VA awards $130M for cloud computing services to BY LIGHT PROFESSIONAL IT SERVICES LLC, supporting private cloud infrastructure

Contract Overview

Contract Amount: $129,907,930 ($129.9M)

Contractor: BY Light Professional IT Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-01-14

End Date: 2019-01-13

Contract Duration: 1,095 days

Daily Burn Rate: $118.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD" (AS DEFINED IN SPECIAL PUBLICATION 800-145), WHICH INCLUDES COMPLETELY DEDICATED AND SHARED COMPONENTS, AS DEFINED IN SECTION 5.3 OF THIS PWS. THE VA UTILIZES HSPD-12 PERSONAL IDENTITY VERIFICATION (PIV) MULTIFACTOR AUTHENTICATION, WHICH WILL REQUIRE THE CONTRACTOR TO HAVE A PIV BADGE READER FOR REMOTE ACCESS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $129.9 million to BY LIGHT PROFESSIONAL IT SERVICES LLC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD" (AS DEFINED IN SPECIAL PUBLICATION 800-145), WHICH INCLUDES COMPLETELY DEDICATED AND SHARED COMPONENTS, AS DEFINED IN SECTION 5.3 OF THIS PWS. THE VA UTILIZES HSPD-12 PER… Key points: 1. Contract focuses on Infrastructure as a Service (IaaS) for a private cloud environment, emphasizing dedicated and shared components. 2. Requires contractor support for HSPD-12 Personal Identity Verification (PIV) multifactor authentication, including PIV badge reader access. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The firm fixed-price contract type aims to provide cost certainty for the government. 5. This award represents a significant investment in modernizing VA's IT infrastructure. 6. The duration of the contract is three years, indicating a medium-term commitment to these services.

Value Assessment

Rating: good

The contract value of approximately $130 million over three years for cloud computing IaaS is substantial. Benchmarking this against similar large-scale cloud service contracts for federal agencies is complex due to varying service levels and scopes. However, the firm fixed-price structure suggests an attempt to control costs. The inclusion of specific security requirements like PIV multifactor authentication adds to the complexity and potential cost, but is critical for a healthcare-focused agency like the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the use of this procurement method generally suggests a healthy level of market interest and capability for providing complex IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation from a wider pool of vendors, ensuring the government receives the best value.

Public Impact

Veterans will benefit from improved access to VA services through a more robust and secure IT infrastructure. The contract delivers essential cloud computing Infrastructure as a Service (IaaS) to support the VA's private cloud. Services are likely to have a nationwide impact, supporting VA facilities and personnel across the country. The contract supports IT professionals and potentially requires specialized skills in cloud computing and cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully, despite initial competition.
Reliance on a single contractor for critical cloud infrastructure could pose risks if performance falters.
Ensuring ongoing compliance with evolving cybersecurity standards and PIV requirements will be crucial.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Firm fixed-price contract provides cost predictability for the government.
Specific requirements for PIV multifactor authentication indicate a focus on robust security measures.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud computing and data center services. The market for cloud IaaS is highly competitive, with major players offering a range of solutions. Federal agencies are increasingly migrating to cloud environments to enhance scalability, reduce costs, and improve agility. The VA's investment aligns with a government-wide trend towards cloud adoption, driven by efficiency and modernization goals. Comparable spending benchmarks would typically look at other large federal cloud procurements.

Small Business Impact

The contract was awarded to BY LIGHT PROFESSIONAL IT SERVICES LLC, and there is no indication of a small business set-aside. While this specific award may not directly benefit small businesses through a set-aside, the prime contractor may engage small businesses as subcontractors. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the PWS. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. The contract includes a Performance Work Statement (PWS) which outlines specific deliverables and service levels. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Cloud Computing Services
IT Infrastructure Modernization
Data Center Services
Cybersecurity Services
HSPD-12 Implementation

Risk Flags

Security Compliance
Performance Management
Vendor Management
Cost Control
Interoperability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $129.9 million to BY LIGHT PROFESSIONAL IT SERVICES LLC. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A CLOUD COMPUTING IAAS SERVICE MODEL, TO SUPPORT A "PRIVATE CLOUD" (AS DEFINED IN SPECIAL PUBLICATION 800-145), WHICH INCLUDES COMPLETELY DEDICATED AND SHARED COMPONENTS, AS DEFINED IN SECTION 5.3 OF THIS PWS. THE VA UTILIZES HSPD-12 PERSONAL IDENTITY VERIFICATION (PIV) MULTIFACTOR AUTHENTICATION, WHICH WILL REQUIRE THE CONTRACTOR TO HAVE A PIV BADGE READER FOR REMOTE ACCESS.

Who is the contractor on this award?

The obligated recipient is BY LIGHT PROFESSIONAL IT SERVICES 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 $129.9 million.

What is the period of performance?

Start: 2016-01-14. End: 2019-01-13.

What is the track record of BY LIGHT PROFESSIONAL IT SERVICES LLC in delivering similar cloud computing services to federal agencies?

BY LIGHT PROFESSIONAL IT SERVICES LLC has a history of providing IT services to the federal government, including contracts related to cloud computing and infrastructure support. Their experience with agencies like the VA suggests familiarity with government requirements and security protocols. A detailed review of their past performance on similar contracts, including client satisfaction, adherence to schedules, and budget management, would be necessary for a comprehensive assessment. Their ability to meet the specific demands of a private cloud environment with PIV multifactor authentication is a key factor in evaluating their suitability for this contract.

How does the pricing of this contract compare to market rates for similar cloud IaaS offerings?

The contract is a firm fixed-price award valued at approximately $130 million over three years. Benchmarking this against market rates for cloud IaaS is challenging without detailed knowledge of the specific service levels, bandwidth, storage, and support included. However, federal contracts often include significant overhead and compliance costs not present in commercial offerings. The use of full and open competition suggests that the pricing was vetted against multiple proposals. A detailed cost-benefit analysis comparing the VA's specific needs and the contractor's proposed solution against commercial cloud provider pricing models (e.g., AWS, Azure, GCP) would be required for a precise comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues with the cloud infrastructure, cybersecurity vulnerabilities, and challenges in meeting PIV multifactor authentication requirements. Vendor lock-in is also a concern. Mitigation strategies likely involve robust performance metrics in the PWS, regular security audits, strict adherence to PIV protocols, and contingency planning. The firm fixed-price nature of the contract shifts some financial risk to the contractor. The VA's oversight mechanisms and the potential involvement of the OIG also serve as risk mitigation tools.

How effective is the private cloud model chosen by the VA in meeting its long-term IT strategy and security needs?

The choice of a private cloud model, as opposed to a public or hybrid cloud, suggests the VA prioritizes enhanced control, security, and customization for its sensitive data and operations. This model is particularly relevant for agencies handling health records, where strict compliance and data sovereignty are paramount. The PWS specifies a 'private cloud' supporting 'completely dedicated and shared components,' indicating a tailored solution. The effectiveness will depend on the VA's ability to manage this infrastructure efficiently, scale it appropriately, and integrate it with existing systems, while ensuring it aligns with evolving federal IT modernization goals and cybersecurity mandates.

What is the historical spending pattern for cloud computing services at the VA, and how does this contract fit within that trend?

The VA has been progressively investing in IT modernization and cloud services to improve efficiency and veteran care. Historical spending likely shows an increasing trend in cloud adoption, moving away from traditional on-premises data centers. This $130 million contract represents a significant, multi-year commitment to a specific type of cloud service (IaaS for a private cloud). It aligns with the broader federal push for cloud migration, as outlined in initiatives like the Cloud Smart strategy. Understanding the VA's previous investments in similar or related IT infrastructure projects would provide context for the scale and strategic importance of this particular award.

What are the implications of requiring PIV multifactor authentication for the contractor's remote access?

The requirement for the contractor to support HSPD-12 Personal Identity Verification (PIV) multifactor authentication, including PIV badge reader access for remote connections, significantly enhances the security posture of the VA's IT environment. This ensures that only authorized personnel with valid PIV credentials can access the cloud infrastructure. For the contractor, it necessitates implementing specific hardware (badge readers) and processes to manage PIV compliance for their employees accessing VA systems. This adds a layer of complexity and cost to the contractor's operations but is a critical security control for a federal agency, especially one dealing with sensitive veteran health information.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD STE 850, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $186,138,977

Exercised Options: $133,525,102

Current Obligation: $129,907,930

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1004

IDV Type: IDC

Timeline