VA awards $12.3M contract for Cisco phones and installation to Minburn Technology Group

Contract Overview

Contract Amount: $12,285,912 ($12.3M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-19

End Date: 2026-06-18

Contract Duration: 821 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BRAND NAME CISCO PHONES AND INSTALLATION

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.3 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: BRAND NAME CISCO PHONES AND INSTALLATION Key points: 1. Contract value of $12.3M for IT hardware and services. 2. Procurement method: Full and open competition after exclusion of sources. 3. Contract type: Firm Fixed Price, indicating predictable costs. 4. Duration of 821 days, suggesting a medium-term project. 5. Awarded by the Department of Veterans Affairs (VA). 6. Service Area: Virginia. 7. No small business set-aside noted.

Value Assessment

Rating: good

The contract value of $12.3M for Cisco phones and installation appears reasonable for a federal agency of the VA's size. Without specific per-unit pricing or a detailed scope of work, a direct value-for-money assessment is challenging. However, the firm fixed-price structure helps mitigate cost overruns. Benchmarking against similar IT hardware and installation contracts within the federal government would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. The number of bidders is not specified, but the 'full and open' designation suggests a competitive process was initiated. The level of competition is crucial for ensuring fair market pricing.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and terms to secure the contract.

Public Impact

Veterans Affairs facilities will benefit from upgraded communication systems. Improved phone services for staff and potentially for veteran communication. The contract supports the VA's IT infrastructure modernization efforts. Workforce implications include installation and maintenance personnel, potentially creating or sustaining jobs. Geographic impact is focused on Virginia, where the services will be delivered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if installation and future support are heavily tied to Minburn Technology Group.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.
Dependence on Cisco hardware may limit future flexibility in communication technology choices.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Award to a single vendor for a comprehensive solution can streamline implementation.
The contract duration suggests a commitment to a stable communication solution.

Sector Analysis

The IT hardware and services sector is a significant area of federal spending. This contract falls under IT infrastructure, specifically telecommunications equipment and installation. The market for such services is competitive, with numerous vendors capable of supplying and installing Cisco products. The VA's consistent need for reliable communication systems makes this a recurring type of procurement within the federal IT landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Minburn Technology Group, LLC, is likely a small business itself given its size and the nature of federal contracting, but this contract does not appear to be a small business set-aside. This means opportunities for small business participation would be through direct subcontracting if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Accountability measures are embedded in the contract terms, requiring delivery of specified goods and services by the performance end date. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported.

Related Government Programs

VA IT Modernization Programs
Federal Telecommunications Contracts
IT Hardware Procurement
Network Infrastructure Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of scope creep in IT installation projects.
Dependence on specific vendor (Cisco) hardware.
Potential for contractor underperformance or delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.3 million to MINBURN TECHNOLOGY GROUP, LLC. BRAND NAME CISCO PHONES AND INSTALLATION

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $12.3 million.

What is the period of performance?

Start: 2024-03-19. End: 2026-06-18.

What is the track record of Minburn Technology Group, LLC with the VA and other federal agencies?

Minburn Technology Group, LLC has a history of federal contract awards, primarily with the Department of Veterans Affairs. Analyzing their past performance, including contract values, types of services rendered, and any reported issues or successes, is crucial. A review of their award history in systems like the Federal Procurement Data System (FPDS) would reveal their experience with similar IT hardware and installation projects. Understanding their past performance metrics, such as on-time delivery and adherence to specifications, provides insight into their reliability and capability to execute this current $12.3M contract effectively.

How does the $12.3M contract value compare to similar VA or federal IT hardware procurements?

Benchmarking the $12.3M contract value against similar procurements is essential for assessing value for money. This involves comparing the cost per unit (if discernible), the scope of services, and the duration against other VA or federal contracts for Cisco phone systems and installation. Factors like the number of users, locations, and specific model of Cisco phones would influence comparisons. If this contract's pricing is significantly higher or lower than comparable awards, it could indicate either an exceptional deal or potential issues with pricing or scope definition. A detailed analysis would require access to granular data on similar contracts.

What are the specific risks associated with this firm fixed-price contract for Cisco phone installation?

While Firm Fixed Price (FFP) contracts offer cost certainty, risks can still arise. For this Cisco phone installation contract, potential risks include scope creep if the requirements are not precisely defined, leading to disputes over additional work. Contractor underperformance or delays in delivery and installation could impact VA operations. There's also a risk that the contractor may cut corners on quality to maintain profitability under the fixed price. Furthermore, if the chosen Cisco hardware becomes obsolete quickly or faces supply chain issues, it could impact the long-term viability and support of the system, despite the initial fixed price.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for the VA?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific needs that might necessitate excluding certain vendors. Its effectiveness in ensuring competitive pricing depends heavily on the justification for excluding sources and the actual number of bidders that participate. If the exclusions were minimal and a robust number of qualified vendors still bid, it likely fostered competitive pricing. However, if the exclusions significantly limited the pool of potential bidders, it could have led to less aggressive pricing than a truly unrestricted full and open competition. The VA must ensure such exclusions are well-documented and serve a clear, justifiable purpose.

What are the historical spending patterns of the VA on telecommunications equipment and installation services?

Analyzing the VA's historical spending on telecommunications equipment and installation provides context for the $12.3M award. Understanding the VA's typical contract values, durations, and the types of vendors they engage for such services can reveal trends. For instance, has the VA consistently awarded large, multi-year contracts for Cisco systems, or do they favor smaller, more frequent procurements? Examining past spending can highlight whether this contract represents a typical investment or a significant deviation, potentially indicating a new initiative or a change in procurement strategy. It also helps in identifying potential cost savings or areas where spending has increased.

What are the implications of this contract award on the small business ecosystem supporting federal IT services?

As this contract was not a small business set-aside, its direct impact on the small business ecosystem is limited. However, the prime contractor, Minburn Technology Group, LLC, may be a small business itself, contributing to the small business sector. Indirectly, if Minburn Technology Group, LLC subcontracts portions of this work to other small businesses (e.g., for specialized installation or support), it could provide opportunities. The absence of a set-aside means larger, established companies were likely eligible to compete, potentially overshadowing smaller players in the bidding process for this specific award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

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

Financial Breakdown

Contract Ceiling: $12,285,912

Exercised Options: $12,285,912

Current Obligation: $12,285,912

Actual Outlays: $11,022,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline