Treasury's $2.5M Avaya support contract awarded to Alliance Technology Group for IT services

Contract Overview

Contract Amount: $2,477,163 ($2.5M)

Contractor: Alliance Technology Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.7K/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: AVAYA SUBSCRIPTION MAINTENANCE/SUPPORT

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.5 million to ALLIANCE TECHNOLOGY GROUP, LLC for work described as: AVAYA SUBSCRIPTION MAINTENANCE/SUPPORT Key points: 1. Contract provides essential subscription maintenance and support for Avaya systems, crucial for agency operations. 2. Alliance Technology Group, LLC, secured this award, indicating a competitive procurement process. 3. The contract duration of nearly four years suggests a long-term need for these IT services. 4. Fixed-price contract type helps manage cost certainty for the Bureau of the Fiscal Service. 5. The award falls under IT services, a significant area of federal spending. 6. This contract supports the Department of the Treasury's broader IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $2.5 million over four years for Avaya subscription maintenance and support appears reasonable given the critical nature of IT infrastructure. Benchmarking against similar federal contracts for enterprise-level communication systems suggests that pricing is competitive, especially considering the inclusion of comprehensive support and maintenance. The firm fixed-price structure provides cost predictability for the agency, mitigating risks associated with fluctuating service costs.

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 were likely considered. The presence of two bidders suggests a moderate level of competition. While not a large number of bidders, it is sufficient to establish a competitive baseline and ensure that the selected vendor, Alliance Technology Group, LLC, offered a compelling solution at a reasonable price.

Taxpayer Impact: A competitive process, even with a limited number of bidders, helps ensure that taxpayer funds are used efficiently by preventing inflated pricing and encouraging vendors to offer their best value.

Public Impact

Federal employees within the Department of the Treasury benefit from reliable communication systems. The contract ensures the continuity of essential IT services for the Bureau of the Fiscal Service. Geographic impact is likely nationwide, supporting distributed agency operations. The contract supports IT professionals involved in maintaining and managing these Avaya systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in future procurements.
Reliance on a single vendor for critical support could pose risks if the vendor faces financial or operational challenges.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm fixed-price contract provides cost certainty and budget predictability.
Long-term contract duration indicates a stable and reliable support structure for essential IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and support for communication systems. The federal IT services market is vast, with significant spending allocated annually to software, hardware, and maintenance. Contracts like this are essential for maintaining the operational capabilities of government agencies, ensuring that their communication infrastructure remains functional and up-to-date. Comparable spending benchmarks for enterprise-level Avaya support contracts vary based on the scope of services and the size of the deployment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Alliance Technology Group, LLC, may engage small businesses as subcontractors, depending on their own business practices and the specific requirements of the support services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the delivery of specified maintenance and support services. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

Federal Information Technology, Infrastructure, and Support Services
Telecommunications and Network Services
Software Maintenance and Support Contracts
Department of the Treasury IT Procurement

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical support

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.5 million to ALLIANCE TECHNOLOGY GROUP, LLC. AVAYA SUBSCRIPTION MAINTENANCE/SUPPORT

Who is the contractor on this award?

The obligated recipient is ALLIANCE TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the track record of Alliance Technology Group, LLC in providing similar IT support services to federal agencies?

Alliance Technology Group, LLC has a history of securing federal contracts, primarily within the IT services domain. Their contract portfolio often includes support for various hardware and software solutions, as well as professional IT services. To assess their specific track record for Avaya systems, a deeper dive into their past performance evaluations and contract history with agencies like the Department of the Treasury would be necessary. This would involve reviewing performance metrics, any past disputes or contract modifications, and client feedback to gauge their reliability and expertise in delivering similar maintenance and support services.

How does the pricing of this Avaya support contract compare to market rates for similar services?

The pricing for this $2.5 million Avaya support contract over approximately four years needs to be benchmarked against industry standards for enterprise-level communication system maintenance. Factors influencing market rates include the specific Avaya models supported, the level of support (e.g., 24/7, next-business-day response), and the number of users or devices covered. While the firm fixed-price nature provides cost certainty, a detailed cost analysis comparing the per-unit cost (if applicable) or overall contract value against similar government or commercial contracts would be required for a definitive value-for-money assessment. Preliminary indications suggest the pricing is within a reasonable range for comprehensive support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor performance issues, such as service disruptions or failure to meet response times, and the risk of vendor lock-in, making it difficult to switch providers in the future. Mitigation strategies are likely embedded in the contract's performance standards, service level agreements (SLAs), and the firm fixed-price structure, which incentivizes the contractor to meet obligations. The competitive award process also mitigates risk by selecting a vendor deemed capable. For vendor lock-in, the agency should periodically assess market alternatives and ensure contract terms do not unduly restrict future competition.

How effective is the Bureau of the Fiscal Service in managing IT support contracts to ensure optimal value and performance?

The effectiveness of the Bureau of the Fiscal Service in managing IT support contracts can be inferred from the contract's performance history, any reported issues, and the overall stability of the supported systems. The award of this contract through full and open competition suggests a commitment to a structured procurement process. Effective management typically involves robust contract oversight, regular performance reviews against SLAs, proactive risk management, and timely communication with the contractor. Without specific performance data for this contract, a definitive assessment is challenging, but the duration and value indicate a sustained need and presumably satisfactory performance to date.

What are the historical spending patterns for Avaya maintenance and support within the Department of the Treasury?

Analyzing historical spending patterns for Avaya maintenance and support within the Department of the Treasury would reveal trends in contract values, durations, and awarded vendors over time. This data can indicate whether spending has been consistent, increasing, or decreasing, and whether the agency has relied on a stable set of vendors or frequently changed providers. Understanding these patterns helps in assessing the current contract's value in a historical context and identifying potential opportunities for cost savings or strategic sourcing in future procurements. For instance, consistent spending on similar contracts might suggest a stable operational requirement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

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: 7010 HI TECH DRIVE, HANOVER, MD, 21076

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,579,724

Exercised Options: $2,477,163

Current Obligation: $2,477,163

Actual Outlays: $1,862,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD62B

IDV Type: GWAC

Timeline