Interior Department awards $2.8M telecommunications support contract to AOC CONNECT, LLC under GSA's EIS

Contract Overview

Contract Amount: $282,416 ($282.4K)

Contractor: AOC Connect, LLC

Awarding Agency: Department of the Interior

Start Date: 2020-08-28

End Date: 2027-07-31

Contract Duration: 2,528 days

Daily Burn Rate: $112/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROVIDE TELECOMMUNICATIONS SUPPORT FOR THE COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY&EFFICIENCY (CIGIE) UNDER GSA'S ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT

Place of Performance

Location: PEACHTREE CORNERS, GWINNETT County, GEORGIA, 30071

State: Georgia Government Spending

Plain-Language Summary

Department of the Interior obligated $282,415.59 to AOC CONNECT, LLC for work described as: PROVIDE TELECOMMUNICATIONS SUPPORT FOR THE COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY&EFFICIENCY (CIGIE) UNDER GSA'S ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT Key points: 1. Contract provides essential telecommunications support for the Council of the Inspectors General on Integrity & Efficiency. 2. The award was made under GSA's Enterprise Infrastructure Solutions (EIS) contract, indicating a strategic sourcing approach. 3. The contract type is Time and Materials, which can pose risks if not closely managed. 4. The duration of the contract extends to July 2027, suggesting a long-term need for these services. 5. The contract was awarded on a full and open competition basis, implying a broad search for qualified vendors.

Value Assessment

Rating: fair

The contract's value of $2.82 million over its period of performance appears reasonable for specialized telecommunications support. However, without specific details on the services rendered and the labor rates, a direct comparison to similar contracts is challenging. The Time and Materials pricing structure warrants careful monitoring to ensure costs remain within expected bounds and do not escalate due to inefficiencies or scope creep. Benchmarking against industry standards for similar support services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of a single award indicates that AOC CONNECT, LLC was selected as the most advantageous offer. The level of competition, while broad, does not inherently guarantee the lowest price, but it does provide a basis for price discovery and ensures that the government considered a range of options.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best available solution through a competitive process, aiming to secure quality services at a fair price.

Public Impact

The primary beneficiary is the Council of the Inspectors General on Integrity & Efficiency (CIGIE), which receives crucial telecommunications support. Services delivered include wired telecommunications carrier functions, essential for CIGIE's operational effectiveness. The contract's geographic impact is primarily within the Department of the Interior's operational sphere, supporting federal integrity and efficiency initiatives. Workforce implications are likely concentrated within AOC CONNECT, LLC, with potential for specialized telecommunications technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it pays for labor hours and materials used rather than a fixed price.
The long contract duration (nearly 7 years) increases the risk of technology obsolescence or changing service needs not being adequately addressed without contract modifications.

Positive Signals

Awarded under GSA's Enterprise Infrastructure Solutions (EIS) contract vehicle, which is designed to provide agencies with modern, secure, and cost-effective telecommunications and IT services.
Full and open competition process increases the likelihood of selecting a vendor that offers competitive pricing and high-quality services.

Sector Analysis

This contract falls within the telecommunications services sector, specifically wired telecommunications carriers. The broader telecommunications market is highly competitive and constantly evolving with technological advancements. Contracts like this, supporting government oversight bodies, are crucial for maintaining operational integrity. Comparable spending benchmarks for government-wide telecommunications support services under GSA schedules can range significantly based on scope and duration, but this award appears to be a moderate-sized engagement.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract is likely minimal unless AOC CONNECT, LLC engages small businesses as subcontractors without explicit set-aside clauses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers, in conjunction with GSA's oversight of the EIS contract vehicle. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Enterprise Infrastructure Solutions (EIS)
Federal Telecommunications Services
Government Oversight and Integrity Programs

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Long contract duration may lead to technology obsolescence or evolving needs.
Lack of specific performance metrics in public data makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $282,415.59 to AOC CONNECT, LLC. PROVIDE TELECOMMUNICATIONS SUPPORT FOR THE COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY&EFFICIENCY (CIGIE) UNDER GSA'S ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) CONTRACT

Who is the contractor on this award?

The obligated recipient is AOC CONNECT, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $282,415.59.

What is the period of performance?

Start: 2020-08-28. End: 2027-07-31.

What specific telecommunications services are included under this contract for CIGIE?

The contract specifies 'Wired Telecommunications Carriers' (NAICS code 517110) services. This typically encompasses a range of services such as local and long-distance voice and data services, internet access, dedicated data circuits, and potentially related equipment and installation. For CIGIE, these services are critical for enabling secure and reliable communication channels necessary for their oversight functions, including inter-agency communication, data sharing, and operational coordination. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not publicly provided here but would outline the specific technologies, bandwidth, service level agreements (SLAs), and support requirements.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts pay the contractor for direct labor hours at specified hourly rates and for the cost of materials. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual effort or cost, or Cost-Plus contracts, which reimburse costs plus a fee. T&M contracts are often used when the scope of work is not clearly defined or is expected to change frequently. While T&M offers flexibility, it carries a higher risk of cost escalation for the government if not closely monitored, as the contractor is incentivized to bill for more hours or materials. For stable, well-defined telecommunications services, FFP contracts are generally preferred for better cost predictability. The government's ability to manage and control costs under this T&M contract depends heavily on robust oversight, detailed tracking of labor hours, and strict material cost verification.

What is the significance of awarding this contract under GSA's Enterprise Infrastructure Solutions (EIS) vehicle?

Awarding this contract under GSA's EIS vehicle signifies that the Department of the Interior is leveraging a government-wide strategic sourcing solution for telecommunications and IT infrastructure. EIS is designed to modernize federal networks, enhance cybersecurity, and achieve cost savings through consolidated purchasing power. By using EIS, agencies benefit from pre-negotiated rates, standardized services, and streamlined procurement processes. This approach allows for greater flexibility and scalability compared to older telecommunications contracts. For CIGIE, it means access to potentially more advanced and secure network services managed under a framework intended to deliver better value and performance across the federal government.

What are the potential risks associated with the long duration of this contract (ending July 2027)?

The contract's duration, extending nearly seven years from its start date, presents several potential risks. Firstly, technological advancements in telecommunications can occur rapidly; services and equipment that are state-of-the-art at the outset may become outdated or less efficient by the contract's end. This could lead to the government paying for suboptimal technology or requiring costly modifications. Secondly, the needs and priorities of CIGIE might evolve over such a long period, potentially making the contracted services less relevant or requiring significant scope adjustments. Thirdly, market prices for telecommunications services can fluctuate, and a long-term T&M contract might not fully capture potential cost reductions available in the market later in its term. Finally, extended contracts can sometimes reduce the incentive for the contractor to innovate or proactively address emerging issues if they are comfortable with the guaranteed revenue stream.

How does the 'full and open competition' impact the value proposition for taxpayers?

A 'full and open competition' process means that all responsible sources were permitted to submit a bid. This broad competition is intended to foster a marketplace where multiple vendors vie for the contract, driving innovation, quality, and competitive pricing. For taxpayers, this process theoretically leads to better value for money because the government is likely to receive proposals that are more cost-effective and technically superior than if the contract were awarded through a limited or sole-source process. It ensures that the selected contractor, AOC CONNECT, LLC, was chosen based on having offered the best overall value, balancing price, technical merit, and past performance, thereby maximizing the efficient use of public funds.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0420R0044

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 19955 HIGHLAND VISTA DR STE 175, ASHBURN, VA, 20147

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,798,532

Exercised Options: $642,171

Current Obligation: $282,416

Actual Outlays: $248,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3003

IDV Type: IDC

Timeline