VA awards $43.4M for IT infrastructure, including network security, to Metgreen Solutions Inc

Contract Overview

Contract Amount: $43,351,154 ($43.4M)

Contractor: Metgreen Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-01

End Date: 2025-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $39.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FORESCOUT APPLIANCES, ASSOCIATED SOFTWARE LICENSES/SUBSCRIPTIONS, SOFTWARE MAINTENANCE, HARDWARE MAINTENANCE, TRAINING AND PREMIUM LEVEL SUPPORT SERVICES

Place of Performance

Location: TEMPE, MARICOPA County, ARIZONA, 85282

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43.4 million to METGREEN SOLUTIONS INC for work described as: FORESCOUT APPLIANCES, ASSOCIATED SOFTWARE LICENSES/SUBSCRIPTIONS, SOFTWARE MAINTENANCE, HARDWARE MAINTENANCE, TRAINING AND PREMIUM LEVEL SUPPORT SERVICES Key points: 1. Contract focuses on essential IT infrastructure, including network security appliances and software. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is three years, aligning with typical IT refresh cycles. 5. The contract value is substantial, indicating a significant investment in IT modernization. 6. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $43.4 million over three years appears reasonable for comprehensive IT infrastructure support, including hardware, software, and maintenance. Benchmarking against similar large-scale IT procurements for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money. However, a detailed cost breakdown and comparison of specific unit prices for appliances and licenses would be needed for a more precise value assessment.

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 the solicitation was broadly advertised and multiple bids were likely considered. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing. The exclusion of sources clause might suggest specific technical requirements or prior performance considerations that narrowed the field, but the core competition was open.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The Department of Veterans Affairs (VA) benefits from enhanced IT infrastructure and network security. Services delivered include the provision of Forescout appliances, software licenses, and ongoing maintenance. The contract supports the VA's IT operations nationwide, ensuring reliable digital services for veterans and staff. Workforce implications include potential training needs for VA IT personnel to manage the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific Forescout ecosystem knowledge is required for future upgrades or support.
Reliance on a single vendor for hardware and software could pose risks if the vendor's product roadmap or financial stability changes.
The broad NAICS code may obscure the specific nature of the services, making direct comparisons difficult.

Positive Signals

The firm fixed-price contract type provides budget certainty and limits the government's exposure to cost increases.
Awarding under full and open competition suggests a robust process that likely yielded competitive pricing.
The contract includes comprehensive support services, ensuring the longevity and optimal performance of the IT infrastructure.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network security and infrastructure management. The market for network access control solutions like Forescout is competitive, with several established players. Federal spending in this area is significant as agencies prioritize cybersecurity and network performance. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar network security hardware, software, and support services, often in the tens of millions of dollars over multi-year periods.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value IT procurement, it is unlikely that small businesses would be primary awardees unless they are part of a larger subcontracting plan. The focus on specialized network security appliances and software may limit subcontracting opportunities for smaller, general IT service providers. The overall impact on the small business ecosystem is likely minimal for this specific award, though larger prime contractors may engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily reside with 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 goods and services. Transparency is facilitated by the contract award being publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal Cybersecurity Procurement
Network Infrastructure Services
Software Licensing and Maintenance Contracts
IT Hardware Procurement

Risk Flags

Potential for vendor lock-in
Reliance on specific technology
Need for detailed cost-benefit analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43.4 million to METGREEN SOLUTIONS INC. FORESCOUT APPLIANCES, ASSOCIATED SOFTWARE LICENSES/SUBSCRIPTIONS, SOFTWARE MAINTENANCE, HARDWARE MAINTENANCE, TRAINING AND PREMIUM LEVEL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is METGREEN SOLUTIONS INC.

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 $43.4 million.

What is the period of performance?

Start: 2022-09-01. End: 2025-08-31.

What is the track record of Metgreen Solutions Inc. in performing similar federal IT contracts?

Metgreen Solutions Inc. has a history of performing federal contracts, primarily within the IT services domain. While specific details on past performance for contracts of this exact scale and scope (network security appliances, comprehensive software/hardware maintenance) are not detailed in the provided data, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, including past performance reviews and any reported issues on previous VA or other agency contracts, would be necessary to fully assess their capability and reliability for this significant award. Analyzing their award history for similar firm fixed-price, multi-year IT infrastructure contracts would provide further context.

How does the per-unit cost of Forescout appliances and licenses compare to market rates or similar government contracts?

The provided data does not include specific per-unit costs for Forescout appliances, software licenses, or maintenance. Therefore, a direct comparison to market rates or similar government contracts is not possible with the given information. To assess value for money, one would need to obtain a detailed breakdown of the contract's pricing structure. This would allow for benchmarking against publicly available commercial price lists, GSA schedules, or other agency procurements for identical or comparable Forescout products and services. Without this granular data, it's difficult to determine if the pricing is competitive or represents a premium.

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

Key risks include potential vendor lock-in due to specialized Forescout technology, the possibility of unforeseen technical challenges during implementation or integration, and the risk that the technology may become outdated before the contract's end. Mitigation strategies are primarily addressed through the contract's firm fixed-price structure, which caps costs for the government. The full and open competition process aims to ensure the selected vendor and solution are competitive. Additionally, the inclusion of comprehensive maintenance and support services helps ensure the technology remains functional and supported throughout the contract period. The VA's oversight and program management will also play a crucial role in identifying and addressing risks proactively.

How effective is the VA's chosen IT infrastructure solution (Forescout) in meeting its cybersecurity and network management needs?

The effectiveness of Forescout technology in meeting the VA's specific cybersecurity and network management needs is not detailed in the provided contract data. Forescout is a recognized leader in network access control and visibility solutions, often used by large organizations to manage device security and enforce policies. Its effectiveness for the VA would depend on how well its capabilities align with the agency's unique threat landscape, existing infrastructure, and strategic security goals. A thorough assessment would require reviewing independent security evaluations, user testimonials, and the VA's own internal performance metrics post-implementation to gauge its success in enhancing security posture and operational efficiency.

What are the historical spending patterns for similar IT infrastructure procurements by the Department of Veterans Affairs?

Historical spending patterns for the VA on similar IT infrastructure procurements are not detailed in the provided data. However, federal agencies, including the VA, consistently invest significant amounts in IT infrastructure, cybersecurity, and network management solutions. Annual IT spending by the VA typically runs into the billions of dollars, encompassing a wide range of hardware, software, services, and personnel. Contracts for network security appliances and associated software/maintenance, like this one, are common and often awarded as multi-year, firm-fixed-price agreements valued in the tens of millions. Analyzing past VA budgets and contract databases would reveal trends in technology adoption and spending levels for comparable IT categories.

What is the potential impact of this contract on the VA's overall IT modernization efforts?

This contract represents a significant investment in the VA's IT infrastructure, specifically focusing on network security and management. By procuring Forescout appliances and associated services, the VA is likely aiming to enhance its network visibility, control access, and bolster its cybersecurity posture. This aligns with broader IT modernization goals that emphasize secure, reliable, and efficient digital operations. The successful implementation of this contract could provide a more robust foundation for future technological advancements and ensure that the VA's network can support evolving digital services for veterans and staff. It signifies a commitment to maintaining up-to-date network security capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10A22Q0209

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3203 KOENIGSTEIN AVE, NORFOLK, NE, 68701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,450,491

Exercised Options: $43,351,154

Current Obligation: $43,351,154

Actual Outlays: $31,363,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD87B

IDV Type: GWAC

Timeline