DOJ awards $5.3M for audio-visual equipment and installation to Versatech Inc

Contract Overview

Contract Amount: $5,348,537 ($5.3M)

Contractor: Versatech Inc

Awarding Agency: Department of Justice

Start Date: 2024-01-17

End Date: 2027-01-16

Contract Duration: 1,095 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUDIO VISUAL EQUIPMENT PURCHASE AND INSTALLATION

Place of Performance

Location: SAVAGE, HOWARD County, MARYLAND, 20763

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $5.3 million to VERSATECH INC for work described as: AUDIO VISUAL EQUIPMENT PURCHASE AND INSTALLATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services, which may encompass the technical aspects of AV installation. 5. The award was made as a Delivery Order, implying it's part of a larger contract vehicle. 6. The contract is for audio-visual equipment purchase and installation, a critical need for many government operations.

Value Assessment

Rating: fair

The total contract value is $5.3 million over three years. Without specific details on the equipment and services provided, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure is a positive indicator for cost control. Benchmarking against similar AV installation contracts would be necessary for a more precise evaluation of pricing and 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 bids. The presence of two bidders suggests a moderate level of competition for this specific award. While competition is present, a higher number of bidders would typically lead to more aggressive pricing and potentially better value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially driving down costs.

Public Impact

The Department of Justice, specifically the Office of Justice Programs, will benefit from upgraded audio-visual capabilities. The services delivered include the purchase and installation of audio-visual equipment, likely enhancing meeting, presentation, and communication functions. The contract is geographically focused on Maryland, where the installation and equipment will be deployed. The installation and potential training associated with AV equipment may have implications for the IT and administrative workforce within the DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the absolute best pricing.
The specific nature of AV equipment and installation can lead to unforeseen technical challenges or cost overruns if not managed meticulously.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, ensuring a fair process.
The contract is for essential audio-visual equipment and installation.

Sector Analysis

The audio-visual equipment and installation sector is a significant market supporting government and commercial entities. This contract falls within the broader IT services and equipment procurement category. The market for AV solutions is competitive, with numerous providers offering a range of products and services, from basic installations to complex integrated systems. Benchmarking this contract's value would require comparing it to similar-sized projects within federal or state government AV procurements.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the total value, it's possible that larger integrators were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, oversight may be managed through the parent contract's administration. The firm-fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through federal contract databases like FPDS.

Related Government Programs

IT Equipment Procurement
Audio-Visual Systems Integration
Government IT Services
Department of Justice IT Contracts

Risk Flags

Limited Competition
Potential for Technical Integration Issues
Cybersecurity Risks with New AV Equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.3 million to VERSATECH INC. AUDIO VISUAL EQUIPMENT PURCHASE AND INSTALLATION

Who is the contractor on this award?

The obligated recipient is VERSATECH INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-01-17. End: 2027-01-16.

What specific types of audio-visual equipment are being purchased and installed under this contract?

The provided data does not specify the exact types of audio-visual equipment. Typically, such contracts can include projectors, screens, video conferencing systems, sound systems, control interfaces, and related installation hardware. The scope of 'installation' can range from simple mounting to complex integration with existing IT infrastructure, including network connectivity and software configuration. Understanding the specific equipment and the complexity of the installation is crucial for a detailed value assessment and for comparing this contract to others in the market.

How does the per-unit cost of the audio-visual equipment and installation compare to market rates or similar government contracts?

A precise per-unit cost comparison is not possible with the current data. The total award amount of $5.3 million is for the entire scope of equipment and installation over three years. To benchmark, one would need to identify the specific items procured (e.g., number of video conferencing units, projector models) and the labor hours estimated for installation. Comparing these line items against GSA schedules, other agency procurements for similar AV solutions, or commercial price lists would reveal if the pricing is competitive. The limited competition (2 bidders) might suggest less downward pressure on pricing than a more robust bidding environment.

What is Versatech Inc.'s track record with similar audio-visual equipment and installation contracts, particularly with the Department of Justice?

Information on Versatech Inc.'s specific track record with AV equipment and installation is not detailed in the provided data. A thorough assessment would require reviewing their past performance on federal contracts, specifically looking for awards related to AV systems, IT integration, and installation services. Examining past performance evaluations, any contract disputes, or awards for similar projects within the Department of Justice or other federal agencies would provide insight into their capabilities, reliability, and pricing competitiveness in this domain. Their award of this contract suggests they met the minimum qualifications.

What are the potential risks associated with the installation of audio-visual equipment in a government setting, and how are they mitigated?

Risks in AV installation can include technical compatibility issues with existing infrastructure, cybersecurity vulnerabilities introduced by new equipment, delays in procurement or installation, and cost overruns. Mitigation strategies often involve detailed technical specifications in the contract, pre-installation site surveys, phased installations, rigorous testing protocols, and clear acceptance criteria. The firm-fixed-price contract type helps mitigate financial risks for the government by capping costs. Cybersecurity reviews of the proposed equipment and adherence to government IT security standards are also critical risk mitigation measures.

How does this $5.3 million contract for AV equipment and installation compare to historical spending patterns for similar services within the Department of Justice or the Office of Justice Programs?

Without historical spending data for AV equipment and installation specifically within the DOJ or OJP, a direct comparison is difficult. However, $5.3 million over three years represents a significant investment in technology infrastructure. Analyzing past budgets and contract awards for IT modernization, communication systems, or facility upgrades within these agencies would provide context. If historical spending on similar projects has been lower, this could indicate an expansion of AV capabilities or a response to evolving technological needs. Conversely, if it aligns with or is lower than previous investments, it might represent routine refresh cycles.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15PTDE24Q00000001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8510 CORRIDOR RD, SAVAGE, MD, 20763

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,348,537

Exercised Options: $5,348,537

Current Obligation: $5,348,537

Actual Outlays: $5,339,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540BA

IDV Type: FSS

Timeline