DoD's $27.5M Wired Telecommunications Contract Awarded to BT Federal Inc. Shows Strong Competition

Contract Overview

Contract Amount: $27,541,467 ($27.5M)

Contractor: BT Federal Inc

Awarding Agency: Department of Defense

Start Date: 2018-02-05

End Date: 2026-12-20

Contract Duration: 3,240 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF GNBT000014EBM

Plain-Language Summary

Department of Defense obligated $27.5 million to BT FEDERAL INC for work described as: IGF::OT::IGF GNBT000014EBM Key points: 1. The contract demonstrates a commitment to competitive sourcing for essential telecommunications services. 2. BT Federal Inc. secured this award, indicating its competitive positioning within the defense sector. 3. The firm-fixed-price contract type suggests a predictable cost structure for the government. 4. The duration of the contract (over 8 years) implies a long-term need for these services. 5. The award falls under the Wired Telecommunications Carriers NAICS code, a common area for federal IT infrastructure.

Value Assessment

Rating: good

While specific value-for-money metrics are not provided, the contract's firm-fixed-price nature and competitive award suggest a reasonable price point. Benchmarking against similar wired telecommunications contracts would provide further insight into cost-effectiveness. The total value of $27.5 million over nearly nine years indicates a significant investment in maintaining robust communication networks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of 5 bidders, as suggested by the 'no' field, points to a healthy level of competition for this telecommunications requirement. This competitive environment is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive award process like this typically benefits taxpayers by driving down costs through multiple bids, ensuring the government receives services at a fair market price.

Public Impact

The Department of Defense benefits from reliable and secure wired telecommunications infrastructure. This contract supports the operational readiness and communication capabilities of defense personnel. The services delivered are crucial for maintaining command and control systems. The geographic impact is likely widespread, supporting DoD installations across various locations. The contract supports jobs within the telecommunications industry, including those at BT Federal Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 8 years may present risks if technology evolves rapidly and requires more agile solutions.
Reliance on a single awardee for a significant duration could lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential providers were considered.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports critical defense communication infrastructure, a vital government function.

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) is a mature industry providing essential connectivity services. Federal spending in this area is consistent, supporting the backbone of government operations. This contract represents a significant portion of spending within this specific sub-sector for the Defense Information Systems Agency, ensuring robust and reliable communication networks for national defense purposes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless BT Federal Inc. actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price structure provides a degree of cost control. Transparency is facilitated by the public nature of contract awards. Further oversight would typically involve program management reviews and potentially Inspector General audits if performance or cost issues arise.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
Wired Network Infrastructure Services
Department of Defense IT Procurement
Federal Telecommunications Services

Risk Flags

Long contract duration may not align with rapid technological advancements.
Potential for vendor lock-in due to extended service period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to BT FEDERAL INC. IGF::OT::IGF GNBT000014EBM

Who is the contractor on this award?

The obligated recipient is BT FEDERAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2018-02-05. End: 2026-12-20.

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

The Department of Defense (DoD) is a significant consumer of wired telecommunications services, with annual spending often in the hundreds of millions to billions of dollars across various contracts. Historical data shows a consistent need for robust network infrastructure to support global operations, command and control, and data transmission. Spending patterns are influenced by technological advancements, modernization efforts, and the geographic distribution of military installations. Contracts in this space range from large, multi-year enterprise agreements to smaller, task-order-based awards for specific locations or services. The trend generally reflects an ongoing investment in secure and reliable communication networks, with a gradual shift towards more advanced technologies like fiber optics and high-speed data transmission.

How does the awarded price compare to market rates for similar wired telecommunications services?

Without specific line-item details or service level agreements, a direct comparison of the awarded price ($27.5 million over ~8.5 years) to precise market rates is challenging. However, the contract's award under 'full and open competition' with 5 bidders suggests that the pricing achieved is likely competitive within the market. Federal agencies often leverage competitive bidding processes to benchmark prices against industry standards. The firm-fixed-price (FFP) contract type further implies that the contractor, BT Federal Inc., has priced the services to cover their costs and include a profit margin, assuming the risks associated with delivering the specified services at that price. Further analysis would require access to the specific service details and a broader market survey of comparable contracts.

What are the potential risks associated with a long-duration contract for wired telecommunications?

Long-duration contracts, such as this one extending to December 2026, carry several potential risks for wired telecommunications services. Technological obsolescence is a primary concern; the pace of innovation in telecommunications can render current infrastructure or service offerings outdated before the contract term ends. This could lead to the government paying for services that are no longer state-of-the-art or require costly modifications. Vendor lock-in is another risk, where the government becomes heavily reliant on a single provider, potentially limiting flexibility and bargaining power in future procurements. Performance degradation over time, or changes in the contractor's financial stability or service quality, can also pose risks. Finally, unforeseen changes in government requirements or budget constraints could create tension with a long-term fixed commitment.

What is BT Federal Inc.'s track record with federal telecommunications contracts?

BT Federal Inc., as a subsidiary of BT Group, has a significant history of providing telecommunications and IT services to government entities, including the U.S. federal government. Their track record typically involves large-scale network infrastructure, managed services, and secure communication solutions. While specific performance details for this particular contract (GNBT000014EBM) are not detailed here, their broader experience suggests a capability to handle complex federal requirements. Federal procurement databases often contain past performance information, which would have been evaluated during the bidding process. Generally, companies like BT Federal Inc. are accustomed to the stringent requirements, security protocols, and reporting obligations associated with serving defense and other government agencies.

How does this contract contribute to the Defense Information Systems Agency's (DISA) mission?

This contract directly supports the Defense Information Systems Agency's (DISA) core mission of providing, operating, and defending information systems and services for the Department of Defense (DoD) and other national leaders. Reliable wired telecommunications are the fundamental backbone for these systems. By ensuring robust connectivity, this contract enables DISA to deliver secure voice, data, and video communications essential for command and control, intelligence sharing, and operational support across the globe. It underpins DISA's ability to maintain situational awareness, execute missions effectively, and ensure the flow of critical information to military personnel and policymakers, thereby contributing significantly to national security.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BT Group PLC

Address: 11440 COMMERCE PARK DR, STE-100, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,541,467

Exercised Options: $27,541,467

Current Obligation: $27,541,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101316D0003

IDV Type: IDC

Timeline