DoD's $23.6M Army Telephone Services Contract with GSTEK, Inc. Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $23,601,370 ($23.6M)

Contractor: Gstek, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-02-01

End Date: 2021-08-15

Contract Duration: 2,022 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ADMINISTRATIVE TELEPHONE SERVICES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to GSTEK, INC. for work described as: IGF::OT::IGF ADMINISTRATIVE TELEPHONE SERVICES Key points: 1. Contract Value: $23.6 million over its period of performance. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Low risk identified, with a firm fixed price contract type. 4. Sector: Information Technology (Wired Telecommunications Carriers).

Value Assessment

Rating: good

The contract value of $23.6 million appears reasonable for administrative telephone services over a 5.5-year period. Benchmarking against similar contracts for telecommunications services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: The competitive award process likely resulted in a fair price, minimizing potential overspending and maximizing taxpayer value for essential communication services.

Public Impact

Ensures reliable administrative telephone services for Department of the Army operations. Supports communication infrastructure critical for military and civilian personnel. The firm fixed price contract provides cost certainty for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Full and open competition utilized.
  • Firm fixed price contract type.
  • Long-term contract providing stable service.

Sector Analysis

This contract falls within the IT sector, specifically wired telecommunications carriers. Spending in this area is crucial for government operations, and competitive procurement is standard practice to ensure value.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded as a delivery order under a larger contract vehicle. Oversight would typically involve monitoring performance and adherence to contract terms by the contracting officer's representative.

Related Government Programs

  • Wired Telecommunications Carriers
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of specific per-unit cost data for benchmarking.
  • No information on small business participation.
  • Details on contract modifications or performance issues are not provided.

Tags

wired-telecommunications-carriers, department-of-defense, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to GSTEK, INC.. IGF::OT::IGF ADMINISTRATIVE TELEPHONE SERVICES

Who is the contractor on this award?

The obligated recipient is GSTEK, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2016-02-01. End: 2021-08-15.

What was the specific nature of the administrative telephone services provided under this contract?

The contract provided administrative telephone services, which generally encompass voice communication infrastructure, including local and long-distance calling, voicemail, and potentially related support services. The specific scope would be detailed in the contract's statement of work, ensuring the Army received the necessary telecommunications capabilities for its administrative functions.

Were there any performance issues or contract modifications that impacted the final cost or delivery?

The provided data does not detail any performance issues or modifications. However, a firm fixed price contract generally aims to lock in costs. Any significant deviations would likely require formal modification and justification, which would be documented within the contract's official record.

How does the per-unit cost of these services compare to industry benchmarks for similar government contracts?

Without specific per-unit cost breakdowns (e.g., cost per line, per user), a direct comparison to industry benchmarks is challenging. The total contract value of $23.6 million over 5.5 years suggests an average annual spend of approximately $4.3 million. A detailed analysis of service components and pricing would be necessary for a robust benchmark comparison.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91RUS13R0004

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 911 CEDAR ROAD, CHESAPEAKE, VA, 23322

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,476,555

Exercised Options: $26,492,629

Current Obligation: $23,601,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91RUS15D0009

IDV Type: IDC

Timeline

Start Date: 2016-02-01

Current End Date: 2021-08-15

Potential End Date: 2021-08-15 00:00:00

Last Modified: 2022-06-15

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