DOJ's FBI awards $5.75M for voice hardware, a significant investment in telecom infrastructure

Contract Overview

Contract Amount: $5,751,260 ($5.8M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-06-19

End Date: 2026-05-30

Contract Duration: 345 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VOICE HARDWARE TELECOM EQUIPMENT

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80003

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $5.8 million to COUNTERTRADE PRODUCTS, INC. for work described as: VOICE HARDWARE TELECOM EQUIPMENT Key points: 1. The contract value suggests a substantial need for advanced telecommunications equipment. 2. Competition dynamics for this type of hardware can influence pricing and innovation. 3. Performance metrics and delivery timelines will be critical for successful implementation. 4. This spending aligns with broader federal efforts to modernize communication systems. 5. The chosen equipment category (Electronic Computer Manufacturing) indicates a focus on integrated digital solutions.

Value Assessment

Rating: good

The contract value of $5.75 million for voice hardware and telecom equipment appears reasonable given the duration and the agency involved. Benchmarking against similar procurements for large federal agencies like the FBI would provide a clearer picture of value for money. However, the absence of specific unit details makes a precise per-unit cost comparison difficult. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to yield a fair market price and encourage the selection of high-quality solutions. The number of bidders is not specified, but the 'full and open' designation suggests a robust bidding environment.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and ensuring the government receives the best possible value for its investment.

Public Impact

Federal Bureau of Investigation (FBI) personnel will benefit from enhanced voice communication capabilities. The contract supports the delivery of essential telecommunications equipment. The geographic impact is likely national, supporting FBI operations across various locations. Workforce implications may include training for personnel on new hardware and potential integration with existing IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the hardware is proprietary and requires specific maintenance or upgrades.
Ensuring interoperability with existing FBI communication systems is crucial to avoid disruptions.
The long-term cost of ownership, including maintenance and support, needs careful monitoring.

Positive Signals

The use of full and open competition suggests a wide range of potential solutions were considered.
A firm fixed-price contract shifts cost risk to the contractor, potentially saving taxpayer money.
The specified delivery end date indicates a planned and structured rollout of the equipment.

Sector Analysis

The telecommunications equipment market is a significant sector within the broader IT industry, characterized by rapid technological advancements and intense competition. Federal spending in this area supports national security, law enforcement, and essential government operations. This contract for voice hardware fits within the Electronic Computer Manufacturing sub-sector, highlighting the integration of communication devices with computing capabilities. Comparable spending benchmarks would typically involve analyzing other large-scale telecom procurements by agencies like the Department of Defense or other intelligence community components.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it mention subcontracting plans specifically targeting small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large federal contracts can sometimes create opportunities for small businesses as subcontractors to the prime vendor, depending on the prime's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the FBI's contracting officers and program managers, ensuring adherence to the terms and conditions. Accountability measures are embedded in the firm fixed-price structure and the defined performance period. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General's office for the Department of Justice may conduct audits or investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Federal Telecommunications Services
Law Enforcement Technology Procurement
IT Modernization Programs
Network Infrastructure Upgrades

Risk Flags

Potential for technology obsolescence
Integration complexity with existing systems
Long-term maintenance and support costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.8 million to COUNTERTRADE PRODUCTS, INC.. VOICE HARDWARE TELECOM EQUIPMENT

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2025-06-19. End: 2026-05-30.

What is the specific type of voice hardware being procured, and what are its key features?

The data indicates the procurement is for 'VOICE HARDWARE TELECOM EQUIPMENT' under NAICS code 334111 (Electronic Computer Manufacturing). While specific model numbers or detailed technical specifications are not provided in the summary data, this classification suggests the hardware likely includes advanced features such as Voice over IP (VoIP) capabilities, integration with data networks, and potentially features related to secure communications, call management, and conferencing. The FBI's operational needs would dictate requirements for reliability, scalability, and security, implying the hardware is likely robust and designed for mission-critical applications. Further details would typically be found in the contract's statement of work or technical exhibits.

How does the $5.75 million contract value compare to historical FBI spending on similar voice hardware?

To assess the $5.75 million contract value against historical FBI spending, one would need to analyze past procurements for voice hardware and telecommunications equipment by the FBI. This would involve searching federal procurement databases (like FPDS or USASpending) for similar contracts awarded over the past several fiscal years. Key comparison points would include contract value, duration, quantity of equipment, and the specific technologies involved. Without access to this historical data, it's challenging to definitively state whether this award represents an increase, decrease, or is in line with previous spending patterns. However, the value suggests a significant refresh or expansion of the FBI's voice communication infrastructure.

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

Primary risks for this contract include potential technical obsolescence of the hardware, integration challenges with existing FBI IT infrastructure, and performance issues. The mitigation strategies likely involve a thorough technical evaluation during the full and open competition phase to ensure the selected hardware meets current and future needs. The firm fixed-price contract structure mitigates financial risk for the government by capping costs. Furthermore, the defined performance period (ending May 2026) and delivery order mechanism allow for phased implementation and performance monitoring. Contract clauses related to warranties, support, and service level agreements would further address performance and maintenance risks.

What is the expected impact of this contract on the FBI's operational effectiveness?

This contract is expected to significantly enhance the FBI's operational effectiveness by providing modern, reliable voice communication capabilities. Upgraded hardware can lead to improved call clarity, reduced downtime, and enhanced features such as secure conferencing and seamless integration with other digital communication tools. For an agency like the FBI, where rapid and secure communication is paramount for investigations, intelligence gathering, and inter-agency coordination, such an upgrade can directly translate to faster response times, better information sharing, and ultimately, more successful mission outcomes. The investment supports the agency's ability to maintain a technological edge in its critical functions.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this contract?

While the summary data does not explicitly list specific Key Performance Indicators (KPIs), contracts of this nature typically include performance metrics within the Statement of Work (SOW) or contract clauses. These often relate to delivery timelines (ensuring equipment arrives by the specified dates), installation and configuration success rates, system uptime and availability post-installation, and the responsiveness of the contractor to provide technical support or resolve issues. Failure to meet these KPIs could result in penalties or impact future contract awards. The firm fixed-price nature also implies that the contractor is incentivized to meet all contractual obligations to receive full payment.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,751,260

Exercised Options: $5,751,260

Current Obligation: $5,751,260

Actual Outlays: $4,679,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC05B

IDV Type: GWAC

Timeline