DoD awards $17.7M for Iwankuni MCAS Infrastructure Modernization to Coho Technology Solutions

Contract Overview

Contract Amount: $17,743,923 ($17.7M)

Contractor: Coho Technology Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2028-02-25

Contract Duration: 1,617 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IWAKUNI MCAS INFRASTRUCTURE MODERNIZATION

Plain-Language Summary

Department of Defense obligated $17.7 million to COHO TECHNOLOGY SOLUTIONS, LLC for work described as: IWAKUNI MCAS INFRASTRUCTURE MODERNIZATION Key points: 1. Contract awarded for IT infrastructure modernization at a key Marine Corps Air Station. 2. The contract is a definitive contract with a firm fixed price. 3. Duration of the contract is over 4 years, indicating a long-term need. 4. The award was not competitively procured, raising questions about price discovery. 5. No specific small business set-aside was identified for this contract. 6. The North American Industry Classification System (NAICS) code suggests computer facilities management services.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.7 million contract is challenging without more detailed cost breakdowns or comparisons to similar infrastructure modernization projects. The firm fixed-price structure aims to control costs, but the lack of competition makes it difficult to assess if the pricing is optimal. Without a competitive bidding process, it's hard to determine if the government received the best possible value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source, 'not available for competition' basis. This means that only one vendor, Coho Technology Solutions, LLC, was considered for the award. The specific justification for this sole-source award is not detailed in the provided data, but it typically implies unique capabilities, urgent needs, or a lack of other qualified sources. The absence of competition limits the government's ability to leverage market forces to achieve lower prices.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also bypasses opportunities to engage a broader range of vendors, including small businesses.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel and operations at Iwakuni MCAS, Japan, who will receive modernized IT infrastructure. The services delivered will focus on enhancing computer facilities management, crucial for the operational readiness of the air station. The geographic impact is localized to the Iwakuni Marine Corps Air Station in Japan, a critical strategic location. Workforce implications are not explicitly detailed but may involve on-site technical support and management of IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value.
Limited transparency into the justification for sole-source award.
Potential for above-market pricing due to absence of competitive bidding.

Positive Signals

Firm fixed-price contract type helps manage cost certainty.
Long contract duration suggests a strategic, long-term investment in infrastructure.
Focus on IT infrastructure modernization addresses critical operational needs.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for IT infrastructure modernization is substantial, driven by the continuous need for upgrades to support evolving technological demands and cybersecurity requirements. Comparable spending benchmarks for similar modernization projects at military installations can vary widely based on scope, location, and specific technological requirements. The $17.7 million award is a significant investment, indicative of a comprehensive upgrade.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it also did not involve a competitive process where small businesses could have been specifically targeted or subcontracted. This means that opportunities for small business participation, either as prime contractors or subcontractors, were likely limited or non-existent for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is limited due to the sole-source nature of the award. Accountability would be managed through contract performance monitoring and reporting requirements, with potential oversight from the Department of the Army's contracting command and possibly the Government Accountability Office (GAO) if protests or audits are initiated.

Related Government Programs

Defense Infrastructure Modernization Programs
Marine Corps IT Modernization Initiatives
Overseas Military Base Support Contracts
Computer Facilities Management Services Contracts

Risk Flags

Sole-source award bypasses competitive process.
Limited transparency on justification for sole-source award.
Potential for suboptimal pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to COHO TECHNOLOGY SOLUTIONS, LLC. IWAKUNI MCAS INFRASTRUCTURE MODERNIZATION

Who is the contractor on this award?

The obligated recipient is COHO TECHNOLOGY SOLUTIONS, 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 $17.7 million.

What is the period of performance?

Start: 2023-09-22. End: 2028-02-25.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, such as in cases of unique technical capabilities, urgent and compelling requirements, or when a previous contract was awarded competitively and the follow-on is restricted to the incumbent due to specific circumstances like data rights or specialized knowledge. Without further documentation from the Department of Defense, the precise rationale remains undisclosed in this dataset.

How does the $17.7 million cost compare to similar IT infrastructure modernization projects at overseas military bases?

Directly comparing the $17.7 million cost to similar projects is challenging without more granular data on the scope of work, specific technologies deployed, and the duration of comparable contracts. However, IT infrastructure modernization projects at large military installations, especially overseas where logistical complexities can add costs, can range from several million to tens of millions of dollars. Factors influencing cost include the scale of the network, the type of hardware and software being implemented, cybersecurity enhancements, and the labor involved. Given the firm fixed-price nature, the cost is set, but its 'value for money' is best assessed against the specific deliverables and the lack of competitive bids.

What are the potential risks associated with a sole-source award for critical IT infrastructure?

The primary risk of a sole-source award for critical IT infrastructure is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not secure the most cost-effective solution. Another risk is vendor lock-in, where the sole-source provider becomes indispensable, potentially leading to higher costs in future contracts or upgrades. Furthermore, a sole-source award might limit the government's access to innovative solutions that could have been brought forward by a more diverse pool of bidders. Finally, it raises concerns about whether the government fully explored all available options and obtained the best possible value.

What is the track record of Coho Technology Solutions, LLC in performing similar government contracts?

Information regarding the specific track record of Coho Technology Solutions, LLC in performing similar government contracts is not provided in the dataset. To assess their performance history, one would typically need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for details on past awards, contract values, performance ratings, and any past performance issues. Without this external data, it is impossible to evaluate their reliability and expertise for this specific IT infrastructure modernization project.

What is the historical spending trend for IT infrastructure modernization at Iwakuni MCAS?

The provided data only includes a single contract award for $17.7 million for 'IWAKUNI MCAS INFRASTRUCTURE MODERNIZATION.' It does not offer historical spending data for this specific location or for IT infrastructure modernization in general. To analyze historical spending trends, one would need to access broader federal procurement databases and filter for contracts related to Iwakuni MCAS, IT infrastructure, and modernization efforts over several fiscal years. This would allow for an assessment of whether this $17.7 million award represents an increase, decrease, or consistent level of investment in such services.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1577 C STREET, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,505,289

Exercised Options: $17,743,923

Current Obligation: $17,743,923

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline