State Department awards $2.3M for internet services to U.S. Mission China, with competition

Contract Overview

Contract Amount: $2,279,938 ($2.3M)

Contractor: Nova Technology Corporation Limited.

Awarding Agency: Department of State

Start Date: 2021-04-16

End Date: 2026-05-09

Contract Duration: 1,849 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERNET SERVICES FOR U.S MISSION CHINA

Plain-Language Summary

Department of State obligated $2.3 million to NOVA TECHNOLOGY CORPORATION LIMITED. for work described as: INTERNET SERVICES FOR U.S MISSION CHINA Key points: 1. Contract value appears reasonable given the duration and scope of internet services for a diplomatic mission. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The definitive contract type indicates a clear scope of work and pricing structure. 4. Performance period spans over five years, allowing for sustained service delivery. 5. This contract falls within the broader category of IT and telecommunications services for government operations.

Value Assessment

Rating: good

The contract value of approximately $2.3 million over five years for internet services to a U.S. Mission abroad seems within a reasonable range. Benchmarking against similar contracts for overseas internet infrastructure and services for diplomatic posts would provide a more precise value-for-money assessment. However, without specific details on bandwidth, security requirements, and service level agreements, a definitive comparison is challenging. 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 all responsible sources were permitted to submit offers. This suggests a competitive marketplace for providing internet services to U.S. diplomatic missions. The number of bidders is not specified, but the competitive process is expected to drive prices towards market rates and encourage innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The U.S. Mission in China will benefit from reliable and secure internet services, crucial for diplomatic operations and communication. This contract ensures the delivery of essential internet connectivity, supporting daily operations, data transfer, and communication for mission personnel. The geographic impact is specific to the U.S. Mission in China, supporting its presence and functions within the country. Workforce implications are likely internal to the contractor and potentially involve technical support staff managing the network infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor's performance falters, impacting critical diplomatic communications.
Dependence on a single contractor for a vital service could pose a risk if unforeseen issues arise with the company.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
Firm fixed-price contract structure shifts cost overrun risk to the contractor, benefiting the government.
Long-term contract duration (over 5 years) provides stability and continuity for essential services.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on internet service provision. The market for such services is global and highly competitive, with numerous providers offering varying levels of bandwidth, security, and support. Government contracts for overseas operations often require specialized capabilities to ensure reliability and security in challenging environments. Comparable spending benchmarks would typically involve other State Department overseas posts or similar government agencies operating abroad.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of providing internet services to an overseas diplomatic mission, it is likely that larger, specialized telecommunications companies would be the primary bidders. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities are mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of State. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through contract databases like FPDS, which publicly disclose contract awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State IT Services
Overseas Diplomatic Communications
Global Internet Infrastructure Contracts
Telecommunications Services for Government

Risk Flags

Potential for service disruption impacting critical diplomatic functions.
Dependence on a single provider for essential connectivity.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.3 million to NOVA TECHNOLOGY CORPORATION LIMITED.. INTERNET SERVICES FOR U.S MISSION CHINA

Who is the contractor on this award?

The obligated recipient is NOVA TECHNOLOGY CORPORATION LIMITED..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2021-04-16. End: 2026-05-09.

What specific internet service levels (bandwidth, latency, uptime) are guaranteed under this contract, and how do they compare to industry standards for similar government overseas operations?

The provided data does not specify the exact internet service levels (e.g., bandwidth in Mbps, latency targets, uptime percentages) guaranteed under this contract. These details are typically found within the contract's statement of work (SOW) or performance work statement (PWS). For government overseas operations, especially for diplomatic missions, service level agreements (SLAs) often require high uptime (e.g., 99.9% or higher), robust security protocols, and sufficient bandwidth to support voice, video, and data communications. Industry standards vary widely based on location and provider, but for critical government functions, reliability and security are paramount, often exceeding typical commercial offerings. A detailed review of the SOW would be necessary to benchmark these specific service levels against comparable contracts and commercial offerings.

What is the historical spending pattern for internet services at the U.S. Mission in China, and how does this $2.3 million award compare?

The provided data does not include historical spending patterns for internet services at the U.S. Mission in China. To assess this, one would need to access historical contract awards for this specific location and service category from sources like the Federal Procurement Data System (FPDS) or agency-specific contract databases. Comparing the current $2.3 million award over its 5-year duration (approximately $460,000 per year) to previous contracts would reveal whether spending has increased, decreased, or remained stable. Factors influencing historical spending could include changes in technology, bandwidth requirements, security needs, and the number of personnel at the mission. Without this historical context, it's difficult to determine if this award represents a significant shift in investment.

What are the key performance indicators (KPIs) used to evaluate NOVA TECHNOLOGY CORPORATION LIMITED.'s performance under this contract, and what are the remedies for non-performance?

The provided data does not detail the specific Key Performance Indicators (KPIs) or remedies for non-performance stipulated in this contract. Typically, for internet services contracts, KPIs would focus on metrics such as network uptime, bandwidth availability, latency, packet loss, and response times for technical support. Remedies for non-performance could range from service credits (deductions from payment) to contract termination, depending on the severity and duration of the failure to meet the agreed-upon service levels. These details would be outlined in the contract's Performance Work Statement (PWS) and the contract clauses related to remedies and dispute resolution.

How does the pricing structure (firm fixed price) for this internet service contract compare to other government contracts for similar services, particularly those in challenging overseas environments

A firm fixed-price (FFP) contract structure, like the one used here, is common for services with well-defined scopes, such as internet provision. This structure shifts the risk of cost overruns to the contractor, NOVA TECHNOLOGY CORPORATION LIMITED., which is generally favorable for the government. Compared to other government contracts for similar services, FFP is often preferred when requirements are stable. However, in rapidly evolving technological fields or complex overseas environments where unforeseen challenges might arise, cost-plus contracts might sometimes be considered, though they carry higher risk for the government. Benchmarking the specific dollar amount against other overseas internet contracts would require access to detailed pricing information for comparable awards, considering factors like bandwidth, security, and geographic location.

What is the track record of NOVA TECHNOLOGY CORPORATION LIMITED. in providing similar telecommunications or internet services to government agencies, especially in overseas locations?

The provided data identifies NOVA TECHNOLOGY CORPORATION LIMITED. as the contractor but does not offer details on their specific track record or past performance with government agencies, particularly in overseas locations. To assess their track record, one would need to research their contract history through databases like FPDS, look for past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and examine any publicly available information about their experience in providing similar services in challenging environments. A strong track record with successful past performance on comparable contracts would indicate a lower risk for this award.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19GE5021R0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16/F, BLDG A, SHENZHEN INT. INN. CTR, SHENZHEN

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,462,306

Exercised Options: $2,279,938

Current Obligation: $2,279,938

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline