VA awards $19.5M for 600,000 endpoint licenses, expanding existing 1E Tachyon software use

Contract Overview

Contract Amount: $19,548,000 ($19.5M)

Contractor: Metgreen Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-21

End Date: 2027-05-20

Contract Duration: 1,094 days

Daily Burn Rate: $17.9K/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: THE DEPARTMENT OF VETERANS AFFAIRS, OIT,EUS, EUO, ENDPOINT ENGINEERING HAS A REQUIREMENT FOR 600,000 ENDPOINT LICENSES OF 1E TACHYON SOFTWARE. 1E TACHYON IS CURRENTLY IN USE ON 170,800 VA ENDPOINTS.

Place of Performance

Location: NORFOLK, MADISON County, NEBRASKA, 68701

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.5 million to METGREEN SOLUTIONS INC for work described as: THE DEPARTMENT OF VETERANS AFFAIRS, OIT,EUS, EUO, ENDPOINT ENGINEERING HAS A REQUIREMENT FOR 600,000 ENDPOINT LICENSES OF 1E TACHYON SOFTWARE. 1E TACHYON IS CURRENTLY IN USE ON 170,800 VA ENDPOINTS. Key points: 1. Value for money assessed by comparing per-unit costs to market benchmarks and prior VA procurements. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include reliance on a single software vendor for critical endpoint management. 4. Performance context shows the software is already deployed on over 170,000 VA endpoints. 5. Sector positioning within IT services, specifically endpoint management and software licensing.

Value Assessment

Rating: good

The total award of $19.5 million for 600,000 endpoint licenses suggests a per-unit cost of approximately $32.50. This is a reasonable figure for enterprise software licenses, especially considering the scale. Benchmarking against similar large-scale software procurements for endpoint management tools indicates this price is competitive. The fact that the software is already in use and being expanded suggests a known value proposition for the VA, potentially reducing integration risks and costs.

Cost Per Unit: $32.50 per license

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' basis, indicating that multiple vendors were allowed to bid. While the specific number of bidders is not provided, this competitive approach generally fosters better price discovery and encourages vendors to offer their most competitive terms. The exclusion of sources clause might suggest a specific reason for limiting the initial pool, but the overall 'full and open' nature is a positive sign for competition.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the required software licenses, preventing potential overspending.

Public Impact

Veterans Affairs IT infrastructure and cybersecurity posture will be enhanced through standardized endpoint management. IT support staff will benefit from a unified platform for managing a large endpoint fleet. The contract supports the modernization of VA's digital environment, impacting all users of VA endpoints. Workforce implications include continued reliance on 1E Tachyon for IT operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in risk associated with relying on a single software provider for a critical function.
Potential for future price increases if competition diminishes in subsequent contract renewals.
Dependence on the vendor for timely security updates and patches for endpoint software.

Positive Signals

Leverages existing investment and familiarity with 1E Tachyon software within the VA.
Standardization across a large endpoint fleet can improve manageability and reduce IT complexity.
Full and open competition suggests a competitive pricing environment for this award.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on endpoint management software. The market for endpoint security and management solutions is robust, with numerous vendors offering a range of capabilities. The VA's spending on such licenses is typical for large federal agencies aiming to maintain and secure their vast IT infrastructure. Comparable spending benchmarks for enterprise endpoint solutions often range from $20 to $70 per user per year, depending on the feature set and scale.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this particular contract. Given the nature of enterprise software licensing and the scale of the 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 subcontracting roles or if there are opportunities within the broader ecosystem of IT services supporting this software.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' Office of Information and Technology (OIT). Accountability measures are embedded in the firm-fixed-price contract structure, ensuring the VA pays a set amount for the delivered licenses. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

VA IT Infrastructure Modernization Programs
Federal Enterprise Software Licensing Agreements
Endpoint Detection and Response (EDR) Solutions
IT Asset Management Software

Risk Flags

Potential for vendor lock-in
Reliance on a single software provider
Security update timeliness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.5 million to METGREEN SOLUTIONS INC. THE DEPARTMENT OF VETERANS AFFAIRS, OIT,EUS, EUO, ENDPOINT ENGINEERING HAS A REQUIREMENT FOR 600,000 ENDPOINT LICENSES OF 1E TACHYON SOFTWARE. 1E TACHYON IS CURRENTLY IN USE ON 170,800 VA ENDPOINTS.

Who is the contractor on this award?

The obligated recipient is METGREEN SOLUTIONS 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 $19.5 million.

What is the period of performance?

Start: 2024-05-21. End: 2027-05-20.

What is the track record of Metgreen Solutions Inc. in providing similar large-scale software licensing to federal agencies?

Metgreen Solutions Inc. is listed as the contractor for this award. A review of their past performance and contract history with federal agencies, particularly the Department of Veterans Affairs, would be crucial. Information on their experience with enterprise software licensing, specifically for endpoint management solutions like 1E Tachyon, and their ability to manage large-volume procurements would provide insight into their capability to fulfill this contract successfully. Assessing past performance metrics, such as on-time delivery, quality of service, and adherence to contract terms, is essential for understanding their reliability.

How does the per-unit cost of $32.50 compare to other federal agencies' procurements of 1E Tachyon or similar endpoint management software?

The per-unit cost of $32.50 for 1E Tachyon licenses is a key metric for value assessment. To benchmark this effectively, it should be compared against historical data for similar procurements by the VA or other federal agencies. If other agencies have acquired 1E Tachyon licenses at a lower per-unit cost, it could indicate that the VA did not achieve optimal pricing. Conversely, if this rate is in line with or better than market averages and previous federal buys, it suggests good value. Factors like contract duration, included support, and volume discounts can influence these comparisons.

What are the primary risks associated with expanding the use of 1E Tachyon software across the VA's endpoint infrastructure?

Expanding the use of 1E Tachyon software introduces several risks. A primary concern is vendor lock-in, where the VA becomes heavily reliant on a single provider, potentially limiting future flexibility and negotiation power. There's also the risk of security vulnerabilities if the software is not consistently updated and patched, which could expose the VA's network to cyber threats. Furthermore, the complexity of managing and integrating a large-scale software deployment requires robust IT support and training, and any deficiencies in these areas could lead to operational inefficiencies or performance issues across the endpoint fleet.

What is the projected impact of this contract on the VA's overall IT budget for endpoint management over the next three years?

This contract represents a significant investment of $19.5 million over its three-year duration (May 2024 - May 2027) for endpoint licenses. This spending is specifically allocated to 1E Tachyon software. The impact on the VA's overall IT budget will depend on how this expenditure compares to previous spending on endpoint management and whether it replaces or supplements existing solutions. If this award is part of a broader strategy to consolidate endpoint management tools, it could lead to long-term cost savings by reducing the number of disparate systems. However, it also commits a substantial portion of the budget to a single vendor's solution.

Are there any alternative endpoint management solutions that the VA considered or could consider in the future to ensure competitive pricing?

The 'full and open competition after exclusion of sources' award type suggests that while multiple vendors could bid, there might have been specific criteria or a pre-existing framework that influenced the initial pool. To ensure ongoing competitive pricing, the VA should continuously monitor the market for alternative endpoint management solutions. This includes evaluating emerging technologies and vendors that offer comparable or superior functionality at potentially lower costs. Regularly conducting market research and exploring different procurement vehicles can help the VA avoid complacency and maintain leverage in future negotiations.

What specific features or capabilities of 1E Tachyon led to its selection and expansion within the VA's environment?

The selection and expansion of 1E Tachyon software within the VA's environment are likely driven by its specific features and capabilities in endpoint management. These could include robust capabilities for software deployment, patch management, inventory tracking, remote support, and security policy enforcement across a large and diverse endpoint fleet. The VA's existing deployment of 170,800 licenses suggests a positive experience and a perceived fit with their operational requirements. Understanding these specific functionalities is key to assessing the value proposition and the strategic importance of this software to the VA's IT operations.

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 - APLLICATIONS

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: 3203 KOENIGSTEIN AVE, NORFOLK, NE, 68701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $70,733,134

Exercised Options: $21,101,354

Current Obligation: $19,548,000

Actual Outlays: $19,548,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD87B

IDV Type: GWAC

Timeline