DoD Awards $25.8M for Germany-Kuwait 10GB Circuit, Boosting Defense Communications

Contract Overview

Contract Amount: $25,836,266 ($25.8M)

Contractor: BT Federal Inc

Awarding Agency: Department of Defense

Start Date: 2020-02-14

End Date: 2026-03-31

Contract Duration: 2,237 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GNBT000033EBM, A 10GB (OTU2) COMMERCIAL ALLA CIRCUIT BETWEEN GERMANY AND KUWAIT.

Plain-Language Summary

Department of Defense obligated $25.8 million to BT FEDERAL INC for work described as: GNBT000033EBM, A 10GB (OTU2) COMMERCIAL ALLA CIRCUIT BETWEEN GERMANY AND KUWAIT. Key points: 1. Significant investment in critical international telecommunications infrastructure. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration extends over six years, indicating long-term strategic need. 4. Sector is IT, specifically wired telecommunications, vital for modern defense operations.

Value Assessment

Rating: good

The award amount of $25.8 million for a 10GB circuit over six years appears reasonable given the international scope and critical nature of the service. Benchmarking against similar international dedicated circuit contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The existence of multiple bidders likely contributed to the final negotiated price.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for essential defense communication infrastructure.

Public Impact

Ensures reliable and high-speed data transfer for Department of Defense operations between Europe and the Middle East. Supports critical intelligence, surveillance, and reconnaissance missions requiring robust connectivity. Facilitates secure communication channels for military personnel and command structures in strategic locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Long-term contract supports strategic needs.
Critical infrastructure for defense operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically wired telecommunications. Spending in this area is substantial as the DoD relies heavily on secure and high-capacity networks for global operations. Benchmarks for similar international circuits vary widely based on geography and bandwidth.

Small Business Impact

The data indicates this contract was awarded to BT Federal Inc. There is no specific information provided regarding small business participation or subcontracting goals within this award.

Oversight & Accountability

The contract was awarded by the Defense Information Systems Agency (DISA), which is responsible for providing information technology services and systems for the DoD. Oversight would involve monitoring service delivery, performance, and adherence to contract terms.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Long contract duration (over 6 years) increases exposure to potential price increases or technological obsolescence.
Geopolitical risks associated with the Germany-Kuwait route could impact service stability or cost.
Dependence on a single circuit provider for critical international communications.
Potential for scope creep or unexercised options increasing the total contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to BT FEDERAL INC. GNBT000033EBM, A 10GB (OTU2) COMMERCIAL ALLA CIRCUIT BETWEEN GERMANY AND KUWAIT.

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 $25.8 million.

What is the period of performance?

Start: 2020-02-14. End: 2026-03-31.

What is the specific bandwidth requirement and how does it compare to standard commercial offerings for similar routes?

The contract specifies a 10GB (OTU2) circuit. This is a high-capacity offering, typically used for significant data transfer needs. Comparing this to standard commercial offerings for routes between Germany and Kuwait would require detailed market research, but 10Gbps is generally considered enterprise-grade and would command a premium over lower-bandwidth consumer or standard business services.

What are the key performance indicators (KPIs) for this circuit and how is service quality monitored?

Key performance indicators for such a circuit would likely include uptime/availability (e.g., 99.99%), latency, jitter, and packet loss. Service quality is typically monitored through regular performance reports submitted by the contractor and potentially through independent testing by DISA or its designated agents to ensure adherence to the Service Level Agreement (SLA).

Are there any redundancy or failover mechanisms built into this circuit to ensure continuous operation?

While not explicitly stated in the provided data, critical international circuits for defense purposes almost always incorporate redundancy and failover mechanisms. This could involve diverse physical routing, backup circuits, or advanced network protocols designed to automatically reroute traffic in case of an outage on the primary path.

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: HC102118RA022

Offers Received: 4

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: $25,836,266

Exercised Options: $25,836,266

Current Obligation: $25,836,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101316D0003

IDV Type: IDC

Timeline