DoD's $45M Wired Telecommunications Contract Awarded to BT Federal Inc. for Defense Information Systems Agency

Contract Overview

Contract Amount: $45,059,878 ($45.1M)

Contractor: BT Federal Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-26

End Date: 2025-07-28

Contract Duration: 2,406 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF GNBT000030EBM

Plain-Language Summary

Department of Defense obligated $45.1 million to BT FEDERAL INC for work described as: IGF::OT::IGF GNBT000030EBM Key points: 1. The contract value of $45,059,877.90 appears to be a significant investment in telecommunications infrastructure. 2. BT Federal Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 2406 days (from Dec 2018 to July 2025) indicates a long-term need for these services. 4. The fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The specific services provided under NAICS code 517110 (Wired Telecommunications Carriers) are critical for secure military communications. 6. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities. 7. The contract's focus on wired telecommunications is a key component of the Defense Information Systems Agency's operational capabilities.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more granular data on the specific services rendered. However, a $45 million contract over nearly seven years for wired telecommunications services to a major defense agency like DISA suggests a potentially fair market price given the scale and security requirements. Without specific unit cost data or comparisons to similar DISA contracts for comparable services, a definitive value-for-money assessment is challenging. The firm-fixed-price structure generally favors the government by capping costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the Defense Information Systems Agency sought the best value through a competitive process. The number of bidders is not specified, but full and open competition generally leads to more robust price discovery and potentially lower prices compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government receives competitive pricing for essential telecommunications services.

Public Impact

The primary beneficiaries are the personnel and operations of the Department of Defense, specifically those supported by the Defense Information Systems Agency. The contract delivers essential wired telecommunications services, likely including voice, data, and network connectivity, crucial for military command and control. The geographic impact is likely widespread, supporting DoD operations across various locations where DISA provides services. Workforce implications may include employment for telecommunications technicians, engineers, and support staff within BT Federal Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals or reporting could limit opportunities for small businesses in the telecommunications sector.
The long contract duration might present challenges in adapting to rapidly evolving telecommunications technologies if not managed proactively.
Dependence on a single awardee for such a critical service could pose a risk if contractor performance falters or if unforeseen issues arise.

Positive Signals

Award through full and open competition suggests a robust vetting process and competitive pricing.
The firm-fixed-price contract type shifts cost overrun risks to the contractor, benefiting the government.
The long-term nature of the contract provides stability and ensures continuity of essential telecommunications services for DISA.

Sector Analysis

The wired telecommunications carriers industry (NAICS 517110) is a mature sector providing essential infrastructure for businesses and government. This contract falls within the broader telecommunications services market, which is critical for national security and defense operations. Spending in this sector by the DoD is substantial, supporting secure and reliable communication networks. Comparable spending benchmarks would typically involve analyzing other large-scale telecommunications contracts awarded by defense agencies for similar services and durations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention small business subcontracting (st: ''). This suggests that the primary award went to a large business, BT Federal Inc. Further analysis would be needed to determine if any subcontracting plans were established or if small businesses are participating indirectly. The lack of explicit set-aside or subcontracting information could mean missed opportunities for the small business ecosystem in this sector.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and potentially the Defense Contract Management Agency (DCMA). The Inspector General's office for the DoD would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, but detailed performance metrics and oversight reports are often not publicly available.

Related Government Programs

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

Risk Flags

Potential for technology obsolescence given the contract duration.
Lack of explicit small business subcontracting information.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to BT FEDERAL INC. IGF::OT::IGF GNBT000030EBM

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 $45.1 million.

What is the period of performance?

Start: 2018-12-26. End: 2025-07-28.

What specific types of wired telecommunications services are included in this $45 million contract?

The contract falls under NAICS code 517110 (Wired Telecommunications Carriers), which generally includes services such as local and long-distance voice and data services, internet access, and private line services delivered over wired networks. For the Department of Defense and DISA, these services are critical for maintaining secure command, control, and communication (C3) capabilities. Specific services could range from dedicated fiber optic lines, Ethernet services, and traditional voice circuits to more advanced network access solutions. The exact scope would be detailed in the contract's statement of work, which is not publicly available in this data extract but would outline the precise technical requirements, service level agreements (SLAs), and performance standards.

How does the pricing of this contract compare to similar telecommunications contracts awarded by the DoD or other federal agencies?

A direct comparison of pricing is difficult without access to detailed unit costs and service level agreements for this specific contract and comparable contracts. However, the firm-fixed-price (FFP) contract type generally indicates that the government has negotiated a set price for the defined scope of work, shifting cost-risk to the contractor. For large-scale telecommunications infrastructure and services provided to a major agency like DISA over a multi-year period, a $45 million award is substantial but not necessarily indicative of overpricing. Benchmarking would require analyzing contracts with similar durations, service types (e.g., bandwidth, circuit types), geographic coverage, and security requirements. The fact that it was awarded under full and open competition suggests that market forces were leveraged to achieve a competitive price.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how is performance monitored?

While the provided data does not specify the KPIs or SLAs, contracts of this nature for the Defense Information Systems Agency typically include stringent performance requirements. These often involve metrics related to network uptime, latency, data throughput, service restoration times following outages, and adherence to security protocols. Performance monitoring is usually conducted by contracting officers' representatives (CORs) or contracting officer's technical representatives (COTRs) who track adherence to the statement of work and SLAs. Regular performance reviews, site visits, and analysis of network performance data are common oversight mechanisms. Failure to meet KPIs or SLAs can result in penalties, contract modifications, or even termination, depending on the severity.

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

BT Federal Inc. is a known entity in the government contracting space, often providing telecommunications and IT services. A review of federal procurement databases would reveal their history of awards, past performance ratings, and experience with agencies like the Department of Defense and DISA. Their ability to win a $45 million contract under full and open competition suggests they have a demonstrated capability and a track record that met the agency's requirements. However, a deeper dive into their specific performance on previous DISA or DoD telecommunications contracts, including any past issues or commendations, would be necessary for a comprehensive assessment of their reliability and expertise in this domain.

What is the historical spending trend for wired telecommunications services by the Defense Information Systems Agency?

Analyzing historical spending trends for DISA's wired telecommunications services would require examining procurement data over several fiscal years. This specific contract, awarded in late 2018 and running through mid-2025, represents a significant portion of spending within its contract period. Generally, agencies like DISA have consistent, substantial needs for robust and secure telecommunications infrastructure due to their mission-critical functions. Spending patterns can be influenced by technological upgrades, network modernization initiatives, changes in operational requirements, and the competitive landscape for service providers. Without access to DISA's complete procurement history for telecommunications, it's difficult to establish a precise trend, but it's reasonable to assume continuous investment in this area.

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: HC102117RA072

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: $45,059,878

Exercised Options: $45,059,878

Current Obligation: $45,059,878

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101316D0003

IDV Type: IDC

Timeline