DoD awards $20.8M contract for network operations center equipment and services to NIC4 Inc

Contract Overview

Contract Amount: $20,874,851 ($20.9M)

Contractor: NIC4 Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-25

End Date: 2027-07-31

Contract Duration: 2,319 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK OPERATION CENTER EQUIPMENT, SERVICE AND TRAINING.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33619

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to NIC4 INC for work described as: NETWORK OPERATION CENTER EQUIPMENT, SERVICE AND TRAINING. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, providing cost certainty. 3. Services include equipment, service, and training for network operations centers. 4. The contract duration is over 5 years, indicating a long-term need. 5. The awardee, NIC4 Inc., is a single entity for this contract. 6. The contract is managed by the Department of the Army within the DoD. 7. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services.

Value Assessment

Rating: good

The contract value of $20.8 million over approximately 5 years suggests a moderate annual spend. Benchmarking against similar network operations center contracts would be necessary for a precise value-for-money assessment. The firm fixed-price structure helps control costs, but the specific pricing of equipment, services, and training components is not detailed here. Without more granular data on the scope of services and equipment provided, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bids suggests a reasonably competitive environment for this requirement. A higher number of bidders generally correlates with better price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition with multiple bids is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The Department of Defense benefits from enhanced network operations center capabilities. Services delivered include essential equipment, ongoing maintenance, and training for personnel. The contract has a geographic impact in Florida, where the services are likely performed or managed. Workforce implications include potential employment for technical staff, trainers, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment or proprietary software is involved.
Reliance on a single contractor for critical network operations center functions carries inherent risk.
The long contract duration could lead to price increases if market conditions change significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract provides cost predictability for the government.
The contract addresses a critical need for network operations center support within the DoD.
Multiple bids received suggest a healthy level of interest and competition.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and network operations. The market for network operations center equipment and services is substantial, driven by the increasing complexity and criticality of digital infrastructure for government and commercial entities. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by federal agencies for similar services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. While NIC4 Inc. may utilize small businesses as subcontractors, there is no explicit requirement or indication of a small business subcontracting plan within the provided data. The impact on the small business ecosystem is therefore indirect, depending on NIC4's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment, services, and training. Transparency is generally facilitated through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

DoD IT Modernization Programs
Network Infrastructure Support Services
Computer Systems Design Services Contracts
Federal Network Operations and Maintenance

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor lock-in with specialized equipment.
Dependence on contractor performance for critical network functions.
Technological obsolescence of equipment over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to NIC4 INC. NETWORK OPERATION CENTER EQUIPMENT, SERVICE AND TRAINING.

Who is the contractor on this award?

The obligated recipient is NIC4 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 $20.9 million.

What is the period of performance?

Start: 2021-03-25. End: 2027-07-31.

What is the track record of NIC4 Inc. in performing similar network operations center contracts for the federal government?

Assessing NIC4 Inc.'s track record requires a review of their past performance on similar federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A strong performance history on comparable IT services contracts, particularly those involving network operations center equipment, services, and training, would indicate a lower risk for this current award. Conversely, a history of poor performance, missed deadlines, or cost overruns on similar contracts would raise concerns about NIC4's ability to meet the requirements of this $20.8 million award.

How does the estimated annual value of this contract compare to similar network operations center support contracts?

The total contract value is approximately $20.8 million over a period of roughly 2319 days (about 6.3 years), which translates to an average annual value of roughly $3.3 million. To benchmark this value, one would need to compare it against other definitive contracts awarded by the Department of Defense or other federal agencies for network operations center equipment, services, and training. Factors such as the scope of services, the specific types of equipment, the level of support required (e.g., 24/7 monitoring), and the geographic location can significantly influence pricing. If similar contracts with comparable scope and duration are awarded at a lower annual rate, it might suggest this contract's value is not optimal.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential technical obsolescence of network equipment over the contract's lifespan, performance failures in critical network operations, and the possibility of cost increases if the firm fixed-price structure does not adequately account for market fluctuations in service or equipment costs. Mitigation strategies likely involve robust technical specifications in the contract, performance standards with associated penalties, and potentially clauses for equitable adjustments if unforeseen circumstances arise. The firm fixed-price nature itself is a risk mitigation tool for the government, capping the financial exposure. Furthermore, the competitive award process helps mitigate the risk of selecting an underqualified vendor.

How effective is the firm fixed-price contract type in ensuring value for money for network operations center services?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For network operations center equipment, services, and training, an FFP contract provides the government with cost certainty, as the contractor assumes most of the risk for cost overruns. This encourages the contractor to manage their costs efficiently. However, if the requirements are not fully understood at the outset, or if unforeseen technical challenges arise, an FFP contract could lead to the contractor cutting corners on quality or service to maintain profitability, potentially diminishing the overall value. The success of FFP hinges on precise initial requirements definition and effective contractor oversight.

What is the historical spending trend for network operations center equipment and services within the Department of the Army?

Analyzing historical spending trends for network operations center equipment and services within the Department of the Army would involve examining contract data over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining relatively stable. Understanding these trends can provide context for the current $20.8 million award, indicating whether it represents a significant increase or a continuation of established spending patterns. It can also highlight potential areas for cost savings or identify emerging needs. Without access to historical spending data specific to this category for the Army, it's difficult to provide a precise trend analysis.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB20R5018

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 KELSEY LANE, SUITE D, TAMPA, FL, 33619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,910,337

Exercised Options: $20,874,851

Current Obligation: $20,874,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline