DoD awards $26.2M contract for telecommunications infrastructure at JTF-Bravo, Honduras

Contract Overview

Contract Amount: $26,163,184 ($26.2M)

Contractor: Nisga'a Data Systems LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2023-05-18

Contract Duration: 1,695 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: OUTSIDE PLANT DATA AND VOICE UPGRADE AT JTF-BRAVO IN SOTO CANO, HONDURAS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to NISGA'A DATA SYSTEMS LLC for work described as: OUTSIDE PLANT DATA AND VOICE UPGRADE AT JTF-BRAVO IN SOTO CANO, HONDURAS. Key points: 1. Contract awarded to Nisga'a Data Systems LLC for critical IT infrastructure. 2. Significant investment in supporting military operations in Central America. 3. Long-term contract duration of nearly five years. 4. Focus on upgrading wired telecommunications infrastructure. 5. Potential for follow-on work based on performance. 6. Contract type is Cost No Fee, indicating risk borne by the government.

Value Assessment

Rating: fair

The contract's Cost No Fee (Cost-Plus-Fixed-Fee) structure means the government bears the financial risk if costs exceed estimates. While specific cost breakdowns are not provided, the total award of $26.2 million over nearly five years suggests a substantial investment in telecommunications infrastructure. Benchmarking this against similar projects is difficult without more detailed cost data, but the long duration and critical nature of the services imply a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not detailed in the provided data. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. Without information on the procurement process, it's difficult to assess if alternative solutions were considered or if this was the only viable option.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process.

Public Impact

Provides essential communication services for U.S. military personnel at Joint Task Force Bravo (JTF-Bravo) in Soto Cano, Honduras. Supports critical command, control, and intelligence operations in the region. Enhances the reliability and security of voice and data networks. Contributes to the operational readiness of forces deployed in Central America. Impacts the daily communication needs of service members stationed at the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract structure places financial risk on the government.
Lack of competition may have resulted in a higher price than a competed contract.
Limited transparency into the specific cost drivers for the services provided.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Addresses a critical need for reliable telecommunications infrastructure at a key operational hub.
Awarded to a company with potential expertise in government IT services.
Supports ongoing military operations and national security interests in Central America.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, specifically focusing on IT infrastructure for a military installation. The market for such services is characterized by specialized providers capable of operating in challenging environments and meeting stringent security requirements. The total value of this contract, approximately $26.2 million over nearly five years, represents a significant investment in maintaining and upgrading essential communication networks for a forward operating base.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting goals for this contract. As a sole-source award, the opportunities for small businesses to participate may be limited unless directly engaged by the prime contractor, Nisga'a Data Systems LLC. Further investigation would be needed to determine if any small business utilization plans were part of the contract negotiation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost No Fee structure necessitates close monitoring of expenditures to ensure costs remain within reasonable bounds. Transparency is limited by the sole-source nature of the award and the lack of detailed public reporting on performance metrics and cost justifications. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
Base Operations Support (BOS) contracts
Tactical Communications Systems
Global Information Grid (GIG) initiatives

Risk Flags

Sole-source award lacks competitive pricing.
Cost No Fee structure shifts financial risk to the government.
Potential for cost overruns due to remote location and logistical challenges.
Limited public data on contractor performance and cost justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to NISGA'A DATA SYSTEMS LLC. OUTSIDE PLANT DATA AND VOICE UPGRADE AT JTF-BRAVO IN SOTO CANO, HONDURAS.

Who is the contractor on this award?

The obligated recipient is NISGA'A DATA SYSTEMS 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 $26.2 million.

What is the period of performance?

Start: 2018-09-26. End: 2023-05-18.

What is the track record of Nisga'a Data Systems LLC with government contracts, particularly in telecommunications and overseas operations?

Nisga'a Data Systems LLC has a history of performing government contracts, primarily within the IT and telecommunications sectors. While specific details on their overseas operational experience are not readily available in this dataset, their ability to secure this contract suggests they possess the necessary qualifications and clearances. A deeper dive into their contract history, including past performance reviews and any awards or penalties, would provide a more comprehensive understanding of their reliability and expertise in executing similar projects, especially in complex environments like JTF-Bravo.

How does the cost of this contract compare to similar telecommunications upgrades at other overseas military bases?

Direct comparison of this $26.2 million contract for wired telecommunications upgrades at JTF-Bravo to similar projects at other overseas bases is challenging without standardized cost metrics and detailed project scopes. Factors such as geographic location, existing infrastructure, security requirements, and the specific technologies deployed significantly influence costs. However, the Cost No Fee structure implies a higher degree of government financial risk, which could suggest that competitive bids might have yielded a more cost-effective solution if available. Further analysis would require benchmarking against contracts with comparable service levels and operational environments.

What are the primary risks associated with a Cost No Fee contract for telecommunications infrastructure in a remote location like Honduras?

The primary risk with a Cost No Fee (Cost-Plus-Fixed-Fee) contract is that the government bears the financial burden if the contractor's costs exceed the estimated amount. For telecommunications infrastructure in a remote location like Honduras, risks include unforeseen logistical challenges, potential for equipment damage or loss during transit, difficulties in sourcing specialized labor, and the need for robust security measures. Additionally, the lack of a fixed price can reduce the contractor's incentive to control costs tightly, potentially leading to budget overruns if not rigorously monitored by the government.

What is the expected impact of these telecommunications upgrades on the operational effectiveness of JTF-Bravo?

These telecommunications upgrades are expected to significantly enhance the operational effectiveness of JTF-Bravo by providing more reliable, secure, and higher-bandwidth voice and data services. Improved communication is critical for command and control, intelligence sharing, situational awareness, and coordination with partner nations. Enhanced network stability reduces downtime, ensuring that essential communication systems are available when needed, thereby supporting the mission's objectives in counter-narcotics, humanitarian assistance, and regional security efforts.

Have there been previous contracts for telecommunications services at JTF-Bravo, and how does this award compare in terms of value and duration?

Information regarding previous telecommunications contracts specifically at JTF-Bravo is not detailed in the provided data. However, the current contract's value of $26.2 million over a duration of approximately 1695 days (nearly five years) indicates a substantial and long-term commitment to upgrading and maintaining the base's communication infrastructure. This duration suggests a strategic investment rather than a short-term fix, implying a need for sustained, high-quality service delivery to support the ongoing mission requirements at the base.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Goldbelt, Incorporated

Address: 13900 LINCOLN PARK DR STE 140, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,163,184

Exercised Options: $26,163,184

Current Obligation: $26,163,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline