DoD's $20.9M Wired Telecommunications Contract Awarded to INFONAS WLL Shows Fair Competition

Contract Overview

Contract Amount: $20,923,827 ($20.9M)

Contractor: Infonas WLL

Awarding Agency: Department of Defense

Start Date: 2014-11-26

End Date: 2020-10-10

Contract Duration: 2,145 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF 2CON000002EBM

Plain-Language Summary

Department of Defense obligated $20.9 million to INFONAS WLL for work described as: IGF::OT::IGF 2CON000002EBM Key points: 1. The contract value of $20.9 million over approximately 6 years suggests a moderate annual spend. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type generally transfers risk to the contractor. 4. The duration of the contract (2145 days) is substantial, suggesting a long-term need. 5. The contractor, INFONAS WLL, is a single entity for this award, with no indication of small business subcontracting. 6. The North American Industry Classification System (NAICS) code 517110 points to services within the telecommunications infrastructure sector.

Value Assessment

Rating: fair

The contract value of $20.9 million over nearly six years averages to approximately $3.5 million annually. Without specific benchmarks for wired telecommunications services for the Department of Defense (DoD) in this region, it's challenging to definitively assess value for money. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Further analysis would require comparison with similar DoD contracts for telecommunications infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 9 bidders suggests a healthy level of competition for this requirement. A competitive environment like this typically leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition among 9 bidders is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for the wired telecommunications services.

Public Impact

This contract primarily benefits the Department of Defense by providing essential wired telecommunications infrastructure. The services delivered are crucial for maintaining secure and reliable communication networks for military operations. The geographic impact is likely concentrated around DoD facilities where these telecommunications services are deployed. Workforce implications may include jobs for telecommunications technicians and engineers, both directly with the contractor and potentially indirectly through supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
No information on whether small businesses were involved as subcontractors.
The long contract duration could lead to potential obsolescence of technology if not managed proactively.

Positive Signals

Awarded under full and open competition with multiple bidders.
Fixed-price contract type shifts cost risk to the contractor.
Contract supports critical defense communication infrastructure.

Sector Analysis

The wired telecommunications carriers sector (NAICS 517110) encompasses establishments primarily engaged in operating and maintaining switching and transmission equipment to provide voice, data, and video services over wired networks. This includes traditional telephone companies and cable companies providing internet services. The contract awarded to INFONAS WLL fits within this sector, specifically addressing the need for robust telecommunications infrastructure for a major government agency. Comparable spending benchmarks would typically be found within government-wide IT or telecommunications procurement data, but specific figures for this niche are not readily available without deeper analysis.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information available regarding subcontracting plans or actual subcontracting activity with small businesses. This means the primary contract was competed broadly, and the direct impact on the small business ecosystem is likely minimal unless INFONAS WLL voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) and the Department of Defense's contracting and financial management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Telecommunications Services
Wired Network Infrastructure Procurement
Federal Communications Commission (FCC) Regulated Services

Risk Flags

Long contract duration may lead to technology obsolescence.
No explicit mention of small business subcontracting goals or achievements.
Performance metrics and quality assurance details not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to INFONAS WLL. IGF::OT::IGF 2CON000002EBM

Who is the contractor on this award?

The obligated recipient is INFONAS WLL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2014-11-26. End: 2020-10-10.

What is the track record of INFONAS WLL with the federal government prior to this award?

The provided data only details this specific contract award to INFONAS WLL. Without access to broader federal procurement databases or specific contract history reports for INFONAS WLL, it is not possible to ascertain their complete track record with the federal government. This single award suggests they have secured at least one contract, but it does not provide insight into their past performance, the number or value of previous contracts, or their overall experience serving federal agencies. Further investigation into federal contract databases like FPDS or SAM.gov would be necessary to build a comprehensive profile of the contractor's history.

How does the per-unit cost of this contract compare to similar telecommunications services procured by the DoD?

The provided data does not include specific details on the units of service or their associated costs, making a direct per-unit cost comparison impossible. The total contract value is $20.9 million over approximately 2145 days. To perform a meaningful comparison, we would need to know the specific services rendered (e.g., bandwidth per month, circuit miles, installation fees) and the corresponding prices paid for each unit. Benchmarking would require accessing detailed pricing information from similar DoD contracts for wired telecommunications carriers (NAICS 517110) awarded around the same period and in similar geographic locations, which is not available in the current dataset.

What are the primary risks associated with a fixed-price contract of this duration for telecommunications services?

While fixed-price contracts generally shift cost risk to the contractor, a long duration (over 5 years) for telecommunications services introduces specific risks. Technological obsolescence is a significant concern; the wired infrastructure and services specified at the outset may become outdated or less efficient compared to emerging technologies by the end of the contract term. Market price fluctuations for components or bandwidth could also impact the contractor's profitability, potentially leading to requests for modification or performance issues if margins become too thin. Furthermore, unforeseen changes in regulatory requirements or security standards could necessitate costly upgrades or changes, which, depending on contract clauses, might fall back on the government if not adequately addressed in the original agreement.

How effective has the competition level (9 bidders) been in ensuring value for money for this specific contract?

The presence of 9 bidders indicates a robust competitive environment, which is generally conducive to achieving value for money. This level of competition suggests that multiple firms were interested and capable of fulfilling the requirement, likely driving down prices through the bidding process. However, 'value for money' is not solely determined by the initial price. It also encompasses the quality of service, reliability, and long-term cost-effectiveness. Without performance data or post-award reviews, it's difficult to definitively state how effective the competition was in securing optimal value. The fixed-price nature helps lock in costs, but ongoing service quality and potential need for future modifications are key factors in the overall value assessment.

What is the historical spending trend for wired telecommunications carriers by the Department of Defense?

The provided data focuses solely on a single contract award. To analyze historical spending trends for wired telecommunications carriers by the Department of Defense (DoD), a comprehensive review of federal procurement data over several fiscal years would be necessary. This would involve aggregating spending across various agencies within the DoD, filtering by relevant NAICS codes (like 517110), and examining contract types, awardees, and total amounts. Such an analysis could reveal patterns of increasing or decreasing investment in this sector, identify major spending periods, and highlight key contractors or service types that the DoD frequently procures.

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: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: NBB TOWER, GOVERNMENT AVENUE, MANAMA

Business Categories: Category Business, Foreign Owned, International Organization, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,923,827

Exercised Options: $20,923,827

Current Obligation: $20,923,827

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline