Three additional T4NG Prime Awards Finalized
Posted (Last updated )
** Update 6.15.16 **
G2X TAKE: The process of releasing, evaluating and awarding a $22B contract vehicle is more than a bit challenging, but the VA has moved closer to wrapping this up as they officially posted the three new additional prime contract awards. The awards to HPE, CGI Federal and Leidos bring the total list of awardees to 24 – with 12 large and 12 small primes. No details have been provided by VA as to the rationale for the additional awards.
HPE, CGI Federal and Leidos all brought teams to the bid, but we are certain that they are fielding their fair share of calls as both current and potential partners step up to support their efforts.
Two outstanding protests remain open from SBG Technology Solutions and ProSphere Tek as this presumably closes out the CGI and HPE protests. Could there be another award? Don't count on it, but it is never easy to predict how the VA will handle this. What we do know is that the TAC has moved ever so closer to getting a 3 year respite before the next On-Ramp process begins again.
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** Posted 6.13.16**
G2X TAKE: After
evaluating numerous challenges put forth by several protesting firms, it
appears that both the VA TAC and GAO has agreed in part with some of the issues raised
with the recent round of protests. As a result, they made adjustments
based on the information provided and reportedly will be adding up to three prime
contract holders to the T4NG contract, bringing the overall total to 24.
The new awardees are expected to include HPE and *CGI Federal (two of the protesting firms) along with a third new prime in Leidos, who did not protest the results of the award.
It is unclear when or how a formal announcement will be released, but G2X has confirmed this with multiple sources associated with two of the new awardees, HPE and Leidos. *We have yet to confirm with the CGI. We will update if we learn otherwise.
This is obviously very exciting news for the three firms. Both HP and Leidos were primes on T4 and CGI Federal is by no means a new face to VA.
A few points to consider -
With the protests ongoing, VA had reportedly taken the steps of allowing both CGI and HPE to participate in the process, so they should hit the ground running. Leidos was not believed to have been granted this opportunity, so they may have a bit of ground to make up in the short run. It is unclear when VA communicated this to Leidos, but if you had Leidos on your team as a sub and they suddenly stopped teaming discussions, this may help explain it.
One of the more interesting and immediate twists that will come out of this is that the Leidos-SMS/Lockheed acquisition will give this group two prime and coveted spots on this important vehicle. It won’t take long for the phone to start ringing with offers to take one of these off of their hands.
Last month’s news that HPE is going to spin off it's IT services business and merge with CSC, already had many wondering what will happen with their $3 billion public sector business. The Federal Health IT group is just one part of a large public sector portfolio, but this certainly won’t hurt how attractive this division will be. Expect there to be a lot of interest in how this plays out.
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