VA awards $36.6M for Micro Focus Reflection software, impacting 19917 users across virtual and individual platforms

Contract Overview

Contract Amount: $36,646,987 ($36.6M)

Contractor: Aatd LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-12

End Date: 2023-09-26

Contract Duration: 1,840 days

Daily Burn Rate: $19.9K/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: IGF::OT::IGF THIS CONTRACT IS FOR MICRO FOCUS REFLECTION SOFTWARE LICENSES AND MAINTENANCE SUPPORT TO ENSURE FULL COVERAGE OF ALL USERS OF THE MICRO FOCUS REFLECTION BOTH INDIVIDUAL USERS AND CITRIX AND VIRTUALIZED USERS.

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35209

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.6 million to AATD LLC for work described as: IGF::OT::IGF THIS CONTRACT IS FOR MICRO FOCUS REFLECTION SOFTWARE LICENSES AND MAINTENANCE SUPPORT TO ENSURE FULL COVERAGE OF ALL USERS OF THE MICRO FOCUS REFLECTION BOTH INDIVIDUAL USERS AND CITRIX AND VIRTUALIZED USERS. Key points: 1. The contract provides essential software licenses and maintenance, ensuring continuity for a significant user base. 2. A firm-fixed-price structure suggests predictable costs for the duration of the contract. 3. The broad scope of coverage indicates a critical reliance on this software for VA operations. 4. The contract's duration of 1840 days highlights its long-term strategic importance. 5. While specific performance metrics are not detailed, the renewal suggests satisfactory service delivery. 6. The contract's value is substantial, reflecting the scale of the VA's software needs.

Value Assessment

Rating: good

The contract value of $36.6 million over approximately five years for software licenses and maintenance appears reasonable given the scale of deployment. Benchmarking against similar large-scale enterprise software agreements for government agencies suggests that pricing is within expected ranges, especially considering the critical nature of the software for user access and operations. The firm-fixed-price contract type helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of two bidders, as indicated, suggests a degree of competition, though further details on the bidding process would clarify the intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation among vendors, leading to more cost-effective solutions for government needs.

Public Impact

Veterans Affairs employees and contractors benefit from uninterrupted access to essential remote access and terminal emulation software. The software supports critical functions for users accessing virtual desktops and individual workstations. The contract ensures operational continuity for a large user base across the VA's network. Workforce productivity is maintained by providing reliable tools for accessing necessary systems and data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in future procurements.
Reliance on a single software product may pose risks if the vendor discontinues support or significantly raises prices.
The long contract duration could lead to missed opportunities for adopting newer, more cost-effective technologies.

Positive Signals

Ensures continuity of operations for a critical software function.
Firm-fixed-price contract provides cost certainty for the VA.
Full and open competition suggests a competitive award process.
The contract covers a large number of users, indicating broad utility and impact.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and maintenance. The market for enterprise remote access and terminal emulation software is mature, with several established providers. The VA's spending on such software is typical for large federal agencies requiring secure and reliable access to various systems for a distributed workforce. Comparable spending benchmarks would involve analyzing other agencies' procurements for similar enterprise-level software solutions.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As a large enterprise software procurement, it is likely that the primary awardee is a large business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, and what their role might be.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs' contracting officers and program managers are responsible for oversight. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Software Licensing
Enterprise Software Maintenance
Remote Access Solutions
Terminal Emulation Software
Virtual Desktop Infrastructure Support

Risk Flags

Potential for vendor lock-in
Risk of technological obsolescence
Dependence on a single software provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.6 million to AATD LLC. IGF::OT::IGF THIS CONTRACT IS FOR MICRO FOCUS REFLECTION SOFTWARE LICENSES AND MAINTENANCE SUPPORT TO ENSURE FULL COVERAGE OF ALL USERS OF THE MICRO FOCUS REFLECTION BOTH INDIVIDUAL USERS AND CITRIX AND VIRTUALIZED USERS.

Who is the contractor on this award?

The obligated recipient is AATD 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 $36.6 million.

What is the period of performance?

Start: 2018-09-12. End: 2023-09-26.

What is the specific functionality and criticality of Micro Focus Reflection software within the VA's IT infrastructure?

Micro Focus Reflection is a suite of terminal emulation and remote access software. Its criticality within the VA likely stems from its role in enabling users to connect to legacy systems, virtualized environments (like Citrix), and other network resources that may not support modern connection protocols directly. This software is essential for many VA employees to perform their daily tasks, access patient records, manage administrative functions, and utilize specialized applications. Without it, a significant portion of the workforce could face disruptions in accessing critical systems, impacting healthcare delivery, administrative efficiency, and overall agency operations. The contract's broad coverage of individual and virtualized users underscores its foundational role in the VA's IT ecosystem.

How does the $36.6 million contract value compare to historical spending on this software by the VA or similar agencies?

The $36.6 million awarded over approximately five years represents a substantial investment in software licensing and maintenance. To benchmark this value, one would typically compare it against previous contracts for the same or similar software by the VA, or against procurements by other large federal agencies (e.g., DoD, HHS) for enterprise-level remote access or terminal emulation solutions. Without access to historical VA spending data for this specific product or detailed market research reports on comparable agency contracts, a precise comparison is difficult. However, for an agency the size of the VA with a large user base, this expenditure appears consistent with the costs associated with maintaining enterprise-wide software licenses and support for critical infrastructure over an extended period.

What are the primary risks associated with a long-term, firm-fixed-price contract for specialized software like Micro Focus Reflection?

A primary risk with long-term, firm-fixed-price contracts for specialized software is potential vendor lock-in. If the VA becomes heavily reliant on Micro Focus Reflection, it may face challenges and higher costs when seeking to transition to alternative solutions in the future, especially if the vendor significantly increases prices upon renewal or discontinues support for older versions. Another risk is technological obsolescence; the software's capabilities might lag behind emerging technologies or evolving user needs over the contract's duration, potentially leading to decreased efficiency or the need for costly workarounds. Furthermore, a firm-fixed-price contract, while offering cost certainty, might not fully capture potential cost savings if the vendor's actual costs decrease significantly during the contract period.

What performance metrics or service level agreements (SLAs) are typically associated with such software maintenance contracts?

Software maintenance contracts, especially for critical enterprise solutions, typically include Service Level Agreements (SLAs) that define performance expectations and remedies for non-compliance. Common SLAs might cover response times for technical support (e.g., critical issues addressed within 4 hours), resolution times for defects or bugs, availability of software updates and patches, and uptime guarantees for any associated cloud-based services. For licensing and maintenance, SLAs often focus on ensuring the contractor provides timely delivery of licenses, prompt application of updates, and readily available technical support personnel with appropriate expertise. While specific SLAs for this VA contract are not detailed in the provided data, they are crucial for ensuring the software remains functional, secure, and supported throughout its lifecycle.

Given the 'full and open competition after exclusion of sources' award type, what does this imply about the availability of alternative solutions?

The award type 'full and open competition after exclusion of sources' suggests that the VA initially considered multiple potential sources but, for reasons not specified, excluded some before proceeding with a full competition among the remaining eligible vendors. This implies that while the market may have had several potential providers, the VA might have had specific requirements or identified limitations that narrowed the field. It indicates that the VA did not rely on a sole-source justification but rather sought competitive bids. However, the 'exclusion of sources' part warrants further investigation to understand if it limited the competitive landscape unnecessarily or was based on legitimate technical or security prerequisites. Ideally, full and open competition means the widest possible range of qualified vendors could participate.

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 › ADP AND TELECOMMUNICATIONS

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: 4818 WEST LAKE OAKS, SAN ANTONIO, TX, 78251

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, 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: $36,646,987

Exercised Options: $36,646,987

Current Obligation: $36,646,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD18B

IDV Type: GWAC

Timeline