DoD's $12.6M IPVS Contract with Manhattan Telecommunications: Fixed Price with Economic Adjustment
Contract Overview
Contract Amount: $12,606,879 ($12.6M)
Contractor: Manhattan Telecommunications Corporation LLC
Awarding Agency: Department of Defense
Start Date: 2021-05-18
End Date: 2026-05-31
Contract Duration: 1,839 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: HOSTED IPVS WITH MANAGED LAN SERVICE ACT
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23459
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.6 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: HOSTED IPVS WITH MANAGED LAN SERVICE ACT Key points: 1. Significant contract value of $12.6 million over 5 years. 2. Manhattan Telecommunications Corporation LLC is the sole awardee. 3. Fixed Price with Economic Price Adjustment (EPA) introduces potential cost escalation. 4. Spending falls within the Wired Telecommunications Carriers sector.
Value Assessment
Rating: fair
The contract uses a Fixed Price with Economic Price Adjustment (EPA) structure. While this can protect against inflation, it introduces uncertainty in the final cost compared to a firm fixed price. Benchmarking against similar managed LAN services is difficult without specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award is a delivery order, implying it might be part of a larger indefinite-delivery contract vehicle. The impact on price discovery depends on the competitiveness of the initial bidding for the vehicle.
Taxpayer Impact: The use of EPA introduces potential for increased costs to taxpayers if economic conditions lead to significant price adjustments.
Public Impact
Ensures critical communication infrastructure for the Department of Defense. Supports military operations and personnel through reliable network services. Potential for increased costs due to economic price adjustments impacts taxpayer funds. Contract duration of over 5 years provides long-term service stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment (EPA) may increase final cost.
- Limited visibility into specific service delivery and performance metrics.
- Sole awardee for this delivery order, though competition existed for the IDIQ.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides service continuity.
- Supports critical defense information systems.
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, specifically for Hosted IPVS with Managed LAN services. Spending in this area is crucial for government operations, but costs can fluctuate based on technology advancements and economic factors.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would involve monitoring the execution of the contract, ensuring service level agreements are met, and managing the economic price adjustment clauses to mitigate excessive cost increases.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) risk.
- Potential for cost overruns.
- Dependence on a single provider for this delivery order.
- Lack of detailed performance metrics in the provided data.
- Long contract duration may not keep pace with rapid technological change.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. HOSTED IPVS WITH MANAGED LAN SERVICE ACT
Who is the contractor on this award?
The obligated recipient is MANHATTAN TELECOMMUNICATIONS CORPORATION 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 $12.6 million.
What is the period of performance?
Start: 2021-05-18. End: 2026-05-31.
What specific metrics define the 'managed LAN service' and how are they measured to ensure value for the $12.6M?
The contract details should specify Service Level Agreements (SLAs) for uptime, latency, bandwidth, and security protocols. Performance against these metrics needs rigorous tracking by the Defense Information Systems Agency (DISA). Without clear, measurable outcomes tied to mission requirements, assessing true value beyond the price tag is challenging.
How will the economic price adjustment (EPA) be managed to prevent excessive cost increases and protect taxpayer funds?
The EPA clause likely references specific economic indices (e.g., CPI, industry-specific cost indexes). DISA must actively monitor these indices and the contractor's justification for price increases. Regular reviews and potentially negotiating caps on adjustments are crucial to mitigate risks associated with fluctuating economic conditions.
What is the long-term strategy for network services, and does this contract align with future technological advancements or potential consolidation?
This contract covers services through May 2026. DISA should be evaluating emerging technologies like cloud-based solutions or software-defined networking. Ensuring this managed LAN service contract remains adaptable or is part of a broader strategy that anticipates future needs is key to avoiding technological obsolescence and ensuring continued effectiveness.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 55 WATER ST FL 32, NEW YORK, NY, 10041
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,199,071
Exercised Options: $12,607,029
Current Obligation: $12,606,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17NSD3007
IDV Type: IDC
Timeline
Start Date: 2021-05-18
Current End Date: 2026-05-31
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2026-01-15
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