CBP awards $4.8M for secondary internet services, with AOC Connect, LLC securing the contract

Contract Overview

Contract Amount: $4,810,241 ($4.8M)

Contractor: AOC Connect, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-30

End Date: 2026-05-29

Contract Duration: 1,460 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECONDARY INTERNET PROTOCOL SERVICE (IPS) AND OTHER NETWORK-RELATED SERVICES

Place of Performance

Location: PEACHTREE CORNERS, GWINNETT County, GEORGIA, 30071

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.8 million to AOC CONNECT, LLC for work described as: SECONDARY INTERNET PROTOCOL SERVICE (IPS) AND OTHER NETWORK-RELATED SERVICES Key points: 1. The contract value of $4.8 million over four years suggests a moderate investment in essential network infrastructure. 2. AOC Connect, LLC, a relatively new entity, will be responsible for delivering critical network services. 3. The fixed-price contract type aims to control costs, but potential for scope creep should be monitored. 4. The award falls under the Wired Telecommunications Carriers NAICS code, indicating a focus on established network services. 5. The contract's duration of 1460 days aligns with typical service provision timelines for such infrastructure. 6. Geographic focus on Georgia for service delivery may indicate regional network expansion or upgrade efforts.

Value Assessment

Rating: fair

The contract value of $4.8 million over four years averages to approximately $1.2 million annually. Benchmarking this against similar contracts for secondary internet protocol services is challenging without more specific service level agreements and geographic scope. However, for a federal agency like CBP, this appears to be a reasonable investment for ensuring network redundancy and resilience. The firm fixed-price structure suggests an expectation of predictable costs, but the value proposition hinges on the quality and reliability of the services provided by AOC Connect, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that there were two bids received suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially more competitive pricing for the government.

Taxpayer Impact: The full and open competition, despite only two bids, provides some assurance that taxpayer funds were not unnecessarily inflated due to a lack of market engagement.

Public Impact

U.S. Customs and Border Protection (CBP) will benefit from enhanced network reliability and redundancy. The services delivered will support critical border security operations and data management. The primary geographic impact is within Georgia, where the network services will be deployed. The contract supports the telecommunications workforce involved in network infrastructure deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record for delivering complex network services at this scale needs further scrutiny.
The limited number of bids (2) raises questions about the effectiveness of the solicitation in attracting a wider pool of qualified vendors.
Potential for vendor lock-in if this becomes a sole-source or limited-source contract in the future.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Firm fixed-price contract type helps manage budget predictability.
Contract duration of four years allows for stable service provision and planning.

Sector Analysis

The telecommunications industry, particularly wired telecommunications carriers, is a mature sector characterized by significant infrastructure investment and ongoing technological evolution. Federal spending in this area often focuses on ensuring robust, secure, and redundant network capabilities for critical government operations. This contract for secondary internet protocol services fits within this broader context, addressing the need for reliable connectivity that underpins various agency functions. Comparable spending benchmarks are difficult to establish without detailed service specifications, but federal agencies regularly procure such services, with contract values varying widely based on scope and scale.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to AOC Connect, LLC, without further details on its size or structure, makes it difficult to assess the direct impact on the small business ecosystem. Future solicitations could explore opportunities for small business participation, particularly in specialized network support roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection contracting officer and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring AOC Connect, LLC to deliver specified services within the agreed budget. Transparency is generally maintained through federal contract databases, though detailed performance metrics may not be publicly available. The Inspector General for the Department of Homeland Security may conduct audits or investigations if performance issues or concerns arise.

Related Government Programs

Federal Network Infrastructure Services
Telecommunications Services Contracts
Department of Homeland Security IT Spending
Border Security Technology Procurement

Risk Flags

Limited competition (2 bidders)
Contractor's performance history not fully detailed
Potential for scope creep in fixed-price contracts for evolving services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.8 million to AOC CONNECT, LLC. SECONDARY INTERNET PROTOCOL SERVICE (IPS) AND OTHER NETWORK-RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is AOC CONNECT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2022-05-30. End: 2026-05-29.

What is the specific nature of the 'secondary internet protocol service' being procured, and how does it differ from primary services?

The term 'secondary internet protocol service' typically refers to a backup or redundant network connection. In the context of federal agencies like CBP, this is crucial for ensuring operational continuity. If the primary internet connection fails, the secondary service automatically or manually takes over, preventing disruptions to critical systems such as border surveillance, data processing, and communication networks. This redundancy is vital for national security and operational effectiveness. The specific protocols and bandwidth associated with this secondary service would be detailed in the contract's statement of work, outlining the expected performance metrics, uptime guarantees, and failover procedures.

What is the track record of AOC Connect, LLC in delivering similar federal contracts?

Information regarding AOC Connect, LLC's track record in delivering similar federal contracts is limited based on the provided data. As a relatively new entity or one with less public contract history, a deeper dive into its past performance, client references, and experience with large-scale telecommunications projects would be necessary for a comprehensive assessment. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically hold such information. Without this, it's difficult to definitively gauge their capability and reliability for this $4.8 million contract.

How does the $4.8 million contract value compare to similar federal procurements for redundant network services?

Comparing the $4.8 million contract value requires understanding the scope, duration, and specific service level agreements (SLAs) involved. This contract spans four years, averaging $1.2 million annually. Federal procurements for redundant network services can vary significantly. Smaller agencies or those with less demanding bandwidth needs might secure similar services for less, while larger agencies with extensive geographic footprints and high-availability requirements could spend considerably more. Given CBP's critical mission and the need for robust network resilience, this value appears within a plausible range, assuming the services meet stringent performance and reliability standards.

What are the potential risks associated with a firm fixed-price contract for network services?

Firm fixed-price (FFP) contracts are designed to provide cost certainty for the government. However, for complex services like network infrastructure, risks can emerge. If the contractor, AOC Connect, LLC, underestimates the costs or complexities involved in delivering the secondary internet services, they might cut corners on quality or support to maintain profitability. Conversely, if the government's requirements change significantly during the contract period, scope adjustments under an FFP contract can be cumbersome and may lead to disputes or change orders, potentially increasing the overall cost. Effective contract management and clear definition of requirements are crucial to mitigate these risks.

What is the significance of the contract being awarded under 'full and open competition' with only two bids?

Awarding a contract under 'full and open competition' signifies that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit an offer. This is generally the preferred method for maximizing competition and achieving best value. However, receiving only two bids suggests that the market may not have been as robust as anticipated, or perhaps the solicitation requirements were highly specialized, limiting the number of capable bidders. While competition occurred, the limited number of offers might indicate a missed opportunity to drive prices lower through broader market engagement. It warrants an analysis of the solicitation strategy to understand why more vendors did not participate.

What are the implications of the contract's geographic focus on Georgia?

The geographic focus on Georgia implies that the secondary internet protocol services procured under this contract will be deployed or managed within that state. This could relate to specific CBP facilities, border crossings, or operational centers located in Georgia that require enhanced network redundancy. For the local economy in Georgia, this contract could mean opportunities for network technicians, infrastructure deployment, and related support services. It also suggests that CBP's network architecture planning has identified Georgia as a key area requiring robust connectivity solutions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $153,812,939

Exercised Options: $4,810,241

Current Obligation: $4,810,241

Actual Outlays: $1,203,011

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