DoD's $13.7M NETCENTS contract for telecom services awarded to Telos Corporation shows fair value

Contract Overview

Contract Amount: $13,766,099 ($13.8M)

Contractor: Telos Corporation

Awarding Agency: Department of Defense

Start Date: 2007-08-31

End Date: 2009-11-30

Contract Duration: 822 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETCENTS - INCORPORATE PRODUCT CATALOGS

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to TELOS CORPORATION for work described as: NETCENTS - INCORPORATE PRODUCT CATALOGS Key points: 1. The contract achieved a reasonable value for the services provided, aligning with market benchmarks. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. No significant risk indicators were identified in the contract's execution or performance. 4. The contract's duration and firm-fixed-price structure provided cost predictability. 5. This spending falls within the broader IT and telecommunications sector for the Department of Defense. 6. The contract did not involve small business set-asides, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The $13.7 million awarded for wired telecommunications carrier services appears to be a fair price, especially considering the firm-fixed-price structure which limits cost overruns. Benchmarking against similar contracts for telecommunications infrastructure within the Department of Defense suggests that the pricing was competitive. The value delivered is assessed as good given the scope of services typically encompassed by the NETCENTS program, which aims to provide a comprehensive suite of network-centric solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from multiple vendors vying for the contract.

Taxpayer Impact: The robust competition for this contract likely resulted in more favorable pricing for taxpayers, as vendors were incentivized to offer competitive bids to secure the award.

Public Impact

The Department of Defense benefits through enhanced wired telecommunications capabilities. Services delivered include the provision and maintenance of wired telecommunications infrastructure. The contract's geographic impact is primarily within Alabama, where the award was made. Workforce implications include potential employment opportunities for telecommunications technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract type provides cost certainty.
Contract duration of 822 days allows for sustained service delivery.
Multiple bidders (5) indicate a competitive marketplace.

Sector Analysis

This contract falls within the Information Technology (IT) and Telecommunications sector, specifically focusing on wired telecommunications carriers. The NETCENTS program, under which this contract was awarded, is a significant initiative by the Air Force to modernize its network-centric capabilities. Spending in this area is crucial for maintaining robust communication infrastructure for military operations. Comparable spending benchmarks for similar telecommunications services within the federal government often range in the millions to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract did not include small business set-asides, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus was on full and open competition, suggesting that larger, established telecommunications providers were the primary participants. This approach may limit direct opportunities for small businesses to participate as prime contractors on this particular contract.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases, although specific performance details may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NETCENTS Program
DoD Telecommunications Services
Wired Network Infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to TELOS CORPORATION. NETCENTS - INCORPORATE PRODUCT CATALOGS

Who is the contractor on this award?

The obligated recipient is TELOS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2007-08-31. End: 2009-11-30.

What was the contractor's track record with the DoD prior to this award?

Telos Corporation has a long-standing relationship with the Department of Defense, providing a range of IT and cybersecurity solutions. Prior to this specific NETCENTS contract, Telos had secured numerous other awards from various DoD branches, including contracts for network security, identity management, and telecommunications services. Their extensive experience with government contracting, particularly within the defense sector, suggests a familiarity with DoD requirements, compliance standards, and operational environments. This history likely contributed to their ability to successfully bid on and execute the NETCENTS contract, demonstrating a proven capacity to deliver complex IT services to the military.

How does the value of this contract compare to similar telecommunications contracts awarded by the DoD during the same period?

The $13.7 million value of this NETCENTS contract, awarded in 2007 for services spanning over two years, appears to be within a reasonable range when compared to similar telecommunications infrastructure and carrier services contracts awarded by the DoD around that time. Contracts for wired telecommunications, network backbone services, and related support often fell into this multi-million dollar bracket, especially for programs like NETCENTS which aimed for comprehensive network modernization. While precise comparisons are difficult without access to the specific scope and service level agreements of other contracts, the firm-fixed-price nature and the presence of multiple bidders suggest that the pricing was competitive and represented fair market value for the services rendered to the Air Force.

What were the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this wired telecommunications contract would likely include technical performance issues, potential cost overruns (though mitigated by firm-fixed-price), schedule delays, and cybersecurity vulnerabilities. Given the firm-fixed-price structure, the financial risk was largely borne by the contractor, Telos Corporation. Mitigation strategies would have involved clear performance work statements, defined service level agreements, regular progress reviews, and robust cybersecurity protocols mandated by the DoD. The contract's duration and the established nature of the NETCENTS program suggest that these risks were managed effectively, as there are no prominent flags indicating significant issues during its execution.

How effective was the NETCENTS program in achieving its objectives, and did this contract contribute significantly?

The NETCENTS program aimed to provide the Air Force with a secure, reliable, and agile network infrastructure to support its mission. Contracts like this one, focusing on wired telecommunications, were foundational to achieving those goals by ensuring robust connectivity. While the overall effectiveness of NETCENTS is a broad question involving multiple contracts and evolving technologies, this specific award contributed by providing essential communication pathways. Its success would be measured by the reliability and performance of the wired infrastructure delivered, supporting the broader objective of network modernization and operational readiness for the Air Force.

What were the historical spending patterns for wired telecommunications carriers by the Department of Defense leading up to this contract?

Leading up to 2007, the Department of Defense consistently allocated significant funding towards telecommunications infrastructure and services to maintain its global operational capabilities. Spending on wired telecommunications carriers was a substantial component of this, driven by the need for secure and high-bandwidth connectivity across various bases and command centers. Programs like NETCENTS represented a strategic effort to consolidate and modernize these expenditures, moving away from fragmented systems towards more integrated solutions. Historical data would show a continuous, multi-billion dollar annual investment across the DoD for telecommunications, with contracts for carrier services being a recurring and essential element of that spending.

Were there any notable performance issues or contract disputes during the life of this award?

Based on the available data and the absence of specific negative flags or dispute notations associated with this contract, it is presumed that there were no major performance issues or significant contract disputes that impacted its execution or outcome. Contracts of this nature, especially within established programs like NETCENTS, are subject to ongoing monitoring and management by the contracting agency. The successful completion within the defined period and without apparent major contention suggests that both the contractor, Telos Corporation, and the Department of the Air Force fulfilled their respective obligations satisfactorily.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19886 ASHBURN RD, ASHBURN, VA, 10

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $85,304,683

Exercised Options: $48,157,897

Current Obligation: $13,766,099

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0009

IDV Type: IDC

Timeline