VA awards $3.57M for Bronx Switchboard Services to Magellan Solutions USA Inc
Contract Overview
Contract Amount: $3,571,563 ($3.6M)
Contractor: Magellan Solutions USA Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-05-01
End Date: 2026-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $2.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BRONX SWITCHBOARD SERVICE
Place of Performance
Location: BRONX, BRONX County, NEW YORK, 10468
State: New York Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $3.6 million to MAGELLAN SOLUTIONS USA INC. for work described as: BRONX SWITCHBOARD SERVICE Key points: 1. Contract awarded to Magellan Solutions USA Inc. for telephone answering services. 2. The contract has a duration of 5 years, ending April 30, 2026. 3. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 4. The total value is $3,571,563.37. 5. The North American Industry Classification System (NAICS) code is 561421.
Value Assessment
Rating: fair
The contract value of $3.57 million over five years appears reasonable for specialized switchboard services. Benchmarking against similar contracts for telephone answering services would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was competed under SAP, suggesting a competitive process, but the specific method and number of bidders are not detailed. This procurement method aims for efficiency but may limit price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential communication services for the VA. The value appears reasonable, but further details on competition would confirm optimal price discovery.
Public Impact
Ensures continuous communication services for veterans and VA staff. Supports the operational efficiency of the Department of Veterans Affairs. Provides employment opportunities through Magellan Solutions USA Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information
- Potential for limited price discovery under SAP
Positive Signals
- Essential service for VA operations
- Long-term contract provides stability
Sector Analysis
This contract falls under administrative support services, specifically telephone answering. Spending in this sector is generally stable, driven by the need for continuous communication infrastructure across government agencies.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight is managed by the Department of Veterans Affairs. The use of SAP suggests a streamlined process, but robust oversight is still crucial to ensure performance and value.
Related Government Programs
- Telephone Answering Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited transparency on competition details
- Potential for suboptimal price discovery
- Reliance on a single vendor for a critical service
Tags
telephone-answering-services, department-of-veterans-affairs, ny, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.6 million to MAGELLAN SOLUTIONS USA INC.. BRONX SWITCHBOARD SERVICE
Who is the contractor on this award?
The obligated recipient is MAGELLAN SOLUTIONS USA 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 $3.6 million.
What is the period of performance?
Start: 2021-05-01. End: 2026-04-30.
What was the competitive landscape for this contract?
The contract was competed under Simplified Acquisition Procedures (SAP). While this indicates some level of competition, the specific number of bidders and the details of the bidding process are not provided in the data. Further inquiry would be needed to understand the extent of competition and its impact on the final price.
Does the contract value represent a fair price for the services rendered?
The contract value of $3.57 million over five years for switchboard services seems within a reasonable range for specialized telecommunications support. However, without specific benchmarks for similar services or detailed cost breakdowns, a definitive assessment of fairness is difficult. The pricing structure is firm fixed price, which shifts risk to the contractor.
How effectively does this contract support the VA's mission?
This contract is crucial for maintaining essential communication lines for the Department of Veterans Affairs, directly supporting its mission to serve veterans. Reliable switchboard services ensure that veterans and staff can connect efficiently, contributing to the smooth operation of healthcare and administrative functions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C24220Q0920
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 OLD COUNTY ROAD, SUITE H, BRISBANE, CA, 94005
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,664,023
Exercised Options: $4,298,763
Current Obligation: $3,571,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-31
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