VA awards $27.6M for IT infrastructure to modernize 151 medical centers

Contract Overview

Contract Amount: $27,626,725 ($27.6M)

Contractor: RED River Technology LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-30

End Date: 2020-06-29

Contract Duration: 2,099 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER FOR THE PROCUREMENT OF CONVERGED VIRTUALIZATION INFRASTRUCTURE, INSTALLATION, WARRANTIES AND SUPPORT SERVICES TO REPLACE UNDERSIGNED AND EXPIRING WARRANTY SYSTEMS AT 151 VA MEDICAL CENTERS.

Place of Performance

Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.6 million to RED RIVER TECHNOLOGY LLC for work described as: COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER FOR THE PROCUREMENT OF CONVERGED VIRTUALIZATION INFRASTRUCTURE, INSTALLATION, WARRANTIES AND SUPPORT SERVICES TO REPLACE UNDERSIGNED AND EXPIRING WARRANTY SYSTEMS AT 151 VA MEDICAL CENTERS. Key points: 1. Contract aims to replace aging warranty systems with converged virtualization infrastructure. 2. Focus on installation, warranties, and support services for critical IT systems. 3. Project spans multiple years, indicating a significant long-term IT investment. 4. The award is a delivery order under a larger contract vehicle. 5. This initiative supports the VA's broader digital transformation efforts.

Value Assessment

Rating: good

The total value of $27.6 million for a 5-year period (including options) for IT infrastructure modernization across 151 medical centers appears reasonable. Benchmarking against similar large-scale IT infrastructure procurements for federal agencies suggests that costs are within expected ranges, especially considering the scope of installation, warranties, and ongoing support. The firm-fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific details on the number of bidders are not provided, but the 'full and open' designation suggests a competitive process that should lead to fair market pricing. The exclusion of sources clause might indicate specific technical requirements that limited the pool, but the primary competition was open.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation from vendors.

Public Impact

Veterans will benefit from improved IT infrastructure at 151 VA medical centers, leading to more reliable access to healthcare services. The contract delivers essential IT hardware, software, installation, and support services. Geographic impact is nationwide, covering all 151 VA medical centers. The project supports IT professionals involved in the installation and maintenance of advanced virtualization infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if support services are not managed effectively post-installation.
Ensuring interoperability with existing legacy systems across 151 diverse locations.
Managing the complexity of a nationwide rollout and ensuring consistent service delivery.

Positive Signals

Modernization of critical IT infrastructure enhances system reliability and security.
Consolidating warranty and support services can lead to administrative efficiencies.
The use of converged virtualization infrastructure can improve resource utilization and scalability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer hardware, software, and related services. The market for IT infrastructure modernization is substantial within the federal government, with agencies continually seeking to upgrade aging systems to improve efficiency and security. Comparable spending benchmarks for large-scale IT deployments often run into tens or hundreds of millions of dollars, making this award a significant but not outlier investment for the VA.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this particular delivery order. As it was awarded under full and open competition, the primary contractor, Red River Technology LLC, is likely a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and equipment. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

VA IT Modernization Initiatives
Federal Cloud Computing Strategy
Enterprise IT Services Contracts
Virtualization Technology Procurement

Risk Flags

Potential for vendor lock-in
Complexity of nationwide deployment
Technology obsolescence risk
Interoperability challenges with legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.6 million to RED RIVER TECHNOLOGY LLC. COMMODITIES ENTERPRISE CONTRACT DELIVERY ORDER FOR THE PROCUREMENT OF CONVERGED VIRTUALIZATION INFRASTRUCTURE, INSTALLATION, WARRANTIES AND SUPPORT SERVICES TO REPLACE UNDERSIGNED AND EXPIRING WARRANTY SYSTEMS AT 151 VA MEDICAL CENTERS.

Who is the contractor on this award?

The obligated recipient is RED RIVER TECHNOLOGY 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 $27.6 million.

What is the period of performance?

Start: 2014-09-30. End: 2020-06-29.

What was the specific rationale for excluding other sources, if any, during the 'full and open competition after exclusion of sources' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (often referred to as FAR 6.302-1 or sole-source justification) typically means that while the competition was intended to be open, specific circumstances led to the exclusion of all but one or a limited number of sources. This could be due to unique capabilities, urgent needs, or specific technical requirements that only a particular vendor could meet. Without further details from the contract award justification, it's difficult to pinpoint the exact reason for exclusion. However, the 'full and open' aspect suggests that the initial intent was broad competition, and the exclusion was a subsequent determination based on specific criteria.

How does the cost of this contract compare to similar IT infrastructure modernization projects at other federal agencies?

Benchmarking this $27.6 million contract against similar federal IT infrastructure modernization projects requires detailed comparison of scope, duration, and technology. Large-scale projects involving virtualization, installation, and multi-year support across hundreds of sites can range significantly. For instance, other agencies have awarded contracts in the tens to hundreds of millions for similar upgrades. Given the scale of 151 medical centers, the cost per site appears reasonable, suggesting the VA likely achieved competitive pricing. However, a precise comparison would necessitate analyzing the specific hardware, software, and service level agreements involved.

What are the key performance indicators (KPIs) used to measure the success of this contract's implementation and support?

Key Performance Indicators (KPIs) for such an IT infrastructure contract typically focus on system uptime, performance metrics (e.g., latency, throughput), response times for support requests, successful installation rates, and adherence to security protocols. The contract likely includes Service Level Agreements (SLAs) that define these KPIs and associated remedies or penalties for non-performance. While specific KPIs are not detailed in the provided data, common metrics would include achieving a certain percentage of system availability (e.g., 99.9%), resolving critical incidents within a defined timeframe, and completing installations on schedule across the 151 medical centers.

What is the track record of Red River Technology LLC in delivering similar large-scale IT infrastructure projects for the federal government?

Red River Technology LLC has a significant track record of delivering IT solutions and services to the federal government, including the Department of Veterans Affairs. They have held numerous contracts for hardware, software, and related services across various agencies. Their experience often includes large-scale deployments, cybersecurity solutions, and cloud services. While specific performance details for every contract are not always public, their consistent presence as a prime contractor on substantial federal awards suggests a capability to manage complex projects. This particular contract, valued at $27.6 million over several years, aligns with their demonstrated capacity for significant IT procurements.

What are the potential risks associated with the long-term support and maintenance of this new IT infrastructure?

Potential long-term risks include vendor lock-in, where the VA becomes heavily reliant on Red River Technology for ongoing support and upgrades, potentially leading to higher costs over time. Another risk is the rapid evolution of technology; the 'converged virtualization infrastructure' might become outdated before the end of its lifecycle, requiring further investment. Ensuring seamless integration with existing and future VA systems across 151 diverse locations presents a significant challenge. Furthermore, cybersecurity threats are a constant risk, requiring continuous vigilance and updates to the infrastructure and support services to maintain security posture.

How does this contract contribute to the VA's overall IT modernization goals and digital transformation strategy?

This contract is a direct contribution to the VA's IT modernization goals by replacing outdated warranty systems with a more current and flexible converged virtualization infrastructure. Modernizing the IT backbone at 151 medical centers is crucial for enabling the VA's broader digital transformation strategy, which aims to improve patient care, streamline operations, and enhance data security and accessibility. By establishing a more robust and scalable foundation, the VA can more effectively implement new digital health tools, improve data analytics capabilities, and provide a more reliable technological environment for healthcare providers and veterans.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21 WATER ST STE 500, CLAREMONT, NH, 03743

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

Financial Breakdown

Contract Ceiling: $27,626,725

Exercised Options: $27,626,725

Current Obligation: $27,626,725

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1001

IDV Type: IDC

Timeline