VA awards $39.7M for HCL BigFix software and support, impacting IT infrastructure

Contract Overview

Contract Amount: $39,734,112 ($39.7M)

Contractor: 3chief LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-14

End Date: 2026-08-29

Contract Duration: 1,810 days

Daily Burn Rate: $22.0K/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: ORDER PROVIDES FOR BRAND NAME HCL BIGFIX LIFECYCLE, COMPLIANCE AND INVENTORY CLIENT DEVICE PERPETUAL SOFTWARE LICENSES, SOFTWARE MAINTENANCE AND ON-SITE HCL PREMIUM TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39.7 million to 3CHIEF LLC for work described as: ORDER PROVIDES FOR BRAND NAME HCL BIGFIX LIFECYCLE, COMPLIANCE AND INVENTORY CLIENT DEVICE PERPETUAL SOFTWARE LICENSES, SOFTWARE MAINTENANCE AND ON-SITE HCL PREMIUM TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS. Key points: 1. This contract focuses on essential IT infrastructure management tools, ensuring compliance and inventory for client devices. 2. The use of brand-name HCL BigFix software suggests a specific need for its unique capabilities. 3. A significant portion of the award is allocated to software maintenance and premium technical support, indicating ongoing operational requirements. 4. The contract duration of approximately five years points to a long-term strategy for managing IT assets. 5. The award was made under full and open competition, suggesting a competitive bidding process. 6. The contract type is Firm Fixed Price, which provides cost certainty for the government.

Value Assessment

Rating: good

The total award of $39.7 million over five years for perpetual software licenses, maintenance, and support appears reasonable given the scope of enterprise-level IT management software. Benchmarking against similar large-scale software procurements for federal agencies, particularly for comprehensive endpoint management solutions, suggests this pricing is within expected ranges. The inclusion of premium technical support indicates a higher service level, which typically commands a premium price. Without specific per-unit license costs or detailed service level agreements, a precise value-for-money assessment is challenging, but the overall package seems aligned with market expectations for such critical IT infrastructure.

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 initial solicitation may have had some restrictions, the final award was made after a broad competitive process. The presence of two bidders suggests a moderate level of competition. A higher number of bidders generally leads to more aggressive pricing and a wider range of solutions, but two bidders can still result in a competitive outcome, especially if the requirements are well-defined and the market has a limited number of qualified providers for this specific brand-name software.

Taxpayer Impact: The full and open competition, even with two bidders, provides a degree of assurance that taxpayer funds were used efficiently by allowing multiple vendors to vie for the contract, potentially driving down costs compared to a sole-source award.

Public Impact

The Department of Veterans Affairs (VA) benefits directly through enhanced IT asset management, compliance, and security. Federal employees within the VA will utilize the HCL BigFix software for daily operations and IT administration. The services delivered include perpetual software licenses, ongoing maintenance, and critical on-site technical support. The geographic impact is primarily within the VA's operational facilities across the United States. Workforce implications include the need for IT personnel skilled in managing and supporting the HCL BigFix platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to brand-name software requirement.
Reliance on a single vendor for critical software maintenance and support could pose risks if the vendor's service quality declines.
The 'after exclusion of sources' clause in the competition type warrants further investigation into any initial limitations.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm Fixed Price contract type provides budget certainty.
Long-term contract (approx. 5 years) suggests a stable IT strategy for the VA.
Inclusion of premium technical support indicates a commitment to high service levels.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing, maintenance, and support for endpoint management. The market for such solutions is characterized by a few dominant players offering comprehensive suites for asset management, security, and compliance. Federal spending in this area is substantial, driven by the need to manage vast and complex IT infrastructures, ensure cybersecurity, and maintain regulatory compliance. Comparable spending benchmarks would involve looking at other large federal agencies' procurements for similar enterprise software solutions, such as those from Microsoft, IBM, or other endpoint management providers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, 3CHIEF LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to potential subcontracting roles, if any are established by the prime contractor, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs' contracting officers and program managers. The contract's performance will be monitored against the terms and conditions of the Firm Fixed Price delivery order, including the delivery of software licenses and the provision of maintenance and technical support. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Asset Management Software
Software Maintenance Services
Technical Support Services
Endpoint Security Solutions
IT Infrastructure Management

Risk Flags

Brand-name requirement may limit competition and potentially increase costs.
Reliance on a single vendor for critical software and support.
Contract duration of nearly five years requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39.7 million to 3CHIEF LLC. ORDER PROVIDES FOR BRAND NAME HCL BIGFIX LIFECYCLE, COMPLIANCE AND INVENTORY CLIENT DEVICE PERPETUAL SOFTWARE LICENSES, SOFTWARE MAINTENANCE AND ON-SITE HCL PREMIUM TECHNICAL SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS.

Who is the contractor on this award?

The obligated recipient is 3CHIEF 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 $39.7 million.

What is the period of performance?

Start: 2021-09-14. End: 2026-08-29.

What is the track record of 3CHIEF LLC in delivering similar IT software and support services to federal agencies?

Information regarding 3CHIEF LLC's specific track record with federal IT software and support services is not detailed in the provided data. To assess their performance, one would need to review past performance evaluations, contract history, and any reported issues or successes on similar contracts. Federal procurement databases and past performance questionnaires are key resources for this analysis. A lack of readily available detailed performance data could indicate a newer entrant or a focus on specific niches. Further investigation into their contract awards and client feedback would be necessary to establish a comprehensive understanding of their capabilities and reliability in delivering complex IT solutions.

How does the per-unit cost of HCL BigFix licenses and maintenance compare to market rates or other federal agency procurements?

The provided data does not include specific per-unit costs for the HCL BigFix licenses or maintenance. To perform this comparison, one would need to obtain the detailed pricing breakdown from the contract award. Subsequently, these unit costs could be benchmarked against publicly available pricing from HCL for similar license types and maintenance tiers, as well as against data from other federal agencies that have procured comparable software. Factors such as volume discounts, contract duration, and the specific support levels included (e.g., premium technical support) significantly influence per-unit pricing. Without this granular data, a precise comparison is not feasible, but the overall contract value of $39.7 million suggests a substantial deployment.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with the premium technical support?

The provided data mentions 'on-site HCL Premium Technical Support' but does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) governing this support. Typically, premium support SLAs would define response times for critical issues, resolution targets, availability of expert personnel, and potentially proactive system monitoring or health checks. The effectiveness and value of this premium support hinge on these specific metrics. To assess its adequacy, one would need to examine the contract's statement of work (SOW) or associated performance requirements. Without these details, it's difficult to quantify the expected level of service or evaluate performance against defined standards.

What is the historical spending trend for HCL BigFix software and related services at the Department of Veterans Affairs?

The provided data represents a single delivery order valued at $39.7 million for HCL BigFix software and support, with a period of performance from September 2021 to August 2026. To understand the historical spending trend, one would need to analyze prior contract awards for HCL BigFix or similar endpoint management solutions by the VA. This would involve searching federal procurement databases for previous contracts, noting their values, durations, and scopes. A trend analysis would reveal whether this current award represents an increase, decrease, or consistent level of spending on this particular software suite or category of services over time, providing context on the VA's long-term investment in such IT solutions.

What are the potential risks associated with relying on a single vendor for both perpetual software licenses and ongoing maintenance/support?

Relying on a single vendor like HCL for both perpetual software licenses and ongoing maintenance/support presents several potential risks. Firstly, there's the risk of vendor lock-in, where switching to a different solution becomes prohibitively expensive or complex due to proprietary technology or data formats. Secondly, the vendor's financial stability or strategic direction could impact the continuity and quality of support and future software development. Thirdly, pricing for maintenance and support renewals could increase significantly over time, especially if competition is limited. Finally, the vendor's ability to adapt to evolving cybersecurity threats or technological advancements might lag, potentially leaving the VA's systems vulnerable or outdated if the vendor does not innovate effectively.

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 - IT MANAGEMENT

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: 215 DEPOT CT SE STE 247, LEESBURG, VA, 20175

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

Financial Breakdown

Contract Ceiling: $65,869,424

Exercised Options: $40,191,672

Current Obligation: $39,734,112

Actual Outlays: $24,882,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD25B

IDV Type: GWAC

Timeline