VA awards $35.4M PC contract to Minburn Technology Group, highlighting IT hardware and support needs

Contract Overview

Contract Amount: $35,402,439 ($35.4M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-11

End Date: 2027-01-25

Contract Duration: 501 days

Daily Burn Rate: $70.7K/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: ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY SUPPORT.

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY SUPPORT. Key points: 1. Contract focuses on essential IT hardware and services, including PCs, docking stations, and peripherals. 2. Delivery order under an existing contract indicates a need for ongoing IT infrastructure support. 3. The firm fixed-price structure aims to control costs for the specified IT equipment and services. 4. Competition was open, suggesting a market-driven price for these IT solutions. 5. The duration of the contract extends into 2027, indicating a long-term requirement. 6. This award supports the Department of Veterans Affairs' operational IT infrastructure.

Value Assessment

Rating: good

The total award of $35.4 million for PCs, docking stations, keyboards, mice, and related services appears reasonable given the scope and duration. While direct comparisons are difficult without specific configurations and service level agreements, the firm fixed-price nature suggests a negotiated value. The benchmark of $70,664 per delivery order (based on the provided data) needs further context regarding the quantity and type of equipment/services included in each order to fully assess value for money. However, the competitive nature of the award provides some assurance of fair pricing.

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 multiple vendors had the opportunity to bid. The presence of 8 bidders (as indicated by 'no': 8) suggests a healthy level of competition for this IT hardware and services requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The open competition ensures that taxpayer dollars are likely being used efficiently, as vendors were incentivized to offer competitive pricing to secure the contract. This process helps prevent overpayment and promotes a fair market price for the required IT equipment and services.

Public Impact

Veterans Affairs personnel will benefit from updated and reliable computing hardware and peripherals. Essential IT services, including project/account management and warranty support, will be delivered. The contract supports the operational capabilities of the Department of Veterans Affairs nationwide. The availability of modern IT equipment is crucial for the efficient functioning of VA staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware/software ecosystems are mandated.
Risk of scope creep if incidental software or services are not clearly defined.
Dependence on a single contractor for critical IT hardware and support could impact continuity.

Positive Signals

Firm fixed-price contract helps control costs and budget predictability.
Full and open competition suggests a competitive market and potentially good value.
Delivery order structure allows for phased procurement and flexibility in meeting evolving needs.

Sector Analysis

This contract falls within the broader IT hardware and services sector, specifically focusing on end-user computing devices and associated support. The market for PCs and related peripherals is mature and highly competitive, with numerous vendors offering a wide range of products. The Department of Veterans Affairs is a significant consumer of IT equipment, and contracts like this are essential for maintaining its technological infrastructure. Comparable spending benchmarks would typically involve analyzing other large federal IT hardware procurements for similar quantities and configurations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, the primary contractor is Minburn Technology Group, LLC. There is no explicit information on subcontracting plans for small businesses within this award, which could be a missed opportunity to engage the small business ecosystem. Future analysis could explore if the prime contractor has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost of goods and services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

VA IT Hardware Procurement
End-User Computing Devices
Federal IT Services Contracts
Department of Veterans Affairs IT Modernization

Risk Flags

Potential for hardware obsolescence if refresh cycles are not maintained.
Dependence on contractor for timely delivery and support.
Need for clear definition of 'incidental software' and services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.4 million to MINBURN TECHNOLOGY GROUP, LLC. ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY SUPPORT.

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $35.4 million.

What is the period of performance?

Start: 2025-09-11. End: 2027-01-25.

What is the historical spending pattern of the Department of Veterans Affairs on personal computers and related peripherals?

Analyzing the VA's historical spending on PCs and peripherals requires access to detailed procurement data over several fiscal years. Generally, federal agencies like the VA have consistent, substantial spending on end-user devices due to regular refresh cycles and the need to support a large workforce. Factors influencing this spending include the number of employees, the lifespan of hardware, technological advancements requiring upgrades, and specific program needs. For instance, the VA's ongoing modernization efforts and expansion of telehealth services likely drive demand for reliable computing equipment. Without specific historical data, it's difficult to provide exact figures, but it's reasonable to assume multi-million dollar annual expenditures in this category, making contracts like ENDPOINTS 2.0 significant components of their IT budget.

How does the pricing structure of this contract compare to similar federal IT hardware procurements?

Comparing pricing requires detailed specifications of the hardware and services procured. However, the 'full and open competition' aspect suggests that the pricing is likely competitive within the federal market. The benchmark of $70,664 per delivery order (derived from total award and number of orders, assuming 501 orders) needs to be broken down by the quantity and type of items per order to be meaningful. For example, if an order includes 100 laptops, the per-unit cost can be assessed against GSA schedules or other agency bulk purchase agreements. Firm fixed-price contracts generally aim for market-based pricing, and the presence of 8 bidders indicates that vendors felt the pricing was achievable and profitable, which is a positive sign for value.

What are the potential risks associated with Minburn Technology Group, LLC as the contractor for this significant IT award?

Potential risks associated with any contractor, including Minburn Technology Group, LLC, revolve around performance, financial stability, and adherence to contract terms. Given this is a delivery order under a larger contract vehicle, the contractor's past performance on similar contracts would be a key indicator. Risks could include delays in delivery, provision of non-compliant hardware or services, or issues with warranty and support. The firm fixed-price nature mitigates some financial risk for the government, but performance failures could still lead to operational disruptions for the VA. A thorough review of Minburn's contract history, client feedback, and financial health would be necessary for a comprehensive risk assessment.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayer money in IT procurements?

The 'full and open competition after exclusion of sources' method is generally considered a robust approach to ensuring value for taxpayer money, especially in mature markets like IT hardware. It allows any responsible source to submit an offer, maximizing the pool of potential bidders and fostering intense price competition. The 'exclusion of sources' part implies that certain pre-existing conditions or previous exclusions might have been lifted or re-evaluated, potentially broadening competition further. With 8 bidders in this case, the government likely received a range of competitive offers, driving down prices and encouraging innovation. This method helps prevent sole-source situations where prices might be inflated due to lack of alternatives.

What is the typical lifespan and refresh cycle for PCs and related hardware within federal agencies like the VA?

The typical lifespan and refresh cycle for PCs and related hardware within federal agencies like the VA is often guided by agency IT policies, budget availability, and technological obsolescence. Generally, agencies aim for a 3-5 year refresh cycle for laptops and desktops to ensure adequate performance, security, and compatibility with evolving software. Factors like warranty periods, the intensity of use, and the criticality of the hardware's function also influence replacement decisions. The VA, supporting critical healthcare and benefits services, likely adheres to or aims for such cycles to maintain operational efficiency and security. This contract's duration, extending to January 2027, suggests it aligns with or supports a portion of the VA's planned hardware refresh strategy.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

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: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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

Financial Breakdown

Contract Ceiling: $292,021,573

Exercised Options: $35,402,439

Current Obligation: $35,402,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline