The next generation of the Transformation Twenty-One Total Technology Program (T4NG) the Department of Veterans Affairs contract to manage its IT systems will almost double in scope from the current T4 contract, with the projected value rising from a ceiling of $12 billion to $22.3 billion.
The T4NG contract is focused mainly on management of the VAs IT systems, health IT and telecoms, however the chosen vendors will also have some discretion to purchase new software and hardware, as needed, to modernize the departments systems.
The higher ceiling puts T4NG among the top three contracts to be competed in fiscal 2015, bumping the Defense Departments Defense Health IT Services Generation I (DHITS GEN I) down to the No. 4 slot at $20 billion.
We believe that an increase to the duration of the T4NG vehicle, as well as a potential increase in the number of T4NG awards are driving the increase in ceiling value, Deltek Principal Research Analyst Jennifer Sakole said.
The contract could be split up among as many as 20 vendors, with four awards set aside for veteran-owned small business, service-disabled veteran-owned small businesses and women-owned small businesses, each.
The contracts feature a five-year base and optional five-year add-on.
VA awarded the current T4 contracts to 15 vendors in June 2011. They expire in June 2016.
The awards will be decided on the best value offered, with consideration given to technical ability, past performance, price and an emphasis on veteran employment with the respective vendor.
The RFP is expected in November, with proposals due in December. The final award announcements are slated for December 2015.