DoD's $11M contract for telecommunications services awarded to Manhattan Telecommunications Corporation LLC

Contract Overview

Contract Amount: $10,995,812 ($11.0M)

Contractor: Manhattan Telecommunications Corporation LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2026-05-31

Contract Duration: 1,856 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: IPS SERVICES - 1-59675 MBPS (CONUS)

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC for work described as: IPS SERVICES - 1-59675 MBPS (CONUS) Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include performance variability and economic price adjustments. 4. This contract supports critical Defense Information Systems Agency (DISA) operations. 5. The telecommunications sector is characterized by rapid technological advancement and consolidation. 6. Spending aligns with typical government needs for robust network infrastructure.

Value Assessment

Rating: good

The contract's total value of approximately $11 million over five years, averaging around $2.2 million annually, seems competitive for large-scale telecommunications services. Benchmarking against similar large-scale network infrastructure contracts awarded by DISA or other federal agencies would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure aims to mitigate inflation risks for both parties, which is a common practice in long-term service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by fostering price discovery and encouraging vendors to offer their best terms.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA). The contract delivers essential wired telecommunications carrier services, likely including high-speed internet and data transmission. Services are geographically focused within CONUS (Continental United States). This contract supports the operational readiness and communication capabilities of military personnel and defense agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustments could lead to cost increases beyond initial projections.
Dependence on a single provider for critical infrastructure carries inherent risks.
Potential for service disruptions if the contractor faces operational challenges.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract (5 years) provides stability for service delivery.
Contractor has a track record, though specific performance details are not provided here.

Sector Analysis

The telecommunications sector is a vital component of national infrastructure, supporting government operations, businesses, and consumers. This contract falls under the Wired Telecommunications Carriers industry, which involves the provision of voice and data telecommunications services over wired networks. The market is characterized by significant capital investment, technological innovation, and regulatory oversight. Government spending in this area is crucial for maintaining secure and reliable communication networks.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature and scale of telecommunications infrastructure services, it is likely that larger, established telecommunications providers were the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Information Systems Agency (DISA). Performance monitoring, adherence to service level agreements, and financial accountability are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Defense Information Systems Agency (DISA) Network Services
Federal Telecommunications Infrastructure Contracts
Wired Telecommunications Services
DoD IT Services

Risk Flags

Economic Price Adjustment Clause
Dependence on Single Vendor for Critical Infrastructure
Potential for Service Degradation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to MANHATTAN TELECOMMUNICATIONS CORPORATION LLC. IPS SERVICES - 1-59675 MBPS (CONUS)

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 $11.0 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-05-31.

What is the historical spending pattern for similar telecommunications services by the Defense Information Systems Agency?

Analyzing historical spending by DISA on wired telecommunications services reveals a consistent need for robust network infrastructure to support military operations. Over the past five years, DISA has awarded numerous contracts for bandwidth, data transmission, and related services, often through competitive processes. Spending levels fluctuate based on evolving technological requirements, network upgrades, and the consolidation of existing contracts. While specific dollar amounts for comparable contracts require detailed database queries, the general trend indicates significant and sustained investment in maintaining and enhancing the DoD's communication backbone. This particular contract, valued at approximately $11 million over five years, appears to be within the typical range for substantial, long-term telecommunications support.

How does the per-unit cost of this contract compare to market rates for similar telecommunications services?

Determining a precise per-unit cost for this contract is challenging without knowing the exact service metrics (e.g., bandwidth per dollar, latency guarantees, uptime percentages). However, the total contract value of $10,995,812.39 for 1-59675 MBPS (CONUS) over 1856 days (approximately 5 years) can be used for a high-level comparison. If we consider the maximum bandwidth, the cost per MBPS would be roughly $185 per month. Market rates for dedicated enterprise-grade internet services vary significantly by location, bandwidth, and service level agreements. In major metropolitan areas, costs for high-bandwidth, reliable connections can range from $10 to $50 per MBPS per month, but this often excludes the extensive support, security, and redundancy typically required by a federal agency like DISA. Given the 'full and open competition' and the presence of 5 bids, it suggests the pricing is likely competitive within the specialized federal contracting landscape, though potentially higher than standard commercial offerings due to the stringent requirements.

What is Manhattan Telecommunications Corporation LLC's track record with federal contracts, particularly with DISA?

Manhattan Telecommunications Corporation LLC has a history of engaging with federal agencies, including the Department of Defense. While specific performance metrics for past contracts are not detailed in this data snippet, their ability to secure a contract of this magnitude through full and open competition suggests a level of capability and reliability recognized by the contracting agency. Federal procurement databases would contain more granular information on their past performance ratings, contract types, and agencies served. A review of their contract history would likely indicate their experience in delivering telecommunications services under various contract structures and compliance requirements inherent in government work. Their continued participation in federal bids points to an established presence in the government contracting market.

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

The primary risks associated with this telecommunications contract include potential service disruptions, performance degradation, and cost overruns due to economic price adjustments. Service disruptions could impact critical DoD operations, while performance issues might stem from network congestion or equipment failures. The economic price adjustment clause, while intended to protect against inflation, introduces uncertainty regarding the final cost. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with defined penalties for non-performance, regular performance reviews by DISA, and contingency planning for network redundancy. The use of fixed-price elements within the contract structure also helps to cap certain costs. Furthermore, the competitive award process itself serves as a risk mitigator by selecting a vendor deemed capable of meeting the demanding requirements.

How does this contract contribute to the overall cybersecurity posture of the Department of Defense?

This contract contributes to the DoD's cybersecurity posture by providing the foundational network infrastructure necessary for secure communication and data transfer. Reliable and high-capacity wired telecommunications are essential for transmitting sensitive information, operating secure systems, and enabling real-time command and control. While the contract itself is for telecommunications services, the underlying network's security is paramount. DISA, as the procuring agency, likely imposes stringent security requirements on the contractor, including physical security of network elements, data encryption standards, and adherence to cybersecurity protocols. The performance and reliability of this network directly impact the DoD's ability to defend against cyber threats and maintain operational security across its CONUS operations.

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: 5

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: $55,484,159

Exercised Options: $12,622,806

Current Obligation: $10,995,812

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