DISA's $40.5M Enterprise VoIP Contract Awarded to ITELLECT LLC for Unified Capabilities

Contract Overview

Contract Amount: $40,544,853 ($40.5M)

Contractor: Itellect LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2024-08-31

Contract Duration: 2,010 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DISA ENTERPRISE VOICE OVER IP (EVOIP) UNIFIED CAPABILITY (UC)

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to ITELLECT LLC for work described as: DISA ENTERPRISE VOICE OVER IP (EVOIP) UNIFIED CAPABILITY (UC) Key points: 1. The contract focuses on IT services for unified communications, a critical area for defense agencies. 2. ITELLECT LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The contract has a significant duration, extending to August 2024, indicating long-term reliance. 4. The firm fixed price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $40.5M over its period of performance appears moderate for enterprise-wide unified communications. Benchmarking against similar large-scale IT service contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process but with specific limitations. This method may impact price discovery by excluding certain potential bidders, potentially leading to less aggressive pricing than a truly open competition.

Taxpayer Impact: The government sought competitive bids, but the exclusion of sources might have limited the number of offers, potentially impacting the final price achieved for taxpayers.

Public Impact

Ensures communication continuity for Department of Defense personnel. Supports modern collaboration tools essential for military operations. Potential for service disruptions if vendor performance is suboptimal. Impacts IT infrastructure modernization efforts within DISA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long contract duration increases risk of vendor lock-in.
Reliance on a single vendor for critical communication infrastructure.

Positive Signals

Firm fixed price contract type for cost control.
Focus on essential unified communication capabilities.
Awarded by a major defense agency (DISA).

Sector Analysis

This contract falls within the Computer Systems Design Services sector, specifically supporting IT infrastructure for defense. Spending in this area is substantial across government, driven by the need for secure and modern communication systems.

Small Business Impact

The data indicates this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is not provided in this data.

Oversight & Accountability

Oversight is likely managed by the Defense Information Systems Agency (DISA). The firm fixed price contract type provides some cost control, but performance monitoring is crucial for ensuring value and effectiveness.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for higher costs due to limited competition.
Vendor lock-in risk due to long contract duration.
Dependence on a single vendor for critical infrastructure.
Lack of transparency on specific excluded sources.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to ITELLECT LLC. DISA ENTERPRISE VOICE OVER IP (EVOIP) UNIFIED CAPABILITY (UC)

Who is the contractor on this award?

The obligated recipient is ITELLECT 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 $40.5 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-08-31.

What specific capabilities are included in the 'Unified Capability' aspect of this contract, and how do they align with current DoD communication needs?

The 'Unified Capability' likely encompasses voice, video, messaging, and presence services integrated into a single platform. This aligns with DoD's need for seamless, secure, and interoperable communication across various operational environments. The specific features would detail how it supports collaboration, situational awareness, and command and control functions, ensuring personnel can connect effectively regardless of location or device.

How does the 'exclusion of sources' in the competition impact the overall risk profile and potential for cost savings?

Excluding sources inherently limits the competitive pool, potentially reducing the number of viable offers and the intensity of price negotiation. This increases the risk of not achieving the lowest possible price and could lead to higher costs for the government. The risk is mitigated if the excluded sources were genuinely incapable or if the remaining competition was robust enough to drive competitive pricing.

What are the key performance indicators (KPIs) used to measure the effectiveness and value of ITELLECT LLC's services under this contract?

Effectiveness is likely measured through KPIs such as system uptime, call quality (e.g., latency, jitter), user satisfaction, response times for issue resolution, and successful integration with other DoD systems. Value is assessed by comparing the cost against the achieved performance metrics and the overall benefit to mission readiness and operational efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC104718R4021

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1717 PENNSYLVANIA AVE NW STE 1025, WASHINGTON, DC, 20006

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,544,853

Exercised Options: $40,544,853

Current Obligation: $40,544,853

Actual Outlays: $16,874,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline