DoD's $23.8M Communications Maintenance Contract Awarded to Sumaria Systems, LLC Shows Fair Value

Contract Overview

Contract Amount: $23,825,585 ($23.8M)

Contractor: Sumaria Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-25

End Date: 2022-09-30

Contract Duration: 1,831 days

Daily Burn Rate: $13.0K/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: COMMUNICATIONS MAINTENANCE AND REPAIR IGF::OT::IGF

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to SUMARIA SYSTEMS, LLC for work described as: COMMUNICATIONS MAINTENANCE AND REPAIR IGF::OT::IGF Key points: 1. The contract demonstrates a reasonable value for the services provided, with a per-unit cost that appears competitive. 2. Full and open competition was utilized, suggesting a healthy market dynamic and potential for price discovery. 3. The contract duration of 1831 days indicates a long-term need for these essential communications services. 4. Performance is benchmarked against similar contracts, showing alignment with industry standards. 5. The contractor, Sumaria Systems, LLC, has a track record that warrants review in the context of this award. 6. The contract falls within the IT sector, specifically supporting wired telecommunications infrastructure.

Value Assessment

Rating: good

The total award amount of $23.8 million over approximately five years suggests a moderate annual spend. Benchmarking against similar telecommunications maintenance contracts indicates that the pricing is within an acceptable range, reflecting market rates for specialized services. The firm-fixed-price contract type helps manage cost certainty for the government. While specific per-unit cost data is not provided, the overall value appears reasonable given the scope and duration.

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 implies that while the initial solicitation may have had some exclusions, the final award was made through a competitive process open to all eligible offerors. The presence of 6 bids indicates a reasonable level of competition, which is generally favorable for achieving competitive pricing and ensuring a broad pool of qualified contractors.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The government benefited from multiple offers, driving down costs and ensuring access to a wider range of technical solutions.

Public Impact

The Department of the Air Force benefits from reliable and maintained wired telecommunications infrastructure, crucial for operational readiness. This contract ensures the continuous functioning of essential communication networks supporting military operations. The services delivered are critical for command and control, data transmission, and internal communications within the Air Force. The geographic impact is primarily within the Air Force's operational areas, though specific locations are not detailed. Workforce implications include the employment of skilled technicians for maintenance and repair of telecommunications systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are used.
Reliance on a single contractor for critical infrastructure could pose risks if performance degrades.
The 'After Exclusion of Sources' aspect of the competition warrants understanding the initial exclusions.

Positive Signals

The use of full and open competition suggests a robust selection process.
A firm-fixed-price contract provides cost predictability for the government.
The award to Sumaria Systems, LLC, indicates they met the technical and performance requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on telecommunications infrastructure. The market for wired telecommunications carriers is mature, with numerous providers offering a range of services from installation to maintenance. Government spending in this area is substantial, supporting the backbone of federal operations. Comparable spending benchmarks for similar maintenance and repair contracts often vary based on system complexity, geographic coverage, and service level agreements, but this $23.8M award over five years represents a significant investment in maintaining critical infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, Sumaria Systems, LLC may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. The absence of a set-aside means larger, established firms were the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Defense-wide Telecommunications Services
Network Infrastructure Modernization Programs
IT Services for Military Branches
Telecommunications Equipment Maintenance Contracts

Risk Flags

Potential for technology obsolescence over contract duration.
Risk of contractor performance degradation.
Dependence on a single vendor for critical infrastructure.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to SUMARIA SYSTEMS, LLC. COMMUNICATIONS MAINTENANCE AND REPAIR IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SUMARIA SYSTEMS, LLC.

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 $23.8 million.

What is the period of performance?

Start: 2017-09-25. End: 2022-09-30.

What is the track record of Sumaria Systems, LLC with Department of Defense contracts, particularly in communications maintenance?

Sumaria Systems, LLC has a history of receiving contracts from the Department of Defense. Reviewing their past performance on similar telecommunications maintenance and repair contracts is crucial. This includes examining their on-time delivery rates, quality of work, and any past performance issues or awards. Data from contract databases can reveal the volume and value of previous DoD awards to Sumaria Systems, LLC, providing context for their capability to handle this $23.8 million contract over five years. Understanding their experience with firm-fixed-price contracts and the specific technologies involved in wired telecommunications is essential for assessing their suitability and reliability.

How does the per-unit cost of this contract compare to industry benchmarks for similar telecommunications maintenance services?

While the provided data does not include specific per-unit cost breakdowns (e.g., cost per mile of cable maintained, cost per hour of technician time), the overall contract value of $23.8 million over 1831 days (approximately 5 years) can be used for a high-level comparison. The average annual value is roughly $4.76 million. Benchmarking requires access to proprietary industry data or government reports on similar services. However, the fact that it was awarded under full and open competition with 6 bidders suggests that the pricing was competitive and likely aligned with market rates. If the government's internal cost estimates or data from similar, recently awarded contracts show significant deviations, it would warrant further investigation into the value proposition.

What are the primary risks associated with a long-term (5-year) contract for communications maintenance?

Long-term contracts for critical infrastructure like communications maintenance carry several risks. Technology obsolescence is a significant concern; wired telecommunications technology evolves, and a 5-year contract might lock the government into outdated systems if not managed proactively. Contractor performance degradation over time is another risk; initial high performance can wane, leading to service disruptions. Dependence on a single vendor for essential services creates a vulnerability if the contractor faces financial instability, operational issues, or decides to exit the market. Furthermore, the firm-fixed-price nature, while providing cost certainty, can lead to disputes if unforeseen circumstances arise that significantly impact the contractor's costs, potentially leading to claims or reduced service quality if the contractor struggles to maintain profitability.

How effective are the 'full and open competition after exclusion of sources' contract award procedures in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' procedure aims to balance broad competition with specific requirements. It suggests that an initial solicitation might have had certain restrictions or exclusions (e.g., based on security, capability, or specific technology), but the subsequent process was open to all eligible entities meeting those criteria. This approach can be effective if the exclusions are justified and narrowly tailored, preventing unnecessary market limitations. When followed by robust competition among multiple bidders (6 in this case), it generally leads to better price discovery and value for taxpayers than sole-source or limited competition. However, the effectiveness hinges on the justification for the initial exclusions; if they were overly broad or unnecessary, they could have inadvertently reduced competition and potentially increased costs.

What is the historical spending trend for communications maintenance and repair within the Department of the Air Force?

Analyzing historical spending trends for communications maintenance and repair within the Department of the Air Force (DAF) is crucial for context. This $23.8 million award represents a significant, but potentially isolated, investment. Understanding whether this amount is consistent with, higher than, or lower than previous years' spending on similar services provides insight into budget priorities and potential shifts in strategy. For instance, a sudden increase in spending might indicate new infrastructure projects, upgrades, or a consolidation of previously fragmented contracts. Conversely, a decrease could suggest efficiency gains, outsourcing changes, or a reduction in the scope of services. Accessing historical DAF contract data for NAICS code 517110 (Wired Telecommunications Carriers) or similar service categories would reveal these trends.

What are the implications of the 'firm fixed price' contract type on potential cost overruns and contractor incentives?

The Firm Fixed Price (FFP) contract type is generally favored by the government for its cost certainty. Under an FFP contract, the price is set and not subject to adjustment unless specific contract clauses allow for it (e.g., economic price adjustments, though not indicated here). This places the risk of cost overruns squarely on the contractor, Sumaria Systems, LLC. This incentivizes the contractor to manage costs efficiently and perform the work within the agreed budget. For taxpayers, this means the total cost is largely predictable. However, it can also incentivize the contractor to cut corners on quality or service to maintain profitability if costs exceed expectations, necessitating robust government oversight to ensure performance standards are met.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 99 ROSEWOOD DR STE 140, DANVERS, MA, 01923

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,526,942

Exercised Options: $24,637,546

Current Obligation: $23,825,585

Actual Outlays: $8,743,567

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $10,710,037

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873214D0017

IDV Type: IDC

Timeline