of evolving threats, leading to cost overruns for the contractor or reduced service quality if not managed carefully.

How does this contract contribute to the VA's overall cybersecurity effectiveness?

This contract directly supports the VA's cybersecurity effectiveness by providing specialized engineering expertise to design, implement, and maintain secure IT systems. This ensures the protection of sensitive veteran health and personal information, enhances system resilience against cyberattacks, and helps the VA meet its compliance obligations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerner Corporation

Address: 13800 COPPERMINE ROAD, OFFICE 206, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,293,179

Exercised Options: $31,707,580

Current Obligation: $31,707,580

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $10,100,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1009

IDV Type: IDC

Timeline