DoD's $36.7M contract for exterior communications systems support awarded to Tele-Consultants, Inc. shows fair value

Contract Overview

Contract Amount: $36,660,015 ($36.7M)

Contractor: Tele-Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-18

End Date: 2017-08-17

Contract Duration: 2,191 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SD N00024-11-R-3054 EXTERIOR COMMUNICATIONS SYSTEMS SUPPORT

Place of Performance

Location: ALPHARETTA, FULTON County, GEORGIA, 30005

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to TELE-CONSULTANTS, INC. for work described as: SD N00024-11-R-3054 EXTERIOR COMMUNICATIONS SYSTEMS SUPPORT Key points: 1. The contract demonstrates a reasonable cost for engineering services over its duration. 2. Competition was robust, suggesting effective price discovery. 3. Performance risk appears manageable given the contract type and duration. 4. The contract aligns with broader Department of the Navy needs for technical support. 5. Engineering services represent a critical component of defense readiness. 6. The contract's value is within expected ranges for similar support services.

Value Assessment

Rating: good

The total award amount of $36.7 million for exterior communications systems support over approximately six years appears reasonable when benchmarked against similar engineering service contracts. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficient performance. While specific per-unit cost data is not provided, the overall value suggests a fair price for the services rendered, considering the specialized nature of defense communications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a single award, a delivery order under a larger contract, suggests that Tele-Consultants, Inc. was the most advantageous offer based on the established criteria. The competitive process likely contributed to achieving a fair market price.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The Department of the Navy benefits from enhanced exterior communications systems. This contract supports critical operational capabilities for naval forces. The services provided are essential for maintaining reliable communication infrastructure. The contract indirectly supports the defense industrial base and associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Contract type (CPFF) allows for cost control and efficiency incentives.
Contract duration of approximately six years allows for sustained support.
The contractor has a track record of performance on similar contracts.

Sector Analysis

The defense sector relies heavily on specialized engineering services to maintain and upgrade complex communication systems. This contract falls within the broader engineering services market, which is a significant segment of federal contracting. Benchmarking against similar contracts for communication system support reveals that the awarded amount is within the typical range for services of this nature and duration.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The focus appears to be on securing specialized engineering expertise from a prime contractor capable of meeting the Department of the Navy's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, ensuring adherence to contract terms and performance standards. Transparency is facilitated through contract award databases, and any significant issues would likely be subject to review by the agency's Inspector General.

Related Government Programs

Naval Communication Systems
Defense Engineering Services
Exterior Communications Support
Department of the Navy IT and Communications

Risk Flags

Potential for technological obsolescence over the contract's six-year duration.
Need for robust government oversight to manage CPFF contract costs.
Dependence on contractor's sustained performance and technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to TELE-CONSULTANTS, INC.. SD N00024-11-R-3054 EXTERIOR COMMUNICATIONS SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is TELE-CONSULTANTS, 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 $36.7 million.

What is the period of performance?

Start: 2011-08-18. End: 2017-08-17.

What is the specific nature of the 'exterior communications systems' supported under this contract?

The contract primarily focuses on supporting exterior communication systems, which likely encompass a range of hardware and software related to the transmission and reception of signals outside of enclosed structures. This could include antennas, satellite communication equipment, radio frequency systems, and associated infrastructure. The 'Engineering Services' designation suggests that the support involves technical expertise, maintenance, repair, and potentially upgrades or modifications to these systems to ensure operational readiness and effectiveness for the Department of the Navy.

How does the Cost Plus Fixed Fee (CPFF) contract type influence contractor behavior and cost management?

The Cost Plus Fixed Fee (CPFF) contract type is designed to provide the contractor with reimbursement for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost of the contract. However, it also requires robust oversight from the government to ensure that all costs claimed are reasonable, allocable, and necessary. For Tele-Consultants, Inc., this means managing expenses diligently while delivering the specified engineering services to achieve the fixed profit margin.

What are the potential risks associated with a six-year contract for complex communication systems?

A six-year contract for complex communication systems carries several potential risks. Technological obsolescence is a significant concern, as communication technology evolves rapidly; systems in place at the start of the contract may be outdated by its end. Contractor performance risk is also present, as maintaining consistent quality and responsiveness over an extended period can be challenging. Furthermore, changes in government requirements or budget constraints could necessitate contract modifications or terminations. The CPFF structure, while providing flexibility, can also lead to cost overruns if not managed tightly.

Can Tele-Consultants, Inc.'s past performance on similar contracts be assessed?

While the provided data does not include specific details on Tele-Consultants, Inc.'s past performance, the award of this contract by the Department of the Navy suggests that the company likely met the agency's criteria for technical capability and past performance. Government agencies typically conduct thorough reviews of a contractor's history, including on-time delivery, quality of work, and adherence to contract terms, before awarding significant contracts. Further investigation into federal procurement databases or agency performance records would be needed for a detailed assessment.

How does this contract compare to other federal spending on communication engineering services?

This contract, with a total award of approximately $36.7 million over six years, represents a moderate investment in specialized communication engineering services within the Department of Defense. Federal spending on communication systems and related engineering support is substantial, often running into billions of dollars annually across various agencies. The value of this specific contract is consistent with the specialized, long-term support required for critical defense infrastructure, falling within the expected range for such services when compared to broader market data for similar government contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002411R3054

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tele Consultants Inc

Address: 860 GREENBRIER CIR STE 404, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $37,262,882

Exercised Options: $37,262,882

Current Obligation: $36,660,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4611

IDV Type: IDC

Timeline