VA awards $22.3M for Red Hat software licenses and support, with full and open competition

Contract Overview

Contract Amount: $22,267,245 ($22.3M)

Contractor: Fedstore Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-29

End Date: 2019-09-28

Contract Duration: 1,094 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF RENEWAL OF REDHAT ENTERPRISE-WIDE LICENSE SOFTWARE MAINTENANCE AND TECHNICAL SUPPORT SUBSCRIPTIONS, AND PROCUREMENT OF ADDITIONAL QUANTITIES OF NEW REDHAT SOFTWARE LICENSES AND CORRESPONDING SOFTWARE MAINTENANCE. PERIOD OF PERFORMANCE CONSISTS OF A 12-MONTH BASE PERIOD, AND TWO 12-MONTH OPTION PERIODS FOR RENEWALS, AS WELL AS OPTIONAL TASKS FOR INCREASED QUANTITIES OF LICENSES.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.3 million to FEDSTORE CORPORATION for work described as: IGF::OT::IGF RENEWAL OF REDHAT ENTERPRISE-WIDE LICENSE SOFTWARE MAINTENANCE AND TECHNICAL SUPPORT SUBSCRIPTIONS, AND PROCUREMENT OF ADDITIONAL QUANTITIES OF NEW REDHAT SOFTWARE LICENSES AND CORRESPONDING SOFTWARE MAINTENANCE. PERIOD OF PERFORMANCE CONSISTS OF A 12-MONTH BASE PER… Key points: 1. The Department of Veterans Affairs (VA) is procuring Red Hat software licenses and maintenance, totaling $22.3 million. 2. The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. 3. The spending covers a 12-month base period and two 12-month option periods, with flexibility for additional licenses. 4. This expenditure falls under 'Other Computer Related Services' (NAICS 541519), a common area for government IT procurement.

Value Assessment

Rating: good

The $22.3 million contract value appears reasonable for enterprise-wide software licenses and maintenance, especially considering the multi-year period of performance. Benchmarking against similar large-scale government software agreements would provide further context.

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.' This suggests that while multiple sources were considered, specific exclusions may have occurred, but the overall intent was competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary software and support.

Public Impact

Veterans Affairs IT infrastructure relies on this software for critical operations. The contract ensures continued access to essential software maintenance and technical support. Procurement of additional licenses allows for scalability and adaptation to evolving VA needs. The multi-year nature provides budget stability for this IT requirement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary software.
Need for ongoing monitoring of license utilization to ensure cost-effectiveness.

Positive Signals

Competitive award process.
Multi-year contract provides stability.
Flexibility for additional license procurement.

Sector Analysis

This contract falls within the IT sector, specifically software licensing and maintenance. Government spending on enterprise software is substantial, with significant portions allocated to operating systems, databases, and productivity suites. Benchmarks vary widely based on software type and scale.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, FEDSTORE CORPORATION, is not identified as a small business in this context. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is a Delivery Order under a larger agreement, suggesting it has undergone some level of pre-award review. Ongoing oversight would typically involve contract management by the VA to ensure performance and adherence to terms.

Related Government Programs

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

Risk Flags

Potential for price increases in option periods.
Dependence on a single software vendor.
Risk of unutilized licenses if not managed properly.
Cybersecurity risks associated with software vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.3 million to FEDSTORE CORPORATION. IGF::OT::IGF RENEWAL OF REDHAT ENTERPRISE-WIDE LICENSE SOFTWARE MAINTENANCE AND TECHNICAL SUPPORT SUBSCRIPTIONS, AND PROCUREMENT OF ADDITIONAL QUANTITIES OF NEW REDHAT SOFTWARE LICENSES AND CORRESPONDING SOFTWARE MAINTENANCE. PERIOD OF PERFORMANCE CONSISTS OF A 12-MONTH BASE PERIOD, AND TWO 12-MONTH OPTION PERIODS FOR RENEWALS, AS WELL AS OPTIONAL TASKS FOR INCREASED QUANTITIES OF LICENSES.

Who is the contractor on this award?

The obligated recipient is FEDSTORE CORPORATION.

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 $22.3 million.

What is the period of performance?

Start: 2016-09-29. End: 2019-09-28.

What specific Red Hat products are included in this license and maintenance agreement, and how do their costs compare to market rates for similar enterprise software?

The provided data does not specify the exact Red Hat products covered. However, Red Hat Enterprise Linux (RHEL) is a common offering for such agreements. A detailed breakdown of included products and their quantities would be necessary for a precise market rate comparison. General market analysis suggests enterprise Linux subscriptions can range from hundreds to thousands of dollars per subscription annually, depending on support levels and scale.

What were the specific reasons for excluding other sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?

The exclusion of sources typically occurs when specific technical requirements, existing infrastructure compatibility, or unique support needs necessitate a limited pool of potential bidders. Without further details on the exclusion rationale, it's difficult to definitively state its impact on price. However, a narrower competition can sometimes lead to higher prices compared to a truly open market.

How effectively does the VA manage its software licenses to ensure optimal utilization and avoid overspending, particularly with the option for additional quantities?

Effective software license management (SAM) is crucial for government agencies. The VA likely has internal policies and teams dedicated to SAM. Regular audits, tracking of deployments, and proactive renewal negotiations are key. The flexibility to procure additional licenses is beneficial, but requires diligent tracking to prevent unnecessary costs if demand doesn't materialize.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PRESERVE PKWY STE 620, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $25,646,866

Exercised Options: $22,267,245

Current Obligation: $22,267,245

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD21B

IDV Type: GWAC

Timeline