DoD's $1.99M Guam Network Support Contract Awarded to Telecommunication Solutions Group Inc

Contract Overview

Contract Amount: $1,990,760 ($2.0M)

Contractor: Telecommunication Solutions Group Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-02-28

Contract Duration: 516 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCONUS NETWORK INFRASTRUCTURE SUPPORT SERVICES (NISS) - SANTA RITA, GUAM

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27606

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to TELECOMMUNICATION SOLUTIONS GROUP INC for work described as: OCONUS NETWORK INFRASTRUCTURE SUPPORT SERVICES (NISS) - SANTA RITA, GUAM Key points: 1. Contract value represents a moderate investment for specialized OCONUS IT infrastructure support. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs, but requires careful scope management. 4. Performance period of over 1.5 years allows for sustained service delivery. 5. The contract is for custom computer programming services, indicating a focus on tailored IT solutions. 6. Awarded to a single contractor, highlighting the need for robust performance monitoring.

Value Assessment

Rating: good

The contract value of approximately $1.99 million for over 500 days of service appears reasonable for specialized OCONUS network infrastructure support. Benchmarking against similar IT service contracts in remote or overseas locations is challenging due to unique logistical and operational costs. However, the firm-fixed-price structure suggests an expectation of predictable costs for the defined scope of work. Further analysis would require comparing the specific deliverables and service levels to industry standards for similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this specialized IT service requirement. While not an exceptionally high number of bidders, it implies that multiple companies were interested and capable of performing the work, which generally aids in price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can drive down prices and encourage innovation. The fact that four bids were received suggests that taxpayer dollars were likely used efficiently, as the agency had options to choose from rather than being limited to a single provider.

Public Impact

The primary beneficiaries are the Department of Defense personnel and operations in Santa Rita, Guam, who will receive reliable network infrastructure support. The contract ensures the continued functioning and security of critical OCONUS network infrastructure. Geographic impact is focused on the U.S. naval base in Guam, supporting military readiness in the Indo-Pacific region. Workforce implications may include the need for specialized IT technicians and engineers, potentially sourced locally or brought in by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed under the firm-fixed-price contract.
Reliance on a single contractor for critical network infrastructure could pose a risk if performance issues arise.
Ensuring adequate technical expertise within the government to oversee contractor performance on complex network systems.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty for the government.
Full and open competition provides a basis for selecting the most capable and cost-effective offeror.
The contract duration allows for sustained support and reduces the frequency of re-competition.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and network infrastructure support. The market for such services is substantial, driven by ongoing government and commercial demand for robust and secure IT operations. Comparable spending benchmarks for OCONUS IT support can vary significantly due to logistical complexities, security requirements, and the specific technologies involved. This contract's value of approximately $1.99 million over 516 days aligns with the typical investment required for specialized, long-term IT support in challenging environments.

Small Business Impact

This contract was not set aside for small businesses and the contractor, Telecommunication Solutions Group Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract are limited to potential subcontracting roles if the prime contractor chooses to engage them, which is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) through its contracting officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget and timeframe. Transparency is facilitated by the contract award process being under full and open competition, with the award decision typically documented. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
OCONUS Base Operations Support Services
DoD Network Modernization Programs
Telecommunications Services for Government Facilities

Risk Flags

Potential for performance issues due to remote location.
Cybersecurity risks inherent in network infrastructure.
Contractor dependency for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to TELECOMMUNICATION SOLUTIONS GROUP INC. OCONUS NETWORK INFRASTRUCTURE SUPPORT SERVICES (NISS) - SANTA RITA, GUAM

Who is the contractor on this award?

The obligated recipient is TELECOMMUNICATION SOLUTIONS GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-02-28.

What is the track record of Telecommunication Solutions Group Inc. in performing similar OCONUS IT infrastructure support contracts for the Department of Defense?

Assessing the track record of Telecommunication Solutions Group Inc. requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. For OCONUS IT infrastructure support, key indicators would include their experience with network design, implementation, maintenance, cybersecurity, and logistical challenges in remote or overseas locations. A positive track record would demonstrate their ability to meet technical requirements, manage costs, and adhere to schedules, providing confidence in their capacity to fulfill the current contract effectively. Conversely, a history of performance issues or contract disputes would raise concerns about their suitability for this critical role.

How does the awarded price of $1.99 million compare to the estimated value or benchmark for similar OCONUS network support services?

The awarded price of approximately $1.99 million for 516 days of OCONUS network infrastructure support needs to be benchmarked against similar contracts to assess value for money. Direct comparisons are difficult due to the unique nature of OCONUS operations, which often involve higher logistical, security, and personnel costs. However, by analyzing contracts for similar IT services in comparable geographic regions or with similar scope and duration, a relative value can be determined. Factors such as the number of users supported, the complexity of the network, and the specific services included (e.g., hardware maintenance, software support, cybersecurity) are crucial for a fair comparison. If the awarded price falls within or below the range of comparable contracts, it suggests good value; if it significantly exceeds benchmarks without clear justification, it may indicate potential overpricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential technical failures of the network infrastructure, cybersecurity threats targeting the OCONUS network, contractor performance issues (delays, quality of service), and logistical challenges in supporting remote locations. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), stringent cybersecurity protocols, and contingency planning for equipment failures or personnel shortages. The firm-fixed-price contract structure itself acts as a risk mitigation tool for cost overruns, provided the scope is well-defined. Regular performance reviews and clear communication channels between the government and the contractor are essential for proactive risk management.

How effective is the firm-fixed-price contract type in ensuring cost control and performance for this specific IT service requirement?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for IT services when the scope of work is well-defined and unlikely to change significantly. For OCONUS network infrastructure support, where requirements can sometimes evolve due to operational needs or technological advancements, FFP can pose a risk of scope creep if not managed diligently. However, it places the responsibility on the contractor to manage their costs and deliver the specified services within the agreed price. This incentivizes efficiency. Performance is typically measured against contract deliverables and SLAs. The effectiveness hinges on the clarity of the SOW and the government's ability to monitor adherence to it, ensuring that the contractor meets performance expectations without incurring additional costs for the government.

What is the historical spending pattern for OCONUS network infrastructure support services by the Defense Logistics Agency or similar DoD entities?

Historical spending on OCONUS network infrastructure support services by the DLA and other DoD entities tends to be substantial and consistent, reflecting the critical need for reliable IT connectivity in global operations. Spending patterns are influenced by factors such as the number of deployed personnel, the strategic importance of geographic locations, and ongoing modernization efforts. Contracts in this category often span multiple years and can range from hundreds of thousands to millions of dollars, depending on the scale and complexity of the required services. Analyzing past spending can reveal trends in contract values, types of services procured, and the contractors most frequently awarded these types of agreements, providing context for the current award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470124Q0201

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5540 CENTERVIEW DR STE 409, RALEIGH, NC, 27606

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

Financial Breakdown

Contract Ceiling: $1,990,760

Exercised Options: $1,990,760

Current Obligation: $1,990,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00EX

IDV Type: FSS

Timeline