DoD's $17.4M Wireless Internet Service Contract Awarded to Undisclosed Foreign Entity

Contract Overview

Contract Amount: $17,389,686 ($17.4M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-10-30

End Date: 2011-12-16

Contract Duration: 777 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: [PIIN: W5K9FH-10-P-0022] WIRELESS INTERNET SERVICE

Plain-Language Summary

Department of Defense obligated $17.4 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: [PIIN: W5K9FH-10-P-0022] WIRELESS INTERNET SERVICE Key points: 1. The contract value of $17.4 million represents a significant investment in wireless internet services for the Department of the Army. 2. The award to an undisclosed foreign entity raises questions about transparency and potential national security implications. 3. The duration of the contract (777 days) suggests a medium-term need for these services. 4. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT services beyond basic connectivity. 5. The firm fixed-price contract type aims to control costs, but the lack of specific contractor details hinders a full value assessment. 6. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed nature of the awardee and the specific services rendered under the broad 'Other Computer Related Services' category. Without knowing the exact scope and the contractor's cost structure, it's difficult to definitively assess if $17.4 million represents fair market value. However, for a service contract of this duration and potential scope, the amount is substantial and warrants scrutiny regarding the necessity and efficiency of the spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the specific number of bidders and the evaluation process are not detailed in the provided data. Full and open competition is generally expected to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: While full and open competition is a positive indicator for taxpayer value, the lack of transparency regarding the winning bidder's identity and the specific service details limits the ability to confirm optimal price discovery for this particular award.

Public Impact

Military personnel and potentially civilian staff operating within the Department of the Army's purview are the primary beneficiaries of enhanced wireless internet services. The services delivered likely include robust internet connectivity essential for daily operations, communication, and data access. The geographic impact is likely concentrated at military installations or operational areas where the Department of the Army operates. Workforce implications could include reliance on this service for mission-critical tasks and potentially the need for specialized IT support personnel to manage the network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific foreign awardee raises national security and data privacy concerns.
The broad NAICS code 'Other Computer Related Services' makes it difficult to ascertain the precise nature and value of the services provided.
Limited public information on the contractor's track record and performance history hinders a comprehensive risk assessment.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps to establish cost certainty for the government.
The contract duration of 777 days indicates a sustained need for the services.

Sector Analysis

The IT services sector, particularly within government contracting, is vast and competitive. This contract falls under 'Other Computer Related Services,' which can encompass a wide range of IT support, network management, and consulting. The Department of Defense is a major consumer of such services, with annual IT spending in the tens of billions. Benchmarking this specific $17.4 million award requires detailed comparison to similar wireless service contracts awarded to foreign entities or for comparable military installations, which is difficult with the limited data.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible offerors, including large businesses and potentially foreign entities. There is no information available regarding subcontracting plans or their impact on the small business ecosystem. Therefore, this award does not appear to have a direct small business set-aside component.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers, program managers, and potentially the Inspector General's office. Transparency is a key aspect of oversight, and the lack of specific details about the foreign awardee limits the public's ability to assess accountability. The firm fixed-price nature of the contract provides some level of financial oversight by limiting cost overruns.

Related Government Programs

Department of Defense IT Services Contracts
Wireless Communication Services Procurement
Foreign Military Sales Support
Information Technology Infrastructure

Risk Flags

Undisclosed Foreign Awardee
Potential National Security Risk
Lack of Transparency in Awardee Identity
Broad Service Category (NAICS 541519)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to FOREIGN AWARDEES (UNDISCLOSED). [PIIN: W5K9FH-10-P-0022] WIRELESS INTERNET SERVICE

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2009-10-30. End: 2011-12-16.

What specific wireless internet services were procured under this contract, and what was the intended operational use?

The provided data classifies this contract under NAICS code 541519, 'Other Computer Related Services,' and identifies the product/service as 'WIRELESS INTERNET SERVICE.' However, the exact specifications of the wireless internet service (e.g., bandwidth, coverage area, technology type, security protocols) are not detailed. The intended operational use is presumed to be for supporting Department of the Army operations, which could range from base communications and personnel connectivity to tactical deployments. Without more granular information, it's difficult to pinpoint the precise application beyond general internet access.

What is the identity and background of the foreign awardee, and what due diligence was performed?

The provided data explicitly states 'FOREIGN AWARDEES (UNDISCLOSED)' for the contractor information. This lack of disclosure is a significant gap. Standard government contracting procedures require thorough vetting of all awardees, especially foreign entities, to assess national security risks, ensure compliance with U.S. regulations, and verify their capability to perform the contract. The specific details of the foreign awardee and the due diligence performed are not publicly available through this data, making it impossible to assess the risks associated with awarding a substantial contract to an undisclosed entity.

How does the contract value of $17.4 million compare to similar wireless internet service contracts awarded by the DoD or other federal agencies?

Comparing the $17.4 million contract value requires identifying similar contracts based on service type (wireless internet), duration (777 days), and scope (Department of the Army). Without specific details on the service level agreements (SLAs), geographic coverage, and technology employed, a direct comparison is challenging. However, for a two-year period, $17.4 million suggests a significant deployment, potentially covering a large base or multiple locations, or involving high-demand, high-availability services. Government-wide spending on IT and telecommunications services is substantial, and this contract represents a portion of that expenditure. Further analysis would necessitate access to a broader database of federal contract awards for similar services.

What are the potential national security implications of awarding a wireless internet service contract to an undisclosed foreign entity?

Awarding wireless internet services to an undisclosed foreign entity carries potential national security implications. These services are critical infrastructure, and control over them could allow for unauthorized access to sensitive data, surveillance, or disruption of communications. If the foreign entity has ties to adversarial nations or lacks robust cybersecurity practices, it could create vulnerabilities. The lack of transparency exacerbates these concerns, as it prevents a thorough assessment of the risks and the effectiveness of any mitigation strategies employed by the Department of Defense during the vetting and award process.

What is the historical spending pattern for wireless internet services by the Department of the Army, and how does this contract fit within that trend?

Historical spending data for wireless internet services by the Department of the Army would reveal trends in procurement volume, average contract values, and the types of services sought. Without access to this historical data, it's difficult to definitively place this $17.4 million contract within a broader trend. However, the increasing reliance on digital infrastructure and mobile connectivity across all military branches suggests that spending on wireless services is likely a growing or sustained area of investment. This contract, awarded in late 2009 for services extending into late 2011, reflects the technology landscape and procurement priorities of that era.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,535,086

Exercised Options: $20,829,239

Current Obligation: $17,389,686

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline