VA's $36M Mainframe Maintenance Contract Awarded to Merlin International, Inc
Contract Overview
Contract Amount: $35,977,981 ($36.0M)
Contractor: Merlin International, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-10-01
End Date: 2024-10-31
Contract Duration: 1,126 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BENEFITS DELIVERY NETWORK NOVASCALE MAINFRAME MAINTENANCE
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $36.0 million to MERLIN INTERNATIONAL, INC. for work described as: BENEFITS DELIVERY NETWORK NOVASCALE MAINFRAME MAINTENANCE Key points: 1. The contract is for mainframe maintenance services, a critical but often costly IT function. 2. Merlin International, Inc. secured this award, indicating potential competition within the IT maintenance sector. 3. The firm fixed price contract type aims to control costs, but ongoing maintenance needs can escalate. 4. This spending supports the Benefits Delivery Network, highlighting its importance to veteran services.
Value Assessment
Rating: good
The contract's value of $35.98M over three years appears reasonable for specialized mainframe maintenance. Benchmarking against similar VA or DoD mainframe support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure on essential IT infrastructure maintenance.
Public Impact
Ensures continuity of critical IT systems supporting veteran benefits. Mainframe maintenance is essential for legacy systems that underpin many government operations. Potential for cost savings through competitive bidding on specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on legacy mainframe technology.
- Potential for vendor lock-in if specialized skills are scarce.
- Ensuring adequate performance and uptime for critical systems.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract structure.
- Supports critical veteran services.
Sector Analysis
This contract falls within the IT sector, specifically focusing on mainframe hardware and software maintenance. Spending on mainframe support can be substantial due to the specialized nature of the technology and the critical role these systems play in government operations.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting or prime award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract and delivery order structure provide some level of cost control, but ongoing monitoring of performance and service levels is crucial.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns if unforeseen issues arise.
- Dependence on a single vendor for critical mainframe support.
- Risk of technological obsolescence if modernization is delayed.
- Ensuring data security and integrity on legacy systems.
Tags
electronic-computer-manufacturing, department-of-veterans-affairs, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $36.0 million to MERLIN INTERNATIONAL, INC.. BENEFITS DELIVERY NETWORK NOVASCALE MAINFRAME MAINTENANCE
Who is the contractor on this award?
The obligated recipient is MERLIN INTERNATIONAL, 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 $36.0 million.
What is the period of performance?
Start: 2021-10-01. End: 2024-10-31.
What is the long-term strategy for modernizing the Benefits Delivery Network's infrastructure beyond mainframe reliance?
The long-term strategy for modernizing the Benefits Delivery Network's infrastructure is not detailed in this contract award. While mainframe maintenance ensures current operational continuity, agencies typically develop modernization roadmaps to transition from legacy systems to more agile and cost-effective platforms over time. This often involves cloud migration or adopting newer technologies to reduce reliance on specialized, high-maintenance hardware.
How does the cost of this mainframe maintenance compare to industry benchmarks for similar systems?
Direct comparison to industry benchmarks is challenging without specific details on the mainframe's configuration, age, and the scope of maintenance services included. However, the $35.98M contract value over three years suggests a significant investment. The VA should periodically benchmark these costs against similar government and private sector contracts to ensure continued cost-effectiveness and identify potential savings opportunities.
What are the key performance indicators (KPIs) used to measure the effectiveness of Merlin International's maintenance services?
Key performance indicators for this contract likely include system uptime percentages, response times for issue resolution, adherence to maintenance schedules, and successful implementation of updates or patches. The Department of Veterans Affairs would establish these KPIs in the contract's performance work statement to ensure Merlin International meets the required service levels and maintains the integrity and availability of the Benefits Delivery Network's mainframe systems.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: 8330 BOONE BLVD 8TH FL, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $48,824,370
Exercised Options: $35,977,981
Current Obligation: $35,977,981
Actual Outlays: $23,626,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC17B
IDV Type: GWAC
Timeline
Start Date: 2021-10-01
Current End Date: 2024-10-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-03-12
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