VA awards $54.4M for IT hardware and services, with 2 delivery orders issued

Contract Overview

Contract Amount: $54,421,023 ($54.4M)

Contractor: Intelligent Waves LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-12

End Date: 2020-12-11

Contract Duration: 1,551 days

Daily Burn Rate: $35.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS, DOCKING STATIONS, MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, INSTALLATION SERVICES, AND WARRANTY SUPPORT SERVICES, AS DETAILED IN THE TABLES BELOW. REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED WITHIN THIS PRODUCT DESCRIPTION. ADDITIONALLY, THE GOVERNMENT EXPRESSLY PROVIDES HEREIN THAT IT HAS RESERVED THE RIGHT TO PROCURE, IN ITS SOLE DISCRETION, OPTIONAL QUANTITIES OF ADDITIONAL PCS, AND OR LAPTOPS, DOCKING STATIONS, MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, INSTALLATION SERVICES, AND WARRANTY SUPPORT SERVICES, UP TO THE MAXIMUM QUANTITIES SPECIFIED.

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54.4 million to INTELLIGENT WAVES LLC for work described as: THE DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS, DOCKING STATIONS, MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, INSTALLATION SERVICES, … Key points: 1. This contract focuses on essential IT hardware and support services for the Department of Veterans Affairs. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 3 years, indicating a significant commitment to these services. 4. The contract type is Firm Fixed Price, which helps in managing budget predictability. 5. The award was made to a single contractor, Intelligent Waves LLC. 6. The contract includes provisions for optional quantities, allowing flexibility for future needs.

Value Assessment

Rating: good

The total award amount of $54.4 million for IT hardware and services appears reasonable given the multi-year duration and scope. Benchmarking against similar large-scale IT procurements for federal agencies suggests this is within expected ranges. The firm fixed price structure provides cost certainty for the VA. Without specific unit costs for each item (laptops, monitors, etc.), a precise per-unit value assessment is challenging, but the overall value proposition seems sound for the provided services and goods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing. The exclusion of sources clause suggests that while open to all, certain pre-qualification or specific requirements might have been in place.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions being considered, ultimately maximizing the value of federal dollars spent.

Public Impact

Veterans Affairs personnel will benefit from updated and supported IT equipment, enhancing their ability to serve veterans. The contract ensures the provision of laptops, personal computers, docking stations, monitors, and related hardware and software. Installation services and warranty support are included, ensuring seamless integration and ongoing operational reliability. The geographic impact is national, supporting the IT infrastructure across various VA facilities. Workforce implications include ensuring IT staff have the necessary tools and support to maintain and deploy equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively re-awarded.
Reliance on a single vendor for a significant IT hardware and service requirement could pose supply chain risks.
Ensuring consistent quality and timely delivery across all VA locations requires robust vendor management.

Positive Signals

The firm fixed price contract provides cost predictability for the VA.
Full and open competition suggests a competitive environment that should drive value.
The inclusion of installation and warranty services indicates a comprehensive support package.
The contract's multi-year duration allows for stable IT infrastructure planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on hardware procurement and related support services. The IT hardware market is vast and highly competitive, with numerous vendors offering a wide range of products. Federal agencies are significant buyers in this market, often procuring large volumes of standardized equipment. Comparable spending benchmarks for federal IT hardware and services can vary widely based on quantity, specifications, and service level agreements, but procurements in the tens of millions are common for agencies of the VA's size.

Small Business Impact

The data indicates this contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and does not explicitly mention small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on small businesses. However, large prime contracts often have subcontracting requirements, which could provide opportunities for small businesses if Intelligent Waves LLC engages them. Further review of the contract details would be needed to confirm any small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Veterans Affairs' Office of Information and Technology, Service Delivery and Engineering, Field Operations. Accountability measures are embedded in the firm fixed price structure and the requirement for specific deliverables and warranty support. Transparency is facilitated by the contract being awarded under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Federal Enterprise Infrastructure Solutions (FEIS)
GSA Schedule IT Hardware Procurements
Department of Defense IT Equipment Contracts

Risk Flags

Potential for supply chain delays
Risk of technological obsolescence
Dependence on single vendor for critical hardware

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54.4 million to INTELLIGENT WAVES LLC. THE DEPARTMENT OF VETERANS AFFAIRS, OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, PERSONAL COMPUTERS, DOCKING STATIONS, MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, INSTALLATION SERVICES, AND WARRANTY SUPPORT SERVICES, AS DETAILED IN THE TABLES BELOW. REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED WITHIN THIS PRODUCT DESCRIPTION. ADDITIONALLY, THE GOVERNMENT EXPRESSLY PROVI

Who is the contractor on this award?

The obligated recipient is INTELLIGENT WAVES 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 $54.4 million.

What is the period of performance?

Start: 2016-09-12. End: 2020-12-11.

What is the historical spending pattern for similar IT hardware and services at the Department of Veterans Affairs?

Analyzing historical spending patterns for IT hardware and services at the VA is crucial for context. Over the past decade, the VA has consistently invested billions in IT infrastructure to support its vast network of healthcare facilities and administrative operations. This includes significant spending on end-user devices like laptops and desktops, as well as networking equipment and software licenses. The agency has faced challenges with legacy systems and has undertaken modernization efforts, which often involve substantial hardware refresh cycles. Specific spending on laptops and related peripherals can fluctuate annually based on refresh schedules, new technology adoption, and evolving cybersecurity requirements. For instance, prior to this contract, the VA likely had other large-scale agreements for similar equipment, potentially through GSA schedules or other competitive solicitations, to meet its widespread needs.

How does the per-unit cost of items like laptops and monitors under this contract compare to market rates or other federal contracts?

A detailed per-unit cost comparison is challenging without the specific line-item pricing from the contract. However, the total award of $54.4 million over approximately 3.8 years (from Sept 2016 to Dec 2020) suggests an average annual spend of roughly $14.3 million. If we assume a significant portion of this is for laptops and monitors, and estimate a typical refresh cycle or deployment volume, we could infer an average unit cost. Federal contracts, especially those awarded under full and open competition, often achieve significant volume discounts. Therefore, per-unit costs might be competitive, potentially lower than commercial retail prices due to bulk purchasing power. However, they could also be higher if specialized configurations, extended warranties, or specific support services are bundled, which is common in government IT procurements. Benchmarking against other agency IT contracts or GSA Schedule pricing for similar configurations would be necessary for a precise comparison.

What is the track record of Intelligent Waves LLC in fulfilling large federal IT hardware contracts?

Intelligent Waves LLC has a history of securing and performing on federal contracts, including those involving IT hardware, software, and services. Their portfolio often includes work with various government agencies, demonstrating an ability to navigate federal procurement processes and meet agency requirements. For large-scale IT hardware procurements, their track record would be assessed based on on-time delivery, product quality, adherence to specifications, and overall customer satisfaction reported through contract performance evaluations (e.g., CPARS). Success in fulfilling contracts of similar magnitude and complexity, like this $54.4 million VA award, indicates a capacity to manage significant logistical and technical challenges. However, a comprehensive review would involve examining their performance history across multiple contracts to identify any recurring issues or consistent strengths.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this contract include potential supply chain disruptions for hardware, technological obsolescence if the equipment lifecycle is longer than anticipated, and performance issues with installation or warranty services. Mitigation strategies are likely embedded within the contract terms. The firm fixed price structure incentivizes the contractor to manage costs and deliver within budget. The inclusion of warranty support directly addresses potential hardware failures. For supply chain risks, the VA may have requirements for the contractor to maintain adequate inventory or have contingency plans. Technological obsolescence is managed through careful specification development and potentially through contract clauses that allow for upgrades or replacements if technology standards evolve rapidly. Performance monitoring by the VA contracting officer and the potential for contract remedies also serve as mitigation tools.

How does this contract align with the Department of Veterans Affairs' broader IT modernization goals?

This contract aligns with the VA's broader IT modernization goals by providing essential, up-to-date end-user computing devices and associated support. Modernizing IT infrastructure is a key component of the VA's strategy to improve the efficiency and effectiveness of its services to veterans. Reliable and performant laptops, PCs, and monitors are fundamental tools for VA staff, enabling them to access electronic health records, manage patient appointments, and perform administrative tasks more efficiently. By ensuring these devices are current and well-supported through installation and warranty services, the VA reduces the risk of productivity loss due to hardware failures or outdated technology, thereby supporting the overall digital transformation and modernization efforts across the agency.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1801 ROBERT FULTON DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $54,421,023

Exercised Options: $54,421,023

Current Obligation: $54,421,023

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1000

IDV Type: IDC

Timeline