HHS awards $59.5K for Lockport phone system to Convergent Telecom, Inc
Contract Overview
Contract Amount: $59,491 ($59.5K)
Contractor: Convergent Telecom, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-11-16
End Date: 2025-09-30
Contract Duration: 1,414 days
Daily Burn Rate: $42/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWARD LOCKPORT PHONE SYSTEM
Place of Performance
Location: LOCKPORT, NIAGARA County, NEW YORK, 14094
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $59,491.18 to CONVERGENT TELECOM, INC. for work described as: AWARD LOCKPORT PHONE SYSTEM Key points: 1. Spending is minimal for a phone system, suggesting a localized or specific need. 2. Competition method is 'COMPETED UNDER SAP', indicating a streamlined process for smaller purchases. 3. The contract duration of 1414 days (nearly 4 years) is substantial for the award value. 4. Sector context is unclear without a specific PSC code, but likely IT/Telecommunications.
Value Assessment
Rating: fair
The award value of $59,491.18 over nearly four years appears reasonable for a phone system, but without specific feature details or comparable contract data, a precise valuation is difficult. The fixed-price nature provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting competition was likely limited to vendors capable of responding to such solicitations. This method prioritizes efficiency for smaller purchases over broad market engagement.
Taxpayer Impact: The taxpayer impact is minimal given the relatively small award value, but the extended duration for this amount warrants scrutiny to ensure ongoing value.
Public Impact
Ensures essential communication infrastructure for a specific HHS service area. Supports a vendor, Convergent Telecom, Inc., in fulfilling a government contract. Potential for service disruption if the system is not adequately maintained or upgraded.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration relative to award value.
- Lack of specific PSC code hinders sector benchmarking.
- Limited competition due to SAP procedures.
Positive Signals
- Awarded under a streamlined process (SAP).
- Fixed-price contract provides cost predictability.
- Supports a specific government function (Indian Health Service).
Sector Analysis
The contract falls under telecommunications services, likely supporting IT infrastructure for the Indian Health Service. Benchmarking is difficult without a specific Product Service Code (PSC), but spending on communication systems varies widely based on agency needs and technology.
Small Business Impact
The data does not indicate if Convergent Telecom, Inc. is a small business. The use of SAP suggests the contract value might be within the range typically awarded to small businesses, but this cannot be confirmed without further information.
Oversight & Accountability
Oversight would involve monitoring contract performance, ensuring service delivery meets requirements, and verifying that the pricing remains fair throughout the contract term, especially given its extended duration. The awarding agency is HHS.
Related Government Programs
- All Other Telecommunications
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Long contract duration relative to award value.
- Limited competition due to SAP.
- Potential for technology obsolescence.
- Lack of detailed service description.
Tags
all-other-telecommunications, department-of-health-and-human-services, ny, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $59,491.18 to CONVERGENT TELECOM, INC.. AWARD LOCKPORT PHONE SYSTEM
Who is the contractor on this award?
The obligated recipient is CONVERGENT TELECOM, INC..
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 $59,491.18.
What is the period of performance?
Start: 2021-11-16. End: 2025-09-30.
What specific telecommunications services are included in this contract, and how do they align with the operational needs of the Indian Health Service in Lockport?
The contract details are limited, but it pertains to a 'LOCKPORT PHONE SYSTEM'. This likely encompasses the provision, maintenance, and potentially upgrade of telephone hardware and associated services for a specific Indian Health Service facility or program in the Lockport area. The alignment with operational needs would depend on the specific communication requirements for patient care, administration, and outreach within that service area.
Given the nearly four-year duration for a $59.5K award, what is the risk of the technology becoming obsolete or the service becoming overpriced?
There is a moderate risk of technology obsolescence and potential for the service to become overpriced over the 1414-day term. Simplified Acquisition Procedures often prioritize speed over long-term technology planning. Regular performance reviews and market research by HHS would be crucial to mitigate this risk, potentially allowing for early termination or renegotiation if better alternatives emerge or pricing becomes uncompetitive.
How effectively does the 'COMPETED UNDER SAP' method ensure value for money for this telecommunications award?
Competing under SAP is designed for efficiency and speed for smaller dollar amounts, suggesting it likely achieved a reasonable price discovery for the immediate need. However, it inherently limits the breadth of competition compared to full and open competition. While it may have secured adequate value for this specific, relatively small purchase, it doesn't guarantee the absolute best long-term value or access to the widest range of innovative solutions available in the market.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 285-21-RFP-0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 28 DEER PATH, HONEOYE FALLS, NY, 14472
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,491
Exercised Options: $59,491
Current Obligation: $59,491
Actual Outlays: $51,477
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-11-16
Current End Date: 2025-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-07
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