VA awards $21.5M for Avaya PBX maintenance, with King Street Technology Partners as prime

Contract Overview

Contract Amount: $21,483,885 ($21.5M)

Contractor: King Street Technology Partners, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-28

End Date: 2026-06-30

Contract Duration: 671 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: T4NG AVAYA NATIONAL CONSOLIDATED PBX MAINTENANCE

Place of Performance

Location: PFAFFTOWN, FORSYTH County, NORTH CAROLINA, 27040

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.5 million to KING STREET TECHNOLOGY PARTNERS, LLC for work described as: T4NG AVAYA NATIONAL CONSOLIDATED PBX MAINTENANCE Key points: 1. Contract value appears reasonable given the duration and scope of IT infrastructure support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. Performance is for computer systems design services, a common category for IT support. 5. The contract duration is approximately 22 months, indicating a medium-term commitment. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $21.5 million over approximately 22 months for consolidated PBX maintenance appears to be within a reasonable range for enterprise-level IT support. Benchmarking against similar IT maintenance contracts for large federal agencies suggests that pricing for specialized services like PBX systems can vary significantly based on complexity and vendor expertise. Without specific details on the scope of services and the number of users supported, a precise value-for-money assessment is challenging, but the award to a single contractor under full and open competition implies a competitive pricing structure was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While more bidders could potentially drive prices lower, full and open competition generally provides a solid foundation for price discovery and ensures that the government receives offers from a range of qualified vendors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, which is expected to lead to more favorable pricing and better service quality compared to sole-source or limited competition awards.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, ensuring continued operation of its critical communication systems. The contract provides essential maintenance and support services for Avaya Private Branch Exchange (PBX) systems. This service ensures reliable internal and external communication capabilities for VA facilities. The contract supports IT infrastructure and potentially impacts the workforce by ensuring the tools they need to communicate are functional.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen PBX technology becomes proprietary and difficult to integrate with other systems.
Reliance on a single contractor for critical communication infrastructure could pose a risk if performance issues arise.
The long-term strategy for PBX modernization or replacement is not explicitly detailed, potentially leading to future upgrade costs.

Positive Signals

The use of full and open competition suggests a robust selection process and potentially competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government.
The contract is a delivery order under an existing IDIQ, implying that the foundational contract has already undergone scrutiny and competition.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on telecommunications infrastructure maintenance. The market for enterprise PBX systems and their associated maintenance is mature, with several established vendors. Federal spending in IT services, including telecommunications support, is substantial, driven by the need to maintain aging infrastructure and adopt new communication technologies. This contract represents a portion of the VA's broader IT spending aimed at ensuring operational continuity and effective communication across its vast network of facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). King Street Technology Partners, LLC, the prime contractor, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem through this particular contract appears minimal, though the prime contractor may engage small businesses in other capacities not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of Veterans Affairs. As a delivery order under an IDIQ, the foundational contract likely has established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

VA IT Modernization Initiatives
Federal Telecommunications Services
Enterprise Communication Systems Support
IT Infrastructure Maintenance Contracts

Risk Flags

Potential for service disruption if contractor performance falters.
Reliance on a single vendor for critical infrastructure.
Long-term technology obsolescence risk for PBX systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.5 million to KING STREET TECHNOLOGY PARTNERS, LLC. T4NG AVAYA NATIONAL CONSOLIDATED PBX MAINTENANCE

Who is the contractor on this award?

The obligated recipient is KING STREET TECHNOLOGY PARTNERS, 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 $21.5 million.

What is the period of performance?

Start: 2024-08-28. End: 2026-06-30.

What is the track record of King Street Technology Partners, LLC with the VA and other federal agencies?

King Street Technology Partners, LLC has a history of performing IT services for the federal government. A review of federal procurement data would reveal their past performance, including contract values, agencies served, and types of services rendered. Their experience with similar PBX maintenance or telecommunications support contracts would be a key indicator of their capability to fulfill this VA requirement. Assessing past performance ratings and any documented issues or successes would provide further insight into their reliability and effectiveness as a contractor for critical IT infrastructure.

How does the pricing of this contract compare to similar PBX maintenance contracts awarded by other federal agencies?

Benchmarking this contract's pricing against similar PBX maintenance contracts requires access to detailed service level agreements and pricing structures from comparable awards. Factors such as the number of users, system complexity, geographic distribution of sites, and included support levels (e.g., 24/7 support, response times) significantly influence per-unit costs. While the total award of $21.5 million over approximately 22 months provides a broad figure, a detailed comparison would necessitate analyzing the cost per user, cost per site, or cost per service hour against other VA or agency contracts for similar Avaya PBX systems or equivalent enterprise communication solutions.

What are the primary risks associated with relying on a single contractor for critical PBX maintenance?

The primary risks associated with relying on a single contractor for critical PBX maintenance include potential service disruptions if the contractor experiences financial instability, operational failures, or labor disputes. There's also a risk of reduced innovation and potentially higher costs over time due to a lack of ongoing competitive pressure. Furthermore, if the contractor's expertise diminishes or they face challenges retaining skilled personnel, the quality and responsiveness of support could degrade. The government's ability to transition to a new provider quickly in case of contract termination or performance failure is also a consideration.

What is the expected effectiveness of this contract in ensuring reliable communication for the VA?

The effectiveness of this contract in ensuring reliable communication for the VA hinges on the contractor's ability to meet the defined service level agreements (SLAs) and performance standards outlined in the contract. Given that it's a delivery order under an IDIQ awarded through full and open competition, there's an expectation of competent service delivery. The firm-fixed-price structure incentivizes the contractor to manage costs efficiently while meeting performance requirements. Regular performance monitoring, quality assurance checks, and clear communication channels between the VA and King Street Technology Partners will be crucial for maximizing the contract's effectiveness.

What has been the historical spending pattern for Avaya PBX maintenance at the VA?

Analyzing historical spending patterns for Avaya PBX maintenance at the VA would involve examining past contract awards for similar services over several fiscal years. This would reveal trends in contract values, durations, and the incumbent contractors. Understanding this history can help identify whether spending has been consistent, increasing, or decreasing, and whether the VA has historically relied on specific vendors or competed these services regularly. Such analysis can inform future budgeting, identify potential cost-saving opportunities, and assess the long-term strategy for managing this critical communication infrastructure.

Are there any specific performance metrics or KPIs tied to this contract that will be used to measure success?

While the provided data does not detail specific performance metrics or Key Performance Indicators (KPIs), contracts of this nature typically include Service Level Agreements (SLAs) that define measurable standards for performance. These often include metrics such as system uptime, response times for technical support, resolution times for reported issues, and adherence to maintenance schedules. The effectiveness of the contract will be measured against these defined SLAs, with potential penalties for non-performance or incentives for exceeding expectations, depending on the contract's specific terms and conditions.

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 › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7989 GLENN FERRY RD, PFAFFTOWN, NC, 27040

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,470,225

Exercised Options: $21,483,885

Current Obligation: $21,483,885

Actual Outlays: $20,074,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1027

IDV Type: IDC

Timeline