DoD awards $12.6M for tactical network support, with 3 bidders competing for engineering services

Contract Overview

Contract Amount: $12,619,593 ($12.6M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-09

End Date: 2010-05-18

Contract Duration: 1,013 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NEW TASK ORDER FOR CERDEC S&TCD INFORMATION ASSURANCE DIVISION TACTICAL NETWORK BRANCH SUPPORT. INITIAL LEVEL OF EFFORT TO SUPPORT PWS PARAGRAPHS 3.3.1.1, 3.4.1.1, AND 3.4.1.2.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to VIATECH, INC. for work described as: NEW TASK ORDER FOR CERDEC S&TCD INFORMATION ASSURANCE DIVISION TACTICAL NETWORK BRANCH SUPPORT. INITIAL LEVEL OF EFFORT TO SUPPORT PWS PARAGRAPHS 3.3.1.1, 3.4.1.1, AND 3.4.1.2. Key points: 1. Contract awarded to VIATECH, INC. for engineering services related to tactical network support. 2. The contract was procured through full and open competition, indicating a competitive bidding process. 3. The duration of the contract is approximately 34 months, from August 2007 to May 2010. 4. This task order focuses on specific aspects of information assurance and tactical network operations. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award was made by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: fair

The contract's value of $12.6 million for a 34-month period appears to be within a reasonable range for specialized engineering services. However, without specific details on the deliverables and labor categories, a precise value-for-money assessment is difficult. The Time and Materials contract type suggests that costs are based on actual labor hours and material expenses, which can be less predictable than fixed-price contracts. Benchmarking against similar tactical network support contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive as it allows for a wider range of potential contractors to submit proposals, potentially leading to better pricing and innovative solutions. The presence of three bidders suggests a healthy, albeit not extensive, competitive landscape for these specific engineering services.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it encourages competitive pricing and can lead to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of the Army and its tactical network operations, receiving support for information assurance. Services delivered include support for specific paragraphs within a Performance Work Statement (PWS) related to tactical network branches. The geographic impact is likely concentrated within areas where the Army operates its tactical networks, primarily in Maryland (ST). Workforce implications involve specialized engineering and information assurance personnel required to fulfill the contract's technical requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited competition with only three bidders might not represent the full market potential.
The specific PWS paragraphs supported are not detailed, making it hard to assess the full scope of work.

Positive Signals

Awarded under full and open competition, indicating a fair process.
Multiple bidders participated, suggesting some level of market interest.
The contract supports critical information assurance functions for tactical networks.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT infrastructure. The market for defense IT and network support is substantial, driven by the continuous need for secure and reliable communication systems. Comparable spending benchmarks would involve analyzing other contracts for tactical network maintenance, cybersecurity, and information assurance within the Department of Defense and other military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. Large businesses were likely the primary participants in this competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the Performance Work Statement (PWS) and the terms of the Time and Materials contract. Transparency is facilitated by the contract award being publicly available, but detailed performance metrics and oversight reports are not provided in this summary.

Related Government Programs

Army Information Assurance Programs
Tactical Network Modernization
DoD Cybersecurity Initiatives
Defense Communication Systems Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited number of bidders (3) may not represent the full competitive landscape.
Scope of work is tied to specific PWS paragraphs, requiring further detail for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to VIATECH, INC.. NEW TASK ORDER FOR CERDEC S&TCD INFORMATION ASSURANCE DIVISION TACTICAL NETWORK BRANCH SUPPORT. INITIAL LEVEL OF EFFORT TO SUPPORT PWS PARAGRAPHS 3.3.1.1, 3.4.1.1, AND 3.4.1.2.

Who is the contractor on this award?

The obligated recipient is VIATECH, 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 $12.6 million.

What is the period of performance?

Start: 2007-08-09. End: 2010-05-18.

What is the specific nature of the engineering services provided under this contract?

The contract specifies support for PWS paragraphs 3.3.1.1, 3.4.1.1, and 3.4.1.2, which relate to the Information Assurance Division's Tactical Network Branch. While the exact details of these paragraphs are not publicly available in this summary, they likely pertain to the design, implementation, maintenance, or enhancement of secure communication networks used in tactical military operations. This could include areas like network security protocols, encryption, intrusion detection, and ensuring the integrity and availability of data transmission in challenging operational environments.

How does the $12.6 million value compare to similar tactical network support contracts?

Benchmarking this $12.6 million contract against similar tactical network support contracts is challenging without more specific details on the scope of work, duration, and deliverables. However, for a nearly three-year contract (August 2007 - May 2010) involving specialized engineering and information assurance for the Department of Defense, this amount appears to be within a plausible range. Contracts for advanced network security and tactical communications can be costly due to the need for highly skilled personnel and specialized technologies. A more precise comparison would require access to a database of comparable DoD contracts with similar technical requirements and contract types.

What are the primary risks associated with a Time and Materials (T&M) contract for this type of service?

The primary risk with a Time and Materials contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, the total cost can exceed initial estimates. For the government, this necessitates robust oversight and monitoring of contractor effort to ensure efficiency and prevent unnecessary expenditures. The lack of a defined ceiling price (though often present in T&M) can make budget predictability difficult.

What does the '3' in the 'no' field signify regarding the contract's competition?

The 'no' field value of '3' indicates that there were three bidders who submitted proposals for this contract opportunity. This is a direct result of the 'FULL AND OPEN COMPETITION' (ct) procurement method. Having three competitors suggests a moderately competitive environment for these specific engineering services. While more bidders could potentially drive prices lower, three is generally considered a reasonable number to ensure some level of price discovery and offer selection from multiple qualified sources.

What is the significance of the contract being awarded in Maryland (ST)?

The 'ST' field indicating 'MARYLAND' suggests that the contract was awarded to a contractor located in or performing work within Maryland. Maryland has a significant concentration of federal government agencies, particularly defense-related ones, and a large defense contracting industry. This location is strategic for supporting the Department of the Army's operations and likely places the contractor in proximity to key military installations or research facilities, facilitating collaboration and service delivery for tactical network support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: D & S Consultants Inc. (UEI: 792244097)

Address: 615 HOPE RD STE 3A, EATONTOWN, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $12,619,669

Exercised Options: $12,619,669

Current Obligation: $12,619,593

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline