DoD's $36.1M telecommunications contract with BATELCO saw 18 offers, indicating robust competition for wired carrier services

Contract Overview

Contract Amount: $36,149,112 ($36.1M)

Contractor: Bahrain Telecommunications CO Mpany (batelco)

Awarding Agency: Department of Defense

Start Date: 2013-03-05

End Date: 2017-03-04

Contract Duration: 1,460 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BAHRW000329 (CSA) TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT DCA40095H0017

Plain-Language Summary

Department of Defense obligated $36.1 million to BAHRAIN TELECOMMUNICATIONS CO MPANY (BATELCO) for work described as: IGF::OT::IGF BAHRW000329 (CSA) TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT DCA40095H0017 Key points: 1. The contract utilized a firm-fixed-price structure, aiming to control costs for the Defense Information Systems Agency. 2. Awarded under a basic agreement, this order suggests a streamlined procurement process for established relationships. 3. The duration of 1460 days (4 years) provided long-term service certainty for the Department of Defense. 4. With 18 bids received, the competition level was high, likely driving favorable pricing for the government. 5. The contract's focus on wired telecommunications carriers aligns with essential communication infrastructure needs. 6. No small business set-aside was applied, suggesting the primary focus was on technical capability and price.

Value Assessment

Rating: good

The contract's firm-fixed-price nature is a positive indicator for cost control. While specific benchmarking data for this exact service in Bahrain is not readily available, the presence of 18 competing offers suggests that the pricing achieved was likely competitive. The total award amount of $36.1 million over four years averages to approximately $9 million annually, which appears reasonable for a telecommunications service supporting a major government agency in a foreign location. Further analysis would require comparing unit costs for specific bandwidth or services against similar contracts in the region or for comparable government installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, as evidenced by the 18 offers received. This high level of competition is a strong positive signal, indicating that the Defense Information Systems Agency cast a wide net to solicit bids from qualified telecommunications providers. The significant number of bidders suggests a healthy market for these services and provides the agency with a broad range of options to choose from, likely leading to better price discovery and a more favorable outcome for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices through market forces. A larger pool of bidders generally results in more aggressive pricing strategies to win the contract, ensuring that government funds are used more efficiently.

Public Impact

The primary beneficiaries are the U.S. military personnel and civilian employees operating in Bahrain who rely on secure and reliable telecommunications. The contract delivers essential wired telecommunications carrier services, crucial for command, control, and communication operations. The geographic impact is concentrated in Bahrain, supporting U.S. Department of Defense operations in that region. The contract supports the telecommunications workforce, potentially including local hires by the contractor, BATELCO.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical infrastructure could pose a risk if service disruptions occur.
Geopolitical stability of the region could impact service continuity.

Positive Signals

Firm-fixed-price contract helps manage cost overruns.
Full and open competition suggests a competitive market and potentially good value.
Awarded under a basic agreement may indicate a streamlined and efficient procurement process.

Sector Analysis

This contract falls within the telecommunications sector, specifically wired telecommunications carriers. This industry is characterized by significant infrastructure investment and often involves regulated services. The market size for telecommunications in the Middle East is substantial, driven by both commercial and governmental demand. This specific contract represents a portion of the U.S. government's spending on essential communication infrastructure to support its overseas operations, fitting within the broader category of defense-related IT and communication services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely fulfilled by larger telecommunications providers capable of meeting the extensive demands of the Department of Defense. There is no explicit information regarding subcontracting plans for small businesses, but given the nature of telecommunications infrastructure, it's possible that smaller, specialized firms could be engaged for specific components or maintenance tasks, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Information Systems Agency (DISA) and the Department of Defense. Mechanisms likely include regular performance reviews, service level agreement monitoring, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency Telecommunications Contracts
Department of Defense Overseas Communications Support
Wired Telecommunications Services for Government Agencies
Basic Ordering Agreements (BOA) Usage

Risk Flags

Potential for service disruption in a foreign location.
Reliance on a single vendor for critical infrastructure.
Geopolitical risks in the Middle East region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to BAHRAIN TELECOMMUNICATIONS CO MPANY (BATELCO). IGF::OT::IGF BAHRW000329 (CSA) TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT DCA40095H0017

Who is the contractor on this award?

The obligated recipient is BAHRAIN TELECOMMUNICATIONS CO MPANY (BATELCO).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.1 million.

What is the period of performance?

Start: 2013-03-05. End: 2017-03-04.

What is the track record of Bahrain Telecommunications Company (BATELCO) in serving U.S. government contracts?

While this specific contract award highlights BATELCO's success in securing a significant telecommunications deal with the Department of Defense, a comprehensive assessment of their track record would require examining past performance on other U.S. government contracts, if any. This would involve reviewing past performance evaluations, any documented issues or disputes, and their history of meeting delivery schedules and service level agreements. Without access to a broader database of BATELCO's government contracting history, it's difficult to provide a definitive assessment beyond this single award. However, winning a competitive bid for a four-year contract suggests a level of capability and reliability deemed sufficient by the Defense Information Systems Agency at the time of award.

How does the average annual cost of this contract compare to similar telecommunications services provided to DoD in other overseas locations?

The average annual cost for this contract is approximately $9.04 million ($36.1M / 4 years). Benchmarking this against similar DoD telecommunications contracts in other overseas locations requires access to detailed cost data for comparable services (e.g., bandwidth, data transmission, voice services) in regions with similar geopolitical and economic characteristics. Factors such as local market competition, infrastructure availability, and the specific security requirements of the U.S. presence significantly influence pricing. Without specific comparative data points, it's challenging to definitively state whether this contract represents a superior or inferior value. However, the robust competition suggests a strong likelihood of competitive pricing.

What are the primary risks associated with relying on a single telecommunications provider for critical infrastructure in a foreign country?

Relying on a single provider like BATELCO for critical telecommunications infrastructure in Bahrain presents several risks. Firstly, there's the risk of service disruption due to technical failures, natural disasters, or maintenance issues, which could severely impact DoD operations. Secondly, a lack of ongoing competition could lead to price increases upon contract renewal or reduced incentive for the provider to innovate or improve service quality. Thirdly, geopolitical instability in the region could affect the provider's operations or necessitate rapid, potentially costly, transitions to alternative solutions. Finally, vendor lock-in can occur if the technology deployed is proprietary or difficult to integrate with other systems, making future transitions more complex and expensive.

What specific telecommunications services are included under this contract, and how do they support the DoD's mission in the region?

The contract specifies 'Wired Telecommunications Carriers' services, falling under NAICS code 517110. This typically encompasses a range of services such as dedicated data circuits, internet access, voice communication lines, and potentially private network infrastructure. For the DoD in Bahrain, these services are fundamental for maintaining command and control, enabling secure communication between personnel and headquarters, facilitating intelligence gathering and dissemination, and supporting the logistical operations of military bases. Reliable and high-capacity telecommunications are essential for the effective functioning of any overseas military presence, ensuring operational readiness and security.

What was the procurement process leading to the award of the basic agreement under which this order was placed?

The data indicates this specific order was placed under a basic agreement (DCA40095H0017). Basic Agreements (BAs) are typically established through full and open competition and serve as pre-negotiated frameworks outlining general terms and conditions for future purchases of supplies or services. The process for establishing a BA usually involves a solicitation, evaluation of proposals based on factors like technical capability, past performance, and price, and then awarding the agreement to one or more vendors. Subsequent orders placed under the BA, like the one to BATELCO, are then often streamlined, potentially using simplified procedures or further competition among the parties to the BA, depending on the BA's terms and the nature of the order.

How does the contract duration of 4 years impact the government's flexibility and potential for cost savings?

A four-year contract duration (1460 days) provides the Department of Defense with a significant period of service stability and predictability, which is crucial for long-term operational planning. From a cost perspective, longer-term commitments can sometimes allow for better negotiated rates, as the contractor can plan their resource allocation more effectively and potentially achieve economies of scale. However, it also reduces the government's flexibility to adapt to rapidly changing technological landscapes or to capitalize on sudden market shifts that might offer lower prices. The firm-fixed-price nature mitigates the risk of cost increases over the term, but it also means the government might miss out on potential savings if market prices were to decrease significantly.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BUILDING 1095 ROAD 1425, AL-H, MANAMA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,149,112

Exercised Options: $36,149,112

Current Obligation: $36,149,112

Timeline