VA awards $13M for digital screens, with 5 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $12,974,250 ($13.0M)

Contractor: Choisys Technology Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-30

End Date: 2026-09-28

Contract Duration: 1,459 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIGITAL SCREENS LEASE

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.0 million to CHOISYS TECHNOLOGY INC. for work described as: DIGITAL SCREENS LEASE Key points: 1. The contract value of $12.97 million for digital screens appears to be a significant investment in visual communication technology for the VA. 2. With 5 bidders participating, the competition level suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price contract type generally transfers risk to the contractor, which can be beneficial for the government if managed effectively. 4. The contract duration of approximately 4 years (1459 days) indicates a long-term need for these digital display solutions. 5. The North American Industry Classification System (NAICS) code 541519 for 'Other Computer Related Services' suggests a broad scope beyond simple hardware provision. 6. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating an initial restriction followed by broader competition.

Value Assessment

Rating: good

Benchmarking the value of $12.97 million for digital screens is challenging without specific details on the quantity, quality, and features of the screens. However, the presence of 5 bidders in a full and open competition suggests that the pricing is likely competitive within the market for such services. The firm-fixed-price nature of the award indicates that the contractor bears the cost overrun risk, which is generally favorable for the government. Further analysis would require understanding the scope of services included, such as installation, maintenance, and content management.

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', with 5 bidders participating. This indicates that while there may have been an initial exclusion of certain sources, the contract was ultimately competed broadly. A competition with 5 bidders is generally considered robust and suggests that multiple companies were interested and capable of fulfilling the requirement. This level of competition typically drives down prices and encourages innovation.

Taxpayer Impact: A competitive process with multiple bidders generally leads to better value for taxpayers by ensuring that the government secures services at a fair market price. The presence of 5 bidders suggests that taxpayer funds are being used efficiently, as the VA likely received competitive proposals.

Public Impact

Veterans and VA staff will benefit from improved visual communication and information dissemination through digital screens. The services delivered likely include the provision, installation, and potentially maintenance of digital display systems across VA facilities. The geographic impact is likely concentrated within Virginia, as indicated by the 'SN VIRGINIA' field, serving VA facilities in that state. The contract supports jobs within the IT services and digital display industry, potentially including roles in manufacturing, installation, and technical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation requires careful review to understand the rationale behind the initial exclusion and ensure it did not unduly limit competition.
The specific technical requirements and performance standards for the digital screens are not detailed, which could lead to variations in quality or functionality if not clearly defined.
The long-term duration of the contract (nearly 4 years) necessitates ongoing monitoring to ensure continued value and performance alignment with evolving VA needs.

Positive Signals

The award to Choisys Technology Inc. under a competitive process suggests the contractor has demonstrated capability and competitive pricing.
The firm-fixed-price contract type shifts performance risk to the contractor, which is a positive indicator for cost control.
The participation of 5 bidders indicates a healthy market and a successful competitive solicitation process by the VA.

Sector Analysis

The digital display and IT services market is a significant sector within the broader technology industry. This contract falls under IT services, specifically related to computer hardware and potentially software for digital signage. The market is characterized by rapid technological advancements, diverse solution providers, and varying price points depending on features, scale, and service components. Comparable spending benchmarks would depend on the specific type of digital screens (e.g., indoor/outdoor, resolution, size) and the scope of associated services like installation, content management, and maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Choisys Technology Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit 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 inherent in the firm-fixed-price contract type, where the contractor is responsible for delivering specified goods and services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, allowing for review of basic contract details. Specific Inspector General jurisdiction would depend on the nature of any potential issues, such as fraud, waste, or abuse related to the contract.

Related Government Programs

VA IT Modernization Initiatives
Federal Digital Signage Contracts
IT Services for Government Agencies
Visual Communication Systems Procurement

Risk Flags

Competition Exclusion Rationale
Long-Term Contract Duration Risk
Undefined Technical Specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.0 million to CHOISYS TECHNOLOGY INC.. DIGITAL SCREENS LEASE

Who is the contractor on this award?

The obligated recipient is CHOISYS TECHNOLOGY INC..

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 $13.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-28.

What is the specific nature and quantity of the digital screens being leased, and what are their key technical specifications?

The provided data does not specify the exact quantity or technical specifications of the digital screens being leased. The contract falls under NAICS code 541519 ('Other Computer Related Services'), suggesting a scope that may extend beyond simple hardware provision to include integration, software, or managed services. To fully assess value, details on screen size, resolution, intended use (e.g., indoor/outdoor, informational, advertising), and any included software or content management systems would be necessary. Without this, it's difficult to benchmark the per-unit cost or assess if the $12.97 million award represents a fair price for the specific technology and services procured.

How does the $12.97 million contract value compare to similar digital screen leasing or procurement contracts within the federal government or the private sector?

Directly comparing the $12.97 million value is difficult without knowing the scale and specifics of the digital screens and services. However, federal IT spending is substantial, and contracts for display technology can range widely. For context, other federal agencies procure digital signage solutions for various purposes, from information kiosks to large-scale public displays. Market research reports indicate that costs for commercial-grade digital displays vary significantly based on size, features (e.g., touch capability, brightness), and quantity. A contract of this magnitude suggests a significant deployment, potentially across multiple VA facilities in Virginia, involving numerous screens and possibly ongoing support services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure performance and value?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a firm-fixed-price contract of this nature, typical KPIs would likely focus on aspects such as uptime/availability of the screens, response times for maintenance or technical support, adherence to installation schedules, and potentially the quality of the visual output. The Department of Veterans Affairs would establish these metrics within the contract's Statement of Work (SOW) to ensure the contractor meets performance expectations and delivers the intended value. Failure to meet these SLAs could result in penalties or contract remedies.

What is the track record of Choisys Technology Inc. in delivering similar digital display or IT services to government agencies?

Information regarding Choisys Technology Inc.'s specific track record with digital display services for government agencies is not detailed in the provided data. As a contractor awarded a definitive contract under full and open competition, they presumably met the qualifications and demonstrated capability required by the VA during the solicitation process. To assess their track record thoroughly, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other relevant federal contracts awarded to them, and any publicly available project portfolios or client testimonials related to IT services or digital signage solutions.

What is the historical spending pattern for digital screens or similar IT services by the Department of Veterans Affairs?

The provided data focuses on a single contract award and does not offer historical spending patterns for digital screens or similar IT services by the VA. To understand historical spending, one would need to analyze aggregated contract data over multiple fiscal years, looking at spending trends for relevant NAICS codes (like 541519) or product service codes related to display technology and IT services. Such an analysis would reveal whether this $12.97 million award represents an increase, decrease, or consistent level of investment in digital communication solutions compared to previous periods.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25622R0125

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20098 ASHBROOK PL STE 160, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,097,737

Exercised Options: $12,974,250

Current Obligation: $12,974,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline