DOJ's $15.9M wireless service contract awarded to Avalon Global Solutions, Inc. in 2006

Contract Overview

Contract Amount: $15,944,960 ($15.9M)

Contractor: Avalon Global Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2006-12-13

End Date: 2011-05-06

Contract Duration: 1,605 days

Daily Burn Rate: $9.9K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGE WIRELESS SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $15.9 million to AVALON GLOBAL SOLUTIONS, INC. for work described as: MANAGE WIRELESS SERVICE Key points: 1. Contract value represents a significant investment in managing wireless services for the ATF. 2. The contract duration of 1605 days suggests a need for sustained service delivery. 3. Awarded as a Firm Fixed Price contract, indicating a defined cost for services. 4. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 5. The contract was awarded to a single vendor, raising questions about competition. 6. The contract was active for nearly five years, from late 2006 to mid-2011.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The total award amount of $15.9 million over approximately 4.4 years suggests an average annual spend of around $3.6 million. This figure needs to be assessed against the scope of wireless services provided to the ATF. Without data on the number of users, devices, or data volume managed, it's difficult to determine if this represents a competitive price or good value for money. The firm fixed-price nature implies the contractor bore the risk of cost overruns, which can be a positive indicator if costs were well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source contract, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique expertise, or specific existing infrastructure. The lack of competition means there was no opportunity to leverage market forces to potentially drive down costs or encourage innovation through bidding. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate and that alternatives were not overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive pricing. It also limits opportunities for other businesses to secure federal contracts.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the primary beneficiary, receiving managed wireless services. The contract supports the operational needs of a key law enforcement agency. Services were delivered within the District of Columbia, impacting federal operations in the capital. The contract likely supported federal employees and their communication needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Limited transparency on the specific services rendered and performance metrics.
Contract duration without clear performance benchmarks could indicate potential for complacency.
Sole-source awards can stifle innovation by not engaging a broader market.

Positive Signals

Firm fixed-price contract shifts cost-overrun risk to the contractor.
Long contract duration suggests a stable, ongoing need for the services.
Award to a single entity may indicate specialized capabilities required by the agency.

Sector Analysis

The IT services sector, specifically 'Other Computer Related Services,' encompasses a broad range of activities. This contract falls under the management of wireless communication services, a critical component of modern IT infrastructure for any organization, especially a federal law enforcement agency. The market for such services is competitive, with numerous providers offering solutions for network management, device provisioning, and data security. However, specific managed wireless services can sometimes require specialized expertise or integration with existing systems, potentially leading to sole-source or limited competition scenarios. Comparable spending benchmarks would depend heavily on the scale and complexity of the wireless environment managed.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting opportunities. The award was made to Avalon Global Solutions, Inc., and the contract type does not specify any small business considerations. Without further information, it's difficult to assess the impact on the small business ecosystem. Sole-source awards, in particular, often bypass the typical avenues for small business participation.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a sole-source award, it would typically require strong justification and oversight from the contracting agency to ensure fair pricing and necessity. Transparency regarding the specific services, performance, and any modifications would be crucial for effective oversight. The Inspector General's office for the Department of Justice would likely have jurisdiction for audits and investigations if any issues arose.

Related Government Programs

Department of Justice IT Services
Bureau of Alcohol, Tobacco, Firearms and Explosives Communications
Federal Wireless Network Management
Other Computer Related Services Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited data on specific services and performance metrics.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15.9 million to AVALON GLOBAL SOLUTIONS, INC.. MANAGE WIRELESS SERVICE

Who is the contractor on this award?

The obligated recipient is AVALON GLOBAL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2006-12-13. End: 2011-05-06.

What specific wireless services were managed under this contract?

The provided data indicates the contract was for 'MANAGE WIRELESS SERVICE' under the NAICS code 'Other Computer Related Services' (541519). However, the specifics of these services are not detailed. This could encompass a wide range of activities, including mobile device management (MDM), cellular plan administration, wireless data services procurement, network security for wireless communications, and potentially the management of satellite or other non-cellular wireless technologies. Without a detailed statement of work (SOW) or contract line item numbers (CLINs), it is impossible to ascertain the precise scope of services provided to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

How does the $15.9 million contract value compare to similar managed wireless service contracts for federal agencies?

Comparing the $15.9 million contract value requires context regarding the duration, scope, and number of users/devices managed. This contract spanned approximately 4.4 years (1605 days), averaging around $3.6 million annually. To benchmark effectively, we would need to identify comparable contracts for agencies of similar size and mission (e.g., other law enforcement or investigative bodies) that procured managed wireless services. Factors such as the mix of devices (smartphones, tablets, specialized equipment), data usage, included security features, and the level of support (e.g., 24/7 helpdesk, device provisioning) significantly influence cost. Without such comparative data, it's difficult to definitively state whether this represents a high, low, or average expenditure.

What was the justification for awarding this contract as sole-source to Avalon Global Solutions, Inc.?

The data explicitly states this contract was awarded as 'sole-source' (indicated by 'no': 1, and the absence of multiple bidders). Federal procurement regulations typically require agencies to conduct full and open competition unless specific exceptions apply. Common justifications for sole-source awards include: the existence of only one responsible source capable of providing the required service (e.g., unique proprietary technology or expertise), urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed contract where the original contractor's solution is deeply integrated. The specific justification for this DOJ contract would likely be documented in a Justification and Approval (J&A) document, which would need to be reviewed to understand why competition was deemed impractical or impossible.

What are the potential risks associated with a sole-source award for managed wireless services?

Sole-source awards carry inherent risks, primarily related to cost and innovation. Without competition, the government may not achieve the lowest possible price, as the selected vendor faces less pressure to be cost-competitive. There's also a risk that the vendor may not be incentivized to provide the highest level of service or innovation if they are guaranteed the contract without challenge. Furthermore, sole-source awards can limit opportunities for other capable vendors, potentially hindering the development of a broader and more robust market for these services. For managed wireless services, this could mean paying a premium for services that could be obtained more affordably or with better features through a competitive process.

What was the performance history of Avalon Global Solutions, Inc. on this contract?

The provided data does not include performance metrics, contractor performance evaluations (like CPARS), or any details regarding the quality of services delivered by Avalon Global Solutions, Inc. under this contract. The contract ran from December 2006 to May 2011. Assessing performance would require access to internal agency records, performance reviews, or any documented issues or commendations related to the managed wireless services. Without this information, it's impossible to evaluate the contractor's track record on this specific engagement.

How did the contract's duration (1605 days) align with typical managed wireless service lifecycles?

A contract duration of 1605 days, approximately 4.4 years, is a substantial period for managed wireless services. Typical lifecycles for technology-focused contracts can vary, but multi-year agreements are common for services requiring significant integration and ongoing support. This duration suggests that the ATF required a stable, long-term solution for managing its wireless infrastructure. While longer contracts can provide stability and reduce administrative burden, they also necessitate careful performance monitoring to ensure the services remain relevant and cost-effective as technology and needs evolve. Shorter durations might allow for more frequent re-competition and adaptation to market changes.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Contractor Details

Parent Company: Widepoint Corporation (UEI: 788549012)

Address: 32 WINE ST, HAMPTON, VA, 03

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $15,944,960

Exercised Options: $15,944,960

Current Obligation: $15,944,960

Parent Contract

Parent Award PIID: GS35F0526N

IDV Type: FSS

Timeline