VA awards $37.1M for network switches, impacting IT infrastructure across numerous facilities

Contract Overview

Contract Amount: $37,097,500 ($37.1M)

Contractor: Intelligent Waves LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-20

End Date: 2018-06-19

Contract Duration: 637 days

Daily Burn Rate: $58.2K/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: PURCHASE OF 7,600 STACKABLE NETWORK ACCESS SWITCHES AND ASSOCIATED INSTALLATION SERVICES UNDER THE COMMODITIES ENTERPRISE CONTRACT FOR LIFECYCLE NETWORKING INFRASTRUCTURE REFRESH AT NUMEROUS FACILITIES ACROSS THE DEPARTMENT OF VETERANS AFFAIRS ENTERPRISE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37.1 million to INTELLIGENT WAVES LLC for work described as: PURCHASE OF 7,600 STACKABLE NETWORK ACCESS SWITCHES AND ASSOCIATED INSTALLATION SERVICES UNDER THE COMMODITIES ENTERPRISE CONTRACT FOR LIFECYCLE NETWORKING INFRASTRUCTURE REFRESH AT NUMEROUS FACILITIES ACROSS THE DEPARTMENT OF VETERANS AFFAIRS ENTERPRISE. Key points: 1. The contract focuses on essential IT hardware, indicating a need for network modernization. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. The award was made under a broader enterprise contract, suggesting potential for future related procurements. 4. The duration of the contract (637 days) suggests a phased rollout or installation process. 5. The procurement supports the Department of Veterans Affairs' ongoing efforts to refresh its IT lifecycle infrastructure.

Value Assessment

Rating: good

The total award of $37.1 million for 7,600 network switches appears reasonable given the scope. While specific per-unit pricing is not detailed, the contract was awarded under a larger enterprise agreement, which often leverages pre-negotiated rates. Benchmarking against similar large-scale IT hardware procurements would provide a more precise value assessment, but the scale suggests potential for volume discounts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors had the opportunity to bid. The fact that it was competed suggests a healthy market for network access switches. The presence of two bidders, while not extensive, still provides a basis for price comparison and ensures that the government is not locked into a single vendor's pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down prices compared to a sole-source or limited competition scenario.

Public Impact

Veterans Affairs facilities nationwide will benefit from improved network connectivity and performance. The contract delivers essential network access switches, crucial for modern IT operations. The geographic impact is enterprise-wide, affecting numerous VA facilities across the country. The installation services associated with the switches will likely involve IT technicians, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if installation and ongoing support are heavily tied to the specific switch model.
Risk of obsolescence if the technology lifecycle outpaces the refresh cycle.
Dependence on the contractor for timely installation and integration into existing networks.

Positive Signals

The use of an enterprise contract can streamline future procurements and potentially offer better pricing.
Firm-fixed-price contract type provides cost certainty for the VA.
Awarding under full and open competition ensures a baseline level of market engagement.

Sector Analysis

This contract falls within the IT hardware and services sector, specifically focusing on networking infrastructure. The market for network access switches is mature and competitive, with numerous established vendors. The Department of Veterans Affairs, as a large federal agency, is a significant consumer of such equipment, and this procurement aligns with broader government efforts to modernize IT systems and ensure robust network capabilities across agencies.

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, it's possible that small businesses could have participated as prime contractors or subcontractors, but there's no explicit indication of a focus on small business participation in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on any allegations of fraud, waste, or abuse related to the contract's performance or execution.

Related Government Programs

Department of Veterans Affairs IT Modernization Initiatives
Federal Enterprise IT Hardware Procurement
Network Infrastructure Refresh Programs
Commodities Enterprise Contracts

Risk Flags

Ambiguity in 'exclusion of sources' clause requires clarification.
Lack of detailed performance metrics for installation services.
Potential for technology obsolescence over the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37.1 million to INTELLIGENT WAVES LLC. PURCHASE OF 7,600 STACKABLE NETWORK ACCESS SWITCHES AND ASSOCIATED INSTALLATION SERVICES UNDER THE COMMODITIES ENTERPRISE CONTRACT FOR LIFECYCLE NETWORKING INFRASTRUCTURE REFRESH AT NUMEROUS FACILITIES ACROSS THE DEPARTMENT OF VETERANS AFFAIRS ENTERPRISE.

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 $37.1 million.

What is the period of performance?

Start: 2016-09-20. End: 2018-06-19.

What is the specific model and manufacturer of the 7,600 network access switches purchased?

The provided data does not specify the exact model or manufacturer of the network access switches. The contract identifies the procurement as 'PURCHASE OF 7,600 STACKABLE NETWORK ACCESS SWITCHES AND ASSOCIATED INSTALLATION SERVICES'. Further details would typically be found within the full contract documentation or associated technical specifications, which are not included in the abbreviated data. Understanding the specific hardware is crucial for assessing compatibility, performance, and potential long-term supportability within the VA's network environment.

How does the per-unit cost of these switches compare to market rates or similar government procurements?

The provided data does not include the per-unit cost of the switches, only the total award amount of $37.1 million for 7,600 units. To calculate an approximate per-unit cost, we divide the total award by the number of units: $37,097,500 / 7,600 units = approximately $4,881 per switch. Benchmarking this against current market rates for enterprise-grade stackable network access switches and similar government procurements (e.g., GSA schedules, other agency contracts) would be necessary to determine if this represents good value. Factors like specific features, warranty, and support levels significantly influence pricing.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with the installation services?

The abbreviated data mentions 'associated installation services' but does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) governing these services. Typically, such agreements would outline requirements for installation timelines, successful integration, network uptime post-installation, and potentially technician qualifications. The effectiveness of the installation would be measured against these defined metrics. Without these specifics, it's difficult to assess the performance risk or the quality of the installation services provided under this contract.

What is the track record of Intelligent Waves LLC in delivering similar large-scale IT hardware and installation projects for the federal government?

Intelligent Waves LLC has a history of federal contracting, including work related to IT services and telecommunications. To assess their track record specifically for large-scale network switch procurements and installations, a review of their past performance on similar contracts would be necessary. This would involve examining contract performance reports, any past performance evaluations, and the successful completion of projects of comparable size and complexity. Their experience with the Department of Veterans Affairs or other large agencies would be particularly relevant.

How does this $37.1 million award fit into the VA's overall IT spending and network modernization strategy?

This $37.1 million award represents a significant investment in the VA's network infrastructure, specifically for access switches. It aligns with the broader federal and agency-level push for IT modernization, which aims to improve the efficiency, security, and reliability of IT systems. Such procurements are essential for supporting the VA's mission-critical operations, including electronic health records, patient care systems, and administrative functions. Understanding the VA's total IT budget and its strategic priorities for network upgrades would provide context for the significance of this particular contract within their overall spending plan.

What are the potential risks associated with the 'exclusion of sources' clause mentioned in the contract type?

The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This phrasing can be ambiguous. If it means that certain sources were excluded *after* an initial full and open competition (perhaps due to disqualification), it's less concerning. However, if it implies that the initial competition was intentionally limited by excluding certain types of vendors or technologies without clear justification, it could raise concerns about fairness and potentially limit the best value outcome for the government. Clarification on the specific reasons for exclusion is needed for a full risk assessment.

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: $37,097,500

Exercised Options: $37,097,500

Current Obligation: $37,097,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1000

IDV Type: IDC

Timeline