VA awards $3.7M contract for trunking system to CYNERGY PROFESSIONAL SYSTEMS LLC

Contract Overview

Contract Amount: $3,719,635 ($3.7M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-28

End Date: 2026-04-30

Contract Duration: 945 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: P25 TRUNKING SYSTEM

Place of Performance

Location: LAGUNA HILLS, ORANGE County, CALIFORNIA, 92653

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: P25 TRUNKING SYSTEM Key points: 1. Contract awarded for a P25 Truncking System, indicating a need for enhanced public safety communication. 2. The contract duration of 945 days suggests a significant implementation or service period. 3. Awarded by the Department of Veterans Affairs, likely to support their internal communication infrastructure. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', suggesting a technology-focused solution. 6. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', implying a competitive process with specific exclusions. 7. The award amount of $3.7M falls within a moderate spending range for specialized IT infrastructure.

Value Assessment

Rating: good

The contract value of $3.7M for a P25 Truncking System appears reasonable given the specialized nature of public safety communication technology. Benchmarking against similar systems is difficult without more specific technical details, but the firm fixed price structure offers predictability. The award to CYNERGY PROFESSIONAL SYSTEMS LLC suggests they were deemed the best value provider through the competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, certain sources were excluded from consideration. The specific reasons for exclusion are not detailed, but this approach can sometimes limit the pool of potential bidders and potentially impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure a suitable solution, though the exclusion of sources may have limited the potential for even greater cost savings.

Public Impact

The primary beneficiaries are likely the Department of Veterans Affairs personnel who will utilize the P25 Truncking System for enhanced communication. The services delivered include the provision and potential implementation of a critical communication system. The geographic impact is primarily within the facilities managed by the Department of Veterans Affairs, potentially across multiple locations. Workforce implications may include training for VA staff on the new system and potential support roles for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' clause warrants further investigation to understand the rationale and potential impact on competition.
Limited public information on CYNERGY PROFESSIONAL SYSTEMS LLC's track record with similar large-scale P25 systems.
The specific technical requirements and performance metrics of the trunking system are not detailed, making a full assessment of value challenging.

Positive Signals

The use of a Firm Fixed Price contract provides cost certainty for the government.
The contract was awarded through a competitive process, suggesting an effort to obtain best value.
The P25 Truncking System is a standard for reliable public safety communications, indicating a focus on essential operational needs.

Sector Analysis

The P25 Truncking System falls within the broader Information Technology and Telecommunications sector, specifically related to public safety communications infrastructure. This market is characterized by specialized vendors and stringent interoperability standards. Spending in this area is driven by the need for reliable, secure, and efficient communication for emergency services and government operations. Comparable spending benchmarks would depend on the scale and specific features of the system, but multi-million dollar awards are common for such critical infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside designation (ss: false, sb: false). Therefore, the primary contractor, CYNERGY PROFESSIONAL SYSTEMS LLC, is likely not a small business for the purpose of this award. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could represent missed opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver the specified system within the agreed-upon cost. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

Public Safety Communications Systems
Interoperable Communications
Radio Trunking Systems
Department of Veterans Affairs IT Infrastructure

Risk Flags

Limited Competition Due to Source Exclusion
Potential for Integration Challenges
Cybersecurity Vulnerabilities
Technology Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to CYNERGY PROFESSIONAL SYSTEMS LLC. P25 TRUNKING 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 $3.7 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-04-30.

What is the specific nature of the 'exclusion of sources' in this full and open competition?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the solicitation was intended to be open to all responsible sources, certain potential offerors were excluded from the competition. The specific reasons for these exclusions are not detailed in the provided data. Common reasons for such exclusions can include prior performance issues, failure to meet specific pre-qualification criteria, or national security concerns. Understanding the rationale behind these exclusions is crucial for assessing whether the competition was truly as broad as possible and if it potentially limited the government's ability to secure the best possible pricing and solution.

How does the $3.7M award compare to similar P25 Truncking System contracts?

Benchmarking the $3.7M award for a P25 Truncking System requires detailed comparison of contract scope, system complexity, number of users, geographic coverage, and duration. P25 systems are critical for public safety and can range significantly in cost. Smaller, localized systems might cost hundreds of thousands, while large, multi-agency, statewide deployments can run into tens or hundreds of millions of dollars. Without specific details on the scale of the VA's requirement (e.g., number of sites, users, required features like encryption or interoperability with other agencies), it's challenging to definitively state if $3.7M represents a high, low, or average cost. However, for a significant deployment within a large agency like the VA, this amount appears to be within a plausible range for a specialized communication system.

What is CYNERGY PROFESSIONAL SYSTEMS LLC's track record with P25 Truncking Systems?

Information regarding CYNERGY PROFESSIONAL SYSTEMS LLC's specific track record with P25 Truncking Systems is not readily available in the provided data. The NAICS code 541519 ('Other Computer Related Services') is broad and could encompass various IT services. To assess their capability and past performance effectively, a review of their contract history, client testimonials, and any publicly available project details related to P25 systems would be necessary. Their success in winning this contract suggests they met the VA's requirements and demonstrated adequate capability, but further due diligence would be needed to confirm extensive experience in this niche area.

What are the potential risks associated with this contract?

Potential risks include technical integration challenges with existing VA infrastructure, ensuring the system meets all P25 interoperability standards, and potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen complexities. Cybersecurity risks are also paramount for any communication system. Furthermore, the 'exclusion of sources' could indicate underlying issues that might resurface, or it might simply be a procedural step. The long duration (945 days) also introduces risks related to technology obsolescence and the need for ongoing support and maintenance.

How does this spending align with the Department of Veterans Affairs' overall IT budget and priorities?

This $3.7M contract represents a specific investment in communication infrastructure, likely supporting the VA's mission to provide healthcare and benefits to veterans. Aligning this spending with the VA's overall IT budget requires examining their total IT expenditures, which are typically in the billions of dollars annually. Investments in secure and reliable communication are fundamental to healthcare delivery and administrative operations. This contract appears to address a critical operational need, suggesting it aligns with the VA's priority of maintaining robust and secure systems to support its vast network of facilities and services.

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

Solicitation ID: 36C24523Q1028

Offers Received: 1

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: $3,719,635

Exercised Options: $3,719,635

Current Obligation: $3,719,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD20B

IDV Type: GWAC

Timeline