DoD's $22.8M contract for submarine communications engineering services awarded to Tele-Consultants, Inc

Contract Overview

Contract Amount: $22,817,961 ($22.8M)

Contractor: Tele-Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-15

End Date: 2026-09-14

Contract Duration: 1,460 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMMUNICATIONS ENGINEERING & TECHNICAL SERVICES IN THE AREA OF SUBMARINE AND UNDERSEA COMMUNICATION, NETWORKING, AND DATA SYSTEMS.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to TELE-CONSULTANTS, INC. for work described as: COMMUNICATIONS ENGINEERING & TECHNICAL SERVICES IN THE AREA OF SUBMARINE AND UNDERSEA COMMUNICATION, NETWORKING, AND DATA SYSTEMS. Key points: 1. Contract focuses on critical submarine and undersea communication systems, highlighting a specialized niche. 2. Awarded via full and open competition, suggesting a broad market search. 3. The contract duration of 1460 days (4 years) indicates a long-term need for these specialized services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks. 5. The presence of 3 bidders suggests moderate competition for this specialized engineering service. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or contract.

Value Assessment

Rating: fair

Benchmarking the value of this $22.8 million contract is challenging without specific comparable contracts for submarine communication engineering. The Cost Plus Fixed Fee (CPFF) contract type means the final cost can fluctuate based on actual expenses, plus a predetermined profit. While this structure can encourage efficiency, it requires careful oversight to ensure costs remain reasonable and do not escalate beyond expectations. The number of bidders (3) suggests some level of market interest, but it's not indicative of intense price competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With three bidders participating, the competition level appears moderate for this specialized engineering service. While three bidders indicate some market engagement, it's not a highly competitive scenario that might drive prices down significantly. The Department of the Navy sought proposals from a range of qualified firms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to solicit the best value from the widest possible pool of contractors, potentially leading to more competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Navy and the U.S. submarine fleet, which will receive enhanced communication and data systems. Services delivered include engineering, technical support, networking, and data systems expertise for undersea environments. The geographic impact is primarily within Rhode Island, where the contractor is located, and potentially at various naval bases where submarine operations are supported. This contract supports a highly specialized technical workforce in the field of advanced communications engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for actual costs plus a fixed fee.
Limited competition (3 bidders) may not have driven the most aggressive pricing, potentially impacting overall value for money.
The specialized nature of the work could create a barrier to entry for smaller or less experienced firms, limiting future competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance or potential future effectiveness.
The contract is a delivery order, suggesting it might be part of a larger, potentially less scrutinized, IDIQ contract.

Positive Signals

Awarded through full and open competition, indicating an effort to engage a broad range of qualified vendors.
The contract addresses a critical national security need related to submarine and undersea communications.
The contractor, Tele-Consultants, Inc., has secured a significant contract, suggesting a level of established capability in this niche.
The long contract duration (4 years) provides stability and ensures continuity of essential services for the Navy.
The contract is for engineering services, a vital component of maintaining and advancing complex defense systems.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on advanced communications and networking for defense applications. The market for specialized defense engineering services is often characterized by high barriers to entry due to technical complexity and security requirements. Spending in this area is driven by the need to maintain and upgrade sophisticated military systems, particularly in areas like undersea warfare where communication is paramount and challenging. Comparable spending benchmarks would likely be found within other large, complex defense contracts for system design, integration, and technical support.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. Consequently, the direct impact on the small business ecosystem for this particular award is likely minimal, unless Tele-Consultants, Inc. plans to utilize small businesses for subcontracting, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officer and their representatives. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones or deliverables. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Submarine Force Communications Systems
Undersea Warfare Technology Development
Defense Communications and Networking Services
Department of Defense Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition may impact price competitiveness.
Specialized nature of work could limit future bidder pool.
Potential for cost escalation inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to TELE-CONSULTANTS, INC.. COMMUNICATIONS ENGINEERING & TECHNICAL SERVICES IN THE AREA OF SUBMARINE AND UNDERSEA COMMUNICATION, NETWORKING, AND DATA SYSTEMS.

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 $22.8 million.

What is the period of performance?

Start: 2022-09-15. End: 2026-09-14.

What is the track record of Tele-Consultants, Inc. with the Department of Defense, particularly in submarine communications?

Assessing Tele-Consultants, Inc.'s track record requires a deeper dive into their contract history beyond this single award. While this $22.8 million contract for submarine communications engineering suggests a capability in this niche, it doesn't reveal their performance on past projects. A comprehensive review would involve examining previous awards, contract performance reports (CPARs), and any documented issues or successes. Understanding their history with similar complex, long-term defense projects would provide better insight into their reliability and expertise in delivering critical communication systems for the Navy's submarine fleet.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar engineering services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracting, especially for research, development, and complex engineering efforts where the scope may evolve. It reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While it allows flexibility, it can incentivize cost increases if not tightly managed. Compared to fixed-price contracts, CPFF offers less price certainty for the government but can be advantageous when technical uncertainties are high. Industry benchmarks for the 'cost' portion vary widely based on labor rates, overhead, and material costs, while the 'fixed fee' typically ranges from 5-15% of the estimated cost, depending on risk and complexity.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for engineering services contracts of this nature, KPIs might include system uptime, data transfer rates, latency reduction, successful integration of new technologies, and adherence to security protocols. Deliverables would likely encompass design documents, technical reports, system integration plans, testing results, and potentially prototypes or implemented system upgrades for submarine communication networks. The specific metrics and deliverables are crucial for assessing the contractor's performance and the overall value derived from the contract.

What is the potential risk associated with the limited number of bidders (3) for this specialized service?

A limited number of bidders, such as the three in this case, can pose several risks. It may indicate a lack of robust competition, potentially leading to higher prices than might be achieved in a more crowded market. Furthermore, it could suggest that the specialized nature of submarine communications engineering creates a high barrier to entry, limiting the pool of qualified contractors. This concentration of expertise among a few firms could also imply a greater reliance on specific contractors, potentially increasing vulnerability if one firm faces performance issues or decides to exit the market. For taxpayers, this translates to a potential reduction in competitive pressure driving cost efficiency.

How does this contract's value and scope compare to other recent Department of the Navy contracts for communication systems?

Comparing this $22.8 million contract requires access to a broader dataset of recent Department of the Navy (DoN) awards for communication systems. However, contracts for submarine and undersea communications are generally highly specialized and can command significant value due to the unique technological challenges and national security implications. While $22.8 million is a substantial sum, it might be considered moderate compared to larger platform integration or major system acquisition contracts. Its value is likely driven by the specific expertise required in areas like acoustic, RF, and optical communications tailored for the harsh undersea environment, rather than sheer volume of hardware.

What is the historical spending trend for submarine and undersea communication engineering services within the Department of Defense?

Analyzing historical spending trends for submarine and undersea communication engineering services requires access to multi-year budget and contract data specifically filtered for this niche. Generally, spending in this area is driven by the continuous need to modernize and maintain the U.S. submarine fleet's technological edge. Factors influencing spending include geopolitical threats, advancements in adversary capabilities, and the lifecycle of existing submarine platforms. Budgets allocated to these services are often stable but can see increases during periods of major platform upgrades or when responding to specific technological challenges in undersea communication.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660421R3015

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tele Consultants Inc

Address: 5172 W MILITARY HWY BLD 3 STE B, CHESAPEAKE, VA, 23321

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,371,258

Exercised Options: $26,649,401

Current Obligation: $22,817,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8690

IDV Type: IDC

Timeline