VA awards $20M for data center services to Sungard, supporting federal continuity of operations

Contract Overview

Contract Amount: $20,028,881 ($20.0M)

Contractor: Sungard Availability Services, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-04-01

End Date: 2018-08-31

Contract Duration: 1,613 days

Daily Burn Rate: $12.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE DEPARTMENT OF VETERANS AFFAIRS (VA), OIT, NDCP REGION 4 HAS A REQUIREMENT FOR 5,375 SQUARE FEET OF DATA CENTER SPACE AND ASSOCIATED SUPPORT SERVICES FROM SUNGARD AVAILABILITY SERVICES (SUNGARD), 680 EAST SWEDESFORD ROAD, WAYNE, PENNSYLVANIA DATA CENTER HOSTING FACILITIES AT 401NORTH BROAD STREET AND AT 1500 SPRING GARDEN STREET. THE PROPOSED REQUIREMENT IS IN DIRECT SUPPORT OF FEDERAL CONTINUITY OF OPERATIONS (COOP) REQUIREMENTS THAT REQUIRES EVERY FEDERAL AGENCY TO PLAN FOR CONTINUOUS PERFORMANCE OF ESSENTIAL FUNCTIONS AND OPERATIONS IN THE EVENT OF AN EMERGENCY. IN ACCORDANCE WITH THESE REQUIREMENTS, OIT REGION 4 HAS TWO ESTABLISHED DATA CENTERS: A VA OWNED DATA CENTER IN BROOKLYN, NEW YORK AND THE OTHER COMPRISED OF THE AFOREMENTIONED SPLIT LOCATIONS IN PHILADELPHIA UNDER SUNGARD. THE PERIOD OF PERFORMANCE CONSISTS OF ONE, SIX-MONTH BASE PERIOD AND FOUR, SIX-MONTH OPTION PERIODS TO BE EXERCISED AT THE GOVERNMENT S DISCRETION.

Place of Performance

Location: WAYNE, CHESTER County, PENNSYLVANIA, 19087

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to SUNGARD AVAILABILITY SERVICES, LP for work described as: IGF::OT::IGF THE DEPARTMENT OF VETERANS AFFAIRS (VA), OIT, NDCP REGION 4 HAS A REQUIREMENT FOR 5,375 SQUARE FEET OF DATA CENTER SPACE AND ASSOCIATED SUPPORT SERVICES FROM SUNGARD AVAILABILITY SERVICES (SUNGARD), 680 EAST SWEDESFORD ROAD, WAYNE, PENNSYLVANIA DATA CENTER HOSTING FA… Key points: 1. Contract supports critical federal continuity of operations (COOP) requirements. 2. Services include data center hosting for essential VA functions. 3. The contract spans over four years, indicating a long-term need. 4. The fixed-price structure aims to control costs for the duration. 5. This award is a significant investment in maintaining essential government operations. 6. The geographic location in Pennsylvania is key for regional data redundancy.

Value Assessment

Rating: fair

The contract value of approximately $20 million over four years for data center hosting services appears to be within a reasonable range for the scope of services provided. Benchmarking against similar federal contracts for data center facilities management and co-location services would provide a more precise value-for-money assessment. However, given the critical nature of continuity of operations and the specific requirements for secure data center space, the pricing is likely influenced by specialized infrastructure and security needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Sungard Availability Services. The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without a competitive process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were adequately explored. The absence of competition may limit price discovery and potentially lead to higher costs than a competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. A sole-source award bypasses the opportunity for multiple vendors to offer lower prices, potentially resulting in less efficient use of federal funds.

Public Impact

Benefits the Department of Veterans Affairs (VA) by ensuring the continuity of essential IT operations. Provides critical data center hosting services to maintain federal continuity of operations (COOP) requirements. Services are delivered from two specific data center locations in Philadelphia, Pennsylvania. Supports the operational workforce of the VA by providing reliable IT infrastructure. Ensures the availability of critical veteran services that rely on these IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for better pricing.
Sole-source awards can reduce transparency and accountability in federal spending.
Reliance on a single provider for critical infrastructure may pose long-term risks if not managed effectively.

Positive Signals

Addresses a critical government requirement for continuity of operations, ensuring essential services remain available.
The contract is for a fixed price, which can help in budget predictability.
The provider, Sungard, is a known entity in the data center services market.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services. The market for data center hosting and co-location services is substantial, with numerous providers offering a range of solutions from basic space to fully managed IT infrastructure. Federal agencies often require specialized facilities that meet stringent security, reliability, and uptime standards, which can influence contract values. Comparable spending benchmarks would involve analyzing other federal contracts for similar data center space and support services, considering factors like square footage, power, cooling, and connectivity.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The award to a large provider like Sungard suggests that the primary focus was on meeting the technical and operational requirements for data center services, rather than promoting small business participation through this specific vehicle.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' Office of Information and Technology (OIT). Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract, including service level agreements for uptime, security, and support. Transparency is limited due to the sole-source nature of the award. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Continuity of Operations (COOP) Plans
Department of Veterans Affairs IT Infrastructure
Data Center Services Contracts
Cloud Computing Services (as an alternative)
Government IT Modernization Efforts

Risk Flags

Sole-source award bypasses competition.
Potential for higher costs due to lack of competitive bidding.
Limited transparency in the procurement process.
Dependency on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to SUNGARD AVAILABILITY SERVICES, LP. IGF::OT::IGF THE DEPARTMENT OF VETERANS AFFAIRS (VA), OIT, NDCP REGION 4 HAS A REQUIREMENT FOR 5,375 SQUARE FEET OF DATA CENTER SPACE AND ASSOCIATED SUPPORT SERVICES FROM SUNGARD AVAILABILITY SERVICES (SUNGARD), 680 EAST SWEDESFORD ROAD, WAYNE, PENNSYLVANIA DATA CENTER HOSTING FACILITIES AT 401NORTH BROAD STREET AND AT 1500 SPRING GARDEN STREET. THE PROPOSED REQUIREMENT IS IN DIRECT SUPPORT OF FEDERAL CONTINUITY OF OPERATIONS (COOP) REQUIREMENTS THAT REQUIRES EVERY FEDERAL AGENCY TO PLAN FOR CO

Who is the contractor on this award?

The obligated recipient is SUNGARD AVAILABILITY SERVICES, LP.

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 $20.0 million.

What is the period of performance?

Start: 2014-04-01. End: 2018-08-31.

What is the track record of Sungard Availability Services in fulfilling federal contracts, particularly for data center hosting?

Sungard Availability Services has a history of providing data center and disaster recovery services to various entities, including government agencies. While specific performance metrics for this VA contract are not detailed in the provided data, their established presence in the market suggests a capacity to meet the technical demands of such services. Federal agencies often vet contractors based on past performance, and the VA's decision to award this contract implies a level of confidence in Sungard's capabilities. Further analysis would involve reviewing past performance evaluations and any documented issues or successes with similar federal engagements to fully assess their track record.

How does the $20 million cost compare to similar federal data center hosting contracts awarded around the same period?

The $20 million cost for 5,375 square feet of data center space and associated support over approximately four years (April 2014 - August 2018) needs to be benchmarked against comparable federal contracts. Factors such as the level of service (e.g., power, cooling, security, connectivity), geographic location, and specific uptime guarantees significantly influence pricing. Without access to a database of similar federal data center contracts from that era, a precise comparison is challenging. However, the cost per square foot can be estimated. If the contract duration was roughly 50 months (1613 days / ~30 days/month), the annual cost is around $5 million, or approximately $930 per square foot per year. This rate would need to be compared to market rates and other government procurements for similar services to determine if it represents good value.

What are the primary risks associated with a sole-source award for critical data center infrastructure?

The primary risks associated with a sole-source award for critical data center infrastructure include a lack of competitive pressure, which can lead to inflated prices and reduced innovation. Taxpayers may bear a higher cost than if the contract had been competed. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, without the vetting process inherent in a competitive bid, there's a potential, albeit often mitigated by pre-qualification, for the selected vendor to not be the most capable or cost-effective option available. The government's negotiating leverage is also diminished in a sole-source scenario.

How does this contract contribute to the VA's overall IT modernization and continuity of operations strategy?

This contract directly supports the VA's continuity of operations (COOP) strategy by providing essential data center hosting facilities. COOP is a critical component of ensuring that essential government functions can continue uninterrupted during emergencies or disruptions. By securing reliable data center space, the VA ensures that its IT systems and the services they support remain accessible. This contract represents a foundational element of their IT infrastructure resilience, enabling them to maintain operations even in adverse conditions. It complements broader IT modernization efforts by providing a stable and secure platform upon which new technologies and services can be deployed and managed.

What are the historical spending patterns for data center services within the Department of Veterans Affairs?

Historical spending patterns for data center services within the VA would likely show a significant and growing investment over time, reflecting the increasing reliance on IT for all aspects of agency operations. Prior to the widespread adoption of cloud services, agencies like the VA relied heavily on dedicated data center space, whether self-owned or leased. This contract, awarded in 2014, falls within a period where agencies were balancing traditional data center investments with emerging cloud solutions. Analyzing VA's broader IT spending would reveal trends in infrastructure procurement, including the mix of physical data centers, co-location services, and cloud adoption, highlighting the evolution of their strategy to meet growing data demands and security requirements.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA118-14-R-0101

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 680 E SWEDESFORD RD, WAYNE, PA, 19087

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,028,881

Exercised Options: $20,028,881

Current Obligation: $20,028,881

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline