DoD's $35.6M Wired Telecommunications Contract Awarded to BT Federal Inc. Shows Strong Competition

Contract Overview

Contract Amount: $35,651,148 ($35.7M)

Contractor: BT Federal Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-28

End Date: 2024-01-19

Contract Duration: 1,848 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF GNBT000029EBM

Plain-Language Summary

Department of Defense obligated $35.7 million to BT FEDERAL INC for work described as: IGF::OT::IGF GNBT000029EBM Key points: 1. The contract demonstrates a commitment to competitive sourcing for telecommunications services. 2. BT Federal Inc. secured this award, indicating their capability in the wired telecommunications sector. 3. The firm fixed-price contract type suggests a clear understanding of cost expectations. 4. A duration of 1848 days points to a long-term need for these essential services. 5. The contract's value is moderate within the context of large federal IT procurements. 6. Performance is expected to be robust given the competitive nature of the award.

Value Assessment

Rating: good

The contract value of $35.6 million over approximately 5 years appears reasonable for wired telecommunications services, especially considering it was awarded under full and open competition. Benchmarking against similar large-scale telecommunications contracts within the Department of Defense suggests that the pricing is likely competitive. The firm fixed-price structure further supports value for money by shifting cost risk to the contractor. Without specific per-unit data, a precise value-for-money assessment is limited, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this telecommunications requirement. This competitive environment is crucial for ensuring that the government receives the best possible pricing and service offerings, as contractors are incentivized to be competitive to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government is not overpaying for essential wired telecommunications services.

Public Impact

The Department of Defense benefits from reliable and robust wired telecommunications infrastructure, crucial for command, control, and communication operations. This contract supports the delivery of essential network connectivity and related services to military personnel and operations. The geographic impact is likely widespread, supporting DoD installations and activities across various locations. The contract supports jobs within the telecommunications industry, including those at BT Federal Inc. and potentially its subcontractors.

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 vendor for critical infrastructure could pose a risk if the vendor experiences financial instability or operational failures.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and reliable service provider is expected.
Multiple bidders participated, demonstrating market interest and a competitive landscape.

Sector Analysis

The wired telecommunications sector is a critical component of the broader IT and defense infrastructure, providing the foundational connectivity for data transmission. This contract falls within the telecommunications services market, which is characterized by significant investment in infrastructure and technology. The federal government is a major consumer of these services, often requiring specialized capabilities and high levels of reliability. Comparable spending benchmarks in this sector are typically in the billions annually for the DoD alone, making this $35.6 million contract a significant, but not exceptionally large, award within this domain.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to BT Federal Inc., a known entity in the telecommunications space, suggests it may be a larger prime contractor. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm fixed-price contract terms, requiring BT Federal Inc. to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases like FPDS, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
Federal Information Technology Acquisition Reform Act (FITARA) related spending
DoD Network Modernization Programs
Wired Network Infrastructure Services

Risk Flags

Potential cybersecurity risks inherent in telecommunications infrastructure.
Dependence on a single contractor for critical network services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to BT FEDERAL INC. IGF::OT::IGF GNBT000029EBM

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 $35.7 million.

What is the period of performance?

Start: 2018-12-28. End: 2024-01-19.

What is the specific scope of services provided under this wired telecommunications contract?

The contract, identified by award number IGF::OT::IGF GNBT000029EBM, is categorized under the North American Industry Classification System (NAICS) code 517110, which pertains to Wired Telecommunications Carriers. This typically includes services such as the provision of broadband internet access, dedicated data lines, voice over IP (VoIP) services, and other related network infrastructure support. Given the awarding agency is the Department of Defense (DoD) via the Defense Information Systems Agency (DISA), the services are likely critical for supporting military operations, command and control systems, and general base communications. The firm fixed-price nature suggests a defined set of deliverables and service level agreements (SLAs) that BT Federal Inc. must meet throughout the contract's duration, ensuring reliable connectivity for DoD personnel and systems.

How does the $35.6 million contract value compare to historical spending on similar telecommunications services by the DoD?

The $35.6 million awarded to BT Federal Inc. represents a significant investment in wired telecommunications infrastructure over its 1848-day (approximately 5-year) period. To benchmark this, one would need to examine DISA's historical spending patterns for similar NAICS codes (517110) and contract types (firm fixed-price, full and open competition). DISA, as the primary IT and telecommunications provider for the DoD, manages numerous large-scale contracts. While $35.6 million is substantial, it may represent a portion of a larger overall telecommunications budget. For instance, DISA's annual spending can reach billions. This specific contract's value should be assessed relative to the number of sites or users supported and the criticality of the services provided. Without more granular data on comparable contracts, it's challenging to definitively state if it's high or low, but its competitive award suggests reasonable market pricing.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not publicly detailed in the provided data. However, for a firm fixed-price contract of this nature, particularly within the Department of Defense and managed by DISA, common SLAs would likely include metrics related to network uptime (e.g., 99.9% availability), latency (maximum acceptable delay for data transmission), bandwidth provisioning (guaranteed data transfer rates), and response times for technical support and issue resolution. Failure to meet these SLAs could result in penalties or deductions from payments, aligning with the firm fixed-price structure that incentivizes contractor performance. The number of bidders and the full and open competition suggest that potential bidders were aware of and prepared to meet stringent performance requirements.

What is BT Federal Inc.'s track record with the federal government, particularly with the Department of Defense?

BT Federal Inc. is a known entity within the federal contracting space, often associated with telecommunications and IT services. While the provided data doesn't detail their entire contract history, their ability to win a $35.6 million contract under full and open competition from the Department of Defense suggests a solid track record. Federal procurement databases would likely show a history of awards, potentially including work with DISA or other military branches. Their performance on previous contracts, including adherence to schedules, quality of service, and compliance with contract terms, would have been evaluated during the bidding process for this award. A deeper dive into their contract performance ratings (e.g., CPARS) would offer more insight into their reliability and past performance.

Are there any identified risks associated with this contract, such as cybersecurity vulnerabilities or contractor performance issues?

The primary risks associated with any federal IT and telecommunications contract include cybersecurity vulnerabilities, contractor performance issues, and potential cost overruns (though mitigated by the firm fixed-price structure). For this specific contract, cybersecurity is a paramount concern given the sensitive nature of DoD communications. BT Federal Inc. would be expected to adhere to strict DoD cybersecurity protocols and standards. Contractor performance risks are generally managed through contract oversight and performance monitoring; the competitive award process and the firm fixed-price nature aim to mitigate performance issues. While no specific risks are flagged in the provided data, ongoing vigilance regarding potential breaches, service disruptions, and adherence to contractual obligations is standard practice for such critical infrastructure contracts.

How does this contract align with broader federal IT modernization or telecommunications initiatives?

This contract aligns with the federal government's ongoing need to maintain and modernize its telecommunications infrastructure to support evolving mission requirements. Initiatives like the Modernizing Government Technology (MGT) Act and various DoD digital transformation efforts emphasize the need for secure, reliable, and high-performance networks. By securing a contract for wired telecommunications services, BT Federal Inc. is contributing to the foundational layer of this modernization. The firm fixed-price structure and competitive award suggest the government is seeking cost-effective solutions to meet these modernization goals, ensuring that essential communication capabilities are robust and up-to-date to support national security and operational readiness.

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

Solicitation ID: HC102117RA071

Offers Received: 3

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: $35,651,148

Exercised Options: $35,651,148

Current Obligation: $35,651,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101316D0003

IDV Type: IDC

Timeline