VA awards $56.5M for Cheyenne VAMC guest Wi-Fi, with 3 bidders competing

Contract Overview

Contract Amount: $56,472 ($56.5K)

Contractor: N-Ovation Technology Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-01

End Date: 2027-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $39/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUEST WIFI INTERNET SERVICES AND WIFI EQUIPMENT MAINTENANCE SERVICES FOR THE CHEYENNE VAMC

Place of Performance

Location: CHEYENNE, LARAMIE County, WYOMING, 82001

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $56,472 to N-OVATION TECHNOLOGY GROUP LLC for work described as: GUEST WIFI INTERNET SERVICES AND WIFI EQUIPMENT MAINTENANCE SERVICES FOR THE CHEYENNE VAMC Key points: 1. Contract awarded to N-OVATION TECHNOLOGY GROUP LLC for guest Wi-Fi services. 2. The contract has a duration of 4 years, ending April 30, 2027. 3. Services include internet and equipment maintenance for the Cheyenne VA Medical Center. 4. The contract was competed under Simplified Acquisition Procedures (SAP). 5. The award amount is $56,472, indicating a relatively small contract value. 6. The North American Industry Classification System (NAICS) code is 517112 (Wireless Telecommunications Carriers). 7. The contract type is Firm Fixed Price. 8. The place of performance is Wyoming.

Value Assessment

Rating: good

The award amount of $56,472 for a 4-year contract appears to be a reasonable value for guest Wi-Fi services, especially considering it includes equipment maintenance. Without specific performance metrics or detailed service level agreements, a direct comparison to similar contracts is challenging. However, the relatively low total value suggests a focused scope, likely for a single facility. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. With three bidders participating, the competition level is moderate for this type of procurement. SAP is designed for smaller dollar value procurements where full and open competition may not be cost-effective. The presence of multiple bidders suggests some level of price discovery and potential for competitive pricing.

Taxpayer Impact: The limited competition under SAP for this contract means taxpayers benefit from a competitive process, but the potential for even lower prices through broader competition is constrained by the procurement method's limitations.

Public Impact

Patients and visitors at the Cheyenne VA Medical Center will benefit from improved guest Wi-Fi access. The contract ensures the maintenance of essential wireless telecommunications infrastructure. Services are geographically focused on Cheyenne, Wyoming. The contract supports the operational needs of a federal healthcare facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if equipment is proprietary and maintenance is tied to the original vendor.
Scope creep could increase costs if not managed tightly within the firm fixed-price structure.
Reliance on a single vendor for both service and maintenance could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Multiple bidders participated, indicating some level of market interest and competition.
Contract duration of 4 years allows for stable service provision.

Sector Analysis

The wireless telecommunications sector is characterized by rapid technological advancements and significant infrastructure investment. This contract falls under the wireless telecommunications carriers sub-sector, focusing on providing internet access and maintenance. While the overall market for telecommunications services is vast, this specific contract is a small component, likely serving a single government facility. Comparable spending benchmarks for guest Wi-Fi at federal facilities can vary widely based on size and scope, but this award appears to be on the lower end for a multi-year service contract.

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 relatively small award value and the nature of the services, it's possible that small businesses could have bid or participated in subcontracting, but this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. As a purchase order under SAP, it is subject to standard procurement regulations and internal agency oversight. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Affairs Medical Information Technology
Federal Information Technology Contracts
Wireless Network Services

Risk Flags

Potential for limited competition due to SAP.
Lack of detailed performance metrics in award data.
Unknown contractor performance history for this specific service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $56,472 to N-OVATION TECHNOLOGY GROUP LLC. GUEST WIFI INTERNET SERVICES AND WIFI EQUIPMENT MAINTENANCE SERVICES FOR THE CHEYENNE VAMC

Who is the contractor on this award?

The obligated recipient is N-OVATION 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 $56,472.

What is the period of performance?

Start: 2023-05-01. End: 2027-04-30.

What is the specific scope of 'guest Wi-Fi internet services' and 'equipment maintenance' covered under this contract?

The provided data does not detail the specific scope of services. 'Guest Wi-Fi internet services' typically refers to providing internet connectivity to non-staff users within the facility, often with user authentication and potentially bandwidth limitations. 'WIFI equipment maintenance services' would encompass the upkeep, repair, and potentially replacement of the wireless access points, routers, and related infrastructure necessary to provide the Wi-Fi service. A more detailed statement of work (SOW) within the contract documents would clarify the exact deliverables, service level agreements (SLAs), and any specific equipment covered.

How does the $56,472 award value compare to typical spending for similar guest Wi-Fi services at federal facilities?

The award value of $56,472 over four years ($14,118 per year) appears to be on the lower end for providing comprehensive guest Wi-Fi services, especially if it includes maintenance of existing or new equipment. Larger federal facilities or those with higher user traffic might incur significantly higher costs. Factors influencing cost include the number of access points, bandwidth requirements, geographic coverage within the facility, and the level of support and maintenance provided. This contract's value suggests a potentially smaller facility or a more limited service offering compared to larger, more complex deployments.

What are the potential risks associated with N-OVATION TECHNOLOGY GROUP LLC as the contractor for this service?

Without specific performance history data for N-OVATION TECHNOLOGY GROUP LLC on this or similar contracts, assessing risks is challenging. Potential risks common to any contractor include financial stability, technical capability, adherence to service level agreements, and responsiveness to issues. Given this is a firm fixed-price contract, risks related to cost overruns are primarily on the contractor's side, but scope creep could still be an issue if not managed. The limited competition might also imply fewer options if performance issues arise, potentially leading to delays in resolution or the need for a new procurement.

What is the historical spending pattern for guest Wi-Fi services at the Cheyenne VAMC or similar VA facilities?

The provided data does not include historical spending patterns for guest Wi-Fi services at the Cheyenne VAMC or other VA facilities. To assess historical spending, one would need to query contract databases for previous awards related to Wi-Fi services at this specific location or for similar medical centers within the VA system. Analyzing past contracts would reveal trends in pricing, vendor choices, contract durations, and the evolution of service requirements, providing context for the current award's value and scope.

How does the use of Simplified Acquisition Procedures (SAP) impact the value and transparency of this contract?

Simplified Acquisition Procedures (SAP) are used for procurements valued below the federal acquisition threshold (currently $250,000). Using SAP for this $56,472 contract streamlines the acquisition process, making it faster and less administratively burdensome than full and open competition. This can lead to quicker service delivery. While SAP typically involves limited competition (often requiring at least two or three quotes), it may not always yield the lowest possible price compared to a broader competition. Transparency is maintained through reporting in federal procurement data systems, but the process itself is less public than larger, more formal solicitations.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wireless Telecommunications Carriers (except Satellite)

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25923Q0312

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 W 2ND ST, DAYTON, OH, 45402

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, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $85,980

Exercised Options: $56,472

Current Obligation: $56,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline