DoD's $36M Global Command Terrestrial Communications contract awarded without competition, raising value-for-money questions

Contract Overview

Contract Amount: $35,963,633 ($36.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2013-09-30

Contract Duration: 1,102 days

Daily Burn Rate: $32.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC)

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of over three years suggests a significant need for ongoing services. 3. Engineering services are critical for maintaining and upgrading complex communication systems. 4. Lack of disclosed domestic awardees obscures potential competition and economic impact. 5. The use of Time and Materials pricing can lead to cost overruns if not closely managed. 6. A significant portion of the contract value was obligated, indicating active service delivery.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of disclosed awardees and the sole-source nature of the award. The $36 million total value over approximately three years for engineering services related to terrestrial communications suggests a substantial investment. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received optimal value for money. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not rigorously monitored and controlled by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means there were no multiple bidders to drive down prices through a bidding process. This significantly limits the agency's ability to explore alternative solutions or secure the most cost-effective option available in the market.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price competition that typically occurs in open solicitations. This can lead to a less efficient use of public funds.

Public Impact

The Department of Defense benefits from the continuity of essential terrestrial communication services. Engineering services ensure the reliability and functionality of critical command and control networks. The contract supports national security objectives by maintaining robust communication infrastructure. While awardee details are undisclosed, the contract likely supports specialized engineering roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Lack of disclosed awardee details hinders transparency and accountability assessment.
The significant contract value warrants close scrutiny of performance and expenditures.

Positive Signals

Contract addresses critical defense communication needs, supporting national security.
The duration suggests a stable, long-term requirement for specialized engineering expertise.
Engineering services are vital for maintaining complex and essential infrastructure.

Sector Analysis

The defense sector relies heavily on robust and secure communication systems. Terrestrial communications, forming the backbone of many networks, require continuous engineering support for maintenance, upgrades, and integration of new technologies. This contract falls within the engineering services sub-sector, which is a significant component of defense spending. Comparable spending benchmarks for similar large-scale, sole-source engineering contracts within the DoD can vary widely based on scope and duration, but the $36 million figure indicates a substantial investment in maintaining critical infrastructure.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not available for this contract. As a sole-source award, it is less likely to have been structured with specific small business goals unless the sole source itself was a small business. Further investigation would be needed to determine if any small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices, potentially including the Defense Contract Management Agency (DCMA). Given the sole-source nature and Time and Materials pricing, rigorous oversight would be crucial to ensure that services are necessary, performed efficiently, and billed accurately. Transparency is limited due to undisclosed awardee information and the non-competitive award process.

Related Government Programs

DoD Command and Control Systems
Defense Communications Infrastructure
Engineering Services Contracts
Terrestrial Communications Networks

Risk Flags

Sole-source award
Time and Materials pricing
Undisclosed awardee details
Lack of transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to DOMESTIC AWARDEES (UNDISCLOSED). GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC)

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2010-09-24. End: 2013-09-30.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. While the specific tasks are not detailed, this typically encompasses a broad range of activities including design, development, testing, and integration of complex systems. For a 'GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC)' contract, these services likely involved the maintenance, upgrade, and potentially expansion of ground-based communication networks essential for military operations. This could include everything from network architecture design and implementation to hardware/software integration, system diagnostics, and technical support for ensuring the reliability and security of these vital communication links.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED', which is synonymous with a sole-source award. The specific justification for this sole-source award is not provided in the data. Typically, sole-source contracts are justified under circumstances such as: only one vendor possessing the unique capability or technology required, a critical need arising from unforeseen circumstances (like a national emergency), or when the contract is a follow-on to a previous competition where only one vendor can provide necessary follow-on services due to proprietary technology or integration. Without further documentation, the precise reason remains unknown, but it implies a determination by the DoD that competition was not feasible or practical.

What are the risks associated with a Time and Materials (T&M) contract type for this service?

Time and Materials (T&M) contracts, like the one used here, carry inherent risks, primarily concerning cost control. In a T&M arrangement, the contractor is reimbursed for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. The primary risk for the government is that the total cost is not fixed and can escalate beyond initial estimates if the effort takes longer than anticipated or if material costs increase. This is particularly concerning for long-duration contracts or those involving complex, potentially unpredictable engineering tasks. Effective oversight, including detailed monitoring of labor hours, material usage, and justification for work performed, is crucial to mitigate these risks and ensure fair pricing.

How does the contract's duration and value compare to similar defense engineering contracts?

The contract spanned approximately three years (1102 days from 2010-09-24 to 2013-09-30) with a total value of $36 million. This averages to roughly $12 million per year. For defense engineering services, this value is moderate to substantial, depending on the specificity and criticality of the services. Longer-duration, sole-source contracts for specialized engineering can often exceed this amount significantly, especially if they involve cutting-edge technology or extensive system integration. However, the lack of competition means direct value comparisons are difficult. Many large-scale defense engineering efforts are competed, allowing for more transparent benchmarking of cost-effectiveness.

What is the historical spending pattern for Global Command Terrestrial Communications (GCTC) or similar services within the DoD?

The provided data only pertains to this single $36 million contract awarded in 2010. It does not offer insight into broader historical spending patterns for GCTC or similar terrestrial communications engineering services within the DoD. To assess historical trends, one would need to analyze multiple contracts over several fiscal years, looking at the total obligated amounts, number of contracts awarded (competed vs. sole-source), average contract values, and the types of services procured. Such an analysis could reveal whether spending on these services has increased or decreased, and whether the reliance on sole-source awards has been consistent.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,963,633

Exercised Options: $35,963,633

Current Obligation: $35,963,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline