VA awards $58.8M for IT hardware and support, with Intelligent Waves LLC as the primary contractor

Contract Overview

Contract Amount: $58,774,997 ($58.8M)

Contractor: Intelligent Waves LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-03-15

End Date: 2019-03-14

Contract Duration: 364 days

Daily Burn Rate: $161.5K/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: THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES. REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED. FURTHERMORE, THE GOVERNMENT EXPRESSLY PROVIDES HEREIN THAT IT HAS RESERVED THE RIGHT TO PROCURE, IN ITS SOLE DISCRETION, OPTIONAL QUANTITIES OF ADDITIONAL LAPTOPS, PCS, DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES, AS SEPARATELY DETAILED, AND UP TO THE MAXIMUM QUANTITIES SPECIFIED.

Place of Performance

Location: BLACK HAWK, MEADE County, SOUTH DAKOTA, 57718

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.8 million to INTELLIGENT WAVES LLC for work described as: THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SER… Key points: 1. The contract focuses on essential end-user IT hardware, including laptops and PCs, alongside crucial support services. 2. A significant portion of the award is allocated to warranty support, highlighting the importance of device longevity and uptime. 3. The contract includes provisions for optional quantities, allowing the VA to scale its hardware procurement based on evolving needs. 4. The procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests a competitive process with specific source considerations. 5. The duration of the contract is one year, indicating a need for timely delivery of IT equipment and services. 6. The award value of nearly $59 million underscores the VA's substantial investment in maintaining its end-user computing infrastructure.

Value Assessment

Rating: good

The award of $58.8 million for IT hardware and support appears reasonable given the scope of providing laptops, PCs, docking stations, monitors, and warranty services to the Department of Veterans Affairs. Benchmarking against similar large-scale IT hardware procurements for federal agencies suggests that this value falls within expected ranges for comprehensive support contracts. The inclusion of warranty services contributes to the overall value by ensuring device reliability and reducing potential downtime costs for the VA.

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 while the competition was open, certain sources may have been excluded based on specific criteria. The number of bidders is not explicitly stated, but the designation implies a competitive process was undertaken to ensure fair pricing and access to a range of qualified vendors. This approach aims to balance the need for specialized capabilities with broad market access.

Taxpayer Impact: The competitive nature of this award, even with source exclusions, suggests that taxpayers likely benefited from a price that reflects market conditions and vendor capabilities, rather than a sole-source situation.

Public Impact

Veterans Affairs personnel will benefit from updated and supported computing hardware, enabling efficient service delivery. The contract ensures the provision of essential IT equipment, including laptops and personal computers, to support daily operations. Warranty support services are included, aiming to minimize disruptions and maintain the functionality of deployed hardware. The contract supports the VA's national IT infrastructure, impacting employees across various locations. Workforce productivity is expected to be maintained or enhanced through reliable and modern end-user devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if optional quantities are heavily utilized without re-competition.
Reliance on a single awardee for a broad range of hardware and support could pose supply chain risks.
The 'Exclusion of Sources' clause warrants further scrutiny to understand its impact on overall competition.
Ensuring adequate performance monitoring for warranty services is crucial to realize full value.

Positive Signals

The contract addresses a clear need for end-user IT hardware and essential support services.
The inclusion of warranty support demonstrates a focus on long-term device usability and cost management.
The contract structure allows for flexibility in scaling quantities based on VA's evolving requirements.
Awarding to a single entity for this scope can streamline management and integration of IT assets.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on end-user computing hardware and support services. The market for such procurements is large and competitive, with numerous vendors offering a wide array of laptops, PCs, and related support. The VA's spending in this area is consistent with the needs of large federal agencies requiring robust and reliable IT infrastructure to support their missions. Comparable spending benchmarks for similar IT hardware and support contracts across government agencies can provide further context for value assessment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. However, without explicit set-aside goals or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if subcontracting opportunities were effectively utilized by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Veterans Affairs' IT department. Accountability measures would be tied to the delivery of specified hardware and warranty services according to the contract's terms and conditions. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected or identified.

Related Government Programs

VA IT Hardware Procurement
End User Computing Services
Federal IT Support Contracts
Department of Veterans Affairs Technology Modernization

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'.
Reliance on a single vendor for critical hardware and support.
Need for robust performance monitoring of warranty services.
Supply chain vulnerability for hardware components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.8 million to INTELLIGENT WAVES LLC. THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES. REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED. FURTHERMORE, THE GOVERNMENT EXPRESSLY PROVIDES HEREIN THAT IT HAS RESERVED THE RIGHT TO PROCURE, IN ITS SOLE DISCRETION, OPTIONAL QU

Who is the contractor on this award?

The obligated recipient is INTELLIGENT WAVES 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 $58.8 million.

What is the period of performance?

Start: 2018-03-15. End: 2019-03-14.

What is the track record of Intelligent Waves LLC in fulfilling similar federal IT hardware and support contracts?

Intelligent Waves LLC has a history of securing federal contracts, including those related to IT services and hardware. A review of their past performance indicates experience with various government agencies, often involving complex IT solutions and support. To fully assess their track record for this specific VA contract, a deeper dive into their performance on prior, comparable awards would be necessary. This would involve examining metrics such as on-time delivery, quality of goods and services, adherence to budget, and customer satisfaction ratings from previous government clients. Understanding their success in managing similar scopes of work, particularly those involving large quantities of end-user devices and comprehensive warranty support, is crucial for evaluating their capability to meet the VA's requirements effectively.

How does the $58.8 million award value compare to similar VA or other federal agency IT hardware procurements?

The $58.8 million award for laptops, PCs, docking stations, monitors, and warranty support is a substantial sum, reflecting the scale of the Department of Veterans Affairs' IT needs. To benchmark this value effectively, comparisons should be made with contracts of similar scope and duration awarded by other large federal agencies, such as the Department of Defense or HHS, for end-user computing hardware and support. Factors like the specific models of hardware, the level of warranty coverage, and the inclusion of incidental software and services will influence the per-unit cost. Without detailed breakdowns of these components, a precise comparison is challenging. However, the award appears to be within the expected range for a comprehensive, one-year contract supporting a large federal workforce's IT infrastructure needs.

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

Primary risks associated with this contract include potential supply chain disruptions for hardware, performance issues with warranty support services, and the possibility of the VA not fully utilizing the optional quantities, leading to suboptimal resource allocation. Mitigation strategies likely involve the VA's established procurement processes, which include vendor vetting and performance monitoring. For supply chain risks, the contract may include clauses requiring timely delivery and penalties for delays. For service performance, the VA would typically have quality assurance surveillance plans (QASPs) in place to monitor the effectiveness of warranty support. The decision to exercise optional quantities would be based on ongoing needs assessments, ensuring that any scaling aligns with strategic IT planning and budget availability.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad competition with specific requirements that might necessitate excluding certain types of vendors or solutions. While 'full and open' competition generally promotes price discovery and value for taxpayers by encouraging multiple bids, the 'exclusion of sources' element introduces a layer of specificity. If the exclusions are well-justified based on technical requirements, security needs, or past performance, this approach can lead to a more tailored and effective solution, potentially yielding better long-term value. However, if the exclusions are overly broad or not adequately justified, they could limit competition, potentially leading to higher prices or fewer innovative solutions, thus diminishing taxpayer value. Careful justification and oversight of the exclusion criteria are key to ensuring this method serves taxpayer interests.

What are the historical spending patterns for similar IT hardware and support at the VA?

Analyzing historical spending patterns for similar IT hardware and support at the VA is crucial for context. This would involve examining previous contracts for end-user devices, docking stations, monitors, and associated warranty services over several fiscal years. Key metrics to track include the total annual spend, the average contract value, the number of awarded contracts, and the primary contractors. Understanding trends in spending—whether it's increasing, decreasing, or remaining stable—can indicate shifts in IT strategy, technology adoption, or budget allocations. Furthermore, comparing spending across different types of hardware or support services can reveal areas of significant investment or potential cost-saving opportunities for the VA. This historical data provides a baseline against which the current $58.8 million award can be assessed for reasonableness and efficiency.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1801 ROBERT FULTON DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $89,125,000

Exercised Options: $58,774,997

Current Obligation: $58,774,997

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1000

IDV Type: IDC

Timeline