DoD's $10.17M contract with ALL NATIVE SYSTEMS LLC for telecommunications resellers shows questionable value and limited competition

Contract Overview

Contract Amount: $10,171,488 ($10.2M)

Contractor: ALL Native Systems LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-10

End Date: 2008-12-31

Contract Duration: 1,208 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to ALL NATIVE SYSTEMS LLC for work described as: Key points: 1. The contract's value proposition is unclear given the lack of detailed performance metrics and the limited competitive environment. 2. Competition was restricted, raising concerns about potential overpayment and the absence of market-driven pricing. 3. Risk indicators include the sole-source nature of the award and the absence of a clear justification for limited competition. 4. Performance context is limited, with no readily available data on service delivery quality or effectiveness. 5. The contract falls within the telecommunications resellers sector, a broad category with varying service costs. 6. The duration of the contract (over 3 years) suggests a need for ongoing services, but the value for money remains to be fully assessed.

Value Assessment

Rating: questionable

Benchmarking the value of this $10.17 million contract is challenging due to the limited information available on specific services rendered and performance outcomes. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of competitive bidding, which typically leads to less favorable pricing for the government compared to open market procurements. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if the pricing reflects fair market value or if it represents a premium due to the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one vendor, ALL NATIVE SYSTEMS LLC, was solicited and awarded the contract. The lack of competition prevents a robust price discovery process, as there were no other bids to compare against. This approach is typically used when only one source is capable of meeting the requirement, but it necessitates careful justification to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices, potentially leading to higher costs for taxpayers. It also reduces the incentive for contractors to offer competitive pricing.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically the Department of the Navy, which receives telecommunications reseller services. The services delivered likely support military communications infrastructure and operational needs. The geographic impact is noted as Florida (ST: FL, SN: FLORIDA), suggesting the services are utilized within this region. Workforce implications are not explicitly detailed but would involve personnel at ALL NATIVE SYSTEMS LLC providing these telecommunications services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Limited transparency regarding the justification for a sole-source award.
Absence of performance metrics makes it difficult to assess the effectiveness of the services provided.
The contract duration of over three years without clear performance benchmarks raises concerns about long-term value.

Positive Signals

The contract was awarded to ALL NATIVE SYSTEMS LLC, potentially supporting a business with specific capabilities.
The award indicates the Department of the Navy has a recognized need for telecommunications reseller services.
The contract was awarded in 2005, suggesting a long-standing relationship or need for these services.

Sector Analysis

This contract falls within the Telecommunications Resellers (NAICS 517310) sector. This sector includes establishments primarily engaged in reselling telecommunications services, such as long-distance, local, and internet services, on behalf of other telecommunications service providers. The market size for telecommunications services is vast, with significant government spending allocated to ensure robust communication networks. Government contracts in this area often focus on providing reliable and secure communication channels for various agencies. Comparable spending benchmarks are difficult to establish without knowing the specific services procured, but the overall telecommunications market is highly competitive, making sole-source awards notable.

Small Business Impact

There is no indication that this contract was a small business set-aside, as the 'ss' field is false. Furthermore, the 'sb' field is also false, suggesting no specific subcontracting plan for small businesses was mandated or is evident from the provided data. This means that the primary contractor, ALL NATIVE SYSTEMS LLC, is not obligated to subcontract portions of this work to small businesses, potentially limiting opportunities for the small business ecosystem in this procurement.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Defense contract, it would likely fall under the purview of the Department of Defense's internal audit and oversight functions, potentially including the Inspector General. Transparency is limited due to the sole-source nature and the lack of publicly available performance reports. Accountability would primarily rest on the contracting officer and the program managers within the Department of the Navy to ensure the contractor meets the terms of the contract, though assessing this is difficult without performance data.

Related Government Programs

Defense Communications Services
Telecommunications Infrastructure Support
Government Telecommunications Contracts
Navy IT and Communications Spending
Sole-Source IT Procurements

Risk Flags

Sole-source award justification unclear
Lack of competitive bidding may lead to higher costs
Limited performance data available for value assessment
Potential for reduced contractor incentive due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to ALL NATIVE SYSTEMS LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ALL NATIVE SYSTEMS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2005-09-10. End: 2008-12-31.

What specific telecommunications reseller services were procured under this contract?

The provided data indicates the contract is for 'Telecommunications Resellers' (NAICS 517310) awarded to ALL NATIVE SYSTEMS LLC by the Department of the Navy. However, the specific services are not detailed. Typically, telecommunications resellers provide services such as voice, data, internet, and video transmission by purchasing capacity from network providers and reselling it to end-users. This could include services like dedicated internet access, VoIP, private line services, or managed network solutions. Without further documentation, the exact nature and scope of the services remain unspecified, making it difficult to fully evaluate the contract's purpose and value.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION', which typically signifies a sole-source or limited-source justification. Common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is impractical, or when a specific technology or service is only available from a single source. For a contract valued at over $10 million, a detailed justification and approval process would normally be required by federal acquisition regulations. The absence of this justification in the provided data makes it impossible to assess the validity of the sole-source award and its impact on price competition.

How does the $10.17 million contract value compare to similar telecommunications reseller contracts awarded by the DoD?

Comparing this $10.17 million contract value to similar telecommunications reseller contracts by the DoD is challenging without more specific details about the services procured and the contract duration. The contract spanned from September 10, 2005, to December 31, 2008 (approximately 3.3 years). If this represents a total contract value over that period, the annual spending would be roughly $3 million. The DoD procures a vast array of telecommunications services, and the price can vary significantly based on bandwidth, service level agreements, geographic coverage, and technology. Without knowing if this contract was for basic reselling of POTS lines, high-capacity data circuits, or managed network services, a direct comparison is speculative. However, for a sole-source award of this magnitude, it warrants scrutiny to ensure it aligns with market rates for comparable services.

What are the potential risks associated with a sole-source contract of this size and duration?

Sole-source contracts, especially those of significant value ($10.17 million) and duration (over three years), carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through an open bidding process. This can result in inefficient use of taxpayer funds. Another risk is reduced incentive for the contractor to innovate or provide exceptional service, as there is no competitive pressure. Furthermore, sole-source awards can limit opportunities for other capable vendors, potentially hindering market growth and diversity. Oversight becomes critical to mitigate these risks, ensuring the contractor delivers value and adheres strictly to contract terms.

What performance metrics or oversight mechanisms were in place for this contract?

The provided data does not include specific performance metrics or detailed oversight mechanisms for this contract. Federal contracts typically include Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) to measure the contractor's performance. Oversight is usually conducted by contracting officers and program managers responsible for monitoring delivery, quality, and compliance. Given this was a sole-source award, robust oversight would be particularly crucial to ensure the government receives fair value. Without access to contract line-item details, inspection reports, or performance reviews, it is impossible to assess the effectiveness of the oversight and whether the contractor met performance expectations.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Telecommunications Resellers

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Winnebago Tribe of Nebraska (UEI: 041643834)

Address: 1 MISSION DR, WINNEBAGO, NE, 03

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline