DoD Awards $22.4M for Wired Telecom Equipment, Competition Method Raises Questions

Contract Overview

Contract Amount: $22,436,466 ($22.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-24

End Date: 2009-10-04

Contract Duration: 1,259 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIXED PRICE

Sector: IT

Official Description: 200607!000387!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF12 ! !20060424!20100205!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!21600!029!06!EDWARDS AFB !KERN !CALIFORNIA!+000020837753!N!N!000000000000!N058!INSTALLATION OF EQ/COMMUNICATION EQUIPMENT !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !561210!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!018!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93523

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200607!000387!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF12 ! !20060424!20100205!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!21600!029!06!EDWARDS AFB !KERN… Key points: 1. Significant contract value for telecommunications infrastructure. 2. Limited competition noted, potentially impacting price discovery. 3. Risk of overpayment due to lack of robust competition. 4. Sector: Information Technology (Wired Telecommunications Carriers).

Value Assessment

Rating: fair

The contract value of $22.4M appears substantial for installation services. Benchmarking against similar wired telecommunications carrier contracts is difficult without more granular data on the specific equipment and services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the limited number of bidders (18) and the specific nature of the requirement might have constrained the competitive landscape, potentially affecting the final price.

Taxpayer Impact: Taxpayer funds are being used for essential communication equipment installation. The effectiveness of the competition in securing the best value for taxpayer money warrants further scrutiny.

Public Impact

Ensures critical communication infrastructure for the Department of Defense. Supports technological modernization within military installations. Potential for cost savings if competition was more robust. Impacts the wired telecommunications carrier industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders despite full and open competition.
Potential for price not being fully optimized due to competition constraints.

Positive Signals

Awarded under full and open competition.
Addresses critical infrastructure needs.
Long-term contract duration provides stability.

Sector Analysis

This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is crucial for maintaining secure and reliable communication networks for government operations. Benchmarks vary widely based on the specific technology and scale of deployment.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, General Dynamics Information Technology, Inc., is a large business, suggesting limited direct opportunities for small businesses on this specific prime contract.

Oversight & Accountability

The award was made by the Department of the Air Force. Oversight would typically involve contract management by the contracting officer and potentially program management offices to ensure delivery and performance align with contract terms.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited number of bidders.
Potential for price not being fully optimized.
Lack of small business participation.
Technological obsolescence risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200607!000387!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF12 ! !20060424!20100205!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!21600!029!06!EDWARDS AFB !KERN !CALIFORNIA!+000020837753!N!N!000000000000!N058!INSTALLATION OF EQ/COMMUNICATION EQUIPMENT !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !561210!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2006-04-24. End: 2009-10-04.

Was the 'full and open competition' truly effective in achieving the best possible price given the limited number of bidders?

While the contract was advertised as full and open, the presence of only 18 bidders for a specialized requirement like installation of communication equipment suggests potential barriers to entry or a niche market. Further analysis of the bidding process and the final pricing compared to independent cost estimates would be needed to definitively assess if the competition yielded the best value.

What is the risk associated with the specific equipment and installation services procured under this contract?

The primary risk lies in the potential for technological obsolescence if the installed equipment is not state-of-the-art or easily upgradeable. Additionally, installation risks include delays, cost overruns due to unforeseen site conditions, and ensuring the security and integrity of the communication network post-installation.

How effectively does this spending contribute to the overall communication capabilities and modernization goals of the Department of Defense?

This spending directly contributes to the physical installation of communication equipment, which is a foundational element for any modernized network. Its effectiveness hinges on the quality of the equipment installed, the robustness of the installation process, and how well it integrates with broader DoD communication strategies and future technology roadmaps.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 02494

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline