DoD's $10.2M Network Upgrade Contract Awarded to TYTO Government Solutions Inc. for Fort Bliss
Contract Overview
Contract Amount: $10,240,712 ($10.2M)
Contractor: Tyto Government Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2007-05-24
End Date: 2010-11-01
Contract Duration: 1,257 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: UPGRADE DATA CORE NETWORK, FORT BLISS, TX
Place of Performance
Location: FORT BLISS, EL PASO County, TEXAS, 79916
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.2 million to TYTO GOVERNMENT SOLUTIONS INC for work described as: UPGRADE DATA CORE NETWORK, FORT BLISS, TX Key points: 1. Contract value of $10.2 million for network upgrades suggests a significant investment in IT infrastructure. 2. The contract was awarded under full and open competition, indicating a broad market solicitation. 3. The duration of 1257 days (approximately 3.5 years) points to a substantial, long-term project. 4. The fixed-price contract type aims to control costs and provide predictability for the government. 5. The award falls under Custom Computer Programming Services, a common category for IT modernization efforts. 6. The absence of small business set-aside or subcontracting flags suggests a focus on larger prime contractors.
Value Assessment
Rating: good
The contract's value of $10.2 million for a network upgrade over 3.5 years appears reasonable for a large-scale IT project within a military installation. Benchmarking against similar network modernization contracts for Department of Defense facilities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, though the specific profit margins are not detailed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. With 8 bidders participating, the competition level appears healthy, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders suggests that the market for these services is robust.
Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and ensuring the government receives services at a fair market price.
Public Impact
The primary beneficiaries are the Department of the Army and the personnel at Fort Bliss, Texas, who will receive enhanced network capabilities. The services delivered include the upgrade of the core data network, crucial for operational efficiency and communication. The geographic impact is localized to Fort Bliss, Texas, a major U.S. Army installation. Workforce implications may include IT specialists and technicians involved in the network upgrade and maintenance, potentially both from the contractor and government sides.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the upgraded network relies heavily on proprietary solutions.
- Risk of scope creep if the initial requirements are not clearly defined and managed throughout the project lifecycle.
- Dependence on contractor expertise could pose challenges during transition or if key personnel depart.
Positive Signals
- Awarded under full and open competition, indicating a competitive market and potentially better pricing.
- Firm fixed-price contract type helps control costs and provides budget certainty.
- Long contract duration suggests a commitment to a comprehensive and potentially robust solution.
Sector Analysis
The IT services sector, particularly custom computer programming and network services, is a significant area of federal spending. This contract fits within the broader trend of the Department of Defense modernizing its IT infrastructure to maintain operational readiness and cybersecurity. Comparable spending benchmarks for similar network upgrades at large military bases can range from millions to tens of millions of dollars, depending on the scope and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside, nor are there explicit flags for small business subcontracting. This suggests that the prime contractor, TYTO Government Solutions Inc., is likely a larger entity, and the focus was on securing the best overall bid rather than specifically promoting small business participation. Further analysis of subcontracting plans would be needed to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Network Enterprise Technology Command (NETCOM) Contracts
- Fort Bliss Base Operations Support Contracts
- Custom Computer Programming Services (NAICS 541511)
- Federal Network Infrastructure Upgrades
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of cybersecurity vulnerabilities during network transition.
- Dependence on contractor performance for timely delivery.
- Integration challenges with existing legacy systems.
Tags
it-services, network-upgrade, department-of-defense, department-of-the-army, fort-bliss, texas, full-and-open-competition, firm-fixed-price, custom-computer-programming, large-contract, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to TYTO GOVERNMENT SOLUTIONS INC. UPGRADE DATA CORE NETWORK, FORT BLISS, TX
Who is the contractor on this award?
The obligated recipient is TYTO GOVERNMENT SOLUTIONS 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 $10.2 million.
What is the period of performance?
Start: 2007-05-24. End: 2010-11-01.
What is TYTO Government Solutions Inc.'s track record with similar network upgrade contracts for the Department of Defense?
TYTO Government Solutions Inc. has a history of performing IT services for the Department of Defense. While specific details on past network upgrade contracts of similar scale and complexity are not immediately available in this dataset, their award for this Fort Bliss project indicates capability in this area. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous DoD IT projects, would provide a more comprehensive understanding of their reliability and expertise in executing large-scale network infrastructure upgrades. Examining their portfolio of work for other federal agencies could also reveal relevant experience.
How does the $10.2 million cost compare to similar network upgrade projects at other large military installations?
The $10.2 million cost for a network upgrade over approximately 3.5 years at Fort Bliss appears to be within a reasonable range for large-scale IT infrastructure projects at major military installations. However, direct comparisons are challenging without detailed project scopes, specific technologies deployed, and the exact duration of service. Similar projects could range from a few million to tens of millions of dollars. Factors influencing cost include the size of the installation, the existing infrastructure's condition, the required bandwidth and security protocols, and the complexity of integration with existing systems. A comprehensive benchmark would require analyzing contracts with similar technical requirements and geographic scope.
What are the primary risks associated with this type of network upgrade contract?
Key risks for this network upgrade contract include potential technical challenges during implementation, such as unforeseen compatibility issues with legacy systems or difficulties in integrating new hardware and software. Cybersecurity vulnerabilities during the transition phase are also a significant concern. Furthermore, there's a risk of project delays due to contractor performance issues, scope creep if requirements evolve without proper change control, or external factors like supply chain disruptions for critical hardware. Ensuring adequate oversight and robust testing protocols are crucial to mitigate these risks.
How effective is the firm fixed-price contract type in ensuring value for money for this specific project?
The firm fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty for the government, as it shifts the risk of cost overruns to the contractor. For this network upgrade, the FFP structure incentivizes TYTO Government Solutions Inc. to manage its expenses efficiently to maintain profitability. However, the value for money ultimately depends on the quality of the delivered network services and the contractor's ability to meet performance requirements within the agreed price. If the scope was not precisely defined, there's a risk that the contractor might cut corners on quality to protect profit margins, or conversely, that the government might have paid a premium to account for the contractor's risk. Robust performance metrics and acceptance criteria are essential to ensure value.
What is the historical spending trend for custom computer programming services by the Department of the Army?
The Department of the Army consistently spends significant amounts on custom computer programming services (NAICS 541511) as part of its ongoing IT modernization and operational support efforts. Historical data indicates a steady or increasing trend in this spending category over the past decade, driven by the need to upgrade aging systems, enhance cybersecurity, and develop new capabilities for warfighters. This specific $10.2 million award is one component of a much larger overall IT budget. Analyzing multi-year spending patterns for this NAICS code within the Army reveals a substantial and sustained investment in IT services, reflecting the critical role technology plays in military operations.
What are the implications of awarding this contract under full and open competition with 8 bidders?
Awarding this contract under full and open competition with 8 bidders suggests a healthy and competitive market for custom computer programming services related to network upgrades. This level of competition typically benefits the government by fostering price discovery, encouraging innovation, and potentially leading to lower overall costs compared to sole-source or limited competition scenarios. The presence of multiple bidders increases the likelihood that the government received competitive proposals that meet its technical requirements. It also provides a broader pool of qualified contractors, enhancing the government's ability to select the best value solution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91QUZ06R0002
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc. (UEI: 108024050)
Address: 1900 GALLOWS RD STE 105, VIENNA, VA, 22182
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,240,712
Exercised Options: $10,240,712
Current Obligation: $10,240,712
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0021
IDV Type: IDC
Timeline
Start Date: 2007-05-24
Current End Date: 2010-11-01
Potential End Date: 2010-11-01 00:00:00
Last Modified: 2018-10-17
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