VA awards $56.8M for nationwide Wi-Fi installation, highlighting IT infrastructure needs
Contract Overview
Contract Amount: $56,803,436 ($56.8M)
Contractor: Peraton Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2013-09-26
End Date: 2019-12-25
Contract Duration: 2,281 days
Daily Burn Rate: $24.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - OTHER FUNCTION - TASK ORDER AWARD AGAINST AN IDIQ CONTRACT FOR WIFI INSTALLATION SERVICES AT VA MEDICAL CENTERS ACROSS THE NATION.
Place of Performance
Location: HINES, COOK County, ILLINOIS, 60141
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $56.8 million to PERATON INC. for work described as: IGF::OT::IGF - OTHER FUNCTION - TASK ORDER AWARD AGAINST AN IDIQ CONTRACT FOR WIFI INSTALLATION SERVICES AT VA MEDICAL CENTERS ACROSS THE NATION. Key points: 1. Contract focuses on essential IT infrastructure upgrades for medical facilities. 2. Competition was robust, suggesting potential for competitive pricing. 3. Long performance period indicates a significant, ongoing need for services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This award falls within the broader category of IT services for government agencies.
Value Assessment
Rating: good
The contract value of $56.8 million over approximately six years for nationwide Wi-Fi installation services appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure projects for federal agencies suggests that the overall investment aligns with market expectations for complex deployments. The firm fixed-price structure provides cost certainty for the VA, although it requires careful contractor performance management to ensure value.
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 level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the process suggests a healthy market response for this type of IT service.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Veterans and VA staff benefit from improved network connectivity and reliability at medical centers. Services include the installation and maintenance of Wi-Fi infrastructure. The geographic impact is nationwide, covering multiple VA medical facilities. This contract supports IT jobs within the technology services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial installation requirements are not clearly defined.
- Dependence on contractor performance for timely and effective network deployment.
- Cybersecurity risks associated with network infrastructure upgrades.
Positive Signals
- Firm fixed-price contract limits cost overruns for the government.
- Full and open competition suggests a competitive award process.
- Long duration allows for phased implementation and potential for economies of scale.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on network infrastructure and computer systems design. The market for IT services to the federal government is substantial, with agencies like the VA consistently investing in upgrading their technological capabilities to improve service delivery. Comparable spending benchmarks for large-scale network deployments in government often run into tens or hundreds of millions of dollars, depending on the scope and duration.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded through full and open competition, it is likely that larger prime contractors will be involved. The impact on the small business ecosystem would depend on whether these prime contractors engage small businesses for specialized services or components, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the award places a significant portion of performance risk on the contractor. Transparency is generally maintained through contract award databases, but detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- VA IT Modernization Initiatives
- Federal Information Technology Acquisition Reform Act (FITARA) related spending
- Network Infrastructure Modernization Programs
- Healthcare IT Services Contracts
Risk Flags
- Technology obsolescence risk due to long contract duration.
- Potential for cybersecurity vulnerabilities in network infrastructure.
- Dependence on contractor performance for nationwide deployment quality.
- Scope management challenges over an extended period.
Tags
it, department-of-veterans-affairs, nationwide, delivery-order, large-contract, full-and-open-competition, firm-fixed-price, computer-systems-design-services, network-installation, wifi
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $56.8 million to PERATON INC.. IGF::OT::IGF - OTHER FUNCTION - TASK ORDER AWARD AGAINST AN IDIQ CONTRACT FOR WIFI INSTALLATION SERVICES AT VA MEDICAL CENTERS ACROSS THE NATION.
Who is the contractor on this award?
The obligated recipient is PERATON 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 $56.8 million.
What is the period of performance?
Start: 2013-09-26. End: 2019-12-25.
What was the specific scope of work for Wi-Fi installation across VA medical centers?
The specific scope of work involved the installation of Wi-Fi infrastructure at VA medical centers nationwide. This typically includes the deployment of wireless access points, network controllers, cabling, and associated hardware and software necessary to establish and maintain a robust wireless network. The objective is to enhance connectivity for both medical staff and potentially patients, supporting modern healthcare operations and data access. The contract's duration of over 2000 days suggests a phased rollout or ongoing support and upgrades across numerous facilities, implying a comprehensive approach to modernizing the VA's wireless network capabilities.
How does the $56.8 million award compare to other federal IT infrastructure contracts?
The $56.8 million award for nationwide Wi-Fi installation is a significant but not extraordinary sum for large-scale federal IT infrastructure projects. Agencies like the Department of Defense, GSA, and other large civilian departments frequently award contracts in the tens to hundreds of millions for network upgrades, cybersecurity enhancements, and system integrations. For instance, similar contracts for enterprise-wide network modernization or data center consolidation can easily exceed this amount. The VA's investment reflects the critical need for reliable IT infrastructure in healthcare settings, where downtime can have serious consequences. This award is comparable to other major IT modernization efforts across the federal government.
What are the primary risks associated with a contract of this duration and scope?
Contracts spanning over six years and covering nationwide installations carry several inherent risks. Technology obsolescence is a primary concern; Wi-Fi standards and hardware can evolve rapidly, potentially making installed equipment outdated before the contract ends. Performance risk is also significant, as ensuring consistent quality and timely deployment across numerous geographically dispersed locations is challenging. Cybersecurity vulnerabilities introduced during installation or through the new infrastructure are a constant threat. Furthermore, managing scope creep, ensuring adequate contractor staffing, and maintaining effective government oversight over such an extended period require robust program management.
What does the 'Computer Systems Design Services' NAICS code imply about the contract's nature?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the contract primarily involves designing and developing integrated computer systems. This encompasses not only the installation of hardware like Wi-Fi access points but also the planning, integration, and potentially the customization of software and network architecture to meet the specific needs of the VA's medical centers. It suggests a focus on creating a functional and cohesive IT environment rather than just providing off-the-shelf equipment. This classification implies a higher level of technical expertise and project management is required from the contractor.
Were there any specific performance metrics or KPIs tied to this contract?
The provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a contract of this nature and duration, typical KPIs would likely include network uptime and availability, data transfer speeds, latency, signal strength and coverage consistency across designated areas, successful completion of installation milestones, adherence to security protocols, and user satisfaction. The firm fixed-price nature suggests that meeting defined performance standards is crucial for the contractor to achieve full payment and avoid penalties.
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
Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)
Address: 12975 WORLDGATE STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,701,808
Exercised Options: $56,803,436
Current Obligation: $56,803,436
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA11811D1009
IDV Type: IDC
Timeline
Start Date: 2013-09-26
Current End Date: 2019-12-25
Potential End Date: 2019-12-25 00:00:00
Last Modified: 2021-03-04
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