DoD awards $6.17M for wired telecom services in Puerto Rico and USVI, with 2 bidders

Contract Overview

Contract Amount: $6,167,872 ($6.2M)

Contractor: BT Federal Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2026-10-31

Contract Duration: 2,891 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR SHALL EMPLOY A SERVICE-BASED NETWORK SOLUTION APPROACH WITHIN PUERTO RICO AND THE US VIRGIN ISLANDS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to BT FEDERAL INC for work described as: CONTRACTOR SHALL EMPLOY A SERVICE-BASED NETWORK SOLUTION APPROACH WITHIN PUERTO RICO AND THE US VIRGIN ISLANDS. Key points: 1. Contract value appears reasonable for a multi-year, geographically specific telecommunications service. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Limited number of bidders (2) warrants further scrutiny of price reasonableness. 4. Contract duration of nearly 8 years is substantial for telecommunications infrastructure. 5. Service-based network solution approach indicates a focus on operational outcomes. 6. Geographic focus on Puerto Rico and USVI may present unique logistical challenges and opportunities.

Value Assessment

Rating: good

The contract value of $6.17 million over approximately 8 years for wired telecommunications services in Puerto Rico and the US Virgin Islands seems within a reasonable range for such a specialized and geographically dispersed requirement. Benchmarking against similar multi-year, regional telecommunications contracts would provide a more precise assessment, but the scope suggests a significant investment. The firm-fixed-price structure helps control costs for the government, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With two bidders participating, the competition level is moderate. While two bidders suggest some level of market interest, it is on the lower end of what might be expected for a significant telecommunications contract. This could imply either a niche market or potential barriers to entry for other providers.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from some price negotiation, but there may be room for further cost savings if more bidders had been involved.

Public Impact

Serves Department of Defense operations within Puerto Rico and the US Virgin Islands. Ensures reliable wired telecommunications infrastructure for military personnel and operations in the region. Supports critical communication needs for national security in the Caribbean theater. Potentially impacts local telecommunications workforce through employment opportunities with the contractor or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term contract and specialized network solution.
Geographic remoteness of service areas could lead to unforeseen logistical costs or delays.
Dependence on a single contractor for critical communication infrastructure poses a risk.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition mechanism allows for a broad range of potential offerors.
Long contract duration allows for stable service provision and potential for economies of scale.

Sector Analysis

The telecommunications industry, particularly wired telecommunications carriers (NAICS 517110), is a critical sector supporting government operations. This contract falls within the segment of providing essential communication infrastructure and services. The market size for government telecommunications contracts is substantial, with significant spending across various agencies. This specific contract's focus on a particular region highlights the need for tailored solutions that account for local infrastructure and conditions.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of large-scale telecommunications infrastructure, it is possible that a prime contractor like BT Federal Inc. may engage small businesses for specific services or support roles, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed here.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Wired Telecommunications Services
Department of Defense IT Spending
Puerto Rico Federal Contracts
US Virgin Islands Federal Contracts

Risk Flags

Moderate competition level (2 bidders) may limit price discovery.
Long contract duration (nearly 8 years) increases exposure to technological obsolescence or changing requirements.
Geographic concentration in potentially disaster-prone areas (Puerto Rico, USVI) poses inherent risks.
Dependence on a single contractor for critical communications infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to BT FEDERAL INC. CONTRACTOR SHALL EMPLOY A SERVICE-BASED NETWORK SOLUTION APPROACH WITHIN PUERTO RICO AND THE US VIRGIN ISLANDS.

Who is the contractor on this award?

The obligated recipient is BT FEDERAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2018-12-01. End: 2026-10-31.

What is the track record of BT Federal Inc. in delivering similar telecommunications services, particularly in remote or challenging geographic locations?

Assessing BT Federal Inc.'s track record requires a deeper dive into their past performance on contracts with the Department of Defense and other federal agencies. Specifically, information regarding their experience with service-based network solutions, wired telecommunications in island territories like Puerto Rico and the US Virgin Islands, and their ability to manage long-term, complex projects would be crucial. Reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any documented issues or successes on similar contracts would provide insight into their reliability, technical capabilities, and project management effectiveness in this specific domain.

How does the awarded price compare to market rates for similar telecommunications services in Puerto Rico and the US Virgin Islands?

To benchmark the price, one would need to compare the contract's total value ($6.17 million over ~8 years) against prevailing market rates for comparable wired telecommunications services in Puerto Rico and the US Virgin Islands. This involves researching pricing from other commercial providers in the region for similar bandwidth, network architecture, and service level agreements. Additionally, comparing it to other government contracts awarded for similar services in comparable geographic areas, adjusted for inflation and scope differences, would be informative. The firm-fixed-price nature suggests the government aimed for cost certainty, but without market data, it's difficult to definitively state if it represents optimal value.

What are the specific risks associated with providing wired telecommunications in Puerto Rico and the US Virgin Islands, and how are they mitigated by this contract?

Risks in these regions can include susceptibility to natural disasters (hurricanes), aging infrastructure, limited availability of skilled labor, and logistical challenges in deploying and maintaining equipment. The contract's 'service-based network solution approach' suggests a focus on ensuring service delivery rather than just infrastructure provision, which might include redundancy and rapid response mechanisms. However, the specific mitigation strategies employed by BT Federal Inc. and overseen by DISA are not detailed. The long duration could allow for infrastructure hardening, but the inherent vulnerabilities of the geographic location remain a concern.

What is the expected effectiveness of the 'service-based network solution approach' in meeting DoD's communication needs in these territories?

A 'service-based network solution approach' typically implies that the contractor is responsible for delivering a defined level of service (e.g., uptime, bandwidth, latency) rather than just providing specific hardware or circuits. This can enhance effectiveness by shifting the burden of network management, maintenance, and upgrades to the contractor, allowing the DoD to focus on its mission. For remote areas like Puerto Rico and the USVI, this approach can be particularly beneficial if it ensures resilience and adaptability to changing needs or unforeseen issues. The success hinges on clear performance metrics, robust Service Level Agreements (SLAs), and effective monitoring by DISA.

How has federal spending on wired telecommunications in Puerto Rico and the US Virgin Islands trended over the past five years?

Analyzing historical spending trends for wired telecommunications in Puerto Rico and the US Virgin Islands by the federal government, particularly the DoD, would provide context for this $6.17 million award. This would involve examining contract databases for similar services awarded to various entities in these regions over the last five years. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate market dynamics, evolving requirements, or shifts in procurement strategies. A significant increase might suggest growing needs or new initiatives, while a decrease could point to consolidation or alternative solutions being adopted.

What is the potential impact of this contract on local small businesses in Puerto Rico and the US Virgin Islands?

While this contract is not a small business set-aside, its execution could create opportunities for local small businesses in Puerto Rico and the US Virgin Islands to act as subcontractors. BT Federal Inc. might engage local firms for installation, maintenance, support services, or logistics. The extent of this impact depends on the contractor's subcontracting strategy and the availability of qualified small businesses in the region. A review of the contractor's small business subcontracting plan, if available, would clarify the anticipated benefits to the local small business ecosystem.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC101315R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BT Group PLC

Address: 11440 COMMERCE PARK DR, STE-100, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,553,747

Exercised Options: $6,176,444

Current Obligation: $6,167,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101316D0003

IDV Type: IDC

Timeline