DoD awards $13.5M for Nokia Siemens telephone switching equipment, lacking competition
Contract Overview
Contract Amount: $13,477,564 ($13.5M)
Contractor: Nokia Solutions and Networks US LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-27
End Date: 2011-04-30
Contract Duration: 1,158 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NOKIA SIEMENS TELEPHONE SWITCHING EQUIPMENT
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30338
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to NOKIA SOLUTIONS AND NETWORKS US LLC for work described as: NOKIA SIEMENS TELEPHONE SWITCHING EQUIPMENT Key points: 1. Significant contract value of $13.5 million awarded. 2. Sole-source award raises concerns about price discovery and competition. 3. Long contract duration of over 3 years. 4. Sector: Information Technology (Telephone Apparatus Manufacturing).
Value Assessment
Rating: questionable
The contract value of $13.5 million for telephone switching equipment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this $13.5 million contract may result in taxpayers paying more than necessary for the telephone switching equipment.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency in the procurement process. Potential for outdated technology if competition was avoided to secure specific vendor solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
- Sole-source award
Positive Signals
- Specific equipment procured for military needs
Sector Analysis
The procurement falls under the Information Technology sector, specifically related to telecommunications infrastructure. Spending benchmarks for similar telephone switching equipment vary widely based on technology and scale, but competitive processes are crucial for cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The lack of competition suggests potential weaknesses in oversight or justification for a sole-source award. Further review would be needed to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in procurement
- Long contract duration may not reflect evolving technology needs
- No indication of small business participation
Tags
telephone-apparatus-manufacturing, department-of-defense, ga, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to NOKIA SOLUTIONS AND NETWORKS US LLC. NOKIA SIEMENS TELEPHONE SWITCHING EQUIPMENT
Who is the contractor on this award?
The obligated recipient is NOKIA SOLUTIONS AND NETWORKS US LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 2008-02-27. End: 2011-04-30.
What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?
The justification for a sole-source award is critical for understanding why competition was bypassed. Adequate documentation would typically include detailed market research demonstrating the unavailability of other sources, or specific technical requirements that only one vendor could meet. Without this information, it's impossible to fully assess the necessity of the sole-source approach and its potential impact on value for money.
How does the $13.5 million cost compare to industry benchmarks for similar telephone switching equipment, considering the contract's duration?
Benchmarking this $13.5 million contract against industry standards is challenging without detailed specifications of the Nokia Siemens equipment and the contract's specific terms. However, given the lack of competition, there's a heightened risk that the price may exceed market rates. A thorough analysis would require comparing unit costs, features, and support services against publicly available data for comparable systems procured competitively.
What measures were in place to ensure the effectiveness and reliability of the procured telephone switching equipment, especially given the sole-source nature of the award?
Ensuring effectiveness and reliability in a sole-source procurement relies heavily on pre-award due diligence and post-award contract management. This includes rigorous technical evaluations of the proposed equipment against stated requirements, clear performance metrics, and robust testing protocols. The government should have verified the vendor's capability and the equipment's suitability through means other than competitive proposals, such as past performance reviews or independent technical assessments.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15P7T08RR601
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nokia Siemens Networks B.V. (UEI: 409361537)
Address: 1040 CROWN POINTE PKWY STE-900, ATLANTA, GA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,477,564
Exercised Options: $13,477,564
Current Obligation: $13,477,564
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-27
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2010-10-08
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