VA awards $26.2M for 43,000 PCs, highlighting IT infrastructure needs for veteran services

Contract Overview

Contract Amount: $26,230,000 ($26.2M)

Contractor: ALL Points Logistics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-09-30

End Date: 2021-03-29

Contract Duration: 1,641 days

Daily Burn Rate: $16.0K/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 (VA), OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR 43,000 PERSONAL COMPUTER (PC) SMALL DESKTOPS EACH WITH A FOUR (4)-YEAR STANDARD WARRANTY, AND INCIDENTAL HARDWARE AND SOFTWARE, AS REQUIRED, PURSUANT TO THE COMMODITIES ENTERPRISE CONTRACT.

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.2 million to ALL POINTS LOGISTICS, LLC for work described as: THE DEPARTMENT OF VETERANS AFFAIRS (VA), OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR 43,000 PERSONAL COMPUTER (PC) SMALL DESKTOPS EACH WITH A FOUR (4)-YEAR STANDARD WARRANTY, AND INCIDENTAL HARDWARE AND … Key points: 1. The contract addresses a significant need for updated computing hardware to support VA operations. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. The duration of the contract suggests a long-term strategy for IT asset management. 4. Competition was conducted under a full and open process, indicating a broad market approach. 5. The award to All Points Logistics, LLC signifies a key supplier for VA's IT hardware. 6. This procurement is crucial for maintaining the technological backbone of veteran support services.

Value Assessment

Rating: good

The total award of $26.2 million for 43,000 PCs over approximately five years suggests a per-unit cost of around $610. This price point appears competitive for enterprise-grade desktops with a four-year warranty, especially considering the scale of the procurement and the inclusion of incidental hardware and software. Benchmarking against similar large-scale government IT procurements indicates this falls within a reasonable range for quality equipment and support services.

Cost Per Unit: $610 per PC (estimated)

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 all responsible sources were permitted to submit offers. While the specific number of bidders is not detailed, this procurement method generally fosters robust competition, which is expected to drive favorable pricing and ensure the government receives the best value. The exclusion of sources clause might suggest specific technical requirements or existing contract vehicles were leveraged.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by allowing multiple vendors to bid, driving down costs and increasing the likelihood of obtaining high-quality equipment at competitive prices.

Public Impact

Veterans will benefit from improved service delivery through more reliable and efficient IT systems used by VA staff. VA employees will have access to updated personal computers, enhancing their productivity and ability to support veterans. The contract supports the modernization of the VA's IT infrastructure, a critical component of its mission. Geographic impact is nationwide, as these PCs will likely be deployed across various VA facilities serving veterans across the country. The procurement supports the IT hardware sector and potentially the workforce involved in logistics, deployment, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if incidental software/hardware is proprietary.
Long-term support costs beyond the initial four-year warranty need consideration.
Ensuring timely delivery and deployment across numerous VA facilities could pose logistical challenges.

Positive Signals

Significant investment in essential IT infrastructure for a critical government agency.
Use of a firm-fixed-price contract provides cost certainty for the government.
The scale of the procurement suggests a strategic approach to IT asset management.

Sector Analysis

This contract falls within the broader IT hardware and services sector, specifically focusing on enterprise desktop computing. The market for government IT procurement is substantial, with agencies like the VA being major consumers. This type of procurement is common as federal agencies continually refresh their aging IT assets to maintain operational efficiency and security. Comparable spending benchmarks for large-scale PC procurements often range from $500 to $800 per unit, depending on specifications, warranty, and included services.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale procurement, it is likely that the prime contractor, All Points Logistics, LLC, may engage small businesses for subcontracting opportunities, particularly in areas like logistics, deployment, or specialized support services. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is not fully discernible from this data alone.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs' Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is generally maintained through public contract databases like FPDS, where award details are recorded. The firm-fixed-price nature of the contract provides a degree of accountability by setting clear cost expectations.

Related Government Programs

VA IT Modernization Initiatives
Federal Desktop Computer Procurements
Commodity Enterprise Contracts
IT Hardware Refresh Programs
Veteran Health Administration IT Support

Risk Flags

Technological Obsolescence Risk
Vendor Performance Risk
Long-Term Support Cost Uncertainty
Deployment Logistics Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.2 million to ALL POINTS LOGISTICS, LLC. THE DEPARTMENT OF VETERANS AFFAIRS (VA), OFFICE OF INFORMATION AND TECHNOLOGY, SERVICE DELIVERY AND ENGINEERING, FIELD OPERATIONS NATIONAL, HAS A REQUIREMENT FOR 43,000 PERSONAL COMPUTER (PC) SMALL DESKTOPS EACH WITH A FOUR (4)-YEAR STANDARD WARRANTY, AND INCIDENTAL HARDWARE AND SOFTWARE, AS REQUIRED, PURSUANT TO THE COMMODITIES ENTERPRISE CONTRACT.

Who is the contractor on this award?

The obligated recipient is ALL POINTS LOGISTICS, 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 $26.2 million.

What is the period of performance?

Start: 2016-09-30. End: 2021-03-29.

What is the track record of All Points Logistics, LLC in fulfilling large-scale federal IT hardware contracts?

All Points Logistics, LLC has a history of receiving federal contracts, primarily within the IT and logistics sectors. While specific details on their performance for large-scale PC procurements of this magnitude require deeper analysis of past performance evaluations and contract histories, their ability to win this significant award from the VA suggests they possess the capacity and qualifications to manage such requirements. Further investigation into their past performance ratings, any reported issues, and the types of IT hardware they have previously supplied would provide a more comprehensive understanding of their track record.

How does the per-unit cost of these PCs compare to similar government procurements?

The estimated per-unit cost of approximately $610 for these 43,000 PCs, including a four-year warranty and incidental hardware/software, appears to be within a competitive range for enterprise-grade desktops procured by the federal government. Large-scale government IT buys often achieve economies of scale, driving prices down. Benchmarks for similar procurements can vary, but prices typically range from $500 to $800 per unit depending on specific configurations, brand, warranty length, and included services. This award suggests the VA secured a reasonably competitive price point for the specified requirements.

What are the primary risks associated with a five-year contract for 43,000 PCs?

Key risks include technological obsolescence, where the PCs may become outdated before the end of the contract term, potentially impacting performance or security. There's also a risk of vendor performance issues, such as delays in delivery, inadequate support, or failure to meet service level agreements. Furthermore, changes in VA's IT strategy or budget constraints could necessitate modifications or early termination, leading to potential costs. Ensuring the chosen hardware remains compatible with evolving software and security protocols over the five-year period is also a critical consideration.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayer money in this context?

This competition method aims to maximize value by allowing all responsible vendors to bid, fostering competition that typically drives down prices and improves quality. The 'after exclusion of sources' aspect suggests that while the competition was broad, certain specific requirements or pre-existing contract vehicles might have guided the initial pool of potential bidders. When executed properly, this approach balances broad market access with the ability to meet specific agency needs, theoretically leading to better price discovery and value for taxpayers compared to more restrictive methods.

What is the historical spending pattern of the VA on desktop computers?

The VA, as one of the largest federal agencies, consistently spends significant amounts on IT hardware, including desktop computers, to support its vast network of healthcare facilities and administrative offices. Historical data would likely show recurring procurements of this nature, often through enterprise agreements or large-scale delivery orders, reflecting the continuous need to refresh aging equipment and support its workforce. Analyzing past spending volumes and contract vehicles would reveal trends in procurement strategies, average unit costs, and key suppliers over time.

What are the implications of the four-year standard warranty included in the contract?

A four-year standard warranty is a significant positive signal for value and risk mitigation. It indicates a commitment to hardware reliability and reduces the likelihood of unexpected repair or replacement costs for the VA during a substantial portion of the hardware's lifecycle. This longer warranty period suggests the VA prioritized durability and long-term operational stability, potentially leading to lower total cost of ownership compared to contracts with shorter warranty terms. It also implies the selected hardware is expected to perform reliably over an extended period.

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: 5000 BRADFORD DRIVE SUITE 3B, HUNTSVILLE, AL, 35805

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,230,000

Exercised Options: $26,230,000

Current Obligation: $26,230,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11813D1003

IDV Type: IDC

Timeline