DoD's $552M Communication Equipment Contract Awarded to Baud Telecom Amidst Full and Open Competition

Contract Overview

Contract Amount: $16,420,781 ($16.4M)

Contractor: Baud Telecommunications CO Ltd

Awarding Agency: Department of Defense

Start Date: 2004-03-08

End Date: 2014-03-12

Contract Duration: 3,656 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200406!000115!5700!GV68 !ESC/ACK !FA872004C0008 !A!N! !N! ! !20040308!20051231!552499600!552499600!552499600!N!BAUD TELECOM COMPANY LTD !ALMOUSA CENTER ,TOWER C !RIYADH !SA!* !00000! !SA!* !* !S ARABIA !+000012876469!Y!N!000013939436!K058!MODIFICATION OF EQ/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !811213!E! !3! ! ! ! ! !99990909!B!A!N!A! !A!N!J!2!009!B! !Z!Y!A!B!SA!N!L!N! ! ! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $16.4 million to BAUD TELECOMMUNICATIONS CO LTD for work described as: 200406!000115!5700!GV68 !ESC/ACK !FA872004C0008 !A!N! !N! ! !20040308!20051231!552499600!552499600!552499600!N!BAUD TELECOM COMPANY LTD !ALMOUSA CENTER ,TOWER C !RIYADH !SA!* !00000! !SA!* !* … Key points: 1. The contract, valued at $552.5 million, was awarded by the Department of Defense to Baud Telecommunications Co. Ltd. 2. This award was made under a full and open competition, suggesting a competitive bidding process. 3. The contract covers communication equipment repair and maintenance, a critical sector for defense operations. 4. The duration of the contract is substantial, spanning over 9 years, indicating a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $552.5 million over 9 years appears significant. Benchmarking against similar communication equipment maintenance contracts would be necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific price discovery mechanisms and the number of bids received would provide further insight into the price reasonableness.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price, though a detailed cost analysis would confirm this.

Public Impact

Ensures continued operational readiness of critical communication systems for the Department of Defense. Supports the maintenance and repair of electronic and communication equipment, vital for national security. The long-term nature of the contract provides stability for the awarded vendor and ensures consistent service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to price escalation if not managed effectively.
Reliance on a single vendor for critical communication equipment maintenance may pose a risk.
Geopolitical factors in Saudi Arabia could impact service delivery or costs.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Focus on essential communication equipment maintenance supports core defense functions.
Contract value suggests a significant need and commitment from the DoD.

Sector Analysis

This contract falls within the Electronics and Communication Equipment sector, specifically for repair and maintenance. Spending in this area is crucial for maintaining the operational capabilities of defense forces, ensuring reliable communication infrastructure.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, a branch of the DoD. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial audits to ensure accountability.

Related Government Programs

Communication Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration (9+ years)
Potential for price escalation over time
Geopolitical risks associated with vendor location (Saudi Arabia)
Lack of specific small business participation details
Need for detailed cost breakdown to assess value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to BAUD TELECOMMUNICATIONS CO LTD. 200406!000115!5700!GV68 !ESC/ACK !FA872004C0008 !A!N! !N! ! !20040308!20051231!552499600!552499600!552499600!N!BAUD TELECOM COMPANY LTD !ALMOUSA CENTER ,TOWER C !RIYADH !SA!* !00000! !SA!* !* !S ARABIA !+000012876469!Y!N!000013939436!K058!MODIFICATION OF EQ/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !811213!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BAUD TELECOMMUNICATIONS CO LTD.

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 $16.4 million.

What is the period of performance?

Start: 2004-03-08. End: 2014-03-12.

What was the specific nature of the 'modification' mentioned in the contract description, and how did it impact the final price?

The contract description notes 'MODIFICATION OF EQ/COMMUNICATION EQUIPMENT'. Without further details on the specific modifications, it's difficult to assess their impact on the final price. Modifications can range from upgrades to repairs, each carrying different cost implications. A thorough review of contract amendments would be required to understand the scope and financial consequences of these modifications.

How does the per-unit cost of repair and maintenance compare to industry benchmarks for similar communication equipment?

Benchmarking the per-unit cost for repair and maintenance is challenging without specific line-item details on the services provided and the equipment involved. The total contract value of $552.5 million spread over 9 years for 'Communication Equipment Repair and Maintenance' needs to be broken down into specific service costs. Comparing these granular costs against industry averages for similar defense-grade communication systems would be essential for a robust value assessment.

What is the assessed risk associated with Baud Telecommunications Company Ltd. fulfilling this long-term, high-value contract?

The primary risks associated with Baud Telecommunications Company Ltd. fulfilling this contract include potential performance issues over the 9-year duration, geopolitical instability in Saudi Arabia affecting operations, and the company's financial stability to manage such a large contract. Assessing past performance, financial health, and contingency plans for geopolitical disruptions would be crucial to understanding the overall risk profile.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: ALMOUSA CENTER ,TOWER C, RIYADH

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: YES

Timeline