VA awards $4.36M for security camera upgrades, highlighting IT service needs

Contract Overview

Contract Amount: $4,361,780 ($4.4M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-24

End Date: 2026-09-29

Contract Duration: 554 days

Daily Burn Rate: $7.9K/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: SECURITY CAMERA UPGRADE SYSTEM

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19805

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: SECURITY CAMERA UPGRADE SYSTEM Key points: 1. Contract value represents a significant investment in facility security and modernization. 2. Competition level suggests a potentially healthy market for IT security solutions. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. Contract duration of over 1.5 years indicates a substantial scope of work. 5. Focus on 'Other Computer Related Services' points to a growing demand in this sector.

Value Assessment

Rating: good

The contract value of $4.36 million for security camera upgrades appears reasonable given the scope and duration. Benchmarking against similar IT infrastructure projects within the VA or other federal agencies would provide a clearer picture of value for money. The firm fixed-price structure suggests an effort to manage costs effectively, but detailed cost breakdowns are not available to assess profit margins or efficiency.

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 multiple bidders were likely considered after an initial exclusion period. The presence of 4 bids suggests a competitive environment, which generally leads to better pricing and service options for the government. This level of competition is positive for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

Veterans and VA staff will benefit from enhanced security at VA facilities. The contract will deliver upgraded security camera systems, improving surveillance capabilities. Geographic impact is likely concentrated at the VA facilities covered by the upgrade, potentially nationwide. Workforce implications may include installation, maintenance, and support roles for IT and security technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if proprietary systems are implemented.
Risk of scope creep if upgrade requirements are not clearly defined.
Dependence on contractor expertise for successful system integration and maintenance.

Positive Signals

Modernization of critical security infrastructure enhances safety.
Competitive award process likely secured favorable pricing.
Firm fixed-price contract provides cost predictability.

Sector Analysis

The IT services sector, particularly in areas like security and surveillance, is experiencing robust growth. Federal agencies are increasingly investing in upgrading aging infrastructure and implementing advanced technologies to meet evolving security threats. This contract fits within the broader trend of federal IT modernization efforts, with comparable spending benchmarks varying widely based on system complexity and scale.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that larger, established IT service providers were likely the primary participants. Further analysis would be needed to determine if any small business participation occurred through subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics are not provided here.

Related Government Programs

Federal IT Infrastructure Modernization Programs
Department of Veterans Affairs IT Procurement
Physical Security Systems Contracts
Information Technology Services

Risk Flags

Potential for scope creep
Integration challenges with existing systems
Cybersecurity vulnerabilities
Data privacy concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to CYNERGY PROFESSIONAL SYSTEMS LLC. SECURITY CAMERA UPGRADE SYSTEM

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 $4.4 million.

What is the period of performance?

Start: 2025-03-24. End: 2026-09-29.

What is the track record of CYNERGY PROFESSIONAL SYSTEMS LLC with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess CYNERGY PROFESSIONAL SYSTEMS LLC's track record with the Department of Veterans Affairs. This would involve examining past contracts awarded to the company by the VA, including their performance history, any reported issues or disputes, and the types of services previously rendered. Understanding their past performance, particularly on similar IT or security system projects, is crucial for evaluating their capability to successfully execute this current contract. Without specific historical data, it's difficult to definitively gauge their reliability and expertise within the VA environment.

How does the per-unit cost of the security cameras compare to market rates?

Determining the per-unit cost of the security cameras requires breaking down the total contract value ($4.36 million) by the number of units or cameras procured. This information is not explicitly provided in the contract data. Once the number of units is known, the average cost per camera can be calculated and compared against industry benchmarks for similar security camera systems. Factors such as camera resolution, features (e.g., night vision, analytics), installation complexity, and warranty will influence the market rate. A significant deviation from established market prices, either higher or lower, would warrant further investigation into the value proposition.

What are the primary risks associated with implementing a new security camera system of this scale?

Implementing a new security camera system of this scale carries several primary risks. Technical risks include system integration challenges with existing infrastructure, potential compatibility issues between different hardware and software components, and cybersecurity vulnerabilities that could be exploited. Operational risks involve user training deficiencies, system downtime during installation or maintenance, and inadequate coverage leading to security gaps. Financial risks encompass potential cost overruns if the fixed-price contract doesn't account for unforeseen complexities, and the possibility that the system may not deliver the expected return on investment in terms of improved security or operational efficiency. Furthermore, data privacy concerns related to surveillance must be carefully managed.

How effective are firm fixed-price contracts in ensuring value for money in IT upgrades?

Firm fixed-price (FFP) contracts are generally considered effective in ensuring value for money for IT upgrades when the scope of work is well-defined and understood from the outset. This contract type shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and complete the project within the agreed-upon budget. For the government, FFP contracts provide budget certainty and predictability. However, their effectiveness can be diminished if the initial scope is poorly defined, leading to change orders that can increase costs, or if the contractor cuts corners on quality to maintain profitability. For complex IT projects with evolving requirements, other contract types like cost-plus-fixed-fee might offer more flexibility, though potentially at a higher risk of cost escalation.

What is the historical spending trend for security camera systems at the VA?

To analyze the historical spending trend for security camera systems at the VA, one would need to query federal procurement databases for similar contracts awarded over several fiscal years. This analysis would involve identifying contracts with keywords related to 'security cameras,' 'surveillance systems,' 'CCTV,' and similar terms, specifically within the Department of Veterans Affairs. Examining the total dollar amounts, contract types, and competition levels over time would reveal patterns in spending, identify periods of increased investment, and potentially highlight any significant shifts in technology or procurement strategies. Understanding this historical context provides a baseline against which the current $4.36 million award can be assessed for its relative scale and significance.

What are the implications of 'Other Computer Related Services' for future IT needs?

The classification 'Other Computer Related Services' (NAICS code 541519) is broad and encompasses a wide range of IT activities beyond specialized areas like software development or network management. For future IT needs, this classification suggests the VA anticipates a continued demand for flexible, adaptable IT support that may not fit neatly into more defined categories. This could include services like IT system integration, technical consulting, IT project management, data processing services, and specialized hardware/software support. Agencies often use this code when requirements are diverse or evolving, indicating a need for a broad range of IT expertise to address emerging challenges and opportunities in technology adoption and management.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: 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: $4,361,780

Exercised Options: $4,361,780

Current Obligation: $4,361,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD20B

IDV Type: GWAC

Timeline