P01 PWS - Infrastructure Engineering And Operations.docx

Infrastructure & Engineering Operations

PERFORMANCE WORK STATEMENT (PWS)

DEPARTMENT OF VETERANS AFFAIRS

Office of Information & Technology Infrastructure Operations

Infrastructure Engineering & Operations

Date: January 28, 2026 PWS Version Number: 1.0

Contents

BACKGROUND

The Department of Veterans Affairs (VA) Office of Information and Technology (OIT), through its Infrastructure Operations (IO) organization, is responsible for delivering secure, reliable, and modern IT services that enable VA to fulfill its mission of providing healthcare and benefits to Veterans. IO supports a vast and complex enterprise environment spanning on-premises data centers, hybrid cloud platforms, and distributed systems serving millions of users including Veterans, employees, and partners. These services underpin mission-critical systems such as electronic health records, claims processing, benefits administration, cybersecurity, and enterprise-wide communications.

Infrastructure Operations and Engineering (IO&E) is a domain within IO, focused on delivering comprehensive engineering and optimization support to operational environments. These services underpin mission-critical systems such as electronic health records, claims processing, benefits administration, cybersecurity, and enterprise-wide communications. IO&E domain seeks to unify and strengthen the foundational capabilities that support infrastructure operations across the enterprise. This functionality plays a critical role in enhancing the performance, efficiency, and reliability of infrastructure services by identifying and eliminating inefficiencies, streamlining processes, and implementing data-driven improvements. The desired outcome is a resilient, cost-effective, and scalable infrastructure that improves system availability, reduces operational costs, and enhances end-user satisfaction, ultimately supporting the delivery of high-quality services to Veterans.

Within the IO&E domain, VA requires contractor support in three primary areas of focus: Infrastructure Enhancements, Data Center Operations, and Business Office Integration.

Infrastructure Enhancements tasks require advanced analytics, automation, and architectural best practices to continuously refine infrastructure capabilities—ensuring systems are not only resilient and scalable, but also cost-effective and aligned with evolving mission needs. By embedding optimization into every layer of infrastructure support, VA’s operations aim to achieve greater agility, performance, and value.

Data Center Operations tasks shall ensure the design, deployment, and maintenance of existing and future hybrid infrastructure environments that are secure, scalable, and aligned with evolving mission demands.

Business Office Integration tasks play a strategic role in aligning infrastructure initiatives with enterprise priorities, managing resources, and tracking performance outcomes. Business Office Integration outcomes serve as the central coordination point for day-to-day operational needs, service intake, and stakeholder engagement.

Together, these functional areas form a cohesive, mission-driven domain that empowers OIT and IO to deliver optimized, reliable, and future-ready services.

APPLICABLE DOCUMENTS

In the performance of the tasks associated with this Performance Work Statement (PWS), the Contractor shall comply with applicable documents identified in the parent contract PWS Section 2.0 Applicable Documents.

SCOPE OF WORK

The Contractor shall perform the services described in this PWS in accordance with the Contractor’s parent contract PWS requirements to execute the following projects and support the identified objectives and outcomes:

Infrastructure Enhancement: VA seeks a holistic approach to infrastructure optimization, facilitating improved operational outcomes and cost efficiencies across both cloud and on-premises environments. The objective is to optimize both cloud-based and on-premises environments to enhance operational efficiency, scalability, and cost-effectiveness for the VA's infrastructure. This includes Service Integration and Management (SIAM) framework services and implementing and maturing Cloud Financial Operations (FinOps) practices to manage and optimize cloud costs, ensuring transparency, governance, and strategic allocation of resources. Comprehensive assessments will be conducted to identify and execute improvement opportunities, focusing on optimizing power and cooling systems, equipment lifecycle management, and disaster recovery preparedness. In on-premises environments, strategies will be devised and implemented to reduce operational costs and improve performance, while maintaining high availability and reliability. This project will also encompass the development and maintenance of a strategic infrastructure plan that monitors performance and ensures alignment with VA’s broader objectives. Key components include the integration of cutting-edge technologies and best practices, advanced security measures to ensure the integrity and security of the infrastructure, and compliance with VA and federal standards.

Data Center Operations: Services in this task area focus on data center engineering and management. The objective of these services is to design, implement, and maintain scalable and resilient data center and cloud infrastructure solutions that leverage modern technologies and best practices. This encompasses ensuring the infrastructure's high availability, reliability, and efficiency to support the VA's operational needs. The scope includes conducting comprehensive assessments to identify areas for improvement, optimizing power and cooling systems, managing the lifecycle of equipment, and implementing robust disaster recovery plans. Key activities involve the strategic planning and development of data center and cloud assets, as well as monitoring performance to ensure alignment with VA's objectives. The scope also includes continuous monitoring and assessment of the performance of data center and cloud assets to identify opportunities for improvement and cost optimization. By leveraging best practices in portfolio management, the project aims to enhance decision-making processes, prioritize investments, and ensure efficient allocation of resources. This will involve the integration of advanced tools and methodologies for tracking and reporting on the status and performance of the infrastructure portfolio. Additionally, this project integrates advanced security measures to protect infrastructure integrity and data security, while also ensuring compliance with VA and federal standards. Overall, the objective is a comprehensive approach to modernizing and fortifying the VA's data center and cloud infrastructure, fostering improved operational efficiency and scalability. The objective of services shall also aim to optimize and manage the VA’s data center infrastructure, ensuring it meets the highest standards of efficiency, reliability, and scalability. This involves a comprehensive approach to maintaining and upgrading the physical and virtual components of the data center, including power and cooling systems, networking equipment, servers, and storage solutions. Key activities include conducting regular assessments to identify improvement areas, implementing best practices for equipment lifecycle management, and ensuring robust disaster recovery and business continuity plans. The scope also encompasses the integration of modern technologies to enhance performance and reduce operational costs, all while maintaining high availability and reliability of data center operations. Additionally, this project will focus on ensuring compliance with VA and federal regulatory standards, implementing advanced security measures to protect infrastructure integrity, and continuously monitoring performance to align with VA’s strategic objectives. Overall, a methodical approach to optimizing the VA’s data center infrastructure, fostering a more efficient, secure, and resilient environment to support the organization's operational needs.

Business Center Integration: The objective of this project is to develop and implement a comprehensive portfolio management strategy for VA's IO. This involves creating a strategic plan to oversee and manage the portfolio of IT assets, ensuring alignment with the VA's broader objectives and operational requirements. Additionally, the project will ensure compliance with VA and federal regulations, implement governance frameworks for effective oversight, and support strategic initiatives through data-driven insights and analysis. The objective of this project is to optimize and streamline the VA’s current operations and intake processes, enhancing service delivery, efficiency, and overall responsiveness. This includes the development and implementation of robust procedures for managing the daily operations and service intake of the data center and cloud infrastructure. Key activities involve the integration of a centralized ticketing system to effectively manage requests, incidents, and changes, ensuring timely and accurate processing and resolution of service inquiries. The scope also includes standardizing and improving workflows to reduce wait times and enhance the quality of service provided to internal and external stakeholders. By leveraging best practices and advanced technological solutions, this project aims to improve the monitoring and reporting of operational performance, identifying areas for continuous improvement. Additionally, the project will focus on providing comprehensive front office support to manage communications and interactions with users, ensuring their needs are met promptly and efficiently. The Contractor shall support optimization of the operations of VA’s IO Franchise Fund Business Office, ensuring alignment with VA's financial and strategic objectives. This encompasses the comprehensive management of budgeting, financial planning, and resource allocation to enhance fiscal oversight and operational efficiency. Key activities include developing and implementing robust financial management practices, producing accurate and timely financial reports, and conducting regular financial analyses to inform decision-making processes. The project aims to enhance transparency and accountability in financial operations, ensuring that all expenditures and revenues are accurately tracked, reported, and communicated in a clear and understandable manner for internal and external stakeholders. Additionally, the scope includes providing strategic support for franchise initiatives, identifying opportunities for revenue generation, and optimizing the utilization of resources to maximize value. By deploying advanced financial management tools and systems, the project will improve the accuracy and efficiency of financial operations, enabling better management of the VA’s financial resources. Overall, a systematic approach to bolstering the capabilities of the Franchise Fund Business Office, fostering improved financial health and strategic alignment within the VA. Overall, the Contractor shall deliver a systematic approach to optimizing the management of the VA's infrastructure portfolio, driving increased efficiency, cost-effectiveness, and alignment with strategic goals. Current business office integration includes intake, front office support, strategic communications, documentation, customer outreach and support, and franchise business office services.

PERFORMANCE DETAILS

PERFORMANCE PERIOD

The PoP shall 12 months from date of award, with four 12-month option period(s) and Optional Tasks that have the following period of performances:

5.1.2.5 AI/ML Enablement – Six months from date of exercise.

5.2.2.2 Data Center Infrastructure Management – Executed monthly, not to exceed the PoP.

5.2.2.4 Data Center Operations– Executed monthly, not to exceed the PoP

7.0 Surge Support – 10 business days from date of exercise.

The overall Period of Performance shall not exceed 60 months.

The Contractor shall ensure resource availability during VA business hours (8:00AM Eastern Time through 4:30PM Pacific Time), unless otherwise specified.

PLACE OF PERFORMANCE

(If place of performance is at a Government facility (Onsite)) Tasks under this PWS shall be performed in VA facilities located in <place(s) of performance>. Work may be performed at remote locations with prior concurrence from the Contracting Officer’s Representative (COR).

(If place of performance is at a Contractor facility (Offsite)) Tasks under this PWS shall be performed at Contractor facilities. The Contractor shall identify the Contractor’s place of performance in their proposal submission.

TRAVEL

The Government anticipates travel under this effort to perform the tasks associated with the effort, as well as to attend program-related meetings or conferences throughout the PoP. Include all estimated travel costs in your firm-fixed price line items. These costs will not be directly reimbursed by the Government.

The total estimated number of trips in support of the program related meetings for this effort is <please enter number of trips>. Anticipated locations include the following, estimated at <please enter duration of trips> days in duration:

1. <List location(s)>

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Travel shall be in accordance with the Federal Travel Regulations (FTR) and requires advanced concurrence by the COR. Contractor travel within the local commuting area will not be reimbursed.

SERVICE INTEGRATION AND MANAGEMENT (SIAM) FRAMEWORK

The Contractor shall design, implement, and mature a SIAM framework to coordinate multiple service providers, ensuring seamless collaboration and delivery of a unified service to the customer. The SIAM framework shall standardize multivendor service delivery across Infrastructure Operations and provide auditable governance, real-time performance monitoring, and enterprise situational awareness through integrated dashboards hosted within a Contractor-managed, Government-owned Centralized Hub. All SIAM objectives shall be demonstrably aligned with VA/IO strategic goals, as validated through documented gap analysis and formal stakeholder approval, thereby ensuring consistent, transparent, and efficient service integration across IO.

The Contractor shall be held accountable for producing complete, accurate, and auditable artifacts at each phase of the SIAM implementation, ensuring they are reviewed and approved by stakeholders before progressing to subsequent phases. Artifacts are defined as the foundational outputs created during the development and implementation process, such as documented strategies, governance models, process workflows, and technical designs. Artifacts serve as evidence of planning, decision-making, and compliance with agreed-upon standards. Deliverables are defined as the finalized operational outputs provided to VA, such as the fully implemented SIAM framework, integrated dashboards, and performance monitoring capabilities. While deliverables represent the end product, artifacts demonstrate the rigor and transparency of the approach taken to achieve those outcomes. Implementation of the SIAM framework shall be executed through a phased approach consisting of:

(1) Discovery & Strategy to assess current state and define the target operating model;

(2) Plan & Build to develop processes, tools, and governance structures;

(3) Implement, Run & Approve to deploy, operationalize, and validate the solution; and

(4) Run and Approve to perform performance monitoring, governance reviews; Service Improvement Plan (SIP) & Continual Service Improvement (CSI) and Innovation initiatives.

The Contractor shall obtain concurrence and approval from the Government prior to moving into the next Phase. Below is a breakdown of the phases and required activities and deliverables:

0. PHASE 1: DISCOVERY & STRATEGY

The Contractor shall perform required duties and prepare artifacts to establish an operational SIAM governance structure that ensures transparency, accountability, and strategic alignment through approved frameworks, performance monitoring, and an integrated management office. The Contractor shall support the planning and design through a current state assessment, by executing the following activities:

· Reviewing VA strategic objectives, IT modernization plans, and service delivery priorities.

· Interviewing key stakeholders across business units to capture functional and technical requirements.

· Conduct a comprehensive gap analysis between current service integration capabilities and the desired future state by assessing existing vendors, contracts, ITSM processes, governance structures, performance metrics, and compliance posture. The analysis shall also review the current state of service delivery and vendor management.

· Inventory all existing vendors, contracts, and service delivery models.

· Evaluating performance data, SLAs, and compliance posture for each vendor.

· Identifying stakeholders and defining roles and responsibilities; facilitating workshops and publishing a RACI.

· Developing a Stakeholder Role Matrix that includes a validated RACI chart defining roles, responsibilities, and accountability for all stakeholders involved in SIAM implementation, confirmed by VA leadership.

The Contractor shall deliver a SIAM Needs Assessment Report to be reviewed and approved by VA leadership to include. The document shall be delivered within 80 days and address the following:

· Current state analysis of service integration capabilities,

· Gap identification and future state vision,

· Actionable recommendations aligned with VA strategic objectives,

· Alignment mapping to VA goals.

Deliverable SIAM Needs Assessment Report

0. PHASE 2: PLAN & BUILD

The Contractor shall perform required duties and prepare artifacts to design, implement, and validate a comprehensive SIAM governance and operational framework, including policies, procedures, performance metrics, and organizational structures, to ensure seamless integration, accountability, and transparency across all service providers. The Contractor shall perform the following activities:

· Develop a SIAM Governance Framework Document that defines roles, responsibilities, escalation paths, and recommended decision-making authority, validated through governance workshops and approved by VA leadership. The Framework shall additionally include:

· Integration and management processes, including compliance and escalation protocols that align with VA IT policies

· Facilitate governance workshops to validate framework and secure stakeholder approval.

· Establish an Integrated Service Management (ISM) Plan that merges SIAM and Service Level Management (SLM) for end-to-end assurance, roles and responsibilities, dispute management, Service Improvement Plan (SIP) oversight, governance alignments, and unified dashboards.

· Design specifications for dashboards that track performance metrics, KPIs, and reporting mechanisms for transparency, including defined KPIs, reporting frequency, and visualization standards.

· SIAM Governance and Operational Model Recommendation: Deliver a recommended SIAM operating model with sourcing boundaries, transition plan, rationale, and risk assessment for approval by VA leadership.

In addition, the Contractor shall perform a SIAM maturity assessment, building upon the activities conducted within Phase 1 and Phase 2, Governance Framework. The Contractor shall deliver a SIAM Maturity Assessment Report summarizing the results of Phase 1, highlighting organizational preparedness and key gaps, documentation outlining the current Information Technology Infrastructure Library (ITIL)/Capability Maturity Model Integration (CMMI) maturity level, including scoring, analysis, and recommendations for improvement.

Deliverables SIAM Maturity Assessment Report within 90 days SIAM Governance and Operational Model Recommendation within 180 days

0. PHASE 3: IMPLEMENTATION

The Contractor shall perform required duties and prepare artifacts to implement the infrastructure and configuration of SIAM capabilities using VA-approved tools, with recommendations for new solutions if necessary, and ensure integration, automation, and validation through testing and stakeholder approval. Phase 3 is broken into three parts for implementation including tool recommendations, workflow, and organizational change management.

2. TOOL RECOMMENDATIONS

The Contractor shall maximize the use of existing VA‑approved tools to configure SIAM capabilities (e.g., ITSM platforms, integration hubs). If new tools are recommended, the Contractor shall prepare brand agnostic recommendations to include justification, cost‑benefit and ROI. The Contractor shall:

· Configure selected tools for automated workflows, data exchange, and centralized communication.

· Validate tool configurations through testing and stakeholder sign-off.

The Contractor shall deliver a SIAM Tool Selection report that documents the evaluations of candidate tools vs. requirements, lists constraints and assumptions, recommends preferred options with rationale. The Contractor shall additionally provide the following artifacts:

· Configured ITSM Platform and Integration Hub: Operational configurations and integrations enabling incident/change, supplier interfaces, data flows, and communications.

· Workflow Automation Configuration Document: Configuration artifacts and runbooks for automated processes, triggers, interfaces, and exception handling.

Deliverable SIAM Tool Selection Report within 30 days

(From Phase 3 Start)

2. PROCESS AND WORKFLOW

The Contractor shall design and support implementation of standardized, end-to-end service management processes across all service domains to ensure seamless integration and alignment with VA business objectives. Activities include:

· Documenting integrated processes such as, but not limited to, end to end process maps, procedures, inputs/outputs, roles, controls, and cross provider interfaces.

· Establishing clear cross-provider hand-offs.

· Developing a comprehensive Service Catalog that reflects VA’s service offerings, classifications, SLAs/OLAs, and fulfillment workflows.

The Contractor shall validate these processes through stakeholder workshops and pilot testing to confirm effectiveness and compliance. The Contractor shall document standardized processes are implemented across all service domains through evidence of rollout, adoption metrics, and compliance checklists. Additionally, the Contractor shall provide a Standardized Workflow Process Recommendations detailing end-to-end service management processes that include thresholds, roles, communication paths, and resolution timelines to ensure timely issue resolution.

Deliverables Standardized Workflow Process Recommendations with 150 days Service Catalog within 45 days

(From Phase 3 Start)

2. ORGANIZATIONAL CHANGE MANAGEMENT

The Contractor shall identify and support implementation of methods to enhance VA’s framework for communication, knowledge sharing, and organizational change management to support SIAM implementation. The Contractor shall provide a SIAM Change Management Plan that captures standardized workflows for change initiation, assessment, approval, and implementation, supported by clear communication channels and performance metrics. The Plan shall enable controlled, efficient, and risk-aware change execution within the SIAM ecosystem.

The Contractor shall provide and execute a structured communication plan that includes role-based knowledge resources and change management strategy to articulate SIAM vision and benefits. The Contractor shall ensure stakeholder engagement, clear messaging frameworks, channels, cadence, stakeholder segmentation, feedback loops, and measurable adoption as well as conduct stakeholder engagement sessions to secure buy-in.

The Contractor shall engage in continuous knowledge sharing sessions and deliver persona-based training and awareness programs for the SIAM framework. Training shall include course outlines, learning objectives, modules, and materials. The Contractor shall capture attendance records for who attended, completion status, assessment scores, and certification (if applicable) as well as attendance logs, sign-in sheets, or LMS (Learning Management System) reports confirming participation. The Contractor shall conduct initial SIAM framework training to all identified IO Directors and Supervisors and conduct quarterly refresher sessions to account for new hires, process updates, and tool enhancements. Feedback shall be collected through post-knowledge sharing evaluations from participants to measure effectiveness and identify improvement areas. The Contractor shall adjust training and training materials based on feedback.

Deliverable SIAM Change Management Plan within 150 days SIAM Training Materials

Refresher attendance for 95% of Supervisors Attendance logs, sign-in sheets, or LMS (Learning Management System) reports confirming participation.

PHASE 4: RUN & IMPROVE

The VA requires a structured approach to sustain and enhance SIAM practices. The Contractor shall perform required duties and prepare artifacts to implement a structured approach to sustain and enhance SIAM practices, including governance, policies, onboarding, performance reporting, risk/issue handling, and change/CM. Phase 4 tasks are broken down into three parts including continuous improvement, performance management and reporting, and finally risk management and compliance.

2. CONTINUOUS IMPROVEMENT OF SIAM PRACTICES

The Contractor shall perform required duties and prepare artifacts to adopt a proactive and structured approach to continuous improvement, essential for maintaining and improving phases 1-3 of this SIAM framework. The Contractor shall systematically identify gaps in governance, processes, and performance. The Contractor shall implement corrective action to address identified issues and prevent recurrences and measure outcomes of improvement initiatives to validate effectiveness. Lessons learned shall be captured and translated into actionable updates to SIAM playbooks and maturity scorecards. Improvements shall target key areas such as governance processes, RACI clarity, and data quality for SIAM dashboards, enabling accurate performance insights and informed decision-making. The Contractor shall develop and deliver its findings in a SIAM Continuous Improvement Plan. The Contractor shall additionally propose and document the maturity model and scoring method during onboarding in their Continuous Improvement Plan.

The Contractor shall conduct continuous improvement support to drive accountability, transparency, and measurable progress across all service providers and internal teams. The Contractor shall ensure SIAM operations deliver consistent value and support enterprise objectives. Continuous improvement activities shall include but are not limited to:

· Manage urgent remediation through Service Improvement Plans (SIPs), including:

· Root cause analysis

· Specific corrective actions with timelines

· Assigned responsible parties

· KPIs to measure success

· Drive strategic enhancements via a Continual Service Improvement (CSI) register, focusing on:

· Performance data analysis

· Identification and prioritization of improvement opportunities

· Tracking and reporting progress

· Ensure accountability and transparency across vendors, integrators, and internal teams.

· Deliver consistent value by aligning SIAM operations with enterprise objectives.

Deliverable SIAM Continuous Improvement Plan

2. PERFORMANCE MANAGEMENT AND REPORTING

The VA requires a structured approach to performance management and reporting to ensure vendor accountability and service quality across SIAM operations. The Contractor shall perform required duties and prepare artifacts to monitor vendor performance against SLAs, OLAs, and KPIs; track compliance trends; and generate regular performance reports. The Contractor shall perform required duties and prepare artifacts to ensure a Unified Performance Dashboard providing a consolidated, cross-provider view of SLAs/OLAs, KPIs, trends, and compliance status. The Contractor shall produce Quarterly Service Review Reports that include detailed performance analyses, risks and issues, recommended actions, and documented decisions. These activities shall enable transparency, proactive issue resolution, and sustain SLA compliance across all providers.

Deliverable Quarterly Service Review Report

2. RISK MANAGEMENT AND COMPLIANCE

The Contractor shall deliver a proactive approach to risk management and compliance to safeguard SIAM operations and ensure adherence to standards. The Contractor shall conduct structured risk assessments and perform compliance audits to identify vulnerabilities and non-conformities. The Contractor shall maintain a comprehensive Risk Register with mitigation plans, including risk ratings, assigned owners, due dates, and residual risk tracking. The Contractor shall produce Compliance Audit Reports detailing findings, non-conformities, corrective actions, and closure verification. These activities ensure that high-risk items have documented mitigation strategies and drive a strong compliance audit pass rate across all providers. Artifacts produced under this task shall be compiled in a monthly Artifact Summary Report.

Deliverable Monthly Artifact Summary Report

AI/ML ENABLEMENT (OPTIONAL TASKS)

The Contractor shall perform required duties and prepare artifacts to deliver Artificial Intelligence via Machine Learning (AI/ML) driven innovation within SIAM operations, supporting predictive analytics and scalable automation. The Contractor shall develop an AI integration roadmap, pilot predictive analytics use cases, and foster collaboration with vendors and internal teams to drive innovation.

The Contractor shall adapt and scale SIAM capabilities to meet evolving business needs and accommodate new services or vendors, while documenting scaling strategies and innovation initiatives. The Contractor shall produce an AI Integration Plan outlining phased adoption, target use cases (such as prediction and classification), architecture, and governance; and deliver an AI Pilot Report summarizing AI/ML pilot results, model performance, lessons learned, and recommendations for scaling or pivoting. These efforts position SIAM for future-ready, data-driven service management.

Deliverables AI Integration Plan AI Pilot Report

FINANCIAL OPERATIONS (FINOPS)

VA requires a mature Financial Operations (FinOps) framework to deliver enterprise-wide financial transparency, validated cost avoidance, and forecasting accuracy across VA’s multivendor environment, including both cloud and on-premises infrastructure. The Contractor shall perform required duties and prepare artifacts in close coordination with IO, with VA providing governance support, access to systems, and subject matter expertise as needed. FinOps practices shall embed cost accountability and optimization into operational workflows, enabling proactive decisions and measurable savings across hybrid environments. Visibility into Rate Optimization and Workload Optimization shall be a core requirement. The Contractor shall ensure VA can monitor and validate cost efficiency at both the pricing level (e.g., reserved instances, committed use discounts) and the operational level (e.g., rightsizing, workload placement strategies), while extending these principles to on-prem resource utilization, capacity planning, and lifecycle management. Work shall commence in the base period of performance and continue through the duration of the task order. In the event optional periods are exercised the Contractor shall continue performance. Work requirements within each period shall be executed based on the following planned requirements:

Objectives for each requirement are detailed below.

FOUNDATION & VISIBILITY ASSESSMENT, DESIGN, IMPLEMENTATION, STABILIZATION

The Contractor shall establish a foundational FinOps capability that delivers hybrid financial governance, transparency, and operational readiness across cloud and on-prem environments. This capability shall enable automated financial data ingestion with validated lineage, enforced tagging and allocation compliance, implemented showback and chargeback principles, and operationalized governance and resourcing models.

To achieve this, the Contractor shall deliver a FinOps Maturity (Hybrid) Assessment and Design that integrates VA-approved financial tools with automated data ingestion and lineage validation publish Hybrid Tagging and Allocation Standards with an Auto-Remediation Playbook.

The Contractor shall perform the following:

· Hybrid Tagging & Allocation Enforcement.

· Extending tagging standards to on-prem via CMDB attributes and implement auto-remediation workflows.

· Recommend baseline governance (roles, decision rights, escalation) for hybrid portfolios.

· Launching automation pilots for on-prem and cloud; stand up KPI dashboards for unit economics.

· Implementing showback for cloud and on-prem; deliver chargeback blueprint with hybrid rate card principles.

· Developing FinOps Resourcing Plan & RASCI; define role coverage and SME engagement cadence.

· Tool inventory, connection configs, ingestion run logs, reconciliation/lineage reports, exception tickets.

· Managing meeting invites/minutes, rosters, TORs, issue logs.

· Monthly showback statements, consumer reports, reconciliation logs.

· Monthly Hybrid Financial Dashboards & KPI Scorecards

· Establish a Financial Governance Framework & Governance Calendar

· Showback Model & Chargeback Blueprint (Hybrid)

· FinOps Resourcing Plan & RASCI + SME Engagement Calendar

· Hybrid Financial Data Integration & Lineage Validation

· Showback implementation; chargeback blueprint

· Operational Governance and resourcing model

The Contractor shall prepare and support routing of an Executive Decision Gate Packet that summarizes key information that will enable leadership to make informed decisions at milestone gates. This Executive Decision Gate Packet shall be updated annually or when the next major milestone gate is reached. All artifacts shall be updated as required.

Deliverables FinOps Maturity (Hybrid) And Design Assessment Executive Decision Gate Packet – Foundation (FY26)

INTEGRATION & CONTROL - AUTOMATION EXPANSION, CHARGEBACK PILOTS, FORECASTING CONTROL The VA requires the Contractor to expand FinOps capabilities through automation, chargeback pilots, forecasting control, and advanced cost optimization across hybrid environments. These efforts shall result in scaled automation delivering measurable efficiency gains, successful chargeback pilots across major portfolios, an operational unified forecasting process, embedded benchmarking with actionable insights, anomaly detection reducing resolution times, and governance decisions documented and approved through the executive gate process. The Contractor shall perform the following:

· Increase automation for eligible cloud and on-prem workloads (e.g., non-prod shutdown schedules, VM/vCPU/memory rightsizing, storage tiering policies, RI/CUD planning in cloud).

· Execute pilots across portfolios, including on-prem service towers (compute, storage, backup, network). Finalize rate cards and invoice workflows with finance.

· Implement a unified forecasting process for cloud + on-prem with monthly variance reconciliation.

· Establish benchmarking for rate and utilization (cloud pricing vs. on-prem unit costs), publish dashboards with corrective action plans.

· Institutionalize optimization reviews and exception SLAs; include on-prem capacity councils.

· Deploy near-real-time cost/utilization alerts (cloud + on-prem) and integrate with incident management.

· Assess, plan, and execute phased optimization of on‑premises compute/storage clusters to improve utilization, right-size capacity, and implement a hardware/software refresh, delivering measurable performance, cost, and resiliency gains.

The Contractor shall deliver detailed Automation Runbooks and Coverage Reports to scale automation for cloud and on-prem workloads; Chargeback Pilot Packages including rate cards, policies, and invoice workflows; and Forecasting Dashboards with Hybrid Variance Reconciliation Reports to enable accurate cost control. The Contractor shall provide Quarterly Benchmarking Reports with documented methodology, execute an Anomaly Detection Pilot and deliver a comprehensive report of design specifications, alert thresholds, and corrective actions, and prepare an Executive Decision Gate Packet summarizing policy enforcement updates, automation funding requests, and RI/CUD governance documentation. The Contractor shall deliver and maintain a capacity plan aligned to business demand to achieve optimized on-premises infrastructure performance and cost efficiency. The Contractor shall prepare and route the Executive Decision Gate Packet (policy enforcement, automation funding, RI/CUD governance) for executive approval. The Contractor shall document activities performed in the following artifacts:

· Automation Runbooks (Hybrid) & Coverage Report

· Chargeback Pilot Packages (Hybrid)

· Forecasting Dashboards & Hybrid Variance Reconciliation Reports

· Quarterly Benchmarking Reports & Methodology.

· Anomaly Detection Pilot Report

· Discovery Report & Baseline Metrics

· Capacity and Optimization planning

· Dashboard build & Integration

· Refresh Plan Development & Governance reviews

Deliverable Executive Decision Gate Packet - Integration

OPTIMIZATION & INTELLIGENCE - PREDICTIVE OPTIMIZATION & BROAD CHARGEBACK

The VA requires the Contractor to advance FinOps capabilities through predictive optimization, full chargeback implementation, and policy-driven automation across hybrid environments. These efforts will result in scaled automation with policy-based optimization, operational predictive optimization for proactive capacity and license management, full chargeback with unit economics transparency, embedded optimization sprints and waste audits, and governance decisions informed by scenario modeling and predictive insights. The Contractor shall perform a minimum of four simulations per year with traceability to recommendations. The Contractor shall perform the following:

· Automation Scale (Hybrid): Expand automation coverage, adding policy-based on-prem actions (auto rightsizing, storage tier rebalancing, backup retention optimization, capacity rebalance across clusters).

· Predictive Optimization: Deploy ML-assisted forecasting and recommendations that include on-prem capacity and license optimization (SQL/Oracle/Windows Server), feeding change tickets with approval workflows.

· Scenario Modeling for Modernization: Run quarterly what-if simulations (migration patterns, serverless adoption, RI/CUD commitments, capacity placement cloud vs. on-prem) for governance decision-making and budget planning.

· Full Chargeback (Hybrid): Roll out full chargeback with unified cloud + on-prem billing; expose unit economics such as cost per transaction/workload/service for hybrid services.

· Optimization Sprints & Waste Audits: Conduct quarterly hybrid sprints and audits (idle/on-prem orphaned VMs, stranded storage, overprovisioned clusters); publish evidence artifacts in the Hub.

The Contractor shall deliver an On-Prem Capacity & Refresh Optimization Plan that outlines how and when on-premise IT infrastructure components (servers, storage, network, etc.) will be replaced, upgraded, or scaled to maintain performance, reliability, and compliance over time.

The Contractor shall provide Predictive Optimization Design and Model Performance Reports to enable ML-assisted forecasting and recommendations, a Scenario Modeling Playbook and Model Library for modernization simulations, and an Enterprise Chargeback Implementation with Billing SOPs to support unified hybrid billing. The Contractor shall provide a Unit Economics Dashboard for visibility into cost per service/workload, Optimization Sprint Reports and Waste Audit Results with Benefit Realization Dashboards, and License Optimization Reports. The Contractor shall prepare and route the Executive Decision Gate Packet for executive approval.

The Contractor shall document activities in the following artifacts:

· Create Predictive Optimization Design & Model Performance Reports (Hybrid)

· Develop Scenario Modeling Playbook & Model Library (Hybrid)

· Enterprise Chargeback Implementation (Hybrid) & Billing how to outlines

· Unit Economics Dashboard (Hybrid)

· Create and maintain Optimization Sprint Reports, Waste Audit Results & Benefit Realization Dashboards

· Create and maintain License Optimization Reports

Deliverables On-Prem Capacity & Refresh Optimization Plan Executive Decision Gate Packet – Optimization

INNOVATION & AUTONOMY - REAL‑TIME RESPONSE & DYNAMIC COVERAGE OPTIMIZATION

The VA requires operational efficiency and cost optimization in its hybrid environment (cloud & on-premise), to reduce manual intervention, improve cost efficiency, and enhance agility across cloud and on-prem environments. The Contractor shall perform the following:

· Real-Time Anomaly Response (Hybrid): Implement real-time anomaly detection and auto-remediation for cost/utilization spikes across cloud and on-prem (e.g., runaway jobs, VM sprawl, sudden storage growth), integrated with incident management.

· Closed Loop Planning: Integrate optimization signals with KPI-linked forecasting (forecast → optimize → re-forecast), including hybrid placement decisions (cloud vs. on-prem) based on cost, performance, and compliance.

· Dynamic Coverage Optimization: Continuously optimize cloud commitments (RI/CUD) and on-prem capacity (cluster density, power/cooling utilization, maintenance windows), with auto-adjusting policy thresholds and quarterly market/industry benchmarking.

The Contractor shall provide Real-Time Cost/Utilization Anomaly Detection & Response Playbook, providing a comprehensive guide for detecting and remediating anomalies in real time across hybrid environments; a Closed Loop FinOps Planning Framework, establishing a standard operating procedure for integrating forecasting and optimization into a continuous cycle; and Dynamic Coverage Optimization Reports, On-Prem Data Center…