VA awards $1.96M Motorola radio upgrade to Cynergy Professional Systems, highlighting IT service needs

Contract Overview

Contract Amount: $1,955,358 ($2.0M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-12

End Date: 2026-05-29

Contract Duration: 990 days

Daily Burn Rate: $2.0K/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: MOTOROLA RADIO UPGRADE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: MOTOROLA RADIO UPGRADE Key points: 1. Contract value appears reasonable for a specialized IT service, though specific benchmarks are needed. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of nearly three years indicates a significant, ongoing need for radio system support. 4. This award falls within the broader IT services sector, supporting critical communication infrastructure. 5. Performance risk appears moderate given the nature of IT upgrades and system integration.

Value Assessment

Rating: good

The contract value of approximately $1.96 million for a Motorola radio upgrade is within a typical range for such specialized IT services. Without specific details on the scope of work, it's difficult to provide a precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns. Benchmarking against similar radio system upgrade contracts within the federal government would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of two bidders suggests a degree of competition, but the exact number of interested parties and the reasons for exclusion of others would provide more insight into the competitive landscape. A higher number of bidders typically leads to better price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. Even with two bidders, the process aims to secure the best value for government funds.

Public Impact

The Department of Veterans Affairs (VA) will benefit from an upgraded and potentially more reliable Motorola radio communication system. This contract delivers essential IT services for maintaining and enhancing critical communication infrastructure. The primary geographic impact is likely within VA facilities where these radio systems are deployed, potentially across Pennsylvania given the 'PA' designation. The contract supports the IT workforce involved in the installation, maintenance, and support of radio communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the upgrade requirements are not precisely defined.
Dependence on a single vendor for specific Motorola hardware/software components could pose future supply chain risks.

Positive Signals

The use of a firm fixed-price contract shifts cost risk to the contractor.
Full and open competition, even with limited bidders, suggests an effort to achieve competitive pricing.
The contract is for a defined period, allowing for reassessment of needs upon completion.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on communication systems. The market for specialized radio communication upgrades and maintenance is competitive, with several established vendors. The VA's spending on IT infrastructure, including communication systems, is substantial, reflecting the need for reliable and secure networks to support its vast operations. This contract represents a portion of that broader IT investment.

Small Business Impact

The 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. The primary contractor, Cynergy Professional Systems LLC, is likely a mid-to-large-sized business given the contract value. The impact on the broader small business ecosystem would depend on whether Cynergy engages small businesses as subcontractors, which is not specified here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Veterans Affairs. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is facilitated through federal procurement databases where contract awards are published. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA IT Modernization Initiatives
Federal Public Safety Communications
Department of Defense Radio Systems
GSA Schedule IT Contracts

Risk Flags

Potential for vendor lock-in if proprietary Motorola technology is heavily utilized.
Dependence on contractor's cybersecurity practices for system integrity.
Risk of performance degradation if system integration is complex.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to CYNERGY PROFESSIONAL SYSTEMS LLC. MOTOROLA RADIO UPGRADE

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS 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 $2.0 million.

What is the period of performance?

Start: 2023-09-12. End: 2026-05-29.

What is the specific scope of work for this Motorola radio upgrade, and how does it compare to industry standards for similar systems?

The provided data does not detail the specific scope of work for the Motorola radio upgrade. This could include hardware replacement, software updates, system integration, or a combination thereof. To assess industry standards, one would need to compare the deliverables against typical upgrade packages offered by Motorola or its authorized resellers for federal agencies. Factors like the number of radios, system capacity, encryption requirements, and integration with existing networks are crucial for such a comparison. Without this granular detail, it's challenging to benchmark the value effectively against market offerings.

How does the awarded price of $1.96 million compare to historical spending by the VA on similar radio communication systems?

Analyzing historical spending requires access to past VA procurement data for comparable radio systems. If previous upgrades of similar scale and complexity cost significantly more or less, it would indicate potential overpricing or exceptional value. For instance, if a similar upgrade two years ago cost $1 million, this award at $1.96 million might warrant further investigation into the reasons for the price difference, such as inflation, expanded scope, or market shifts. Conversely, if historical contracts were in a similar range, it would suggest the current award is in line with past investments.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure contractor performance?

The contract data does not specify the Key Performance Indicators (KPIs) or the detailed performance measurement plan. Typically, for IT service contracts like this, KPIs might include system uptime, response times for technical support, successful completion of upgrade milestones, adherence to security protocols, and user satisfaction. The VA's contract administration team would be responsible for monitoring these KPIs and ensuring Cynergy Professional Systems LLC meets the contractual obligations. Failure to meet KPIs could result in penalties or termination, depending on the contract's terms.

What is Cynergy Professional Systems LLC's track record with the VA and other federal agencies for similar IT service contracts?

Cynergy Professional Systems LLC's track record with the VA and other federal agencies is a critical factor in assessing performance risk. A review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would reveal their history of meeting deadlines, quality standards, and budget constraints on similar IT projects. A history of successful, on-time, and within-budget completions would indicate a lower performance risk. Conversely, a pattern of issues or negative feedback would raise concerns about their ability to execute this specific contract successfully.

Given the 'exclusion of sources' in the competition type, were there specific technical or security requirements that limited the pool of eligible bidders?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be broad, certain potential sources were deliberately excluded. This exclusion is typically based on specific, justifiable criteria such as unique technical capabilities, proprietary technology requirements, security clearances, or past performance issues. Understanding the precise reasons for excluding other sources is crucial. If the exclusions were based on legitimate, well-documented requirements, it suggests the competition, though limited, was appropriately targeted. If the exclusions appear arbitrary, it could raise questions about the fairness of the competition and potential impact on price.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

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: 23187 LA CADENA, STE 102, LAGUNA HILLS, CA, 92653

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,955,358

Exercised Options: $1,955,358

Current Obligation: $1,955,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD20B

IDV Type: GWAC

Timeline