HHS awards $808K contract to Mohawk Networks LLC for telephone system upgrade in New Mexico

Contract Overview

Contract Amount: $80,797 ($80.8K)

Contractor: Mohawk Networks LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-26

End Date: 2026-08-26

Contract Duration: 730 days

Daily Burn Rate: $111/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPGRADE TELEPHONE SYSTEM-AIDC.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87193

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80,796.83 to MOHAWK NETWORKS LLC for work described as: UPGRADE TELEPHONE SYSTEM-AIDC. Key points: 1. Contract awarded for telecommunications resellers services. 2. Firm Fixed Price contract type suggests defined scope and cost. 3. The contract duration is 2 years, aligning with system upgrade needs. 4. Awarded by the Indian Health Service, indicating a focus on tribal health infrastructure. 5. The contract was not competed, raising questions about potential cost savings. 6. Mohawk Networks LLC is the sole awardee. 7. The contract is a Purchase Order, a common instrument for smaller procurements.

Value Assessment

Rating: fair

Without a competitive bidding process, it is difficult to benchmark the value for money on this $808,000 contract. The firm fixed-price structure provides cost certainty, but the absence of competition means potential savings from market forces were not realized. Further analysis would require comparing the unit costs of the telephone system components and installation services to similar procurements by other federal agencies or within the private sector. The specific nature of the upgrade and its components would be crucial for a precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Mohawk Networks LLC, was solicited. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without a competitive process, there is no direct comparison of bids to assess price discovery. The limited competition restricts the government's ability to leverage market dynamics for the best possible pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without multiple bids, there's a risk that the price paid is higher than it would have been in a competitive environment.

Public Impact

The primary beneficiaries are likely the Indian Health Service facilities in New Mexico, which will receive an upgraded telephone system. The services delivered include the provision and installation of telecommunications equipment and services. The geographic impact is focused on New Mexico, specifically where the IHS facilities are located. The contract supports the operational infrastructure of healthcare services provided to Native American communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards require strong justification to ensure fair pricing.
Transparency could be improved by detailing the rationale for sole-source selection.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
The contract duration aligns with the scope of a system upgrade.
Award supports critical healthcare infrastructure for the Indian Health Service.

Sector Analysis

The telecommunications equipment and services sector is a critical component of modern infrastructure, supporting everything from basic communication to advanced data networks. Federal spending in this area often involves upgrades to aging systems, deployment of new technologies, and maintenance services. This contract for a telephone system upgrade falls within the broader IT and telecommunications services market, which is characterized by a mix of large prime contractors and specialized resellers. Benchmarking this specific award would require looking at similar procurements for voice communication systems within federal agencies, particularly those focused on infrastructure modernization.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Mohawk Networks LLC, a single entity, does not directly address the small business ecosystem. Further investigation would be needed to determine if Mohawk Networks LLC itself is a small business or if there are any indirect benefits to small businesses through its supply chain.

Oversight & Accountability

As a Purchase Order, oversight is typically managed through the contracting officer and the agency's procurement department within the Department of Health and Human Services. Transparency regarding the sole-source justification and the specific details of the system upgrade would be key to assessing accountability. Inspector General involvement would likely be triggered by allegations of fraud, waste, or abuse, rather than routine oversight of a standard procurement.

Related Government Programs

Federal Telecommunications Services
Indian Health Service IT Modernization
Healthcare Infrastructure Upgrades
Network and Communication Equipment Procurement

Risk Flags

Sole-source award may limit cost savings.
Lack of competition reduces price discovery.
Need for detailed justification for sole-source selection.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80,796.83 to MOHAWK NETWORKS LLC. UPGRADE TELEPHONE SYSTEM-AIDC.

Who is the contractor on this award?

The obligated recipient is MOHAWK NETWORKS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $80,796.83.

What is the period of performance?

Start: 2024-08-26. End: 2026-08-26.

What specific telecommunications equipment and services are included in this $808,000 contract?

The provided data indicates the contract is for 'UPGRADE TELEPHONE SYSTEM-AIDC' and falls under the North American Industry Classification System (NAICS) code 517121 for Telecommunications Resellers. While the exact components are not detailed, this typically includes the procurement, installation, and configuration of new telephone hardware (e.g., IP phones, switches, servers), software licenses, and potentially associated cabling or network integration services. The 'AIDC' in the description might refer to a specific location or system within the Indian Health Service (IHS) in New Mexico. A comprehensive understanding would require reviewing the contract's statement of work (SOW) or delivery order details.

What is the justification for awarding this contract on a sole-source basis to Mohawk Networks LLC?

The data explicitly states the contract type as 'NOT COMPETED', which in this context implies a sole-source or limited competition award. Federal procurement regulations (like the Federal Acquisition Regulation - FAR) require agencies to justify sole-source awards when full and open competition is not feasible. Common justifications include that only one responsible source can provide the supplies or services, the agency received proposals from only one source, or the award was made under circumstances of unusual and compelling urgency. Without the specific justification document (often a Justification and Approval - J&A), it's impossible to know the precise reason. However, for telecommunications upgrades, it could be due to specific compatibility requirements with existing infrastructure, unique service capabilities of Mohawk Networks LLC, or a critical and immediate need for the upgrade at the specified IHS facility.

How does the $808,000 contract value compare to similar telephone system upgrade projects within the federal government?

Benchmarking this $808,000 contract requires comparing it to similar procurements for telephone system upgrades, considering factors like the number of users, scope of services (e.g., VoIP, traditional PBX, integration), and geographic location. Given this is a sole-source award, a direct price comparison is challenging. However, general market data suggests that enterprise-level telephone system upgrades can range significantly. For a 2-year project, $808,000 might be considered moderate for a federal agency, especially if it involves a substantial number of users or advanced features. Without knowing the specific scale and technology involved for the IHS in New Mexico, it's difficult to definitively state if it's high or low. A more robust analysis would involve searching for competitively awarded contracts with similar statements of work and user counts.

What is Mohawk Networks LLC's track record with federal contracts, particularly with the Department of Health and Human Services?

The provided data identifies Mohawk Networks LLC as the contractor for this specific award. To assess their track record, one would need to query federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to Mohawk Networks LLC. This would reveal the volume, value, types of services provided, and agencies served. Information on past performance, including any awards, terminations, or disputes, would offer insights into their reliability and capability. Without access to this broader contract history, it's difficult to provide a detailed assessment of their track record beyond this single award.

What are the potential risks associated with a sole-source award for a critical infrastructure upgrade like a telephone system?

Sole-source awards carry inherent risks, primarily related to cost and competition. The most significant risk is that the government may pay a higher price than if the contract had been competed, as there is no market pressure to drive down costs. Another risk is a potential lack of innovation or suboptimal solutions, as the agency is reliant on the capabilities of the single awarded vendor. Furthermore, without the vetting process of a competitive bid, there's a slightly elevated risk regarding the vendor's capacity, quality of service, or long-term viability, although agencies typically conduct due diligence even in sole-source situations. For critical infrastructure, ensuring the vendor has robust support and maintenance capabilities is paramount.

How does this contract align with the Indian Health Service's broader goals for IT modernization and service delivery?

Upgrading essential communication infrastructure like telephone systems is a fundamental aspect of IT modernization for any organization, including the Indian Health Service (IHS). Reliable and modern communication tools are crucial for efficient healthcare operations, patient care coordination, emergency response, and administrative functions. By investing in a new telephone system, the IHS aims to improve the reliability and functionality of its communication network in New Mexico, which directly supports its mission of providing healthcare services to Native American communities. This aligns with broader federal and agency-level initiatives focused on leveraging technology to enhance service delivery and operational efficiency within healthcare settings.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2819 STATE ROUTE 95, BOMBAY, NY, 12914

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,797

Exercised Options: $80,797

Current Obligation: $80,797

Actual Outlays: $48,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline