DoD's $16.8M Dark Fiber O&M Contract Awarded to AOC Connect, LLC Under Sole Source Justification

Contract Overview

Contract Amount: $16,879,571 ($16.9M)

Contractor: AOC Connect, LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-14

End Date: 2025-06-14

Contract Duration: 3,684 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DARK FIBER O&M

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to AOC CONNECT, LLC for work described as: IGF::CT::IGF DARK FIBER O&M Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, as the contract was awarded without competition. 3. Risk indicators are moderate, given the long-term nature of the contract and potential for price creep. 4. Performance context is limited to the contractor's ability to maintain dark fiber services. 5. Sector positioning is within the telecommunications infrastructure supporting defense operations.

Value Assessment

Rating: fair

The contract's value is difficult to benchmark due to its sole-source award. Without competitive bids, it's challenging to determine if the $16.8 million price tag represents a fair market value. The firm-fixed-price structure provides some cost certainty, but the lack of competition limits opportunities for price negotiation and potential savings for the government. Further analysis would require comparing pricing to similar dark fiber maintenance contracts awarded competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. The Defense Information Systems Agency (DISA) likely determined that only AOC Connect, LLC could provide the required services. The absence of competition means there were no other bidders, and therefore no price discovery through a bidding process. This approach is typically used when a unique capability or existing infrastructure necessitates a single provider.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The Department of Defense benefits from the continuous operation of critical dark fiber telecommunications infrastructure. Essential communication services for defense operations are maintained. The geographic impact is primarily within Virginia, where the services are likely utilized. Workforce implications are tied to the maintenance and operational staff employed by AOC Connect, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price negotiation and potential savings.
Long contract duration (over 10 years) increases risk of price escalation.
Sole-source award may indicate a lack of market research or available alternatives.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract supports critical defense communication infrastructure.
Established contractor may have specialized knowledge of the network.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on the maintenance and operation of dark fiber optic networks. Dark fiber refers to unused fiber optic cables that can be leased or purchased by telecommunications companies or government agencies. The market for such services is competitive, but specialized maintenance contracts for government-specific infrastructure can sometimes lead to sole-source awards. Comparable spending benchmarks are difficult to establish without more specific details on the network's scope and location.

Small Business Impact

There is no indication that this contract includes small business set-asides. The award to AOC Connect, LLC, a single entity, does not suggest subcontracting opportunities for small businesses within this specific contract. The impact on the small business ecosystem is likely minimal unless AOC Connect, LLC itself utilizes small businesses for support services.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers and CORs (Contracting Officer's Representatives) within the Defense Information Systems Agency. Accountability measures are enforced through the terms of the firm-fixed-price contract. Transparency is limited due to the sole-source nature of the award, with details on the justification for not competing being the primary transparency element. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Contracts
Wired Telecommunications Carrier Services
Federal Government Dark Fiber Leases
Department of Defense IT Infrastructure Maintenance

Risk Flags

Sole-source award may limit cost savings.
Long contract duration increases potential for price creep.
Lack of competition may reduce incentive for innovation.
Dependence on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to AOC CONNECT, LLC. IGF::CT::IGF DARK FIBER O&M

Who is the contractor on this award?

The obligated recipient is AOC CONNECT, 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 $16.9 million.

What is the period of performance?

Start: 2015-05-14. End: 2025-06-14.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' under a 'DEFINITIVE CONTRACT' type. While the specific justification is not detailed in the provided snippet, sole-source awards are typically made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, existing infrastructure integration, or a lack of sufficient competition in the market for the specific service required. For this dark fiber O&M contract, DISA likely determined that AOC Connect, LLC possessed the necessary expertise, infrastructure access, or proprietary knowledge to maintain the specific network without viable alternatives, thus justifying the sole-source procurement.

How does the $16.8 million cost compare to similar dark fiber maintenance contracts?

Direct comparison of the $16.8 million cost to similar dark fiber maintenance contracts is challenging without more specific details about the scope, length, and geographic coverage of the services provided by AOC Connect, LLC. Dark fiber maintenance costs can vary significantly based on the number of fiber strands, the complexity of the network, the required uptime SLAs (Service Level Agreements), and the geographic dispersion of the infrastructure. Furthermore, the sole-source nature of this award means there was no competitive bidding process to establish a market-driven price. To perform a robust comparison, one would need to identify other government or commercial dark fiber maintenance contracts with similar characteristics and analyze their pricing structures and total contract values.

What are the potential risks associated with a sole-source award for critical infrastructure maintenance?

Sole-source awards for critical infrastructure maintenance, such as this dark fiber O&M contract, carry several potential risks. Foremost is the risk of paying a premium price, as the absence of competition removes the downward pressure that multiple bidders would typically exert on pricing. There's also a risk of complacency from the sole provider, potentially leading to reduced service quality or innovation over the contract's long duration. Furthermore, reliance on a single vendor can create vendor lock-in, making it difficult and costly to switch providers in the future, even if better options become available. Finally, a sole-source award might indicate a lack of market research or a failure to identify potentially capable competitors, which could be a systemic issue.

What is the expected performance standard for AOC Connect, LLC under this contract?

The provided data indicates the contract is 'FIRM FIXED PRICE' (FFP), which generally implies that the contractor is obligated to perform the work specified in the contract for a predetermined price. While the specific performance standards (e.g., uptime percentages, response times for outages, maintenance schedules) are not detailed in the snippet, they would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a critical service like dark fiber O&M supporting the Department of Defense, performance standards are typically stringent, focusing on high availability, rapid restoration of service in case of disruption, and proactive maintenance to prevent failures. Failure to meet these standards could result in contractually defined remedies or penalties.

How has spending on dark fiber O&M by the Defense Information Systems Agency evolved over time?

The provided data snippet pertains to a single contract awarded on 2015-05-14 with an end date of 2025-06-14, totaling $16.8 million. This single data point does not provide sufficient historical context to analyze the evolution of DISA's spending on dark fiber O&M over time. To understand spending trends, one would need access to historical contract databases, including data on previous awards for similar services, their values, durations, and procurement methods (competed vs. sole-source). Analyzing such data would reveal whether spending has increased or decreased, whether more contracts are being awarded competitively, and how pricing has changed in the market.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC104715R4001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14030 THUNDERBOLT PL STE 700, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,879,571

Exercised Options: $16,879,571

Current Obligation: $16,879,571

Actual Outlays: $7,170,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline