DoD's $14.6M Cisco VoIP Services Contract with Presidio Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $14,650,523 ($14.7M)

Contractor: Presidio Government Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-20

End Date: 2025-05-27

Contract Duration: 1,833 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDES CISCO SUBJECT MATTER EXPERT SERVICES AND SUPPORT FOR THE ENTERPRISE VOICE OVER IP AND ENTERPRISE CLASSIFIED VOICE OVER IP. DOD VOICE SERVICES INITIATIVE HAS DELIVERED UNIFIED CAPABILITIES TO WARFIGHTERS ACROSS THE GLOBE.

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to PRESIDIO GOVERNMENT SOLUTIONS LLC for work described as: PROVIDES CISCO SUBJECT MATTER EXPERT SERVICES AND SUPPORT FOR THE ENTERPRISE VOICE OVER IP AND ENTERPRISE CLASSIFIED VOICE OVER IP. DOD VOICE SERVICES INITIATIVE HAS DELIVERED UNIFIED CAPABILITIES TO WARFIGHTERS ACROSS THE GLOBE. Key points: 1. Contract supports critical DoD Voice Services Initiative, impacting global warfighter communications. 2. Presidio Government Solutions LLC holds the contract for Cisco VoIP SME services. 3. Potential concerns regarding pricing and the effectiveness of full and open competition. 4. Spending falls within the 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: fair

The contract value of $14.6M over five years for specialized Cisco VoIP support appears high. Benchmarking against similar managed IT services contracts is needed to assess if the pricing reflects fair market value for the expertise provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. However, the specific pricing outcomes and the level of competition achieved require further analysis to ensure optimal price discovery.

Taxpayer Impact: Taxpayer funds are supporting essential communication infrastructure for the Department of Defense. Ensuring cost-effectiveness is crucial for maximizing the value of this investment.

Public Impact

Ensures reliable and secure voice communication for global military operations. Supports the modernization of DoD's communication infrastructure. Potential for cost savings through competitive bidding and efficient service delivery. Impacts the operational readiness of warfighters relying on these systems.

Waste & Efficiency Indicators

Waste Risk Score: 79 / 10

Warning Flags

Potential for overpricing given the specialized nature of services.
Need to verify effectiveness of 'full and open competition' in achieving best value.
Long contract duration may limit flexibility for future technology adoption.

Positive Signals

Supports a critical DoD initiative with global reach.
Utilizes established technology (Cisco VoIP) with known support requirements.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls under IT services, specifically focusing on Voice over IP (VoIP) solutions for the Department of Defense. IT services spending for the federal government is substantial, with significant portions allocated to network infrastructure and telecommunications.

Small Business Impact

The contract was awarded to Presidio Government Solutions LLC, a large business. There is no indication that small businesses were subcontracted or involved in this specific award, which is a missed opportunity for small business participation.

Oversight & Accountability

The Defense Information Systems Agency (DISA) is responsible for this contract. Oversight should focus on performance metrics, adherence to service level agreements, and ongoing cost-effectiveness analysis to ensure accountability.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for cost overruns if not closely managed.
Risk of vendor lock-in due to specialized knowledge.
Dependence on a single vendor for critical communication infrastructure.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to PRESIDIO GOVERNMENT SOLUTIONS LLC. PROVIDES CISCO SUBJECT MATTER EXPERT SERVICES AND SUPPORT FOR THE ENTERPRISE VOICE OVER IP AND ENTERPRISE CLASSIFIED VOICE OVER IP. DOD VOICE SERVICES INITIATIVE HAS DELIVERED UNIFIED CAPABILITIES TO WARFIGHTERS ACROSS THE GLOBE.

Who is the contractor on this award?

The obligated recipient is PRESIDIO GOVERNMENT SOLUTIONS 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 $14.7 million.

What is the period of performance?

Start: 2020-05-20. End: 2025-05-27.

What is the specific value proposition of Presidio's Cisco VoIP expertise compared to other potential vendors?

The value proposition likely centers on Presidio's deep, certified expertise with Cisco's enterprise and classified VoIP systems, potentially offering specialized knowledge in integration, security, and maintenance that generic IT providers may lack. This specialized knowledge is crucial for the DoD's mission-critical communication needs, justifying a premium if performance and reliability are demonstrably superior.

How effectively did the 'full and open competition' process ensure competitive pricing for these specialized services?

While 'full and open competition' theoretically maximizes vendor participation, the specialized nature of Cisco VoIP SME services might limit the pool of truly qualified bidders. An analysis of the bids received, the number of proposals submitted, and the final negotiated price against benchmarks is necessary to determine if the competition effectively drove down costs and ensured best value for the taxpayer.

What are the key performance indicators (KPIs) used to measure the effectiveness of these VoIP services for warfighters?

Effectiveness KPIs likely include system uptime, call clarity and reliability, security incident response times, latency metrics, and user satisfaction surveys from deployed warfighters. Regular reporting and analysis of these KPIs against established targets are essential to ensure the services meet the demanding operational requirements of the DoD.

Industry Classification

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

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12100 SUNSET HILLS RD STE 300A, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,650,523

Exercised Options: $14,650,523

Current Obligation: $14,650,523

Actual Outlays: $6,057,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC45B

IDV Type: GWAC

Timeline