DoD's $3.8M contract for spectrum management services awarded to DNI Emerging Technologies, LLC

Contract Overview

Contract Amount: $3,794,745 ($3.8M)

Contractor: DNI Emerging Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-08

End Date: 2026-04-07

Contract Duration: 729 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT OF AFCLMC SPECTRUM MANAGEMENT MISSION WITH EQUIPMENT SPECTRUM CERTIFICATION (ESC), RADIO FREQUENCY AUTHORIZATION (RFA), FOREIGN DISCLOSURE RELEASE/HOST NATION COORDINATION DOCUMENT PACKAGES, AND SPECTRUM SUPPORTABILITY RISK ASSESSMENT (SSRA).

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73106

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $3.8 million to DNI EMERGING TECHNOLOGIES, LLC for work described as: SUPPORT OF AFCLMC SPECTRUM MANAGEMENT MISSION WITH EQUIPMENT SPECTRUM CERTIFICATION (ESC), RADIO FREQUENCY AUTHORIZATION (RFA), FOREIGN DISCLOSURE RELEASE/HOST NATION COORDINATION DOCUMENT PACKAGES, AND SPECTRUM SUPPORTABILITY RISK ASSESSMENT (SSRA). Key points: 1. Contract focuses on critical spectrum management functions including certification, authorization, and risk assessment. 2. Awarded to a single vendor, raising questions about competition and potential cost efficiencies. 3. The contract duration of 729 days suggests a need for sustained support in this specialized area. 4. Performance is rated as 'OK', indicating satisfactory but not exceptional delivery. 5. The 'Other Computer Related Services' NAICS code suggests a broad scope of technical support. 6. Lack of small business participation noted, with no set-aside or subcontracting requirements. 7. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of approximately $3.8 million over two years for specialized spectrum management services appears to be within a reasonable range for the described tasks. However, without direct benchmarks for similar, competitively awarded contracts, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain aligned with the fixed fee and do not escalate beyond initial expectations. The 'OK' performance rating suggests the contractor is meeting basic requirements, but doesn't indicate exceptional value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor possesses the necessary specialized skills, technology, or when urgency dictates a rapid award. The lack of competition means there was no opportunity for multiple bidders to offer proposals, potentially limiting price discovery and the government's ability to secure the most cost-effective solution. The rationale for this sole-source award would need further justification to understand if it was truly the only viable option.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices. This necessitates robust oversight to ensure fair pricing.

Public Impact

The Department of the Air Force benefits from essential spectrum management services, ensuring operational readiness. Services include Radio Frequency Authorization and Spectrum Supportability Risk Assessment, crucial for electronic warfare and communication systems. The contract supports the DNI Emerging Technologies, LLC's role in providing specialized technical expertise. Geographic impact is primarily within the Department of Defense's operational environments, wherever spectrum management is required. Workforce implications include the need for skilled personnel in spectrum management and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost Plus Fixed Fee contract type carries inherent risk of cost escalation if not closely managed.
Performance rating of 'OK' suggests room for improvement in service delivery.
Lack of small business involvement means missed opportunities for economic inclusion and diverse solutions.

Positive Signals

Contract addresses critical mission requirements for spectrum management.
DNI Emerging Technologies, LLC is providing specialized expertise in a niche technical area.
The contract duration indicates a commitment to sustained support for these vital functions.

Sector Analysis

The contract falls within the broader IT and professional services sector, specifically focusing on specialized technical services related to spectrum management. This is a critical but often niche area within defense and telecommunications. The market for such specialized services is likely limited to a few highly qualified firms. Comparable spending benchmarks are difficult to establish without more specific data on the scope and complexity of spectrum management tasks across different agencies.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor are there explicit subcontracting requirements mentioned. This indicates that the primary awardee is expected to perform all work directly or through their own resources. Consequently, there is no direct positive impact on the small business ecosystem through this specific award. Opportunities for small businesses to participate would likely be through prime contractors on other, competitively awarded contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to track expenditures against the fixed fee and ensure compliance with contract terms. Transparency is facilitated through contract reporting mechanisms, though the sole-source nature limits public visibility into the competitive process. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Spectrum Management Programs
Air Force Communications and IT Services
Radio Frequency Authorization Systems
Electromagnetic Spectrum Operations
Defense Information Technology Services

Risk Flags

Sole-source award may limit cost savings.
Cost Plus Fixed Fee contract type requires vigilant cost oversight.
Performance rating of 'OK' suggests potential for service improvement.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to DNI EMERGING TECHNOLOGIES, LLC. SUPPORT OF AFCLMC SPECTRUM MANAGEMENT MISSION WITH EQUIPMENT SPECTRUM CERTIFICATION (ESC), RADIO FREQUENCY AUTHORIZATION (RFA), FOREIGN DISCLOSURE RELEASE/HOST NATION COORDINATION DOCUMENT PACKAGES, AND SPECTRUM SUPPORTABILITY RISK ASSESSMENT (SSRA).

Who is the contractor on this award?

The obligated recipient is DNI EMERGING TECHNOLOGIES, 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 $3.8 million.

What is the period of performance?

Start: 2024-04-08. End: 2026-04-07.

What is the track record of DNI Emerging Technologies, LLC with the Department of Defense?

Information regarding DNI Emerging Technologies, LLC's specific track record with the Department of Defense is not detailed in the provided data. However, the 'OK' performance rating on this contract suggests satisfactory, but not exceptional, past performance. Further investigation into their contract history, past performance reviews, and any prior issues or commendations would be necessary for a comprehensive assessment. Understanding their experience with similar spectrum management tasks and their ability to manage Cost Plus Fixed Fee contracts effectively is crucial for evaluating future engagements.

How does the pricing of this contract compare to similar services in the market?

Direct comparison of pricing is challenging due to the sole-source nature of this award and the lack of specific cost breakdowns. The contract value of approximately $3.8 million over two years for specialized spectrum management services (ESC, RFA, FD/HNC, SSRA) is difficult to benchmark without access to data on competitively awarded contracts for similar services. The Cost Plus Fixed Fee structure means that the government pays allowable costs plus a negotiated fixed fee, which can vary significantly based on the contractor's efficiency and the actual costs incurred. Without market data or competitive bids, it's hard to definitively state if this represents optimal value.

What are the primary risks associated with this Cost Plus Fixed Fee contract?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and contractor efficiency. CPFF contracts are designed to provide a degree of flexibility for the government when project scope is uncertain or involves research and development. However, they can incentivize contractors to incur higher costs, as their profit (the fixed fee) is not directly tied to cost savings. Key risks include potential cost overruns if the contractor's expenses exceed projections, scope creep that is not adequately managed, and the possibility that the contractor may not be as motivated to find cost-saving efficiencies as they would be under a fixed-price contract. Robust oversight and detailed cost tracking are essential to mitigate these risks.

How effective are the spectrum management services provided under this contract for the Air Force's mission?

The effectiveness of the spectrum management services is crucial for the Air Force's mission, as it ensures that communication and electronic warfare systems can operate without interference and in compliance with regulations. Services like Equipment Spectrum Certification (ESC), Radio Frequency Authorization (RFA), and Spectrum Supportability Risk Assessment (SSRA) are foundational for deploying and operating modern military assets. While the contract's performance rating is 'OK', indicating basic adequacy, the true effectiveness hinges on how well these services enable seamless operations, prevent spectrum conflicts, and support the Air Force's technological advancements. A deeper dive into mission outcomes directly attributable to these services would be needed for a full assessment.

What are the historical spending patterns for spectrum management services within the Department of Defense?

Historical spending patterns for spectrum management services within the Department of Defense are not detailed in the provided data. However, it is understood that spectrum management is a continuous and critical function, particularly with the increasing reliance on wireless communications and electronic warfare capabilities across all branches. Spending in this area is likely to be substantial and potentially growing, driven by technological advancements, evolving threats, and the need to manage increasingly congested electromagnetic spectrum. Analyzing historical data would reveal trends in contract types, durations, and key service providers, offering context for current spending levels.

What is the significance of the 'Other Computer Related Services' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' indicates a broad category of IT services that do not fit into more specific classifications. For this contract, it suggests that the services provided by DNI Emerging Technologies, LLC extend beyond standard software development or hardware maintenance. It likely encompasses a range of specialized technical support, consulting, and potentially system integration related to spectrum management technologies and processes. This broad classification highlights the diverse and potentially complex nature of the support required for the Air Force's spectrum management mission.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1650, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,453,487

Exercised Options: $3,979,970

Current Obligation: $3,794,745

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline