DoD Awards $16.4M Contract for F-35 Ground-Based Telecommunications Transport Layer

Contract Overview

Contract Amount: $16,393,120 ($16.4M)

Contractor: M2 Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-11-30

Contract Duration: 430 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS CONTRACT WILL ESTABLISH A GROUND-BASED TELECOMMUNICATIONS TRANSPORT LAYER, WHICH WILL PROVIDE NETWORKED TRANSPORT OF OPERATIONAL DATA TO AND FROM MULTIPLE F-35 OPERATING SITES AND ONE OR MORE GOVERNMENT-PROVIDED CLOUD COMPUTING ENVIRONMENTS.

Place of Performance

Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to M2 TECHNOLOGY, INC. for work described as: THIS CONTRACT WILL ESTABLISH A GROUND-BASED TELECOMMUNICATIONS TRANSPORT LAYER, WHICH WILL PROVIDE NETWORKED TRANSPORT OF OPERATIONAL DATA TO AND FROM MULTIPLE F-35 OPERATING SITES AND ONE OR MORE GOVERNMENT-PROVIDED CLOUD COMPUTING ENVIRONMENTS. Key points: 1. Contract establishes a critical transport layer for F-35 operational data. 2. M2 TECHNOLOGY, INC. awarded the delivery order. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $16.4 million for a 430-day duration appears reasonable for establishing a specialized telecommunications transport layer. Benchmarking against similar complex network infrastructure projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competition, potentially impacting price discovery. Further details on the exclusion criteria are needed to assess the full competitive landscape.

Taxpayer Impact: Taxpayer funds are being used for a critical defense infrastructure component, with the ultimate impact on efficiency and security yet to be fully determined.

Public Impact

Enhances F-35 operational data flow to cloud environments. Supports secure and reliable communication for a key defense asset. Potential for improved mission readiness through robust data transport.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Dependence on a single vendor for a critical infrastructure layer.
Potential cybersecurity risks associated with data transport.

Positive Signals

Establishes essential infrastructure for F-35 operations.
Utilizes a firm fixed price contract type.
Clear delivery and performance periods defined.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, supporting critical infrastructure and operational needs. Benchmarks for similar network transport layer projects are difficult to ascertain without more specific technical details.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight will be crucial to ensure M2 TECHNOLOGY, INC. meets the performance requirements for the telecommunications transport layer. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition raises concerns about price competitiveness.
Potential for vendor lock-in due to specialized infrastructure.
Cybersecurity vulnerabilities in data transport are a constant threat.
Dependence on a single delivery order for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to M2 TECHNOLOGY, INC.. THIS CONTRACT WILL ESTABLISH A GROUND-BASED TELECOMMUNICATIONS TRANSPORT LAYER, WHICH WILL PROVIDE NETWORKED TRANSPORT OF OPERATIONAL DATA TO AND FROM MULTIPLE F-35 OPERATING SITES AND ONE OR MORE GOVERNMENT-PROVIDED CLOUD COMPUTING ENVIRONMENTS.

Who is the contractor on this award?

The obligated recipient is M2 TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-11-30.

What specific criteria led to the exclusion of other sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or proprietary technologies are required, limiting the pool of eligible contractors. This limited competition can sometimes result in higher prices compared to a truly open competition, as fewer vendors are vying for the contract. Understanding the exact justification for exclusion is key to assessing if the price paid reflects fair market value under the circumstances.

What are the primary cybersecurity risks associated with this ground-based telecommunications transport layer, and what mitigation strategies are in place?

Primary cybersecurity risks include potential data interception, denial-of-service attacks, and unauthorized access to sensitive operational data. Mitigation strategies likely involve robust encryption protocols, network segmentation, intrusion detection and prevention systems, and strict access controls. The government's oversight and the contractor's adherence to cybersecurity best practices are paramount to safeguarding the network.

How will the effectiveness of this telecommunications transport layer be measured, and what are the key performance indicators (KPIs) for success?

Effectiveness will likely be measured through KPIs such as data transmission speed, latency, uptime, reliability, and successful integration with F-35 operating sites and cloud environments. Performance will be monitored through regular testing, system audits, and user feedback. Meeting or exceeding these KPIs will indicate the successful establishment and operation of the transport layer.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21702 HARDY OAK BLVD STE 100, SAN ANTONIO, TX, 78258

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $85,025,514

Exercised Options: $16,393,120

Current Obligation: $16,393,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC81B

IDV Type: GWAC

Timeline