VA Awards $7.15M for VISN 8 CVI Hardware Upgrade to Redhawk IT Solutions

Contract Overview

Contract Amount: $7,148,747 ($7.1M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-30

End Date: 2027-03-29

Contract Duration: 1,825 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REQUIREMENT IS TO UPDATE AND REPLACE VA VISN 8 BIOMEDICAL CONVERGED VIRTUALIZATION INFRASTRUCTURE (CVI) HARDWARE TO SUPPORT VIRTUALIZATION WORKLOADS AT APPROXIMATELY EIGHT FACILITIES IN THE SUNSHINE HEALTHCARE NETWORK.

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.1 million to REDHAWK IT SOLUTIONS, LLC for work described as: REQUIREMENT IS TO UPDATE AND REPLACE VA VISN 8 BIOMEDICAL CONVERGED VIRTUALIZATION INFRASTRUCTURE (CVI) HARDWARE TO SUPPORT VIRTUALIZATION WORKLOADS AT APPROXIMATELY EIGHT FACILITIES IN THE SUNSHINE HEALTHCARE NETWORK. Key points: 1. The contract aims to modernize virtualization infrastructure across eight VA facilities in the Sunshine Healthcare Network. 2. Redhawk IT Solutions, LLC secured the award, indicating potential consolidation or specialized expertise in this area. 3. The contract's duration of five years suggests a long-term commitment to maintaining and upgrading critical IT systems. 4. The 'Other Computer Related Services' NAICS code points to a broad category, requiring further scrutiny for specific IT needs.

Value Assessment

Rating: fair

The contract value of $7.15 million over five years averages to approximately $1.43 million annually. Benchmarking this against similar IT infrastructure upgrades for large healthcare networks is difficult without more specific details on the hardware and services included.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for money.

Taxpayer Impact: Taxpayers are funding a critical infrastructure upgrade for the VA, aiming to improve healthcare IT services. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Veterans in VISN 8 will benefit from improved IT infrastructure supporting healthcare services. The upgrade ensures the VA's virtualization capabilities remain current, enhancing data security and operational efficiency. This investment supports the VA's broader digital transformation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price optimization.
NAICS code '541519' is broad and may not fully capture the specific technical requirements.
Lack of small business participation noted.

Positive Signals

Addresses critical infrastructure needs for VA healthcare.
Long-term contract provides stability for system upgrades.
Focus on virtualization supports modern IT practices.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer hardware and virtualization infrastructure. Spending benchmarks for similar large-scale IT hardware refresh projects within federal healthcare systems can vary significantly based on scope and technology.

Small Business Impact

The data indicates that small businesses were not a direct participant in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available or if the procurement strategy inherently excluded small business participation.

Oversight & Accountability

The award was made by the Department of Veterans Affairs, indicating internal oversight. The 'Delivery Order' nature suggests it's part of a larger contract vehicle, which may have its own oversight mechanisms. Accountability for performance and cost will lie with the VA contracting officers.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Broad NAICS code requires further definition of services.
Potential for vendor lock-in with specific hardware/software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.1 million to REDHAWK IT SOLUTIONS, LLC. REQUIREMENT IS TO UPDATE AND REPLACE VA VISN 8 BIOMEDICAL CONVERGED VIRTUALIZATION INFRASTRUCTURE (CVI) HARDWARE TO SUPPORT VIRTUALIZATION WORKLOADS AT APPROXIMATELY EIGHT FACILITIES IN THE SUNSHINE HEALTHCARE NETWORK.

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, 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 $7.1 million.

What is the period of performance?

Start: 2022-03-30. End: 2027-03-29.

What specific virtualization hardware and software are being updated, and how does this align with current industry standards and future VA IT roadmaps?

The provided data lacks specifics on the exact hardware and software components being updated. A comprehensive understanding of the 'Biomedical Converged Virtualization Infrastructure (CVI)' is crucial. This includes details on server, storage, and networking hardware, as well as the virtualization platform (e.g., VMware, Hyper-V). Aligning these updates with industry best practices and the VA's long-term IT strategy is essential for ensuring technological relevance, interoperability, and cost-effectiveness over the contract's lifespan.

How was the 'limited competition' justified, and what steps were taken to ensure fair market price discovery despite the restricted bidder pool?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' needs detailed review. Agencies typically exclude sources when specific capabilities, existing infrastructure compatibility, or unique requirements necessitate it. To ensure fair pricing, the VA should have conducted thorough market research, obtained competitive proposals from the limited pool, and performed robust cost/price analysis against independent government cost estimates or commercial benchmarks. Transparency in this justification is key to public trust.

What is the projected impact of this hardware upgrade on the operational efficiency and cybersecurity posture of the eight VA facilities within VISN 8?

The upgrade is expected to enhance operational efficiency by providing more robust and scalable virtualization capabilities, potentially reducing downtime and improving resource allocation. Improved hardware can also bolster the cybersecurity posture by supporting newer security features, patching vulnerabilities in older systems, and enabling more effective network segmentation. Quantifiable metrics for efficiency gains and specific cybersecurity enhancements should be established and tracked throughout the contract period.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other 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: $7,148,747

Exercised Options: $7,148,747

Current Obligation: $7,148,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline