VA awards $1.18M printer maintenance contract to Microtechnologies LLC under full and open competition

Contract Overview

Contract Amount: $1,179,016 ($1.2M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-20

End Date: 2027-05-19

Contract Duration: 729 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE OF LEASED PRINTERS

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.2 million to MICROTECHNOLOGIES LLC for work described as: MAINTENANCE OF LEASED PRINTERS Key points: 1. Contract focuses on essential printer maintenance services, supporting daily operations. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Performance period of approximately two years indicates a medium-term service need. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad scope of IT-related services. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $1.18 million for two years of printer maintenance appears reasonable, especially considering it was awarded through full and open competition. Without specific details on the number of printers or service level agreements, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the contractor, Microtechnologies LLC, has assumed the risk for cost overruns, which is generally favorable for the government. Benchmarking against similar IT maintenance contracts would provide a more precise value assessment, but the competitive award process implies a degree of price discovery and potential for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment. A competitive process allows the agency to solicit offers from multiple vendors, compare their proposed prices and technical solutions, and select the best value. This approach is designed to ensure fair pricing and encourage innovation by allowing various companies to vie for the contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, potentially resulting in cost savings and better service quality.

Public Impact

Veterans Affairs (VA) facilities in Ohio will benefit from reliable printer operations. Ensures continuity of essential administrative and clinical functions that rely on printing. Supports the operational readiness of VA medical centers and administrative offices. Indirectly supports healthcare delivery by ensuring necessary documentation and communication tools are functional.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance is highly specialized and difficult to switch.
Dependence on a single vendor for critical equipment maintenance could pose operational risks.
Scope creep if additional services beyond basic maintenance are requested without proper modification.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Award through full and open competition suggests competitive pricing and vendor selection.
Delivery Order structure may indicate flexibility within a broader IT services framework.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on the maintenance and support of office equipment. The market for IT maintenance and support services is substantial, with numerous providers ranging from large corporations to specialized small businesses. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT support functions. The VA's spending in this area is consistent with the need to maintain a large fleet of essential office equipment across its numerous facilities to ensure smooth operations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the primary focus was on full and open competition. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Microtechnologies LLC utilizes small businesses for any part of the service delivery, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for IT services. As a Delivery Order, it likely falls under a larger IDIQ contract that may have its own oversight mechanisms. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

IT Equipment Maintenance Services
Office Equipment Support Contracts
Federal IT Services Procurement
Department of Veterans Affairs IT Spending

Risk Flags

Potential for service level agreement (SLA) breaches.
Risk of inadequate maintenance leading to equipment failure.
Dependency on a single vendor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.2 million to MICROTECHNOLOGIES LLC. MAINTENANCE OF LEASED PRINTERS

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES 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 $1.2 million.

What is the period of performance?

Start: 2025-05-20. End: 2027-05-19.

What is the track record of Microtechnologies LLC in performing similar IT maintenance contracts for federal agencies?

Microtechnologies LLC has a history of performing IT services for federal agencies. A review of federal procurement data indicates past awards for various IT-related services, including hardware maintenance and support. To fully assess their track record for this specific printer maintenance contract, it would be beneficial to examine the performance history on prior VA contracts or similar maintenance agreements. Key indicators would include past performance evaluations, any documented issues or disputes, and the successful completion of previous service terms. Understanding their experience with the specific types of printers used by the VA and their response times in previous engagements would provide further insight into their capability to fulfill this current requirement effectively.

How does the awarded price compare to market rates for similar printer maintenance services?

The awarded value of $1.18 million over approximately two years for printer maintenance is difficult to benchmark precisely without knowing the exact number of devices, their types, the scope of services (e.g., preventative vs. on-demand, parts included), and the specific geographic coverage within Ohio. However, given that the contract was awarded under full and open competition, it suggests that the price was deemed competitive among the bidding entities. To perform a robust comparison, one would need to gather quotes from other maintenance providers for a comparable number and type of printers, factoring in service level agreements and response times. The firm fixed-price nature also implies that Microtechnologies LLC has priced competitively while absorbing potential cost fluctuations.

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

Primary risks include potential service disruptions if Microtechnologies LLC fails to meet response times or perform adequate maintenance, leading to operational downtime for VA facilities. Another risk is the possibility of unforeseen costs if the scope of work expands beyond the initial agreement, although the firm fixed-price structure aims to mitigate this. Vendor performance issues, such as a decline in service quality or financial instability of the contractor, also pose risks. Mitigation strategies likely include the VA's oversight mechanisms, performance monitoring, clear contract terms and conditions, and the ability to exercise contract remedies if performance is unsatisfactory. The competitive award process itself helps mitigate risks by selecting a vendor perceived as capable and offering a fair price.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money for the government when the scope of work is well-defined and unlikely to change significantly. For printer maintenance, where the services are relatively predictable, FFP shifts the risk of cost overruns to the contractor, Microtechnologies LLC. This encourages the contractor to manage their costs efficiently to maintain profitability. For the VA, it provides budget certainty and protects against unexpected price increases. The effectiveness hinges on the accuracy of the initial cost estimation and the clarity of the service requirements. If the scope is poorly defined, it could lead to disputes or the contractor seeking additional compensation, potentially diminishing the value.

What is the historical spending pattern for printer maintenance by the Department of Veterans Affairs?

The Department of Veterans Affairs, like other large federal agencies, historically spends significant amounts on IT equipment maintenance, including printers, to support its widespread operations. Annual spending can fluctuate based on equipment refresh cycles, changes in technology, and the number of facilities in operation. Analyzing historical VA spending data for similar maintenance contracts would reveal trends in contract values, durations, and the types of services procured. This contract's value of approximately $1.18 million over two years should be viewed within the context of the VA's overall IT maintenance budget and past expenditures on similar services across its network of facilities.

What are the implications of this contract being a Delivery Order?

This contract being a 'Delivery Order' implies that it is likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. IDIQ contracts allow agencies to procure services or supplies over a period, with specific orders placed as needed. This structure provides flexibility for the agency to order services up to a certain ceiling amount. For the VA, it means they have a pre-vetted vendor (Microtechnologies LLC) and established terms, allowing for rapid procurement of these maintenance services. The specific terms and conditions of the parent IDIQ contract would govern the overall relationship and potential for future orders.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C25025Q0353

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 220 CONGRESS PARK DR STE 138, DELRAY BEACH, FL, 33445

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,947,540

Exercised Options: $1,179,016

Current Obligation: $1,179,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC42B

IDV Type: GWAC

Timeline