Avaya awarded $18.4M contract for Private Branch Exchange Maintenance, serving Defense Finance and Accounting Service

Contract Overview

Contract Amount: $18,394,260 ($18.4M)

Contractor: Avaya Federal Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2026-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRIVATE BRANCH EXCHANGE MAINTENANCE

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44199

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to AVAYA FEDERAL SOLUTIONS, INC. for work described as: PRIVATE BRANCH EXCHANGE MAINTENANCE Key points: 1. Contract value of $18.4M over approximately 5.5 years suggests a moderate annual spend for PBE maintenance. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract, with a start in 2020 and end in 2026, provides long-term service stability. 5. The NAICS code 541513 points to computer facilities management services, a critical IT infrastructure component. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total contract value of $18.4 million over approximately 66 months averages to about $279,000 per month. Without specific benchmarks for PBE maintenance services for an organization of the Defense Finance and Accounting Service's size, it's difficult to definitively assess value for money. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Further analysis would require comparing this monthly average to similar contracts for comparable services and scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that it is a delivery order suggests it was likely competed as part of a larger IDIQ contract. The number of bidders is not specified, but full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of potential service providers to participate, potentially leading to cost savings.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Finance and Accounting Service, which relies on the PBE system for its communication infrastructure. The service delivered is the maintenance of the Private Branch Exchange system, crucial for internal and external communications. The geographic impact is primarily within Ohio, where the contract is being performed. Workforce implications are likely related to the technical staff required by Avaya Federal Solutions to perform the maintenance and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the PBE system is proprietary and requires specialized maintenance.
Dependence on a single vendor for critical communication infrastructure maintenance.
Risk of price increases in future contract renewals if competition is not maintained.

Positive Signals

Firm fixed-price contract helps manage cost certainty for the government.
Long contract duration provides stability and predictability for service delivery.
Awarded through full and open competition, suggesting a competitive market for these services.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the category of IT infrastructure maintenance and support, specifically focusing on telecommunications equipment. The market for PBE maintenance can be specialized, with a few key vendors often dominating. The total contract value of $18.4 million over its term is moderate within the broader IT services landscape for the federal government, which spends billions annually on IT.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Avaya Federal Solutions voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Finance and Accounting Service. As a delivery order under a potential IDIQ, oversight might also be influenced by the terms of the parent contract. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Defense Finance and Accounting Service IT Support Contracts
Department of Defense Telecommunications Infrastructure Maintenance
Federal IT Services Contracts
Private Branch Exchange (PBX) Maintenance Services

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities in communication systems
Technology obsolescence
Dependence on specialized technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to AVAYA FEDERAL SOLUTIONS, INC.. PRIVATE BRANCH EXCHANGE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is AVAYA FEDERAL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-03-31.

What is the historical spending pattern for Private Branch Exchange maintenance by the Defense Finance and Accounting Service?

Historical spending data for DFAS PBE maintenance is not directly available in the provided snippet. However, the current contract awarded in 2020 for $18.4 million with an end date in 2026 suggests an average annual spend of approximately $3.3 million ($18.4M / 5.5 years). To understand historical patterns, one would need to examine prior contracts for similar services, looking at award amounts, durations, and the number of competitors. This would reveal trends in spending, potential cost increases or decreases over time, and the stability of the vendor landscape for DFAS's PBE maintenance needs. Without this historical context, it's challenging to determine if the current spending level is an increase, decrease, or consistent with past expenditures.

How does the pricing of this Avaya contract compare to similar PBE maintenance contracts in the federal market?

A direct price comparison is difficult without access to a database of similar PBE maintenance contracts, including their specific service levels, system complexities, and geographic locations. However, the average monthly cost of approximately $279,000 for this contract can serve as a reference point. If other contracts for similar-sized organizations or equivalent PBE systems have significantly lower or higher monthly costs, it would indicate potential overpricing or underpricing. The firm fixed-price nature of this contract is a positive factor for cost control. Benchmarking against contracts awarded through full and open competition would be most relevant to assess if the pricing reflects market competitiveness.

What are the key performance indicators (KPIs) used to measure the success of this PBE maintenance contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, PBE maintenance contracts include metrics related to system uptime, response times for service requests, resolution times for issues, and adherence to maintenance schedules. For a critical service like PBE maintenance within the Department of Defense, KPIs would likely focus on ensuring high availability of the communication system, minimizing disruptions, and maintaining the security of the network. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring Avaya Federal Solutions meets the contractual obligations. Failure to meet KPIs could result in penalties or impact future contract awards.

What is the track record of Avaya Federal Solutions in delivering PBE maintenance services to the federal government?

Avaya Federal Solutions, Inc. has a history of providing telecommunications and networking solutions, including PBE systems, to government agencies. Their track record would be assessed based on past performance evaluations, contract completion history, and any reported issues or successes on previous federal contracts. For this specific contract, performance data would be available through the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS would reveal ratings from previous performance periods, highlighting strengths and weaknesses in areas such as technical performance, management, cost control, and schedule adherence. Generally, Avaya is a known entity in the telecommunications space, but specific performance on this DFAS contract would require detailed review of past performance documentation.

Are there any identified risks associated with the maintenance of this specific Private Branch Exchange system?

Potential risks associated with maintaining this PBE system include the aging of the technology, potential obsolescence of components, and the need for specialized technical expertise which may be limited. Dependence on a single vendor, Avaya, for maintenance could also pose a risk if Avaya's support capabilities diminish or if their pricing becomes uncompetitive in the future. Cybersecurity risks are also inherent in any communication system, requiring robust security protocols and timely patching. Furthermore, the complexity of the DFAS's communication needs could introduce operational risks if the system fails to meet demand or performance requirements. The firm fixed-price nature of the contract mitigates some financial risk for the government, but operational and technical risks remain.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ042320Q0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7415 BOSTON BLVD, SPRINGFIELD, VA, 22153

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,394,260

Exercised Options: $18,394,260

Current Obligation: $18,394,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0156V

IDV Type: FSS

Timeline