DOJ's $2.07M PABX Maintenance Contract Awarded to Medtel Services, LLC

Contract Overview

Contract Amount: $2,074,802 ($2.1M)

Contractor: Medtel Services, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY26 PABX MAINT AND REPAIR (BPA 15BNAS24A00000102) OY1 PABX MAINTENANCE AND REPAIR

Place of Performance

Location: SARASOTA, MANATEE County, FLORIDA, 34243

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $2.1 million to MEDTEL SERVICES, LLC for work described as: FY26 PABX MAINT AND REPAIR (BPA 15BNAS24A00000102) OY1 PABX MAINTENANCE AND REPAIR Key points: 1. Value for money assessed through firm-fixed-price contract type. 2. Full and open competition indicates a competitive bidding process. 3. Contract duration of one year suggests a need for ongoing services. 4. Performance context is maintenance and repair of PABX systems. 5. Sector positioning within IT services, specifically telecommunications infrastructure. 6. Risk indicators include reliance on a single award for a critical system.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar PABX maintenance contracts is challenging without more specific service level agreements and system complexities. However, the award amount appears reasonable for a one-year maintenance contract for a single location, assuming standard service levels. The absence of extensive modifications or change orders in the award data suggests initial pricing was well-aligned with expected service needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages vendors to offer their best terms. The agency's choice of full and open competition indicates confidence in the market's ability to provide suitable solutions for PABX maintenance and repair.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better service quality due to market pressures.

Public Impact

The Federal Prison System benefits from reliable communication infrastructure through this contract. Services delivered include maintenance and repair of PABX systems, ensuring operational continuity. Geographic impact is focused on the specific facility in Florida where the PABX system is located. Workforce implications are minimal, primarily involving specialized technicians for maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for PABX system.
Dependence on a single vendor for critical communication system maintenance.
Limited visibility into ongoing maintenance activities without detailed reporting requirements.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Clear contract period (one year) allows for periodic re-evaluation of needs.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on telecommunications infrastructure maintenance. The market for PABX (Private Automatic Branch Exchange) systems and their associated maintenance is mature, with numerous providers. Spending benchmarks for such services can vary widely based on the size and complexity of the system, as well as the service level agreements. The $2.07 million annual spending level is moderate for a government contract of this nature.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee, Medtel Services, LLC, is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The impact on the small business ecosystem is neutral in this specific instance, as it does not appear to involve targeted opportunities for small firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Justice, Federal Prison System. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified maintenance and repair services. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports may not be publicly available.

Related Government Programs

Federal Prison System IT Infrastructure Maintenance
Department of Justice Telecommunications Services
PABX System Support Contracts
Government Communication Network Maintenance

Risk Flags

Potential for single-vendor dependency
Reliance on contractor's technical expertise
Ensuring consistent service quality over contract period

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to MEDTEL SERVICES, LLC. FY26 PABX MAINT AND REPAIR (BPA 15BNAS24A00000102) OY1 PABX MAINTENANCE AND REPAIR

Who is the contractor on this award?

The obligated recipient is MEDTEL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Medtel Services, LLC with the Federal Prison System or other government agencies?

A review of federal procurement data would be necessary to fully assess Medtel Services, LLC's track record. Specifically, examining past performance evaluations, contract history, and any reported disputes or terminations with the Federal Prison System or other agencies would provide insight into their reliability and performance. Without this specific data, it's difficult to gauge their established performance within the government contracting space. However, the award of this contract suggests they met the minimum requirements and were deemed capable by the Department of Justice.

How does the awarded price compare to similar PABX maintenance contracts in the federal government?

Benchmarking this $2.07 million contract against similar PABX maintenance contracts requires access to a broader dataset of government procurements for comparable services. Key comparison factors would include the number of users supported, the type and age of the PABX system, the scope of maintenance (e.g., 24/7 support, response times), and the geographic location. Given the firm-fixed-price nature, the price is set for the duration. A preliminary assessment suggests the price is within a reasonable range for a one-year contract, but a definitive comparison would necessitate a detailed analysis of contract specifics across multiple agencies and years.

What are the primary risks associated with this contract for the Federal Prison System?

The primary risks associated with this contract include potential service disruptions if Medtel Services, LLC fails to perform adequately, leading to communication outages within the facility. There's also a risk of price escalation in future contract renewals if competition diminishes or if the system requires unforeseen, costly repairs. Over-reliance on a single vendor for a critical system like PABX can create vulnerabilities. Furthermore, ensuring compliance with all security and data privacy regulations related to telecommunications infrastructure is an ongoing risk that requires diligent oversight.

How effective is the current PABX system at the facility, and is this contract sufficient to maintain its effectiveness?

The effectiveness of the PABX system itself is not directly detailed in the contract award data. This contract focuses on the maintenance and repair services required to keep the existing system operational. The sufficiency of the contract depends on whether the scope of work adequately covers all necessary maintenance, including preventative measures, emergency repairs, and potential upgrades or component replacements. Without information on the system's age, condition, and specific performance requirements, it's challenging to definitively state if the contract is sufficient to maintain its effectiveness long-term. Ongoing performance monitoring by the COR would be crucial.

What has been the historical spending pattern for PABX maintenance and repair within the Federal Prison System?

Analyzing historical spending patterns for PABX maintenance and repair within the Federal Prison System would require accessing historical contract data over several fiscal years. This would reveal trends in contract values, the number of contracts awarded, and the primary contractors utilized. Understanding these patterns can help identify whether spending has been consistent, increasing, or decreasing, and whether there has been a shift in the competitive landscape. Such analysis could also highlight potential areas for cost savings or identify systems nearing end-of-life that may require replacement rather than continued maintenance.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15BNAS24Q00000030

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7519 PENNSYLVANIA AVE STE 102, SARASOTA, FL, 34243

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,074,802

Exercised Options: $2,074,802

Current Obligation: $2,074,802

Actual Outlays: $519,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS24A00000102

IDV Type: BPA

Timeline