VA's $22M Vista Imaging Storage Infrastructure Solution Awarded to Merlin International, Inc

Contract Overview

Contract Amount: $22,013,950 ($22.0M)

Contractor: Merlin International, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-06-08

End Date: 2017-06-07

Contract Duration: 1,825 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NASA SEWP ORDER FOR VISTA IMAGING STORAGE INFRASTRUCTURE SOLUTION

Place of Performance

Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.0 million to MERLIN INTERNATIONAL, INC. for work described as: NASA SEWP ORDER FOR VISTA IMAGING STORAGE INFRASTRUCTURE SOLUTION Key points: 1. The contract aimed to provide imaging storage infrastructure for the VA's Vista system. 2. Merlin International, Inc. secured this delivery order under the NASA SEWP contract vehicle. 3. The contract duration was 5 years, indicating a long-term need for the services. 4. The award was made under full and open competition after exclusion of sources, suggesting a competitive process. 5. The total award amount was approximately $22 million. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $22 million over five years for imaging storage infrastructure appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure procurements for federal health systems would provide a more precise value-for-money assessment. The use of a pre-established contract vehicle like NASA SEWP suggests some level of pre-negotiated pricing and due diligence.

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' via the NASA SEWP vehicle. While the specific details of the exclusion of sources are not provided, the 'full and open' designation implies that all eligible vendors on the NASA SEWP contract were given an opportunity to bid. The number of bids received (7) indicates a healthy level of competition for this requirement.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by encouraging vendors to offer their best terms. The presence of multiple bidders suggests that the government was able to leverage market forces to secure a favorable outcome.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive enhanced imaging storage capabilities for its Vista system. This infrastructure supports the storage and retrieval of critical patient imaging data, essential for healthcare delivery to veterans. The geographic impact is nationwide, as the Vista system serves veterans across the United States. The contract likely involves IT professionals and technicians for implementation and maintenance, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution is highly proprietary.
Dependence on Merlin International, Inc. for critical imaging storage infrastructure.
Ensuring data security and privacy compliance for sensitive veteran health records.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Utilizes a reputable contract vehicle (NASA SEWP), implying adherence to established procurement standards.
Long-term contract duration (5 years) indicates a stable and ongoing need, potentially leading to optimized service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data storage and infrastructure solutions for healthcare applications. The market for such solutions is competitive, with numerous vendors offering cloud-based and on-premise storage options. Federal spending in this area is substantial, driven by the need to manage vast amounts of data, including sensitive health information. Comparable spending benchmarks would involve analyzing other large federal contracts for health IT infrastructure and data management.

Small Business Impact

The contract was awarded to Merlin International, Inc. and does not explicitly indicate a small business set-aside. The 'full and open competition' nature suggests that large businesses were likely primary bidders. Subcontracting opportunities for small businesses may exist, depending on Merlin International's strategy, but are not detailed in the provided data. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

NASA SEWP (Solutions for Enterprise-Wide Procurement)
VA Electronic Health Record (EHR) Modernization
Federal Health IT Spending
Government Data Storage Solutions

Risk Flags

Potential for vendor lock-in
Cybersecurity risks for sensitive data
Performance and availability of critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.0 million to MERLIN INTERNATIONAL, INC.. NASA SEWP ORDER FOR VISTA IMAGING STORAGE INFRASTRUCTURE SOLUTION

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 $22.0 million.

What is the period of performance?

Start: 2012-06-08. End: 2017-06-07.

What is the track record of Merlin International, Inc. in delivering similar IT infrastructure solutions to federal agencies?

Merlin International, Inc. has a history of providing IT solutions and services to government agencies. While specific details on their track record for large-scale imaging storage infrastructure for healthcare systems like VA's Vista are not fully elaborated in this data, their ability to secure this contract through a competitive process suggests they met the technical and performance requirements. Further investigation into their past performance on similar contracts, client testimonials, and any past performance evaluations would provide a more comprehensive understanding of their capabilities and reliability in this specific domain.

How does the per-unit cost or overall value of this contract compare to similar imaging storage solutions procured by other federal healthcare agencies?

Direct per-unit cost comparison is challenging without detailed service level agreements and specific storage metrics (e.g., cost per terabyte, IOPS, uptime guarantees). However, the total award of approximately $22 million over five years for a nationwide imaging storage infrastructure for a system as critical as Vista suggests a significant investment. Benchmarking against other large federal health IT procurements, such as those by the Department of Defense or other large federal health agencies, would be necessary to assess if this represents a competitive price point. The use of the NASA SEWP vehicle, a pre-competed contract, often implies that pricing has undergone some level of scrutiny, but direct comparison to agency-specific contracts is still valuable.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential performance issues with the storage infrastructure leading to system downtime or data access problems, cybersecurity threats to sensitive veteran data, and the risk of cost overruns if not managed tightly. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with performance metrics and penalties, stringent cybersecurity protocols and compliance with federal data protection regulations (e.g., HIPAA), and strong project management by the VA to monitor progress and expenditures. Vendor lock-in and the long-term dependence on Merlin International could also be a risk, potentially mitigated by ensuring clear exit strategies and data portability clauses in the contract.

How effective is the NASA SEWP contract vehicle in ensuring competitive pricing and quality for IT solutions like this?

The NASA SEWP (Solutions for Enterprise-Wide Procurement) contract vehicle is generally considered effective in promoting competition and providing access to a wide range of IT products and services. It allows agencies to issue task orders against pre-competed master contracts, streamlining the procurement process. For this specific contract, the 'full and open competition' designation within SEWP, along with the receipt of 7 bids, indicates that the vehicle facilitated a competitive environment. While SEWP provides a framework for competition, the ultimate effectiveness in ensuring optimal pricing and quality also depends on the specific requirements defined by the ordering agency (VA) and the diligence of their evaluation process.

What is the historical spending trend for imaging storage infrastructure solutions by the Department of Veterans Affairs?

Historical spending data for VA's imaging storage infrastructure would reveal trends in investment in this critical area. Analyzing past contracts for similar solutions, including their value, duration, and awarded vendors, would indicate whether spending has been consistent, increasing, or decreasing. This context is crucial for understanding the significance of the $22 million award and whether it aligns with previous investment patterns or represents a new strategic direction. Without specific historical data, it's difficult to ascertain trends, but the 5-year duration of this contract suggests a sustained commitment to robust imaging storage.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: VA118-12-R-0231

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4 B INVERNESS COURT ESTE 100, ENGLEWOOD, CO, 80112

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,132,080

Exercised Options: $22,013,950

Current Obligation: $22,013,950

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $2,115,814

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG07DA23B

IDV Type: GWAC

Timeline