DoD Spends $22.1M on Satellite Transponder Capacity with Wiedemann Consulting LLC
Contract Overview
Contract Amount: $22,115,878 ($22.1M)
Contractor: Wiedemann Consulting LLC
Awarding Agency: Department of Defense
Start Date: 2009-05-11
End Date: 2012-12-31
Contract Duration: 1,330 days
Daily Burn Rate: $16.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: SATELLITE TRANSPONDER CAPACITY
Place of Performance
Location: SILVERDALE, KITSAP County, WASHINGTON, 98383
Plain-Language Summary
Department of Defense obligated $22.1 million to WIEDEMANN CONSULTING LLC for work described as: SATELLITE TRANSPONDER CAPACITY Key points: 1. Significant expenditure on satellite transponder capacity highlights reliance on specialized communication services. 2. Lack of competition raises concerns about potential overpricing and limited market exploration. 3. Long contract duration (2009-2012) suggests a sustained need, but also a missed opportunity for re-evaluation. 4. Engineering services (NAICS 541330) indicate a focus on technical expertise beyond simple capacity leasing.
Value Assessment
Rating: questionable
The contract's 'COST NO FEE' structure, combined with a lack of competitive bidding, makes a direct pricing assessment difficult. Without benchmarks from similar, competed contracts, it's hard to determine if $22.1M represents fair value for the satellite transponder capacity provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive rates.
Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than if the contract had been subject to a bidding process.
Public Impact
Ensures critical communication capabilities for Department of Defense operations. Potential for taxpayer funds to be used inefficiently due to lack of competition. Highlights the government's reliance on specific vendors for specialized services. Long-term commitment may lock the government into potentially outdated or overpriced solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type (implied by 'COST NO FEE' and lack of fixed price)
- Long contract duration
Positive Signals
- Ensures critical communication infrastructure
- Specific engineering expertise provided
Sector Analysis
The IT and Defense sectors heavily rely on satellite transponder capacity for secure and wide-reaching communications. Spending benchmarks for such specialized services can vary widely based on bandwidth, duration, and encryption requirements, but non-competed contracts often skew higher.
Small Business Impact
The data indicates this contract was awarded to Wiedemann Consulting LLC, a specific company. There is no information provided to determine if small businesses were involved as subcontractors or if this contract represented an opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in the procurement process oversight. Further review would be needed to understand the justification for a sole-source award and ensure accountability for the expenditure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for inflated costs
- Limited transparency in pricing
- No indication of small business participation
Tags
engineering-services, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to WIEDEMANN CONSULTING LLC. SATELLITE TRANSPONDER CAPACITY
Who is the contractor on this award?
The obligated recipient is WIEDEMANN CONSULTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2009-05-11. End: 2012-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?
The justification for a sole-source award is critical for understanding the necessity of bypassing the competitive bidding process. Without this information, it's impossible to assess if the government truly had no other viable options or if there were internal factors that led to this decision. This lack of transparency hinders a full evaluation of the procurement's integrity and potential cost savings.
How does the 'COST NO FEE' pricing structure compare to industry standards for similar satellite transponder capacity leases, especially considering the lack of competition?
The 'COST NO FEE' structure, while seemingly straightforward, can obscure the actual profit margins for the contractor, especially in a sole-source scenario. Without competitive bids, it's difficult to benchmark this against market rates. A thorough analysis would require understanding the contractor's cost basis and comparing it to similar, competed contracts to identify potential overpricing.
What was the actual performance and effectiveness of the satellite transponder capacity provided by Wiedemann Consulting LLC during the contract period?
Evaluating the effectiveness of the service is crucial, regardless of the contract type. Understanding if the transponder capacity met the Department of Defense's operational requirements, uptime guarantees, and security protocols is essential. Poor performance, even at a seemingly reasonable price, represents a failure in value for taxpayer money and mission accomplishment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 14851 OLYMPICVIEW LOOP, SILVERDALE, WA, 98383
Business Categories: Category Business, Small Business, Sole Proprietorship, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $22,115,878
Exercised Options: $22,115,878
Current Obligation: $22,115,878
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862008G4031
IDV Type: IDC
Timeline
Start Date: 2009-05-11
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2015-10-20
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