DoD's $28.5M Avaya Contract for Integrated Voice Systems Raises Questions on Value and Competition
Contract Overview
Contract Amount: $28,558,119 ($28.6M)
Contractor: Avaya Federal Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-11
End Date: 2023-05-30
Contract Duration: 2,818 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTERIOR COMMUNICATIONS-INTEGRATED VOICE
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to AVAYA FEDERAL SOLUTIONS, INC. for work described as: INTERIOR COMMUNICATIONS-INTEGRATED VOICE Key points: 1. The contract awarded to Avaya Federal Solutions, Inc. for $28.5 million represents a significant investment in integrated voice communications. 2. The use of a 'Definitive Contract' under 'Full and Open Competition' suggests a structured procurement process, but the specific value proposition needs scrutiny. 3. Potential risks include vendor lock-in and the long duration of the contract (2818 days), impacting adaptability to evolving technologies. 4. The sector is IT, specifically focusing on telecommunications apparatus manufacturing, a critical but rapidly changing field.
Value Assessment
Rating: fair
The $28.5 million award over nearly 8 years for telephone apparatus manufacturing appears substantial. Benchmarking against similar large-scale telecommunications infrastructure contracts is necessary to determine if the pricing reflects market value and technological advancements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the long-term nature and specific requirements of integrated voice systems might limit the number of truly competitive bids received, potentially impacting price discovery.
Taxpayer Impact: Taxpayers are impacted by the significant expenditure on a long-term communication system. Ensuring cost-effectiveness and value for money throughout the contract's life is crucial.
Public Impact
Ensures critical communication infrastructure for the Department of the Navy. Supports advanced voice capabilities essential for military operations. Potential for modernization and upgrades within the existing system. Long-term commitment may lead to predictable service but could also delay adoption of newer technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2818 days)
- Potential for technology obsolescence
- Limited visibility into specific performance metrics
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
- Supports critical defense communications
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on telecommunications equipment and services. Spending benchmarks in this area are highly variable due to rapid technological advancements and diverse application needs, from basic telephony to complex integrated systems.
Small Business Impact
The data indicates this was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large IT contract would be beneficial to understand broader economic impact.
Oversight & Accountability
The 'Definitive Contract' structure suggests a framework agreement. Oversight would focus on adherence to the firm fixed price, delivery schedules, and any performance standards outlined within the contract to ensure accountability.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Potential for vendor lock-in despite open competition.
- Lack of specific performance metrics in provided data.
- Significant expenditure requires ongoing value assessment.
Tags
telephone-apparatus-manufacturing, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to AVAYA FEDERAL SOLUTIONS, INC.. INTERIOR COMMUNICATIONS-INTEGRATED VOICE
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.6 million.
What is the period of performance?
Start: 2015-09-11. End: 2023-05-30.
What specific integrated voice capabilities does this contract provide, and how do they align with current and future Department of Defense communication needs?
This contract likely supports the procurement and maintenance of Avaya's integrated voice communication systems, which could include IP telephony, unified communications platforms, contact center solutions, and related hardware/software. The alignment with DoD needs would depend on the specific modules and functionalities procured, aiming to enhance operational efficiency, secure communication channels, and support diverse user requirements across various naval installations.
Given the long contract duration, what mechanisms are in place to mitigate the risk of technological obsolescence and ensure the system remains effective?
Mitigation strategies could include contract clauses allowing for technology refresh cycles, mandatory upgrade paths, or performance-based requirements that necessitate staying current with industry standards. Regular reviews and potential modifications to the contract based on evolving technological landscapes and operational needs would be crucial to prevent obsolescence and maintain effectiveness over the nearly eight-year term.
How does the 'Full and Open Competition' process for this $28.5 million contract ensure optimal value for taxpayer dollars compared to other procurement methods?
Full and open competition theoretically maximizes the pool of potential bidders, driving down prices through market forces. For this contract, it suggests multiple vendors had the opportunity to propose solutions. However, the effectiveness in ensuring optimal value depends on the clarity of the solicitation, the evaluation criteria, and whether the chosen solution truly represents the best balance of cost, performance, and risk over its lifecycle.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6523614R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Avaya Holdings Corp.
Address: 12730 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,764,482
Exercised Options: $28,558,119
Current Obligation: $28,558,119
Actual Outlays: $3,972,796
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-11
Current End Date: 2023-05-30
Potential End Date: 2023-05-30 00:00:00
Last Modified: 2023-10-02
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