VA awards $4.3M IT contract for performance logic licenses to Redhawk IT Solutions, LLC

Contract Overview

Contract Amount: $4,320,629 ($4.3M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENVIRONMENT OF CARE - BRAND NAME PERFORMANCE LOGIC LICENSES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.3 million to REDHAWK IT SOLUTIONS, LLC for work described as: ENVIRONMENT OF CARE - BRAND NAME PERFORMANCE LOGIC LICENSES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is one year, indicating a need for ongoing IT support. 3. The fixed-price contract type helps manage cost certainty for the government. 4. Redhawk IT Solutions, LLC is the sole awardee for this specific delivery order. 5. The North American Industry Classification System (NAICS) code 541519 points to computer-related services. 6. The contract is for 'ENVIRONMENT OF CARE - BRAND NAME PERFORMANCE LOGIC LICENSES', suggesting specialized software. 7. The award is a delivery order under a larger contract, implying a pre-existing framework.

Value Assessment

Rating: good

The contract value of $4.3 million for a one-year term for IT licenses and related services appears reasonable given the specialized nature of performance logic licenses. Benchmarking against similar IT service contracts for brand-name software licenses would provide a more precise value assessment. The firm fixed-price structure offers cost predictability. Without specific details on the 'performance logic' software and its market prevalence, a direct comparison of per-unit costs is challenging, but the overall award seems aligned with typical IT procurement for specialized software.

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 the opportunity was broadly advertised, and multiple vendors were likely considered. The presence of 'after exclusion of sources' suggests that while competition was open, certain specific conditions or prior exclusions might have been applied, which warrants further investigation for full transparency. The fact that it was competed openly is a positive sign for price discovery and achieving fair market value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of vendors, leading to better value for public funds.

Public Impact

The Department of Veterans Affairs (VA) will benefit from this contract by acquiring necessary IT licenses for its operations. The services delivered will support the VA's 'Environment of Care' program, likely related to facility management or operational efficiency. The contract is managed by the VA's Illinois office, indicating a geographic focus for its implementation. The acquisition of specialized software licenses can enhance the efficiency and effectiveness of VA IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific nature of 'brand name performance logic licenses' could limit flexibility and potentially increase costs if alternative, more cost-effective solutions exist.
The 'after exclusion of sources' clause in the competition type requires further scrutiny to ensure no potential bidders were unfairly excluded.
Reliance on a single vendor for specific brand-name licenses can create vendor lock-in and future dependency.

Positive Signals

The contract was awarded through full and open competition, indicating a robust and fair bidding process.
The firm fixed-price contract type provides cost certainty and protects against budget overruns.
The one-year duration allows for periodic reassessment of needs and vendor performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and related support. The market for specialized IT licenses, particularly those tied to performance logic or operational management within large government agencies, is significant. Comparable spending benchmarks would involve analyzing other VA or federal agency procurements for similar brand-name software solutions, considering factors like user base, functionality, and contract duration. The NAICS code 541519 covers a wide range of computer-related services, indicating this is a niche within a large market.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award, as neither a small business set-aside nor subcontracting goals are indicated. This suggests the primary awardee, Redhawk IT Solutions, LLC, is likely not a small business, or if it is, subcontracting opportunities for other small businesses were not mandated or highlighted in this award notice. Further analysis of the prime contractor's size and any potential subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers responsible for the 'Environment of Care' IT systems. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified licenses and services by the performance end date. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal Software Licensing Procurements
IT Services for Healthcare Agencies
Performance Management Software Contracts
Department of Veterans Affairs IT Support

Risk Flags

Brand Name Justification Required
Potential for Vendor Lock-in
Limited Scope of Competition for Specific Brand

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.3 million to REDHAWK IT SOLUTIONS, LLC. ENVIRONMENT OF CARE - BRAND NAME PERFORMANCE LOGIC LICENSES

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 $4.3 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the specific 'performance logic' software being licensed, and what is its criticality to the VA's 'Environment of Care' operations?

The specific 'performance logic' software is not detailed in the provided award data. However, within the context of a VA 'Environment of Care,' such software likely pertains to operational efficiency, facility management, safety compliance, or resource optimization. Its criticality would depend on whether it supports essential functions like patient safety monitoring, building systems management, or regulatory compliance reporting. Without knowing the exact software, its criticality can only be inferred. If it's a core system for managing physical environments where patient care occurs, its criticality would be high, impacting daily operations and potentially patient safety. If it's for administrative reporting, its criticality might be lower but still important for compliance and efficiency.

How does the $4.3 million contract value compare to previous or similar VA procurements for performance logic software licenses?

A direct comparison of the $4.3 million contract value requires access to historical VA procurement data for similar 'performance logic' software licenses. Without specific details on the software's functionality, user base, and the scope of services included (e.g., maintenance, support, training), a precise benchmark is difficult. However, for a one-year contract of this nature, $4.3 million suggests a significant investment, potentially indicating a widely used or enterprise-level solution. Benchmarking would ideally involve looking at contracts with similar NAICS codes (541519) and contract types (firm fixed price) for specialized software within the VA or other federal health agencies. The number of users or sites covered by the license would be a key factor in assessing value.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure Redhawk IT Solutions, LLC delivers effectively?

The provided award data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT software licensing and support contracts, SLAs would focus on aspects such as software availability (uptime), response times for technical support, resolution times for reported issues, and successful delivery of license keys or updates. KPIs might include metrics related to the software's performance in supporting the 'Environment of Care' functions, user satisfaction, or adherence to security protocols. These details are usually outlined in the contract's statement of work (SOW) or performance work statement (PWS), which are not included in this summary data.

What is Redhawk IT Solutions, LLC's track record with the VA or other federal agencies for similar IT service contracts?

Information regarding Redhawk IT Solutions, LLC's specific track record with the VA or other federal agencies for similar IT service contracts is not detailed in the provided award data. To assess their track record, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any available CPARS (Contractor Performance Assessment Reporting System) reports. A positive track record would involve successful past performance on contracts of similar size, scope, and complexity, particularly in software licensing and IT support. Conversely, a history of performance issues, contract disputes, or missed deadlines would raise concerns. Further research into the company's federal contracting history is necessary for a comprehensive assessment.

Given the 'brand name' nature of the licenses, what steps were taken to ensure fair pricing and avoid potential overpayment compared to generic or competitive alternatives?

The contract specifies 'brand name performance logic licenses,' which inherently suggests a preference for a specific manufacturer's product. In such cases, federal procurement regulations often require agencies to justify the brand-name-only requirement and demonstrate that the price is fair and reasonable. This typically involves market research to understand the pricing of the specific brand-name product, comparing it against any available discounts or volume pricing, and potentially obtaining quotes from authorized resellers. The 'full and open competition after exclusion of sources' suggests that while the brand was specified, multiple sources capable of providing that specific brand were solicited. However, the absence of a competitive alternative requirement means the government is procuring a specific item, and the focus is on ensuring the price for that item is competitive among its authorized providers.

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

Solicitation ID: 36C10B26Q0063

Offers Received: 3

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: $13,480,411

Exercised Options: $4,320,629

Current Obligation: $4,320,629

Actual Outlays: $4,320,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline