VA awards $65.6M for Cisco Hardware Maintenance to Trace3 Government, LLC over 4 years

Contract Overview

Contract Amount: $65,625,169 ($65.6M)

Contractor: Trace3 Government, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2006-07-27

End Date: 2010-04-30

Contract Duration: 1,373 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EXPRESS REPORT - CISCO HARDWARE MAINTENANCE. THIS REPORT RESPRESENTS A ROLL UP ACTION OF THE BASE AWARD CONTRACT AND 12 MODIFICATIONS.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.6 million to TRACE3 GOVERNMENT, LLC for work described as: EXPRESS REPORT - CISCO HARDWARE MAINTENANCE. THIS REPORT RESPRESENTS A ROLL UP ACTION OF THE BASE AWARD CONTRACT AND 12 MODIFICATIONS. Key points: 1. Spending on Cisco hardware maintenance reached $65.6M. 2. Trace3 Government, LLC secured the contract. 3. The contract was awarded under full and open competition. 4. The Department of Veterans Affairs is the primary agency. 5. The contract duration was 1373 days.

Value Assessment

Rating: fair

The total award of $65.6M over approximately 3.75 years suggests a significant investment in hardware maintenance. Without specific per-unit costs or detailed service level agreements, a precise value assessment is difficult, but the scale indicates substantial operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was initiated, though specific details on source exclusion are not provided. This method aims for price discovery through multiple bids.

Taxpayer Impact: Taxpayer funds are utilized for essential IT hardware maintenance, ensuring operational continuity for the VA. The competitive award process aims to secure reasonable pricing.

Public Impact

Ensures continued operation of critical Cisco hardware for the Department of Veterans Affairs. Supports IT infrastructure essential for veteran services. The contract value represents a significant portion of IT maintenance spending. Competition was utilized, potentially leading to cost savings for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for benchmarking.
Details on 'exclusion of sources' are not fully elaborated.
Contract duration is lengthy, potentially limiting agility.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Long-term award suggests a stable, ongoing need.

Sector Analysis

This contract falls under Other Computer Related Services (NAICS 541519), a broad category encompassing IT support and maintenance. Spending benchmarks for this sector vary widely based on the specific services and scale of the organization.

Small Business Impact

The contract was awarded to Trace3 Government, LLC, and the data indicates the small business flag was not set (ss: false, sb: false). Therefore, this award does not appear to directly benefit small businesses.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, indicating internal agency oversight. Further details on specific oversight mechanisms, performance reviews, or audits would be needed for a comprehensive assessment.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in with specific hardware maintenance.
Limited transparency on the 'exclusion of sources' rationale.
Long contract duration may not adapt to rapid technological changes.
No explicit mention of performance metrics or service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.6 million to TRACE3 GOVERNMENT, LLC. EXPRESS REPORT - CISCO HARDWARE MAINTENANCE. THIS REPORT RESPRESENTS A ROLL UP ACTION OF THE BASE AWARD CONTRACT AND 12 MODIFICATIONS.

Who is the contractor on this award?

The obligated recipient is TRACE3 GOVERNMENT, 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 $65.6 million.

What is the period of performance?

Start: 2006-07-27. End: 2010-04-30.

What was the average annual spending on Cisco hardware maintenance under this contract?

The total contract value was $65,625,168.84 over a period of 1373 days, which is approximately 3.76 years. Dividing the total value by the duration gives an average annual spending of roughly $17.45 million. This figure represents the average expenditure per year for Cisco hardware maintenance services provided by Trace3 Government, LLC to the VA.

How did the 'exclusion of sources' in the competition affect the final price?

The specific impact of excluding certain sources on the final price is not quantifiable from the provided data. While 'full and open competition after exclusion of sources' suggests a competitive process was initiated, the rationale for exclusion and the number of bids received are unknown. This lack of detail prevents an assessment of whether the exclusion led to higher or lower prices compared to an unrestricted competition.

What is the expected effectiveness of this maintenance contract for the VA's IT operations?

The effectiveness of this contract hinges on Trace3 Government, LLC's ability to provide timely and high-quality maintenance for Cisco hardware, ensuring minimal downtime and optimal performance. Given the significant investment and the duration, the expectation is that it will maintain the reliability of critical IT infrastructure supporting the VA's mission. Performance metrics and service level agreements would be key indicators of actual effectiveness.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 990 S BROADWAY, DENVER, CO, 80209

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,625,169

Exercised Options: $65,625,169

Current Obligation: $65,625,169

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline