VA awards $6.4M for NEC National Call Control Hardware Support to Techanax LLC

Contract Overview

Contract Amount: $6,391,328 ($6.4M)

Contractor: Techanax LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-31

End Date: 2027-03-30

Contract Duration: 1,094 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TITLE: VA CONSOLIDATED NIPPON ELECTRIC COMPANY (NEC) NATIONAL CALL CONTROL HARDWARE SUPPORT

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22193

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.4 million to TECHANAX LLC for work described as: TITLE: VA CONSOLIDATED NIPPON ELECTRIC COMPANY (NEC) NATIONAL CALL CONTROL HARDWARE SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately three years provides a stable period for service delivery. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. The award is a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541519 indicates services related to computer hardware support. 6. The contract is managed by the Department of Veterans Affairs, indicating a focus on supporting veteran services.

Value Assessment

Rating: good

The contract value of $6.4 million over approximately three years appears reasonable for specialized hardware support services. Benchmarking against similar IT hardware maintenance contracts would provide a more precise value assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without detailed service descriptions and performance metrics, a definitive value-for-money assessment is challenging.

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,' which implies that while the competition was open, specific sources may have been excluded prior to the final award. The presence of four bidders (no) indicates some level of competition. The specific nature of the exclusion of sources would need further investigation to fully understand its impact on price discovery and overall competition.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions to secure the contract.

Public Impact

Veterans will benefit from reliable call control hardware supporting VA communication systems. Essential IT infrastructure support services are being delivered to the Department of Veterans Affairs. The contract's geographic impact is likely national, given the 'National Call Control Hardware Support' designation. The contract supports the IT workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the field.
Risk of vendor lock-in if specialized knowledge of NEC hardware is not transferable.
Dependence on a single contractor for critical call control hardware support.

Positive Signals

Firm fixed-price contract aligns cost expectations and incentivizes contractor efficiency.
Awarded under a competitive process, suggesting potential for good value.
Long-term support for essential VA IT infrastructure.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on hardware support for communication systems. The market for IT hardware maintenance and support is substantial, with numerous companies offering specialized services. The value of this contract, at $6.4 million, is moderate within the broader federal IT spending landscape. Comparable spending benchmarks would involve looking at other agencies' contracts for similar NEC hardware maintenance or broader telecommunications infrastructure support.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed in this summary.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported.

Related Government Programs

VA IT Infrastructure Support Contracts
Federal Telecommunications Services
NEC Hardware Maintenance Contracts
IT Services for Government Agencies

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on a single vendor for critical hardware support.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.4 million to TECHANAX LLC. TITLE: VA CONSOLIDATED NIPPON ELECTRIC COMPANY (NEC) NATIONAL CALL CONTROL HARDWARE SUPPORT

Who is the contractor on this award?

The obligated recipient is TECHANAX LLC.

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 $6.4 million.

What is the period of performance?

Start: 2024-03-31. End: 2027-03-30.

What is the specific nature of the 'exclusion of sources' in the competition process, and how did it impact the number of bids received?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain potential offerors were excluded from participating in the bidding process. The exact reasons for these exclusions are not detailed in the provided data. Typically, exclusions might be based on factors such as prior performance issues, inability to meet specific technical requirements, or other pre-qualification criteria. The fact that four bids were received suggests that despite exclusions, a reasonable number of qualified vendors were still able to compete. However, understanding the specific criteria for exclusion is crucial to assess whether the competition was truly as broad as possible and if it potentially limited price discovery or innovation.

How does the $6.4 million contract value compare to similar NEC National Call Control Hardware Support contracts awarded by the VA or other federal agencies?

Benchmarking the $6.4 million contract value requires comparing it against similar contracts for NEC National Call Control Hardware Support. Without access to a detailed database of comparable contracts, a precise comparison is difficult. However, for a three-year period (approximately 1094 days), this value translates to roughly $1.75 million per year. This figure needs to be assessed in the context of the scope of services, the specific NEC hardware models supported, the geographic coverage, and the required service levels (e.g., response times, uptime guarantees). If similar contracts for comparable scope and duration are significantly lower or higher, it would indicate potential overpricing or underbidding, respectively. Further analysis would involve identifying contracts with similar NAICS codes (541519) and service descriptions.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract focused on 'National Call Control Hardware Support,' typical KPIs would likely include metrics related to hardware uptime, mean time to repair (MTTR), response times for service requests, and the availability of spare parts. SLAs would define the acceptable thresholds for these metrics. The Department of Veterans Affairs' contracting officer's representative (COR) or a designated technical point of contact would be responsible for monitoring the contractor's performance against these KPIs and SLAs. Failure to meet agreed-upon levels could result in contractual remedies, such as service credits or termination.

What is the track record of Techanax LLC in performing similar IT hardware support services for the federal government?

Assessing the track record of Techanax LLC requires reviewing their past performance on federal contracts. Information on their past performance, including contract history, customer satisfaction ratings, and any documented performance issues or awards, can typically be found in federal procurement databases such as the Federal Procurement Data System (FPDS) or through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of their history would reveal their experience with similar IT hardware support, particularly with NEC equipment, and their ability to meet contractual obligations in terms of cost, schedule, and performance. Positive past performance would increase confidence in their ability to successfully execute this current contract.

What is the historical spending pattern for NEC National Call Control Hardware Support within the Department of Veterans Affairs?

To understand the historical spending pattern for NEC National Call Control Hardware Support within the VA, one would need to analyze past contract awards for similar services. This would involve searching federal procurement databases for contracts awarded by the VA over several fiscal years that match the description of 'NEC National Call Control Hardware Support' or related IT hardware maintenance services. Analyzing this data would reveal trends in spending, identify the primary contractors utilized, and indicate whether this $6.4 million award represents an increase, decrease, or stable level of investment in this particular service area. It could also highlight any shifts in procurement strategies or technology adoption over time.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14000 CROWN COURT SUITE 206, WOODBRIDGE, VA, 22193

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,252,176

Exercised Options: $6,391,328

Current Obligation: $6,391,328

Actual Outlays: $5,561,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD24B

IDV Type: GWAC

Timeline