VA awards $11.7M for License Maintenance Support to Merlin International, Inc
Contract Overview
Contract Amount: $11,681,263 ($11.7M)
Contractor: Merlin International, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2006-07-27
End Date: 2010-07-26
Contract Duration: 1,460 days
Daily Burn Rate: $8.0K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LICENSE MAINTENANCE SUPPORT
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78772
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $11.7 million to MERLIN INTERNATIONAL, INC. for work described as: LICENSE MAINTENANCE SUPPORT Key points: 1. The contract is for computing infrastructure, data processing, and web hosting services. 2. Merlin International, Inc. is the sole awardee. 3. The contract duration is 4 years. 4. The award type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $11.7 million over four years suggests a moderate annual spend. Without specific deliverables or comparable contracts, a precise pricing assessment is difficult, but it appears to be within a reasonable range for enterprise-level IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, which limits competitive bidding. The lack of competition may impact price discovery and potentially lead to higher costs than if multiple vendors were considered.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most competitive pricing available in the market.
Public Impact
Ensures continued operation of critical IT infrastructure for the VA. Supports data processing and web hosting services essential for VA operations. Provides maintenance and support for software licenses crucial to the department.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Provides essential IT support services.
- Long-term contract provides stability for service delivery.
Sector Analysis
The IT services sector, particularly for government agencies, involves significant spending on infrastructure, software, and support. Benchmarks for similar contracts are highly variable based on scope and complexity, but this award falls within a typical range for enterprise IT maintenance.
Small Business Impact
This contract was awarded to Merlin International, Inc., a single entity. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs. Oversight would typically involve contract performance monitoring and financial reviews to ensure compliance and value for money.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition due to sole-source award.
- Potential for overpayment without competitive pricing.
- Lack of detailed performance metrics for value assessment.
- Dependence on a single vendor for critical IT support.
Tags
computing-infrastructure-providers-data-, department-of-veterans-affairs, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $11.7 million to MERLIN INTERNATIONAL, INC.. LICENSE MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is MERLIN INTERNATIONAL, 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 $11.7 million.
What is the period of performance?
Start: 2006-07-27. End: 2010-07-26.
What specific IT systems or licenses does this maintenance support cover, and what is the criticality of these systems to VA operations?
The provided data does not specify the exact IT systems or licenses covered by this maintenance support contract. Understanding the criticality of these systems to the Department of Veterans Affairs' operations is essential for assessing the true value and necessity of this $11.7 million expenditure over four years.
What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is not detailed in the provided data. Typically, sole-source contracts are used when only one vendor can provide the required goods or services due to unique capabilities, proprietary technology, or urgent needs. Without this justification, it's difficult to assess if competitive pricing was adequately pursued.
How does the annual cost of this contract compare to industry benchmarks for similar license maintenance and support services for a federal agency of this size?
A direct comparison to industry benchmarks is challenging without knowing the specific software, licenses, and service levels included. However, an average annual spend of approximately $2.9 million for comprehensive IT license maintenance and support for a large federal agency like the VA is not inherently unreasonable, though a competitive process would offer greater assurance of value.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Contractor Details
Address: 7730 E BELLEVIEW AVE, ENGLEWOOD, CO, 06
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,681,263
Exercised Options: $11,681,263
Current Obligation: $11,681,263
Parent Contract
Parent Award PIID: GS35F0783M
IDV Type: FSS
Timeline
Start Date: 2006-07-27
Current End Date: 2010-07-26
Potential End Date: 2010-07-26 00:00:00
Last Modified: 2010-09-20
More Contracts from Merlin International, Inc.
- IBM Software Maintenance and Support — $111.5M (Department of Homeland Security)
- Establish NEW Multi-Year Ibm/Hcl Software Licenses and Maintenance Contract. Renewals and NEW Licenses and Maintenance. Base Plus TWO (2) Option Years. POP: 3/31/2020 to 3/31/2023 COR: KAY Zachmann — $61.6M (Department of Homeland Security)
- Spend Plan: OIT / SW HW / SW HW Mgmt / IBM / 184 the Following PR 21-18-208CIO853 Provides $1,411,641.29 in Funding for the IBM Annual Maintenance and Support Renewal for OIT. the Renewal Covers ALL Products, Software and Components Owned and Operated by TSA AT Headquarters, Field Offices, Operation Centers, Mission Support Centers and Other Auxiliary Facilities Comprising the Totality of the TSA Enterprise. Contract #: TBD (OIT Consolidated PR: 21-18-208CIO853) POP: 04/01/2018 to 03/31/2019 COR: Ramon Caban CO: Grace Kelly CS: Michele Reeves PM: KAY Zachmann — $39.6M (Department of Homeland Security)
- Benefits Delivery Network Novascale Mainframe Maintenance — $36.0M (Department of Veterans Affairs)
- IBM Filenet Licenses — $31.9M (Department of Veterans Affairs)
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)