VA awards $2.96M contract for operator services to Innovation at Work Inc

Contract Overview

Contract Amount: $2,962,692 ($3.0M)

Contractor: Innovation AT Work Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SWOTCHBOARD OPERATOR SERVICES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to INNOVATION AT WORK INC for work described as: SWOTCHBOARD OPERATOR SERVICES Key points: 1. Contract awarded via a competitive process, suggesting potential for good value. 2. The fixed-price contract type helps manage cost risks for the government. 3. The contract duration of five years provides stability for service delivery. 4. The small value of the contract may limit its impact on the broader market. 5. Service area is limited to Alabama, indicating a localized need. 6. The North American Industry Classification System (NAICS) code 561421 points to a specific niche within the administrative support sector.

Value Assessment

Rating: good

The contract value of $2.96 million over five years for telephone answering services appears reasonable. While specific benchmarks for 'swotchboard operator services' are not readily available, the competitive award process suggests that pricing was vetted against market alternatives. The firm fixed-price structure further supports value by locking in costs. Without more granular data on the scope of services and performance metrics, a definitive value-for-money assessment is challenging, but the competitive nature and fixed price are positive indicators.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. With six bidders participating, there was a reasonable level of competition. This suggests that multiple vendors were interested and capable of providing the required services, which typically leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The competitive award process for this contract likely resulted in a more cost-effective outcome for taxpayers by encouraging multiple vendors to offer competitive pricing.

Public Impact

Veterans Affairs (VA) beneficiaries will benefit from improved telephone communication and operator services. The contract ensures the continuity of essential telephone answering and operator support for the VA. The geographic impact is focused on Alabama, where the services will be deployed. The contract supports a small business, contributing to the small business ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if the contractor fails to meet performance standards.
Dependence on a single contractor for critical operator services could pose a risk.
Limited geographic scope may not address broader VA communication needs.

Positive Signals

Competitive award process indicates potential for good value and service quality.
Firm fixed-price contract provides cost certainty for the government.
Contract duration of five years offers stability and reduces re-competition costs.
Award to a small business supports federal small business goals.

Sector Analysis

The contract falls within the administrative and support services sector, specifically telephone answering services (NAICS 561421). This is a mature market with numerous providers. The value of this particular contract is relatively small within the broader federal IT or services landscape, suggesting it addresses a specific, localized operational need for the VA rather than a large-scale technology or infrastructure requirement. Comparable spending in this niche can vary widely based on volume and complexity of calls handled.

Small Business Impact

The contract was awarded to Innovation at Work Inc., which is identified as a small business. This award aligns with federal objectives to support small businesses. As the primary awardee, the company will receive the full contract value. There is no explicit mention of subcontracting requirements in the provided data, but small businesses often leverage subcontracting opportunities, potentially benefiting other small businesses within the ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs responsible for telecommunications and administrative support. Performance standards and deliverables outlined in the purchase order would be monitored. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the VA OIG generally oversees all VA spending for fraud, waste, and abuse. Transparency is facilitated through contract databases like SAM.gov.

Related Government Programs

VA Telecommunications Services
Federal Call Center Contracts
Administrative Support Services
Small Business Set-Aside Contracts

Risk Flags

Potential for performance deficiencies
Limited geographic scope
Reliance on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to INNOVATION AT WORK INC. SWOTCHBOARD OPERATOR SERVICES

Who is the contractor on this award?

The obligated recipient is INNOVATION AT WORK 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 $3.0 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the track record of Innovation at Work Inc. with federal contracts?

Information on Innovation at Work Inc.'s specific track record with federal contracts is not detailed in the provided data. However, the award of this purchase order suggests they have met the requirements for competing under Simplified Acquisition Procedures and were selected from six bidders. Further investigation into their past performance ratings, other federal awards, and any reported issues would be necessary for a comprehensive assessment of their track record. Generally, agencies evaluate past performance as a key factor in award decisions, especially in competitive procurements.

How does the pricing of this contract compare to similar services?

Benchmarking the pricing for this $2.96 million, five-year contract for 'swotchboard operator services' against similar federal contracts is challenging without more specific details on the scope of work, call volume, and service level agreements. However, the fact that it was competed under SAP with six bidders suggests that the pricing was likely competitive within its specific niche. The firm fixed-price nature also provides cost certainty. To perform a more robust comparison, one would need to identify contracts with similar NAICS codes (561421) and service requirements, then analyze their total values, durations, and per-unit costs if available.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues where Innovation at Work Inc. may not meet the required service levels for telephone answering and operator services, leading to disruptions for the VA. There's also a risk of vendor lock-in or over-reliance if alternative solutions are not explored. Given the localized nature (Alabama), a broader risk is that this contract may not scale or adapt easily to changing VA communication needs across different regions. Finally, as with any contract, there's a risk of cost overruns if the fixed-price agreement doesn't adequately account for unforeseen operational challenges, although the fixed-price structure aims to mitigate this for the government.

How effective is this contract likely to be in meeting the VA's needs?

The effectiveness of this contract will largely depend on the specific performance metrics and service level agreements established between the VA and Innovation at Work Inc. The competitive award process and the five-year duration suggest an intent to secure reliable, ongoing service. If the contractor consistently meets or exceeds performance expectations for call handling, response times, and operator professionalism, the contract will be effective in supporting the VA's communication infrastructure in Alabama. However, effectiveness can be limited if the scope is too narrow or if the contractor's capabilities do not fully align with the evolving needs of the VA.

What are the historical spending patterns for similar operator services at the VA?

Historical spending patterns for similar operator services at the VA are not provided in the current data. To analyze this, one would need to query federal procurement databases (like SAM.gov or FPDS) for past contracts awarded by the VA under NAICS code 561421 or related codes for telephone answering and operator services. Examining trends in contract values, durations, awardees, and competition levels over several fiscal years would reveal patterns. This analysis could highlight whether spending has increased or decreased, if certain contractors have dominated the market, and how competition has evolved, providing context for the current $2.96 million award.

What is the significance of the contract being a Purchase Order?

The designation of this award as a 'Purchase Order' (PO) typically signifies a simpler, less formal procurement instrument compared to a traditional contract, often used for acquisitions below the simplified acquisition threshold (SAT) or for specific types of goods and services. However, given the $2.96 million value and five-year duration, it's possible this PO is being used under specific regulations that allow for larger values or longer terms, perhaps for established supply schedules or specific agency authorities. POs generally imply a streamlined process, potentially faster delivery, and are often used for routine or recurring needs. The oversight and contractual protections might be less extensive than for a full-fledged contract.

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: 36C24722Q0209

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 445 DEXTER AVENUE SUITE 4050, MONTGOMERY, AL, 36104

Business Categories: Black 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, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,962,692

Exercised Options: $2,962,692

Current Obligation: $2,962,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline