VA awards $119M cloud computing contract to BY LIGHT PROFESSIONAL IT SERVICES LLC for private cloud support

Contract Overview

Contract Amount: $119,302,682 ($119.3M)

Contractor: BY Light Professional IT Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-01-14

End Date: 2019-07-13

Contract Duration: 545 days

Daily Burn Rate: $218.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD"

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $119.3 million to BY LIGHT PROFESSIONAL IT SERVICES LLC for work described as: THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD" Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating a phased approach to service delivery. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The duration of 545 days suggests a medium-term engagement for cloud services. 5. The contract supports a 'private cloud' model, implying specific security and control requirements. 6. The primary agency and the awarding agency are both the Department of Veterans Affairs, indicating internal service provision.

Value Assessment

Rating: good

The contract value of approximately $119 million for a 545-day period for cloud computing IaaS services appears to be within a reasonable range for enterprise-level solutions. Benchmarking against similar large-scale cloud service contracts would provide a more precise value-for-money assessment. The firm fixed price structure offers cost predictability. However, without detailed service level agreements and performance metrics, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests the agency sought the best available solution in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions, ensuring the government receives competitive pricing and high-quality services.

Public Impact

Veterans Affairs (VA) personnel and systems benefit from enhanced cloud computing infrastructure. The contract delivers Infrastructure as a Service (IaaS) for a private cloud environment. Services are likely concentrated within VA facilities or data centers, primarily impacting Virginia. The contract supports IT operations and potentially impacts IT workforce needs within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully.
Dependence on a single vendor for critical cloud infrastructure.
Ensuring data security and compliance within the private cloud environment.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a competitive market was leveraged.
Cloud computing services can offer scalability and efficiency improvements.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on cloud computing (IaaS). The market for cloud services is highly competitive and rapidly evolving, with significant government spending allocated to cloud migration and modernization. This contract represents a portion of the VA's broader IT modernization efforts, aiming to leverage private cloud solutions for enhanced performance and security. Comparable spending benchmarks for large-scale IaaS contracts can vary widely based on scope, duration, and specific service requirements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, BY LIGHT PROFESSIONAL IT SERVICES LLC, is responsible for its own subcontracting strategy, which may or may not involve small businesses.

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 within the contract's performance work statement and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Cloud Computing Services
IT Infrastructure Services
Data Center Modernization
Information Technology Professional Services

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of security breaches or data loss.
Dependence on vendor performance and stability.
Challenges in integrating with existing VA IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $119.3 million to BY LIGHT PROFESSIONAL IT SERVICES LLC. THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD"

Who is the contractor on this award?

The obligated recipient is BY LIGHT PROFESSIONAL IT SERVICES 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 $119.3 million.

What is the period of performance?

Start: 2018-01-14. End: 2019-07-13.

What is the track record of BY LIGHT PROFESSIONAL IT SERVICES LLC in delivering cloud computing services to the federal government?

BY LIGHT PROFESSIONAL IT SERVICES LLC has a history of providing IT services to the federal government, including cloud-related solutions. While this specific contract is for a significant amount, their broader portfolio includes various IT support and modernization efforts. A deeper dive into their past performance on similar cloud contracts, including client satisfaction, adherence to timelines, and budget management, would be necessary for a comprehensive assessment. Reviewing past performance evaluations and any contract disputes or awards would offer further insight into their capabilities and reliability in the cloud services domain.

How does the pricing of this contract compare to similar cloud computing IaaS contracts awarded by the VA or other federal agencies?

Benchmarking the pricing of this $119 million contract for a 545-day period requires detailed comparison with similar IaaS contracts. Factors such as the specific services included (compute, storage, networking), service level agreements (SLAs), security requirements, and the scale of deployment significantly influence pricing. Without access to the detailed pricing structure and the specific service catalog utilized, a direct comparison is difficult. However, given the 'full and open competition' award, it suggests the pricing was deemed competitive at the time of award. Further analysis would involve comparing per-unit costs for specific cloud resources (e.g., virtual machines, storage) against market rates and other government contracts.

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

Key risks include potential vendor lock-in, ensuring robust data security and compliance within the private cloud environment, and the possibility of performance issues or service disruptions. Mitigation strategies likely involve clearly defined Service Level Agreements (SLAs) with performance metrics and penalties, stringent security protocols and audits, and contingency planning for service continuity. The firm fixed price nature of the contract helps mitigate cost overrun risks for the government. Regular performance reviews and open communication channels between the VA and BY LIGHT PROFESSIONAL IT SERVICES LLC are crucial for proactive risk management.

How effective is the 'private cloud' model chosen for this contract in meeting the VA's specific needs compared to other cloud deployment models?

The choice of a 'private cloud' model suggests the VA prioritized enhanced control, security, and customization for its sensitive data and applications. This model typically offers greater isolation and dedicated resources compared to public clouds, which can be crucial for agencies with stringent regulatory or security requirements. The effectiveness hinges on the VA's specific needs for data sovereignty, compliance mandates (like HIPAA), and the desire for a tailored environment. While potentially more expensive and complex to manage than public cloud options, a private cloud can be highly effective if it aligns with the VA's unique operational and security posture, providing a secure and controlled environment for critical systems.

What has been the historical spending trend for cloud computing services by the Department of Veterans Affairs?

The Department of Veterans Affairs has been increasingly investing in cloud computing services as part of its broader IT modernization strategy. Historical spending data would likely show a significant upward trend in cloud adoption over the past several years, moving away from traditional on-premises infrastructure. This includes spending on various cloud models (IaaS, PaaS, SaaS) and deployment types (public, private, hybrid). This $119 million contract represents a substantial investment within that trend, indicating a commitment to leveraging cloud technologies for improved efficiency, scalability, and service delivery to veterans.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD STE 850, ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $764,336,471

Exercised Options: $119,679,208

Current Obligation: $119,302,682

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $111,355,581

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1019

IDV Type: IDC

Timeline