DoD's $20.6M Guam Fiber Installation contract awarded to Agile Government LLC for 5 years

Contract Overview

Contract Amount: $20,592,319 ($20.6M)

Contractor: Agile Government LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-28

End Date: 2029-03-02

Contract Duration: 1,463 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GUAM FIBER INSTALLATION: BLDG 200-BLDG 226, BLDG 200-BLDG 4434, BLDG 25008-BLDG 70, AND BLDG 1995-OPA GUAM.

Place of Performance

Location: DEDEDO, GUAM County, GUAM, 96912

Plain-Language Summary

Department of Defense obligated $20.6 million to AGILE GOVERNMENT LLC for work described as: GUAM FIBER INSTALLATION: BLDG 200-BLDG 226, BLDG 200-BLDG 4434, BLDG 25008-BLDG 70, AND BLDG 1995-OPA GUAM. Key points: 1. The contract value of $20.6 million over five years suggests a significant investment in critical infrastructure. 2. The award to Agile Government LLC indicates a focus on specialized IT services for defense installations. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific justifications. 4. The duration of 1463 days points to a long-term project requiring sustained effort and management. 5. The firm-fixed-price contract type aims to control costs and transfer risk to the contractor. 6. The geographic focus on Guam highlights the strategic importance of this location for defense operations.

Value Assessment

Rating: fair

Benchmarking the per-unit cost for fiber installation in a remote location like Guam is challenging due to unique logistical and labor costs. The total contract value of $20.6 million for five years of work across multiple buildings suggests a substantial project. Without specific details on the scope of work (e.g., miles of fiber, number of connections, complexity of terrain), a direct comparison to similar contracts is difficult. However, the price appears to be within a reasonable range for large-scale infrastructure projects in high-cost, remote areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while a broad competition was initially considered, specific circumstances or requirements led to the exclusion of certain sources, potentially limiting the pool of bidders. The number of bidders (3) indicates some level of competition, but the exclusion of sources might have impacted the overall competitiveness and potentially the price discovery process.

Taxpayer Impact: The limited competition, even after an initial open process, may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding environment.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in Guam, who will receive improved network infrastructure. The services delivered include the installation of fiber optic cabling to connect critical buildings on the naval base. The geographic impact is concentrated on U.S. Naval Base Guam, enhancing its operational capabilities. Workforce implications may include the need for specialized technicians for fiber installation and network integration, potentially creating local or imported jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The exclusion of sources requires careful justification to ensure fairness and prevent potential collusion.
Long-term contracts can sometimes lead to scope creep if not managed tightly.
Reliance on a single contractor for a critical infrastructure project poses a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type helps control costs and manage budget predictability.
The five-year duration allows for a structured, phased approach to installation and integration.
The award to a single contractor can streamline project management and ensure consistent execution.
The strategic location of Guam necessitates robust communication infrastructure, making this a vital project.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on network infrastructure development. The market for IT services, particularly for government and defense clients, is substantial. This project aligns with broader trends of upgrading legacy communication systems to high-speed fiber optics to support increasing data demands and advanced military applications. Comparable spending benchmarks for large-scale fiber deployments in government facilities can vary widely based on location, complexity, and security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Agile Government LLC, will likely manage the subcontracting opportunities, if any, based on their own business strategy and project needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) and the Department of Defense contracting officers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within budget. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Network Modernization
Guam Military Infrastructure Projects
Federal Fiber Optic Network Deployments
Command, Control, Communications, Computers, and Intelligence (C4I) Systems

Risk Flags

Potential for reduced competition due to source exclusion.
Logistical challenges and higher costs associated with remote island location.
Risk of scope creep over the 5-year contract duration.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to AGILE GOVERNMENT LLC. GUAM FIBER INSTALLATION: BLDG 200-BLDG 226, BLDG 200-BLDG 4434, BLDG 25008-BLDG 70, AND BLDG 1995-OPA GUAM.

Who is the contractor on this award?

The obligated recipient is AGILE GOVERNMENT 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 $20.6 million.

What is the period of performance?

Start: 2025-02-28. End: 2029-03-02.

What is the track record of Agile Government LLC in delivering similar large-scale IT infrastructure projects for the Department of Defense?

Assessing the track record of Agile Government LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented successes or failures in delivering complex IT infrastructure, particularly in remote or challenging environments like Guam. Without specific past performance data, it's difficult to definitively gauge their capability to execute this $20.6 million project effectively. A history of successful, on-time, and within-budget project completion would be a strong positive indicator, while a record of delays, cost overruns, or quality issues would raise concerns.

How does the awarded price of $20.6 million compare to market rates for similar fiber installation projects in comparable geographic locations?

Directly comparing the $20.6 million price tag to market rates is complex due to the unique factors associated with Guam. These include significant logistical costs for shipping materials and personnel, potentially higher labor rates due to scarcity or travel requirements, and the specific security and environmental considerations of a military base. While general fiber installation costs per mile can be benchmarked, applying those benchmarks to this contract requires detailed knowledge of the project's scope (e.g., total fiber length, conduit installation, number of building penetrations, testing requirements). The 'limited' competition aspect also suggests that the price might not reflect the absolute lowest market rate. A thorough analysis would involve obtaining quotes for similar work in other remote, high-cost regions or specialized government installations.

What specific risks are associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, and how are they mitigated?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type implies that while the initial intent was open competition, certain potential bidders were excluded based on specific criteria or justifications. This can introduce risks such as reduced overall competition, potentially leading to higher prices than a truly open bid might yield. It also raises questions about the fairness and transparency of the exclusion process. Mitigation strategies typically involve robust documentation of the reasons for exclusion, ensuring that the criteria used are objective, relevant to the contract requirements, and applied consistently. The agency must be able to demonstrate that the exclusion was necessary and did not unduly restrict competition, thereby safeguarding taxpayer interests and ensuring best value.

What are the potential implications of a 5-year contract duration for project management and cost control?

A 5-year contract duration for the Guam fiber installation project offers both advantages and potential challenges for project management and cost control. On the positive side, it allows for a phased, systematic approach to installation, integration, and testing across multiple buildings, potentially leading to greater efficiency and reduced disruption. It also provides the contractor with a stable demand, which can incentivize investment in specialized resources and personnel. However, a long duration also increases the risk of scope creep, technological obsolescence, and potential cost increases due to inflation or unforeseen project complexities. Effective management requires clear milestones, regular performance reviews, and mechanisms to adjust for changing requirements or market conditions while adhering to the firm-fixed-price structure.

How does this contract align with the Department of Defense's broader strategy for modernizing communication infrastructure in the Pacific region?

This contract directly supports the Department of Defense's (DoD) strategic imperative to modernize communication infrastructure, particularly in the critical Pacific region. Guam serves as a vital hub for U.S. military operations, and robust, high-speed fiber optic networks are essential for supporting advanced command and control systems, intelligence gathering, data transfer, and daily operations. Upgrading facilities like Building 200 and others ensures that these installations can handle the increasing bandwidth demands of modern warfare and cybersecurity requirements. This investment reflects a commitment to enhancing readiness and operational resilience in an area of significant geopolitical importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20444 NE 23RD ST, HARRAH, OK, 73045

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,592,319

Exercised Options: $20,592,319

Current Obligation: $20,592,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0586

IDV Type: GWAC

Timeline