VA Awards $6.19M for Audiocare Software and Maintenance to Payton Merger SUB II LLC

Contract Overview

Contract Amount: $6,189,072 ($6.2M)

Contractor: Payton Merger SUB II LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2026-06-30

Contract Duration: 545 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUDIOCARE SOFTWARE AND MAINTENANCE

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.2 million to PAYTON MERGER SUB II LLC for work described as: AUDIOCARE SOFTWARE AND MAINTENANCE Key points: 1. Contract value represents a significant investment in specialized audio software and ongoing maintenance. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (545 days) indicates a need for sustained support and development. 5. The specific NAICS code (511210) points to the software publishing industry, a key sector for digital services. 6. The award is managed by the Department of Veterans Affairs, highlighting its focus on technology for veteran services.

Value Assessment

Rating: good

The contract value of $6.19 million for software and maintenance appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for enterprise-level audio software solutions and ongoing support would provide a clearer picture of value for money. The firm fixed-price structure suggests that the contractor bears the risk of cost increases, which is generally favorable for the government. However, without specific details on the scope of work and deliverables, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the open competition suggests a healthy market for this type of software and maintenance. This process is designed to foster price discovery and ensure the government receives competitive pricing by allowing multiple vendors to vie for the contract.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to better value for public funds. The competitive process helps ensure that the selected vendor offers the most advantageous terms and pricing.

Public Impact

Veterans will benefit from improved audio software and maintenance, potentially enhancing their access to services or information. The contract supports the delivery of critical IT infrastructure for the Department of Veterans Affairs. The geographic impact is primarily within New Jersey, where the contractor is located, but the services likely support VA operations nationwide. The contract supports jobs within the software publishing and IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is highly proprietary and difficult to integrate with other systems.
Risk of scope creep if the requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single vendor for critical software updates and security patches.

Positive Signals

Awarded under full and open competition, indicating a competitive market and potential for good pricing.
Firm fixed-price contract type limits the government's exposure to cost overruns.
The Department of Veterans Affairs has a clear need for this type of specialized software and maintenance.

Sector Analysis

The software publishing industry (NAICS 511210) is a dynamic sector characterized by rapid innovation and diverse market offerings. This contract for audio software and maintenance fits within the broader IT services and software development market, which is a significant area of federal spending. Comparable spending benchmarks would involve looking at other federal contracts for specialized software licenses, maintenance agreements, and IT support services, particularly within large agencies like the VA.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to PAYTON MERGER SUB II LLC, a likely larger entity, suggests that small business participation may be limited unless specific subcontracting goals are mandated and met. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the delivery of specified software and maintenance services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs IT Modernization Programs
Federal Health IT Spending
Software Licensing and Maintenance Contracts
Audio and Communication Technology Procurement

Risk Flags

Potential for undefined scope leading to cost overruns if not managed tightly.
Reliance on a single vendor for critical software functionality.
Need to verify contractor's past performance in similar IT service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.2 million to PAYTON MERGER SUB II LLC. AUDIOCARE SOFTWARE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PAYTON MERGER SUB II 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 $6.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-06-30.

What is the specific functionality and intended use of the AUDIOCARE software being procured?

The provided data does not specify the exact functionality of the AUDIOCARE software. However, given the NAICS code 511210 (Software Publishers) and the context of the Department of Veterans Affairs (VA), it is likely a specialized application designed for audio processing, communication, or data management related to VA operations. This could range from patient communication systems, telehealth audio components, administrative audio recording and transcription services, to accessibility tools for veterans. The maintenance component suggests ongoing support, updates, and potential enhancements to ensure the software remains operational, secure, and effective throughout its lifecycle.

How does the $6.19 million contract value compare to similar audio software and maintenance contracts within the federal government?

Benchmarking the $6.19 million contract value requires comparing it to similar procurements for specialized audio software and maintenance services across federal agencies. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for enterprise-level software solutions with multi-year maintenance agreements, this value is within a plausible range, especially if the software offers unique capabilities or supports a large user base. Factors such as the number of users, complexity of features, service level agreements (SLAs), and the duration of the contract (545 days in this case) significantly influence pricing. A detailed analysis would involve identifying contracts with similar NAICS codes, contract types (firm fixed-price), and agencies with comparable IT needs.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this AUDIOCARE software maintenance contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for software maintenance contracts, SLAs would define metrics related to software uptime, response times for technical support, resolution times for reported issues, availability of software updates and patches, and potentially performance benchmarks. KPIs would measure the contractor's adherence to these SLAs and the overall effectiveness of the software in meeting the VA's operational requirements. These details are usually found in the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the provided summary data.

What is the track record of PAYTON MERGER SUB II LLC in delivering similar software and maintenance services to federal agencies?

Information regarding the specific track record of PAYTON MERGER SUB II LLC in delivering similar software and maintenance services to federal agencies is not provided in the summary data. As PAYTON MERGER SUB II LLC is a specific entity, its past performance, including previous federal contracts, client satisfaction, and any history of performance issues or awards, would need to be researched through federal procurement databases (like SAM.gov or FPDS) or contractor performance assessment reports. Understanding their experience with software publishing and maintenance, particularly for government clients, is crucial for assessing the risk associated with this award.

What is the historical spending pattern of the Department of Veterans Affairs on audio software and related maintenance services?

The provided data only includes details for this specific contract award. To understand the historical spending patterns of the Department of Veterans Affairs (VA) on audio software and related maintenance services, one would need to analyze historical procurement data over several fiscal years. This would involve querying federal spending databases for contracts with relevant NAICS codes (e.g., 511210) and product/service codes related to audio software, IT maintenance, and support services awarded by the VA. Analyzing this historical data would reveal trends in spending, identify key vendors, and provide context for the current $6.19 million award in terms of its scale and duration relative to past investments.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B25Q0082

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1025 CHAPALA ST, SANTA BARBARA, CA, 93101

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,279,424

Exercised Options: $6,189,072

Current Obligation: $6,189,072

Actual Outlays: $4,098,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00CM

IDV Type: FSS

Timeline