GSA awards $22.5M managed telecommunications services contract to MicroTechnologies LLC

Contract Overview

Contract Amount: $22,459,135 ($22.5M)

Contractor: Microtechnologies LLC

Awarding Agency: General Services Administration

Start Date: 2023-02-17

End Date: 2027-02-16

Contract Duration: 1,460 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MANAGED TELECOMMUNICATIONS SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $22.5 million to MICROTECHNOLOGIES LLC for work described as: MANAGED TELECOMMUNICATIONS SERVICES Key points: 1. Contract provides managed telecommunications services, a critical IT infrastructure component. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 1460 days (4 years) indicates a long-term need for these services. 4. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award is a delivery order against an existing contract, implying a streamlined procurement. 6. The contract is not set aside for small businesses, potentially limiting small business participation.

Value Assessment

Rating: good

The total contract value of $22.5 million over four years averages to approximately $5.6 million annually. Benchmarking this against similar managed telecommunications services contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests a defined scope and predictable costs, which is generally favorable for value. The number of bids received (6) indicates a reasonable level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. Six bids were received, indicating a healthy level of competition for this requirement. The competitive nature of the award suggests that pricing was likely driven by market forces, potentially leading to a more favorable outcome for the government.

Taxpayer Impact: The competitive award process is beneficial for taxpayers as it aims to secure the best possible price and service quality through market forces, preventing potential overpayment that could occur with less competitive or sole-source procurements.

Public Impact

Federal agencies requiring managed telecommunications services will benefit from reliable and potentially cost-effective solutions. The contract supports the delivery of essential IT infrastructure and communication capabilities. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications may include the need for skilled telecommunications technicians and IT support personnel, both within the contractor's organization and potentially within the agency for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical telecommunications infrastructure could pose a risk if the contractor experiences performance issues or financial instability.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded under full and open competition, indicating a competitive market for these services.
Long-term contract duration allows for stable service provision and potential for economies of scale.

Sector Analysis

Managed telecommunications services fall within the broader IT services sector, specifically under computer systems design and related services. This sector is characterized by rapid technological advancements and a high degree of competition. The market size for federal IT services is substantial, with agencies increasingly relying on outsourced solutions for complex infrastructure management. This contract represents a portion of that overall spending, focusing on ensuring reliable communication networks for government operations.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses in the provided data. This means that while MicroTechnologies LLC may choose to subcontract to small businesses, there is no mandatory requirement. The absence of set-aside provisions suggests that the primary focus was on obtaining the best value through full and open competition, potentially overlooking opportunities to specifically boost the small business ecosystem in this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The firm-fixed-price contract type provides a degree of accountability by fixing the cost for a defined scope of work. Transparency is facilitated by the public nature of contract awards. Further oversight mechanisms would typically involve contract performance reviews, regular reporting requirements from the contractor, and potentially the involvement of GSA's Office of Inspector General if performance or financial irregularities arise.

Related Government Programs

IT Infrastructure Services
Telecommunications Network Management
Managed Network Services
Cloud Communications Services
Network Operations and Maintenance

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance for critical infrastructure
Cybersecurity risks inherent in managed IT services

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.5 million to MICROTECHNOLOGIES LLC. MANAGED TELECOMMUNICATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2023-02-17. End: 2027-02-16.

What is the track record of MicroTechnologies LLC in delivering managed telecommunications services to the federal government?

MicroTechnologies LLC has a history of performing federal contracts, including those related to IT and telecommunications. While the provided data indicates this specific contract is for managed telecommunications services, a deeper dive into their past performance on similar contracts would be necessary for a comprehensive assessment. Reviewing past performance evaluations, any contract disputes, or awards for exceptional performance would offer insight into their reliability and capability. Their ability to successfully manage this $22.5 million, four-year contract will be a key indicator of their expertise in this domain.

How does the awarded price compare to market rates for similar managed telecommunications services?

Benchmarking the awarded price of $22.5 million over four years requires detailed comparison with similar managed telecommunications services contracts. Factors such as the scope of services (e.g., network monitoring, maintenance, upgrades, security), service level agreements (SLAs), geographic coverage, and the specific technologies involved significantly influence pricing. Without these granular details, a precise market comparison is difficult. However, the fact that six bids were received under full and open competition suggests that the pricing is likely competitive within the current market landscape for these types of services.

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

Key risks include potential vendor lock-in due to specialized services, performance failures impacting critical communications, and cybersecurity vulnerabilities within the managed network. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (FFP) nature caps costs, providing financial predictability. The 'full and open competition' award process implies a selection of a capable vendor. Furthermore, GSA's oversight, contract performance management, and defined SLAs are crucial for ensuring service quality and addressing performance issues. Cybersecurity clauses and incident response plans are standard in such contracts to manage security risks.

What is the expected effectiveness of these managed telecommunications services in supporting federal agency operations?

The effectiveness hinges on the contractor's ability to deliver reliable, secure, and high-performance telecommunications infrastructure as per the contract's Service Level Agreements (SLAs). Managed services are intended to enhance operational efficiency by offloading complex network management tasks to specialists, allowing federal agencies to focus on their core missions. Successful delivery should result in improved network uptime, faster issue resolution, and potentially cost savings compared to in-house management. The long-term nature of the contract (4 years) suggests an expectation of sustained effectiveness and a strategic partnership.

How does this contract's spending compare to historical federal spending on managed telecommunications services?

This $22.5 million contract represents a specific investment in managed telecommunications services. To assess its historical context, one would need to analyze aggregate federal spending trends in this category over several fiscal years. Factors such as the increasing reliance on digital infrastructure, cloud adoption, and evolving cybersecurity threats influence overall spending. This award, being a delivery order against an existing contract, suggests it's part of an ongoing strategy rather than a new, standalone initiative. Comparing its value to previous similar awards by GSA or other agencies would provide a clearer picture of its relative scale.

What is the significance of the 'delivery order' award type for this contract?

The award being a 'delivery order' signifies that it is a task order issued against a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract. This procurement method is often used for services that are needed over a period but the exact quantity or timing isn't known upfront. For taxpayers, this can be efficient as it leverages a pre-competed contract vehicle, potentially reducing administrative burden and time compared to a new full solicitation. It implies that the foundational contract terms, including pricing structures and competition, were established earlier.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFSA23Q0013

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 220 CONGRESS PARK DR STE 138, DELRAY BEACH, FL, 33445

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $78,227,230

Exercised Options: $62,522,739

Current Obligation: $22,459,135

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,967,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0042

IDV Type: GWAC

Timeline