Air Force awards $5.98M contract for technical network analysis support to VEDO CORPORATION

Contract Overview

Contract Amount: $5,975,536 ($6.0M)

Contractor: Vedo Corporation

Awarding Agency: Department of Defense

Start Date: 2023-02-03

End Date: 2027-02-02

Contract Duration: 1,460 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: TECHNICAL NETWORK ANALYSIS SUPPORT - DEVELOP INDEPENDENT, INTEGRATED, FULLY MANNED, IP WEB-BASED COMMUNICATION TECHNICAL ANALYSIS CAPABILITY.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20395

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to VEDO CORPORATION for work described as: TECHNICAL NETWORK ANALYSIS SUPPORT - DEVELOP INDEPENDENT, INTEGRATED, FULLY MANNED, IP WEB-BASED COMMUNICATION TECHNICAL ANALYSIS CAPABILITY. Key points: 1. Contract focuses on developing an independent, integrated, and fully manned IP web-based communication technical analysis capability. 2. The contract is a definitive contract with a fixed-price level of effort pricing structure. 3. Awarded to VEDO CORPORATION, this contract has a duration of 1460 days. 4. The contract was not competed, raising questions about potential price discovery and value. 5. The service falls under 'All Other Professional, Scientific, and Technical Services' NAICS code 541990. 6. The contract is located in the District of Columbia.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its unique technical nature and lack of competition. The fixed-price level of effort structure suggests a defined scope, but without competitive bids, it's difficult to assess if the $5.98 million represents a fair market price. Further analysis would require understanding the specific deliverables and comparing them to similar, if available, independently developed technical analysis capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when only one vendor possesses the necessary specialized skills, technology, or security clearances. The lack of competition means the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price for these specialized technical analysis services due to the absence of a competitive bidding environment.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive enhanced capabilities for technical network analysis. The contract aims to deliver an independent, integrated, and fully manned IP web-based communication technical analysis capability. The geographic impact is centered in the District of Columbia, where the contractor is located. The contract supports specialized technical services, likely requiring skilled personnel in network analysis and communication technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
Defining and measuring the 'fully manned' aspect of the capability could be subjective.
The effectiveness of an 'independent' analysis capability needs clear performance metrics.

Positive Signals

Addresses a specific, potentially critical need for technical network analysis.
Definitive contract structure provides a clear period of performance.
Fixed-price level of effort can provide cost certainty for a defined scope.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on technical analysis and IT infrastructure. The market for such specialized services is often niche, driven by government requirements for advanced capabilities in cybersecurity, network operations, and communication intelligence. While broad benchmarks for IT services exist, the unique nature of developing an independent analysis capability makes direct comparisons difficult. The total federal spending on professional and technical services is substantial, but this particular contract represents a specialized segment within that larger market.

Small Business Impact

This contract was not awarded to a small business, nor does it indicate any specific small business set-aside provisions. The sole-source nature of the award further suggests that subcontracting opportunities for small businesses may be limited and dependent on VEDO CORPORATION's internal sourcing strategies. Without explicit subcontracting goals or a competitive process that encourages small business participation, the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The effectiveness of oversight will depend on the clarity of the contract's performance work statement, the establishment of key performance indicators, and regular reviews by the contracting officer and technical representatives. Transparency is limited by the sole-source nature, but reporting requirements within the contract itself would be subject to review.

Related Government Programs

Defense Information Technology Contracting
Professional and Technical Services
Network Security Services
Communication Systems Analysis

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to VEDO CORPORATION. TECHNICAL NETWORK ANALYSIS SUPPORT - DEVELOP INDEPENDENT, INTEGRATED, FULLY MANNED, IP WEB-BASED COMMUNICATION TECHNICAL ANALYSIS CAPABILITY.

Who is the contractor on this award?

The obligated recipient is VEDO CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2023-02-03. End: 2027-02-02.

What is the specific technical expertise VEDO CORPORATION possesses that justifies a sole-source award for this network analysis capability?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or specialized knowledge that only one contractor possesses. For this contract, VEDO CORPORATION may have demonstrated prior success in developing similar independent analysis tools, possess specific security clearances required for accessing sensitive network data, or hold patents on relevant technologies. Without the competitive bidding documentation, the precise technical differentiators remain undisclosed. However, the Air Force would have required a formal justification, likely citing factors such as urgency, lack of alternatives, or the contractor's sole ability to meet the stringent requirements for an 'independent, integrated, fully manned, IP web-based communication technical analysis capability'.

How does the 'fixed-price level of effort' pricing structure work in practice for this contract?

A 'fixed-price level of effort' (FPLE) contract is a hybrid type that combines elements of fixed-price and cost-reimbursement contracts. The government agrees to pay a fixed total price for a specified level of effort (e.g., a certain number of labor hours or a specific task). The contractor is obligated to perform the work up to that level of effort. If the contractor completes the work in less effort than anticipated, they still receive the full fixed price. Conversely, if more effort is required, the contractor must absorb the additional cost unless the contract is modified. This structure provides cost certainty for the government up to the defined effort level but can incentivize inefficiency if not carefully monitored.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, based on the description 'DEVELOP INDEPENDENT, INTEGRATED, FULLY MANNED, IP WEB-BASED COMMUNICATION TECHNICAL ANALYSIS CAPABILITY,' expected deliverables likely include the functional web-based analysis platform itself, comprehensive documentation (user manuals, technical specifications), training materials, and potentially regular reports on network analysis findings or system performance. KPIs would likely focus on the platform's uptime, accuracy of analysis, speed of data processing, security compliance, and the ability to integrate with existing Air Force systems. The 'fully manned' aspect suggests requirements for dedicated personnel to operate and maintain the capability.

What is the historical spending pattern for similar technical network analysis capabilities within the Department of the Air Force?

Historical spending data for highly specialized capabilities like an 'independent, integrated, fully manned, IP web-based communication technical analysis capability' is not readily available in the public domain without specific contract or program identifiers. However, the Department of the Air Force, like other branches of the military, invests significantly in intelligence, surveillance, reconnaissance (ISR), and cybersecurity technologies. Spending in these areas often involves complex systems integration, software development, and specialized analytical tools. Contracts for such capabilities can range from millions to hundreds of millions of dollars, depending on the scope, technology maturity, and duration. The $5.98 million for this specific capability suggests a focused development effort rather than a large-scale system procurement.

What are the potential risks associated with a sole-source award for critical technical analysis capabilities?

The primary risk associated with a sole-source award for critical technical analysis capabilities is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay a premium for the services. Another significant risk is vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors or adopt alternative solutions in the future. Furthermore, a sole-source award can reduce transparency in the procurement process, making it harder to assess the fairness of the price and the justification for selecting that specific contractor. There's also a risk that innovation may be stifled, as the incumbent contractor may have less incentive to continuously improve their offering without competitive threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA489022RCN10

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 25 KEY HAVEN TER, KEY WEST, FL, 33040

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,175,152

Exercised Options: $7,076,122

Current Obligation: $5,975,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline