VA awards $46.2M for Cloud Infrastructure and System Administration to Equinix Government Solutions LLC

Contract Overview

Contract Amount: $46,200,550 ($46.2M)

Contractor: Equinix Government Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-06-06

End Date: 2016-01-13

Contract Duration: 586 days

Daily Burn Rate: $78.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - THIS TO FOR CLOUD INFRASTRUCTURE AND SYSTEM ADMINISTRATION SERVICES IS IN SUPPORT THE VETERANS BENEFIT MANAGEMENT SYSTEM (VBMS) AND IDENTITY&ACCESS MANAGEMENT (IAM) PROGRAMS. THIS TO WILL PROVIDE FOR CONTINUED OPERATION AND MAINTENANCE OF THE EXISTING DEVELOPMENT, PREPRODUCTION AND PRODUCTION ENVIRONMENTS TO SUPPORT THE VBMS AND IAM APPLICATIONS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.2 million to EQUINIX GOVERNMENT SOLUTIONS LLC for work described as: IGF::OT::IGF - THIS TO FOR CLOUD INFRASTRUCTURE AND SYSTEM ADMINISTRATION SERVICES IS IN SUPPORT THE VETERANS BENEFIT MANAGEMENT SYSTEM (VBMS) AND IDENTITY&ACCESS MANAGEMENT (IAM) PROGRAMS. THIS TO WILL PROVIDE FOR CONTINUED OPERATION AND MAINTENANCE OF THE EXISTING DEVELOPMENT, … Key points: 1. Spending supports critical Veterans Benefit Management System (VBMS) and Identity & Access Management (IAM) programs. 2. Contract ensures continued operation and maintenance of development, preproduction, and production environments. 3. The award represents a significant investment in cloud infrastructure for VA. 4. No small business participation was noted in this award.

Value Assessment

Rating: good

The contract's fixed price structure provides cost certainty. Benchmarking against similar cloud infrastructure contracts is difficult without more granular service details, but the per-unit cost of $78,841 seems reasonable for comprehensive system administration and cloud support.

Cost Per Unit: $78,841

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price for essential veteran support systems.

Public Impact

Ensures continuity of critical IT services for veterans' benefits. Supports the operational integrity of VBMS and IAM applications. Maintains essential cloud infrastructure for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Limited transparency on specific service components for detailed benchmarking.

Positive Signals

Awarded under full and open competition.
Supports critical veteran-facing IT systems.

Sector Analysis

This contract falls within the IT services sector, specifically cloud infrastructure and system administration. Spending benchmarks for similar comprehensive cloud support contracts can vary widely based on scope and scale, but $46.2M over approximately 1.6 years indicates a substantial commitment.

Small Business Impact

This contract was not awarded to a small business. There is no indication of subcontracting with small businesses, which represents a missed opportunity for small business engagement in this significant IT procurement.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, indicating internal oversight. Further details on specific oversight mechanisms for performance and financial management would be beneficial.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Reliance on a single vendor for critical infrastructure.
Risk of cost overruns if scope creep occurs.
Limited visibility into specific performance metrics without further detail.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.2 million to EQUINIX GOVERNMENT SOLUTIONS LLC. IGF::OT::IGF - THIS TO FOR CLOUD INFRASTRUCTURE AND SYSTEM ADMINISTRATION SERVICES IS IN SUPPORT THE VETERANS BENEFIT MANAGEMENT SYSTEM (VBMS) AND IDENTITY&ACCESS MANAGEMENT (IAM) PROGRAMS. THIS TO WILL PROVIDE FOR CONTINUED OPERATION AND MAINTENANCE OF THE EXISTING DEVELOPMENT, PREPRODUCTION AND PRODUCTION ENVIRONMENTS TO SUPPORT THE VBMS AND IAM APPLICATIONS.

Who is the contractor on this award?

The obligated recipient is EQUINIX GOVERNMENT SOLUTIONS 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 $46.2 million.

What is the period of performance?

Start: 2014-06-06. End: 2016-01-13.

What specific metrics are used to measure the performance and effectiveness of the cloud infrastructure and system administration services provided under this contract?

Performance metrics likely include system uptime, response times, security incident resolution rates, and successful completion of maintenance tasks. The contract's Service Level Agreements (SLAs) would define these specific Key Performance Indicators (KPIs) and associated remedies for non-compliance, ensuring the VA receives the expected level of service for VBMS and IAM operations.

How does the VA ensure that the pricing remains competitive and represents good value throughout the contract's duration, especially given the evolving nature of cloud services?

While awarded under full and open competition, ongoing value is typically ensured through contract clauses allowing for price adjustments based on market shifts or through periodic re-competition. The VA may also conduct market research during the contract term to validate pricing and ensure continued cost-effectiveness for these essential IT services.

What is the long-term strategy for managing cloud infrastructure and system administration services beyond this contract, and how does this award fit into that strategy?

This contract supports the continued operation of existing environments. The VA's long-term strategy likely involves assessing future cloud needs, potential technology migrations, and whether to re-compete this specific contract or consolidate services. This award ensures immediate operational stability while longer-term planning occurs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: Verizon Communications Inc (UEI: 107212169)

Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,249,553

Exercised Options: $46,200,550

Current Obligation: $46,200,550

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0073U

IDV Type: FSS

Timeline