DoD awards $18.9M for wireless telecom systems, but competition was limited, raising value concerns

Contract Overview

Contract Amount: $18,952,356 ($19.0M)

Contractor: Praemittias Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-08-31

End Date: 2013-06-27

Contract Duration: 300 days

Daily Burn Rate: $63.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 152 WOLFHOUND VERSION 10.1 SYSTEMS AND ASSOCIATED TESTING, SPARING AND TRAINING/TECHNICAL MANUAL UPDATES

Place of Performance

Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to PRAEMITTIAS GROUP, INC. for work described as: 152 WOLFHOUND VERSION 10.1 SYSTEMS AND ASSOCIATED TESTING, SPARING AND TRAINING/TECHNICAL MANUAL UPDATES Key points: 1. Limited competition for this contract raises questions about achieving the best possible value. 2. The contract was not competed, suggesting potential missed opportunities for cost savings. 3. Pricing and performance should be closely monitored given the lack of competitive pressure. 4. This contract supports critical wireless telecommunications infrastructure for the Department of the Army. 5. The firm-fixed-price contract type shifts some risk to the contractor. 6. The small business status of the contractor is not specified, impacting subcontracting analysis.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. The firm-fixed-price structure provides some cost certainty, but without comparison to other offers, it's difficult to ascertain if the $18.9 million represents a fair market price. Further analysis of the contractor's historical pricing and performance on similar contracts would be beneficial to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach limits the government's ability to leverage competition to drive down prices and ensure the most innovative solutions are considered. The justification for a sole-source award would need to be thoroughly reviewed to understand why other vendors were not considered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding processes that typically foster price reductions.

Public Impact

The Department of the Army benefits from the provision of essential wireless telecommunications systems. This contract supports the operational readiness and communication capabilities of military personnel. The services delivered are critical for maintaining secure and reliable communication networks. The geographic impact is likely focused on military installations where these systems are deployed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award requires strong justification to ensure fair value.
Performance metrics and quality assurance are crucial for sole-source contracts.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Contract supports critical defense communication infrastructure.

Sector Analysis

The wireless telecommunications sector is a vital component of the broader IT and defense industries, providing essential communication infrastructure. Spending in this sector often involves complex technologies and specialized services. The market size is substantial, with significant government investment in secure and reliable communication networks. This contract fits within the defense segment of the wireless sector, focusing on specialized systems for military applications.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. Without this data, it is difficult to assess the impact on the small business ecosystem or whether opportunities were provided to smaller enterprises. Further investigation into the contractor's size and subcontracting practices would be necessary.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined by the contract terms, including performance standards and payment schedules. Transparency regarding the sole-source justification and the contractor's performance would be key to assessing oversight effectiveness.

Related Government Programs

Defense Communications Systems
Wireless Network Infrastructure
Military Telecommunications

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to PRAEMITTIAS GROUP, INC.. 152 WOLFHOUND VERSION 10.1 SYSTEMS AND ASSOCIATED TESTING, SPARING AND TRAINING/TECHNICAL MANUAL UPDATES

Who is the contractor on this award?

The obligated recipient is PRAEMITTIAS GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2012-08-31. End: 2013-06-27.

What is the specific nature of the 'WOLFHOUND VERSION 10.1 SYSTEMS' and their criticality to the Department of the Army?

The 'WOLFHOUND VERSION 10.1 SYSTEMS' likely refer to a specialized suite of hardware and software designed for secure, tactical wireless communications. These systems are critical for the Department of the Army's operational effectiveness, enabling command and control, intelligence sharing, and logistical coordination in various environments, potentially including contested or remote areas. Their criticality stems from providing a reliable and secure communication backbone that is essential for mission success and personnel safety, especially where traditional communication infrastructure may be unavailable or compromised.

Can the $18.9 million contract value be benchmarked against similar wireless telecommunications systems procured by the DoD or other federal agencies?

Benchmarking this $18.9 million contract value against similar procurements is challenging without more specific details on the 'WOLFHOUND VERSION 10.1 SYSTEMS' and their capabilities. However, general market rates for enterprise-level wireless infrastructure, including hardware, software, installation, and maintenance, can range significantly. For large-scale, secure, and specialized military systems, costs can be considerably higher than commercial equivalents due to stringent security requirements, ruggedization, and unique operational needs. A comprehensive benchmark would require comparing the system's specifications, quantity, and service period against other sole-source or competed contracts for comparable defense-grade communication solutions.

What are the potential risks associated with awarding a sole-source contract for critical communication systems?

The primary risk associated with awarding a sole-source contract for critical communication systems is the potential for inflated pricing due to the absence of competitive pressure. This can lead to a suboptimal use of taxpayer funds. Additionally, sole-source awards may limit access to the latest technological advancements or innovative solutions that could be offered by a wider range of vendors. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially hindering future flexibility and negotiation power. Robust oversight and performance management are crucial to mitigate these risks.

What performance metrics or quality assurance measures are likely in place for this contract, given its sole-source nature?

Given the sole-source nature and criticality of this contract, robust performance metrics and quality assurance measures are essential. These would likely include detailed technical specifications that the 'WOLFHOUND VERSION 10.1 SYSTEMS' must meet, such as signal strength, data throughput, latency, security compliance (e.g., TEMPEST, encryption standards), and environmental resilience. Delivery schedules for hardware and software updates, as well as timelines for training and technical manual updates, would also be key performance indicators. The contract likely includes clauses for acceptance testing, defect resolution, and potentially penalties for non-performance or service level agreement (SLA) breaches to ensure the contractor meets the required standards.

How does this contract fit into the broader spending patterns for wireless telecommunications within the Department of the Army or the DoD?

This $18.9 million contract represents a specific investment within the Department of the Army's broader spending on wireless telecommunications. The DoD, as a whole, invests billions annually in communication technologies to maintain global operational readiness. Spending in this area encompasses a wide range of needs, from tactical battlefield communications to secure enterprise networks. Contracts like this, even if sole-source, are part of a larger strategy to modernize and secure communication capabilities. Analyzing historical spending on similar systems or broader network upgrades would provide context on whether this award is consistent with, or an outlier from, typical investment levels and priorities.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8354 TERMINAL RD, LORTON, VA, 11

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,952,356

Exercised Options: $18,952,356

Current Obligation: $18,952,356

Contract Characteristics

Cost or Pricing Data: YES

Timeline