DoD's $36.5M Wired Telecom Contract with TRUESTONE, LLC Faces Limited Competition Concerns
Contract Overview
Contract Amount: $36,497,078 ($36.5M)
Contractor: Truestone, LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-11
End Date: 2028-06-10
Contract Duration: 3,652 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: IGF::OT::IGF USBNW75235EBM
Place of Performance
Location: PITI, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $36.5 million to TRUESTONE, LLC for work described as: IGF::OT::IGF USBNW75235EBM Key points: 1. Significant contract value of $36.5 million over 10 years. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with long-term fixed-price contracts with economic adjustments. 4. Spending falls within the IT/Telecommunications sector.
Value Assessment
Rating: questionable
The contract's value is substantial, but without clear competitive benchmarks, assessing its pricing efficiency is difficult. The fixed-price with economic adjustment structure can lead to cost overruns if not carefully managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competition may have prevented the government from securing the best possible pricing through a robust bidding process.
Taxpayer Impact: The limited competition could result in taxpayers paying more than necessary for wired telecommunications services.
Public Impact
Ensures essential wired telecommunications infrastructure for the Department of Defense in Guam. Long-term nature of the contract provides stability for service provision. Potential for cost increases due to economic price adjustments impacts budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Economic price adjustment clause
Positive Signals
- Essential service provision
- Stable vendor relationship
Sector Analysis
This contract falls under the Information Technology sector, specifically wired telecommunications. Spending in this area is critical for government operations, but often subject to rapid technological change and potential for vendor lock-in.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is crucial for long-term contracts, especially those with economic price adjustments, to ensure continued value and prevent potential cost creep. The Department of Defense's Inspector General may play a role in monitoring this contract.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition
- Long contract duration (10 years)
- Economic price adjustment clause
- Lack of transparency on justification for limited competition
Tags
wired-telecommunications-carriers, department-of-defense, gu, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to TRUESTONE, LLC. IGF::OT::IGF USBNW75235EBM
Who is the contractor on this award?
The obligated recipient is TRUESTONE, 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 $36.5 million.
What is the period of performance?
Start: 2018-06-11. End: 2028-06-10.
What was the justification for limiting competition on this significant wired telecommunications contract?
The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities, urgent needs, or the unavailability of other sources. A thorough review of the contract's acquisition history would be necessary to understand the specific reasons and assess their validity.
How has the economic price adjustment clause impacted the total cost of the contract over its lifespan?
The impact of the economic price adjustment (EPA) clause on the total cost is not quantifiable from the provided data. EPAs are designed to account for inflation and changes in economic conditions. However, without historical cost data and the specific indices used for adjustment, it's impossible to determine if the EPA has led to significant cost increases beyond the base price.
What are the potential risks associated with a 10-year contract for wired telecommunications services in terms of technological obsolescence?
A 10-year contract for wired telecommunications services carries a significant risk of technological obsolescence. Technology in this sector evolves rapidly. By the end of the contract term, the services provided might be outdated or less efficient compared to newer available technologies, potentially leading to a need for renegotiation or a costly transition to new systems.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101918QA042
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dowl, LLC
Address: 13873 PARK CENTER RD STE 300N, HERNDON, VA, 20171
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,497,078
Exercised Options: $36,497,078
Current Obligation: $36,497,078
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2018-06-11
Current End Date: 2028-06-10
Potential End Date: 2028-06-10 00:00:00
Last Modified: 2025-09-18
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