VA awards $51M for UCIS Avaya/Nortel maintenance, a task order under T4NG program

Contract Overview

Contract Amount: $51,001,168 ($51.0M)

Contractor: Sierra7, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-10-22

End Date: 2024-06-30

Contract Duration: 2,078 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM AWARD NEW TASK ORDER FOR UNIFIED COMMUNICATIONS INFRASTRUCTURE SUPPORT (UCIS) AVAYA/NORTEL NATIONAL CONSOLIDATED PBX MAINTENANCE

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25403

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $51.0 million to SIERRA7, INC. for work described as: IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM AWARD NEW TASK ORDER FOR UNIFIED COMMUNICATIONS INFRASTRUCTURE SUPPORT (UCIS) AVAYA/NORTEL NATIONAL CONSOLIDATED PBX MAINTENANCE Key points: 1. This task order represents a significant investment in maintaining critical communication infrastructure for the VA. 2. The contract's firm-fixed-price structure aims to control costs and provide predictable spending. 3. Competition dynamics for this task order are influenced by its placement within the larger T4NG program. 4. Performance will be assessed against established metrics for unified communications infrastructure support. 5. The duration of the contract suggests a long-term need for these specialized maintenance services. 6. The award to SIERRA7, INC. indicates their capability in providing complex IT support services.

Value Assessment

Rating: good

The $51 million award for unified communications infrastructure support appears reasonable given the contract's duration and the specialized nature of maintaining Avaya/Nortel PBX systems. Benchmarking against similar IT maintenance contracts within the federal government would provide further context on value for money. The firm-fixed-price contract type suggests an effort to ensure cost predictability for the VA. Without specific performance data or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the scale and duration indicate a substantial need being met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under the full and open competition of the T4NG program, indicating that multiple vendors had the opportunity to bid. The T4NG program itself is designed to foster robust competition for IT services. While the specific number of bidders for this particular task order is not detailed, the overarching competition within the T4NG IDIQ likely drove competitive pricing and ensured a wide pool of qualified contractors were considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting competitive pricing and ensuring that the government receives services at the best possible value. This approach reduces the risk of overpayment and encourages innovation among contractors.

Public Impact

Veterans Affairs personnel will benefit from reliable and uninterrupted communication services. Essential IT infrastructure support for Avaya/Nortel PBX systems nationwide will be maintained. The contract ensures the continued operation of critical communication networks across VA facilities. IT professionals and technicians supporting these systems will have continued employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Avaya/Nortel systems become obsolete and replacement is costly.
Dependence on a single vendor's maintenance capabilities could pose risks if service quality degrades.
The long contract duration might not fully account for rapid technological advancements in unified communications.

Positive Signals

The T4NG program's competitive nature likely ensured a qualified and capable contractor was selected.
Firm-fixed-price contract type provides cost certainty for the government.
The contract's focus on maintaining existing infrastructure ensures continuity of essential services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and maintenance. The federal IT services market is vast, with significant spending on maintaining legacy systems and implementing new technologies. The T4NG program, under which this task order was issued, is a major vehicle for the VA to procure a wide range of IT solutions. Benchmarking against other large-scale IT maintenance contracts for critical infrastructure within agencies like DoD or HHS would provide further context on spending levels.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor, SIERRA7, INC., may be a small business, the award itself was made under a full and open competition. There is no explicit information on subcontracting plans for small businesses within this specific task order, though the broader T4NG program may have provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight may be involved if performance issues or potential fraud are identified.

Related Government Programs

T4NG Program
Unified Communications
IT Infrastructure Support
Network Maintenance
Avaya Systems
Nortel Systems

Risk Flags

Potential for technology obsolescence
Dependence on specific vendor technology
Long-term maintenance cost implications

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $51.0 million to SIERRA7, INC.. IGF::OT::IGF TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM AWARD NEW TASK ORDER FOR UNIFIED COMMUNICATIONS INFRASTRUCTURE SUPPORT (UCIS) AVAYA/NORTEL NATIONAL CONSOLIDATED PBX MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SIERRA7, INC..

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 $51.0 million.

What is the period of performance?

Start: 2018-10-22. End: 2024-06-30.

What is the track record of SIERRA7, INC. in managing large-scale IT infrastructure support contracts for the federal government?

SIERRA7, INC. has a history of performing IT services for the federal government, including work under various IDIQ contracts. Their experience often includes network engineering, telecommunications, and IT support. The award of this significant task order under the T4NG program suggests they possess the necessary qualifications and past performance to handle complex infrastructure maintenance. Further analysis of their contract history, including performance evaluations and any past issues, would provide a more comprehensive understanding of their capabilities and reliability in managing such critical systems.

How does the $51 million cost compare to similar federal contracts for unified communications infrastructure maintenance?

Comparing the $51 million cost requires a detailed analysis of similar contracts, considering factors like the scope of services, duration, technology supported (e.g., specific PBX systems), and geographic coverage. Given this is a task order under the T4NG program, which is a large IDIQ vehicle, the pricing is expected to be competitive. However, without specific benchmarks for Avaya/Nortel PBX maintenance across multiple agencies or for comparable durations (2078 days), it's difficult to definitively state if this represents superior or inferior value. The firm-fixed-price structure aims for cost control, but the true value is in the sustained performance and reliability of the communication systems.

What are the primary risks associated with maintaining legacy Avaya/Nortel PBX systems, and how does this contract mitigate them?

The primary risks associated with maintaining legacy Avaya/Nortel PBX systems include potential obsolescence of technology, difficulty in sourcing parts or specialized expertise, and increased vulnerability to cybersecurity threats. This contract mitigates these risks by ensuring dedicated maintenance support from SIERRA7, INC., who are expected to have access to the necessary technical knowledge and resources. The firm-fixed-price structure incentivizes the contractor to manage these risks effectively to maintain profitability. However, the long-term risk of technology obsolescence remains, and the VA may need to plan for future system upgrades or replacements beyond this contract's scope.

What is the expected impact of this contract on the VA's overall IT modernization efforts?

This contract focuses on maintaining existing, potentially legacy, Avaya/Nortel PBX systems. While essential for current operations, it does not directly represent IT modernization. Instead, it supports the continuity of operations for critical communication infrastructure while the VA potentially pursues broader modernization initiatives. The effectiveness of this maintenance contract in supporting modernization efforts would depend on how well it integrates with or enables the transition to newer communication platforms. It ensures that current services remain stable, which is a prerequisite for undertaking complex modernization projects without disrupting essential functions.

How has VA spending on unified communications infrastructure support evolved over the past five years?

Analyzing VA spending on unified communications infrastructure support over the past five years would require examining historical contract data, looking for awards related to PBX maintenance, VoIP systems, and general telecommunications infrastructure. This specific $51 million award is a single task order. To understand the trend, one would need to aggregate spending across multiple contracts and task orders within this category. Factors influencing spending could include system upgrades, consolidation efforts, or increased demand for reliable communication services across VA facilities. Without access to comprehensive historical spending data for this specific service category, a trend analysis is not possible.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11951 FREEDOM DR STE 1300, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $51,001,168

Exercised Options: $51,001,168

Current Obligation: $51,001,168

Actual Outlays: $9,596,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1014

IDV Type: IDC

Timeline