VA Awards $7.1M Rauland Responder V Upgrade to Sound Com Corp via Brand Name Only Requirement

Contract Overview

Contract Amount: $7,131,106 ($7.1M)

Contractor: Sound COM Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-15

End Date: 2026-04-30

Contract Duration: 867 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS UNUSUAL AND COMPELLING UPGRADE REQUIRES THE INSTALLATION OF A RAULAND RESPONDER V VIA A BRAND NAME ONLY REQUIREMENT WHICH INCLUDES CONSOLES, AUDIO STATIONS, SERVERS, AND SOFTWARE. ONLY RAULAND RESPONDER V TO ENSURE FULL INTEROPERABILITY.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.1 million to SOUND COM CORPORATION for work described as: THIS UNUSUAL AND COMPELLING UPGRADE REQUIRES THE INSTALLATION OF A RAULAND RESPONDER V VIA A BRAND NAME ONLY REQUIREMENT WHICH INCLUDES CONSOLES, AUDIO STATIONS, SERVERS, AND SOFTWARE. ONLY RAULAND RESPONDER V TO ENSURE FULL INTEROPERABILITY. Key points: 1. The contract specifies a brand-name-only requirement for Rauland Responder V, limiting competition. 2. The Department of Veterans Affairs is the procuring agency, with the contract awarded to Sound Com Corporation. 3. The total contract value is $7,131,106.49, with a duration of 867 days. 4. The contract type is Firm Fixed Price, indicating a set cost for the work. 5. The NAICS code 238210 suggests this falls under Electrical Contractors and Other Wiring Installation Contractors.

Value Assessment

Rating: questionable

The $7.1M price tag for a brand-name-only upgrade needs careful scrutiny. Without competitive bidding, it's difficult to ascertain if this price represents fair market value compared to similar interoperable communication system installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was considered, it was restricted. This approach, coupled with the brand-name-only requirement, likely limited the pool of potential bidders and may have impacted price discovery.

Taxpayer Impact: Taxpayer funds are being used for this upgrade. The lack of broad competition raises concerns about whether the most cost-effective solution was secured, potentially leading to higher costs than necessary.

Public Impact

Veterans may experience improved communication systems within VA facilities. The use of a specific brand may impact future maintenance and upgrade costs. The limited competition raises questions about government procurement practices. The contract's duration suggests a significant implementation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Brand-name-only requirement restricts competition.
Potential for inflated costs due to limited bidding.
Interoperability concerns if future systems are not compatible.

Positive Signals

Upgrade to critical communication infrastructure.
Clear contract award with defined scope and timeline.

Sector Analysis

This contract falls under the Electrical Contractors and Other Wiring Installation Contractors sector. Spending in this sector can vary widely based on project scope and technology. The specific nature of a specialized communication system upgrade, especially with a brand-name requirement, can command premium pricing.

Small Business Impact

The contract was awarded to Sound Com Corporation, a single entity. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, which warrants further investigation.

Oversight & Accountability

The contract specifies 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting some level of oversight in the procurement process. However, the brand-name-only restriction warrants scrutiny to ensure it was justified and that adequate market research was conducted.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Brand-name-only requirement limits competition.
Potential for inflated pricing.
Lack of transparency in competition exclusion.
Possible vendor lock-in for future support and upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.1 million to SOUND COM CORPORATION. THIS UNUSUAL AND COMPELLING UPGRADE REQUIRES THE INSTALLATION OF A RAULAND RESPONDER V VIA A BRAND NAME ONLY REQUIREMENT WHICH INCLUDES CONSOLES, AUDIO STATIONS, SERVERS, AND SOFTWARE. ONLY RAULAND RESPONDER V TO ENSURE FULL INTEROPERABILITY.

Who is the contractor on this award?

The obligated recipient is SOUND COM CORPORATION.

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 $7.1 million.

What is the period of performance?

Start: 2023-12-15. End: 2026-04-30.

What specific technical or operational requirements necessitated the exclusive use of Rauland Responder V, justifying the exclusion of other potentially interoperable systems?

The justification for a brand-name-only requirement typically stems from critical interoperability needs, unique system integration challenges, or established infrastructure compatibility issues. Without detailed documentation, it's difficult to confirm if these factors were sufficiently compelling to override the benefits of broader competition and potentially lower costs.

How was the $7.1M price determined to be fair and reasonable given the limited competition and brand-name restriction?

Price reasonableness in limited competition scenarios often relies on historical pricing data for similar sole-source or brand-name procurements, comparison to commercial price lists (if applicable), or independent government cost estimates. The VA would need to demonstrate that such analyses were performed and supported the awarded price.

What is the long-term cost implication for the VA regarding maintenance, support, and future upgrades of the Rauland Responder V system?

Sole-sourcing a specific brand can lead to higher long-term costs due to vendor lock-in. The VA may face premium pricing for proprietary parts, software updates, and specialized technical support. Future upgrades might also be constrained to the same vendor, limiting options and potentially increasing overall lifecycle expenses.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25023R0083

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ametek Inc

Address: 227 DEPOT ST, BEREA, OH, 44017

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,131,106

Exercised Options: $7,131,106

Current Obligation: $7,131,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline