DoD's $19.85M Computer Systems Design Contract with Seneca Telecommunications Raises Competition Concerns
Contract Overview
Contract Amount: $19,850,424 ($19.9M)
Contractor: Seneca Telecommunications, LLC
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2015-09-27
Contract Duration: 730 days
Daily Burn Rate: $27.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF SCES/PM&AS LABOR - TASKS 1 - 6
Place of Performance
Location: SALAMANCA, CATTARAUGUS County, NEW YORK, 14779
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $19.9 million to SENECA TELECOMMUNICATIONS, LLC for work described as: IGF::CT::IGF SCES/PM&AS LABOR - TASKS 1 - 6 Key points: 1. Contract awarded for Computer Systems Design Services to Seneca Telecommunications, LLC. 2. Significant value of $19.85 million over two years. 3. Awarded as a definitive contract, but competition details are unavailable. 4. The North American Industry Classification System (NAICS) code is 541512.
Value Assessment
Rating: questionable
The contract value of $19.85 million for a two-year period is substantial. Without available benchmark data or competitive pricing information, assessing its value relative to similar contracts is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or potentially sole-source award. This lack of competition raises questions about price discovery and whether the government obtained the best possible price.
Taxpayer Impact: The absence of competitive bidding may result in taxpayers paying a premium for these computer systems design services.
Public Impact
Taxpayers may be overpaying due to lack of competition. Limited transparency into the justification for a non-competitive award. Potential for reduced innovation and service quality without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited justification for non-competitive award
- Unknown pricing benchmarks
Positive Signals
- Firm fixed-price contract type
- Definitive contract award
Sector Analysis
This contract falls within the Computer Systems Design Services sector, which is a critical component of IT infrastructure for government agencies. Spending in this sector can vary widely based on agency needs and technological advancements.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award process and justification for limiting competition require further oversight to ensure taxpayer funds are used efficiently and effectively. Transparency regarding the 'NOT AVAILABLE FOR COMPETITION' status is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on award justification
- No clear small business participation noted
Tags
computer-systems-design-services, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to SENECA TELECOMMUNICATIONS, LLC. IGF::CT::IGF SCES/PM&AS LABOR - TASKS 1 - 6
Who is the contractor on this award?
The obligated recipient is SENECA TELECOMMUNICATIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2013-09-27. End: 2015-09-27.
What was the specific justification for awarding this contract without competition?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION' but does not detail the specific justification. Typically, this could be due to urgent needs, lack of qualified sources, or specific government requirements that only one vendor can meet. A thorough review of the contract file would be necessary to ascertain the precise reason.
How does the pricing compare to similar non-competitive contracts in the IT services sector?
Without access to a broader dataset of comparable non-competitive IT services contracts, it is challenging to establish a precise benchmark. However, the general principle is that non-competitive awards often carry a higher risk of inflated pricing compared to those secured through open competition. Further market research would be needed.
What is the potential impact on future IT service procurements if non-competitive awards become a trend?
If non-competitive awards become a trend, it could stifle innovation and lead to higher costs for the government. It reduces the incentive for vendors to offer competitive pricing and may limit the pool of available talent and solutions. Agencies might miss out on more cost-effective or technologically advanced options.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102813R0054
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 90 OHI:YO' WAY, SALAMANCA, NY, 14779
Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,850,424
Exercised Options: $19,850,424
Current Obligation: $19,850,424
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-27
Current End Date: 2015-09-27
Potential End Date: 2015-09-27 00:00:00
Last Modified: 2024-02-09
More Contracts from Seneca Telecommunications, LLC
- SSP Hq&pmo Help Desk Support Services Fy19-Fy23 — $16.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)