DoD's $41.4M Wired Telecommunications Contract with SNVC, LLC Shows Moderate Competition and Fair Value

Contract Overview

Contract Amount: $41,381,145 ($41.4M)

Contractor: Communication Decisions - Snvc, LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2017-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: IGF::OT::IGF YQBXGC, YQBRXC, Y5SCEF, YQBEPM FOR FAA CSAS BEYOND ESTIMATED POP FOR SNVC FY15

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to COMMUNICATION DECISIONS - SNVC, LLC for work described as: IGF::OT::IGF YQBXGC, YQBRXC, Y5SCEF, YQBEPM FOR FAA CSAS BEYOND ESTIMATED POP FOR SNVC FY15 Key points: 1. The contract's fixed-price with economic price adjustment structure offers some cost certainty while allowing for market fluctuations. 2. With three bidders, competition was present but not robust, potentially impacting price discovery. 3. The contract duration of 1095 days suggests a need for sustained telecommunications services. 4. Performance is benchmarked against similar contracts for wired telecommunications carriers. 5. The contract falls within the Defense Information Systems Agency's broader IT and telecommunications spending portfolio. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The total award of $41.4 million over three years for wired telecommunications services appears within a reasonable range for a contract of this scope and duration. Benchmarking against similar contracts for wired telecommunications carriers (NAICS 517110) managed by the Defense Information Systems Agency (DISA) suggests that the pricing is competitive, though specific per-unit cost data is not readily available for direct comparison. The economic price adjustment clause provides a mechanism to account for market volatility, which is a common practice in long-term telecommunications contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. While the presence of multiple bidders indicates some level of competition, a higher number of bidders typically leads to more aggressive pricing and better value for the government. The fact that three entities vied for this contract suggests that the market for these services is not overly concentrated, but there may be room for improvement in attracting a broader range of competitors.

Taxpayer Impact: The full and open competition, despite having only three bidders, likely prevented significantly inflated pricing. However, taxpayers may have missed out on potentially greater savings that could have been achieved with a more competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, which receive essential wired telecommunications services. Services delivered include the provision and maintenance of wired telecommunications infrastructure, crucial for military operations and communications. The geographic impact is likely widespread within the areas served by the Defense Information Systems Agency, potentially encompassing global military installations. Workforce implications include support for telecommunications technicians and engineers, both within the government and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the economic price adjustment clause, depending on market conditions.
Limited competition (3 bidders) may have resulted in a less optimal price than a more robust bidding environment.
Contract duration of three years could lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded under full and open competition, ensuring a broad initial search for qualified contractors.
Fixed-price elements provide a baseline cost control, with adjustments only for specified economic factors.
The contract supports critical defense communications infrastructure.

Sector Analysis

The wired telecommunications carriers sector (NAICS 517110) encompasses companies that provide telecommunications services, including voice and data transmission over wired networks. This contract falls within the broader Information Technology and Defense sectors. Spending in this area is critical for maintaining secure and reliable communication networks for government operations. Comparable spending benchmarks for similar telecommunications services within the federal government can vary significantly based on the scope, duration, and specific technologies involved.

Small Business Impact

This contract did not include a small business set-aside. The award to SNVC, LLC, suggests that the primary focus was on securing the necessary telecommunications services through a competitive process that may have favored larger, established providers with the capacity to handle large-scale defense contracts. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though it is possible they may be involved indirectly.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be tied to the performance work statement and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, although specific details of performance monitoring are not provided. The Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
Department of Defense Network Infrastructure Modernization
Federal Wired Telecommunications Services
Government Communications and Information Systems

Risk Flags

Potential for cost escalation due to economic price adjustment.
Limited number of bidders may impact optimal pricing.
Contract duration requires careful performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to COMMUNICATION DECISIONS - SNVC, LLC. IGF::OT::IGF YQBXGC, YQBRXC, Y5SCEF, YQBEPM FOR FAA CSAS BEYOND ESTIMATED POP FOR SNVC FY15

Who is the contractor on this award?

The obligated recipient is COMMUNICATION DECISIONS - SNVC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $41.4 million.

What is the period of performance?

Start: 2014-10-01. End: 2017-09-30.

What is the track record of SNVC, LLC in performing federal contracts, particularly within the Department of Defense?

SNVC, LLC has a history of performing federal contracts, including those with the Department of Defense. While the provided data focuses on this specific $41.4 million contract for wired telecommunications services, a comprehensive assessment of their track record would involve reviewing their performance on other awards, including contract completion rates, any past performance issues or disputes, and their overall reputation with government agencies. Information from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would be necessary to fully evaluate their past performance and reliability in delivering complex telecommunications solutions.

How does the pricing of this contract compare to similar wired telecommunications contracts awarded by DISA or other DoD agencies?

Directly comparing the pricing of this $41.4 million contract to similar wired telecommunications contracts requires access to detailed pricing structures and unit costs for comparable awards. The provided data indicates a fixed-price with economic price adjustment structure, which is common. However, without specific benchmarks for per-line costs, bandwidth, or installation fees for similar services procured by DISA or other DoD entities, a precise value-for-money assessment is challenging. The presence of three bidders suggests a degree of market competitiveness, which generally helps in achieving reasonable pricing, but a more robust competition might have yielded better rates. Further analysis would involve examining the scope of services, geographic coverage, and technology deployed in comparable contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns due to the economic price adjustment clause, especially if inflation in telecommunications components or labor rises unexpectedly. Another risk is the limited competition (three bidders), which could lead to less favorable pricing than a more competitive scenario. Vendor lock-in over the three-year duration is also a consideration. Mitigation strategies likely involve diligent contract management by DISA, including close monitoring of price adjustment claims, regular performance reviews, and ensuring adherence to the performance work statement. The fixed-price components of the contract also serve as a risk mitigation tool by establishing a baseline cost.

How effective has SNVC, LLC been in delivering the specified wired telecommunications services under this contract?

The effectiveness of SNVC, LLC in delivering the specified wired telecommunications services under this contract cannot be fully determined from the provided data alone. Effectiveness is typically measured by adherence to the performance work statement, meeting delivery schedules, service availability, and overall quality of service. While the contract was awarded and is active, detailed performance metrics, customer satisfaction reports, or any documented issues are not included. A thorough assessment would require reviewing performance reports, such as those generated through CPARS, and feedback from the end-users within the Department of Defense.

What are the historical spending patterns for wired telecommunications services by the Defense Information Systems Agency?

Historical spending patterns for wired telecommunications services by the Defense Information Systems Agency (DISA) indicate a consistent and significant investment in maintaining and upgrading its communication infrastructure. DISA manages a vast network supporting global military operations, necessitating substantial and ongoing expenditure in this area. Over the years, DISA has procured a wide range of telecommunications services, including terrestrial circuits, satellite communications, and advanced networking solutions. Spending levels can fluctuate based on modernization initiatives, evolving security requirements, and the consolidation or expansion of military installations. This $41.4 million contract represents one component of DISA's broader telecommunications budget, which is typically substantial due to the critical nature of its mission.

What is the significance of the 'Wired Telecommunications Carriers' NAICS code (517110) in the context of federal spending?

The NAICS code 517110, 'Wired Telecommunications Carriers,' is significant in federal spending as it identifies a crucial sector providing the backbone for much of the government's communication needs. This includes services like broadband internet, dedicated data lines, and traditional voice services delivered over physical infrastructure. Federal agencies, particularly defense and intelligence organizations, rely heavily on these services for secure and reliable operations, both domestically and internationally. Spending under this code reflects investments in maintaining and expanding secure communication networks, supporting everything from administrative functions to critical command and control systems. The nature of these services often leads to long-term contracts and significant financial commitments.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Snvc, L.C. (UEI: 041320164)

Address: 12150 MONUMENT DR STE 510, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,381,145

Exercised Options: $41,381,145

Current Obligation: $41,381,145

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline