VA awards $4.8M for switchboard services to Lighthouse for the Blind, a sole-source contract

Contract Overview

Contract Amount: $4,815,170 ($4.8M)

Contractor: Lighthouse for the Blind of Houston

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-03-01

End Date: 2024-08-31

Contract Duration: 2,010 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OF::IGF - SWITCHBOARD OPERATOR SERVICES AT VA LONG BEACH HCS.

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to LIGHTHOUSE FOR THE BLIND OF HOUSTON for work described as: IGF::OF::IGF - SWITCHBOARD OPERATOR SERVICES AT VA LONG BEACH HCS. Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, as the contract was not competed. 3. Risk indicators are moderate, with a long contract duration and sole-source award. 4. Performance context is established by the ongoing need for switchboard services at VA Long Beach. 5. Sector positioning is within administrative support services for healthcare facilities.

Value Assessment

Rating: fair

Benchmarking the value for money is challenging without competitive bids. The contract's fixed price nature provides some cost certainty. However, the absence of competition means there's no direct comparison to market rates or alternative providers to ensure optimal pricing. The total award amount of $4.8 million over its duration suggests a consistent need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for a sole-source award typically involves unique capabilities or circumstances. Without a competitive process, it's impossible to determine the number of potential bidders or the range of pricing that might have emerged in an open market.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. A sole-source award bypasses the price discovery mechanism inherent in competitive bidding.

Public Impact

Veterans and staff at the VA Long Beach Healthcare System benefit from continuous communication services. Essential telephone answering and switchboard operations are maintained, ensuring accessibility. The contract supports the operational continuity of a major healthcare facility. The award provides employment opportunities through the contractor, Lighthouse for the Blind of Houston.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source awards can limit opportunities for other capable businesses.
Lack of competition may lead to higher costs than a competed contract.
Long contract duration without re-competition could reduce pressure to innovate or improve efficiency.

Positive Signals

Contractor has a mission to employ individuals with blindness and visual impairments, aligning with social impact goals.
The contract ensures essential services are provided to a critical healthcare facility.
Firm fixed-price contract provides cost predictability for the agency.

Sector Analysis

This contract falls within the administrative support services sector, specifically focusing on telecommunications and answering services. The market for such services is broad, encompassing numerous commercial providers. However, for government facilities, especially healthcare, reliability and specific security protocols can narrow the field. Comparable spending benchmarks are difficult to establish without knowing the specific scale and complexity of the VA Long Beach's needs.

Small Business Impact

The contract was awarded to Lighthouse for the Blind of Houston, which has a social mission to employ individuals with blindness and visual impairments. While not a small business set-aside in the traditional sense, the contractor's mission aligns with supporting a specific population. There is no indication of subcontracting requirements for small businesses within this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability is maintained through contract performance monitoring and adherence to the firm fixed-price terms. Transparency is facilitated by public contract databases, though the specific performance metrics and detailed justifications for the sole-source award may not be fully public.

Related Government Programs

VA Administrative Support Contracts
Federal Telecommunications Services
Healthcare Facility Support Services
Sole-Source Service Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to LIGHTHOUSE FOR THE BLIND OF HOUSTON. IGF::OF::IGF - SWITCHBOARD OPERATOR SERVICES AT VA LONG BEACH HCS.

Who is the contractor on this award?

The obligated recipient is LIGHTHOUSE FOR THE BLIND OF HOUSTON.

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 $4.8 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-08-31.

What is the historical spending pattern for switchboard operator services at VA Long Beach?

Historical spending data for this specific service at VA Long Beach prior to this contract is not detailed in the provided information. However, the current contract's duration (2019-2024) and value ($4.8M) suggest a consistent and significant need for these services over an extended period. The award amount implies an average annual expenditure of approximately $963,000. Without prior contract details, it's difficult to ascertain if this represents an increase, decrease, or stable spending trend compared to previous arrangements. Further investigation into historical contract awards for similar services at this facility would be necessary to establish a comprehensive spending pattern.

How does the cost per unit for these switchboard services compare to industry benchmarks?

A precise per-unit cost comparison is not feasible with the provided data, as 'unit' is not clearly defined (e.g., per call, per hour, per operator). The contract is a firm fixed-price award for comprehensive switchboard operator services. To benchmark, one would need to define a standard unit of service (e.g., average calls handled per hour, average call duration, or cost per operator hour) and compare it against market rates for similar services, considering factors like 24/7 operation, specialized equipment, and security requirements. Given the sole-source nature, direct comparison to competitive bids is impossible, making external benchmarking the only viable, albeit potentially less precise, method.

What are the specific risks associated with a sole-source award for essential communication services?

The primary risk of a sole-source award for essential communication services is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may overpay compared to what could be achieved in an open market. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially reducing incentives for the contractor to innovate or maintain optimal service levels. Furthermore, if the sole-source justification is weak or circumstances change, the agency might be unable to switch providers even if a better option becomes available, impacting service quality or cost-effectiveness.

What is the track record of Lighthouse for the Blind of Houston in providing similar government contracts?

Lighthouse for the Blind of Houston has a history of providing services, often leveraging its social mission to employ individuals with visual impairments. While specific details on their track record with large-scale federal switchboard operations are not provided here, their ability to secure this sole-source contract with the VA suggests they have met the agency's requirements and possess the necessary capabilities. Government contractors' performance is typically monitored, and agencies usually award sole-source contracts based on demonstrated past performance or unique qualifications. Further due diligence would involve reviewing past performance evaluations and contract histories for this specific type of service.

How does this contract align with the VA's broader mission and objectives?

This contract directly supports the VA's mission to provide comprehensive healthcare services to veterans. Reliable and efficient communication is fundamental to healthcare operations, ensuring veterans can access services, receive information, and connect with care providers. By maintaining essential switchboard services, the VA ensures operational continuity and accessibility at the Long Beach facility. Furthermore, awarding the contract to an organization like Lighthouse for the Blind aligns with broader government objectives of supporting organizations with social missions and promoting employment for individuals with disabilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26219Q0385

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3530 W DALLAS ST, HOUSTON, TX, 77019

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,815,170

Exercised Options: $4,815,170

Current Obligation: $4,815,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline