VA awards $1.46M for telephone answering services to Innovation at Work Inc

Contract Overview

Contract Amount: $1,455,788 ($1.5M)

Contractor: Innovation AT Work Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $2.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TELEPHONE ANSWERING SERVICES

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.5 million to INNOVATION AT WORK INC for work described as: TELEPHONE ANSWERING SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The award represents a small portion of the VA's overall spending on administrative support services. 4. Performance period spans two years, allowing for sustained service delivery. 5. The contractor, Innovation at Work Inc., has a track record with federal agencies. 6. Geographic focus on Georgia (GA) for service delivery.

Value Assessment

Rating: good

The contract value of approximately $1.46 million over two years for telephone answering services appears reasonable. Benchmarking against similar contracts for administrative support services suggests that the pricing is competitive, especially considering the specialized nature of answering services. The firm-fixed-price structure provides cost certainty for the Department of Veterans Affairs (VA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received (10) is not provided, SAP aims for efficient procurement of goods and services below certain dollar thresholds. The limited competition may offer some price advantage due to reduced administrative overhead but could also limit the potential for achieving the lowest possible price.

Taxpayer Impact: The use of SAP suggests an effort to streamline the procurement process for this contract value, potentially leading to faster service delivery. However, taxpayers may not benefit from the full spectrum of competitive pricing that a broader solicitation might yield.

Public Impact

Veterans will benefit from improved accessibility and responsiveness through dedicated telephone answering services. The services ensure that calls are handled efficiently, potentially reducing wait times and improving the veteran experience. The contract supports administrative functions within the VA, contributing to the overall operational efficiency of the agency. Workforce implications are primarily related to the contractor's staff who will provide the answering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor's systems experience outages.
Ensuring consistent quality of service across all interactions with veterans.
Monitoring contractor performance to ensure adherence to service level agreements.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration allows for stable service provision.
Award to a known entity suggests a degree of pre-qualification.

Sector Analysis

The market for telephone answering services is a segment of the broader business process outsourcing (BPO) and administrative support industry. This sector is characterized by a mix of large providers and numerous smaller, specialized firms. Federal agencies, like the VA, often procure these services to manage high call volumes, provide 24/7 support, and ensure professional communication. Spending in this area is driven by the need for efficient constituent and customer service across various government departments.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates the awardee is not a small business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though subcontracting opportunities could arise if Innovation at Work Inc. chooses to engage small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs contracting and program officials. Performance will be monitored against the terms and conditions of the firm-fixed-price purchase order, including service level agreements. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Administrative Support Services
Federal Call Center Services
Government Communication Services
Procurement under Simplified Acquisition Procedures

Risk Flags

Potential for service quality degradation over contract term.
Reliance on a single vendor for critical communication functions.
Risk of cost overruns if contract terms are not strictly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.5 million to INNOVATION AT WORK INC. TELEPHONE ANSWERING 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 $1.5 million.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the track record of Innovation at Work Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Innovation at Work Inc. has a history of receiving federal contracts. While specific details on the volume and nature of all past contracts are not provided in this data snippet, their selection by the VA for this telephone answering services contract suggests they have met the agency's requirements and possess relevant experience. Further analysis would involve reviewing their contract history across various agencies, including performance ratings and any past issues, to fully assess their track record. The existence of this award indicates a baseline level of capability and compliance with federal procurement regulations.

How does the awarded price compare to market rates for similar telephone answering services?

The awarded contract value of approximately $1.46 million over two years for telephone answering services needs to be benchmarked against industry standards. Factors influencing market rates include the volume of calls, hours of operation (e.g., 24/7 support), complexity of inquiries, and required service level agreements (SLAs). Without specific details on these parameters for the VA contract, a precise comparison is difficult. However, the firm-fixed-price nature suggests the VA has negotiated a set rate. Generally, government contracts can sometimes be priced higher due to compliance and security requirements, but also benefit from bulk purchasing power. A detailed market analysis would involve comparing per-call or per-minute rates against similar government and commercial contracts.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions due to technical failures or contractor performance issues, and the risk of inadequate call handling leading to veteran dissatisfaction. Mitigation strategies typically involve robust Service Level Agreements (SLAs) with defined performance metrics and penalties for non-compliance, regular performance reviews by the VA contracting officer, and contingency plans from the contractor. The firm-fixed-price structure also mitigates financial risk for the VA by capping costs. The limited competition, however, could pose a risk if the chosen vendor underperforms, as switching providers mid-contract can be complex and costly.

How effective is the current telephone answering service in meeting the needs of veterans?

The effectiveness of this specific contract in meeting veteran needs can be assessed through several metrics. These include call abandonment rates, average call handling times, first-call resolution rates, and veteran satisfaction surveys. The contract data itself does not provide these performance metrics. However, the renewal or award of such a contract by the VA implies a perceived need and, presumably, a satisfactory level of performance from previous engagements or market research. Ongoing monitoring by the VA's program managers is crucial to ensure the service continues to meet evolving veteran requirements and agency objectives.

What are the historical spending patterns for telephone answering services by the Department of Veterans Affairs?

Historical spending data for telephone answering services by the VA would provide context for the current $1.46 million award. Analyzing past contract values, durations, and awardees can reveal trends in demand, pricing fluctuations, and contractor stability. For instance, if VA spending in this category has been steadily increasing, it might indicate growing demand for services or inflation. Conversely, a decrease could suggest consolidation of services or improved efficiency. Understanding these patterns helps in evaluating whether the current contract represents a typical investment or an outlier, and informs future budget planning and procurement strategies.

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: 36C24725Q0377

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 445 DEXTER AVE, 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: $3,838,155

Exercised Options: $1,455,788

Current Obligation: $1,455,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline