DoD's $3.8M Telecommunications System Contract Awarded to Ventraq Corp for 7th Signal Command

Contract Overview

Contract Amount: $3,777,603 ($3.8M)

Contractor: Ventraq Corp

Awarding Agency: Department of Defense

Start Date: 2022-09-07

End Date: 2027-01-10

Contract Duration: 1,586 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TELECOMMUNICATIONS MANAGEMENT SYSTEM, 7TH SIGNAL COMMAND (THEATER), 24 SITES

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.8 million to VENTRAQ CORP for work described as: TELECOMMUNICATIONS MANAGEMENT SYSTEM, 7TH SIGNAL COMMAND (THEATER), 24 SITES Key points: 1. Contract awarded for a telecommunications management system supporting 24 sites. 2. The contract utilizes a Firm Fixed Price (FFP) pricing structure. 3. This award represents a single delivery order under a larger contract. 4. The contract duration is approximately 4.3 years, ending in January 2027. 5. The primary contractor is Ventraq Corp, with the Department of the Army as the issuing agency. 6. The North American Industry Classification System (NAICS) code is 541511 for Custom Computer Programming Services.

Value Assessment

Rating: fair

The contract value of $3.8 million for a telecommunications management system over 4.3 years appears reasonable given the scope of supporting 24 sites. However, without specific details on the system's complexity, features, and the number of users, a precise value-for-money assessment is challenging. Benchmarking against similar telecommunications infrastructure projects for military units would provide a clearer picture of cost-effectiveness. The firm fixed price structure suggests that cost overruns are the contractor's responsibility, which is a positive indicator for cost control.

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. The data does not specify the number of bidders, but full and open competition generally fosters a competitive environment that can lead to better pricing and innovation. This approach is preferred for ensuring fair market access and potentially securing the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, thereby maximizing the return on government investment.

Public Impact

The primary beneficiaries are the personnel and operations of the 7th Signal Command (Theater), who will receive enhanced telecommunications management capabilities. The services delivered include the provision and management of a telecommunications system across 24 geographically dispersed sites. The geographic impact is significant, covering all 24 sites managed by the 7th Signal Command (Theater). Workforce implications are likely to involve IT specialists and telecommunications technicians for the implementation and ongoing support of the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the system's effectiveness and Ventraq Corp's performance.
The duration of the contract (over 4 years) could lead to technological obsolescence if not managed proactively.
Details on the specific functionalities and scope of the 'telecommunications management system' are not provided, hindering a full assessment.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type helps control costs and shifts risk to the contractor.
The contract supports a critical command (7th Signal Command) ensuring operational readiness.

Sector Analysis

The telecommunications management systems sector is a vital component of IT infrastructure, particularly for government and defense agencies that rely on secure and efficient communication networks. This contract falls within the custom computer programming services sub-sector, indicating a need for tailored software solutions. The market for such services is competitive, with numerous firms offering specialized expertise. Government spending in this area is substantial, driven by the need to modernize aging systems and enhance cybersecurity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, Ventraq Corp, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The firm fixed price nature of the contract provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through contract award databases, though specific performance reports and detailed oversight activities are often internal to the agency.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Army Network Enterprise Technology Command (NETCOM) contracts
Global Information Grid (GIG) initiatives
Theater Battle Management System (TBMS) support

Risk Flags

Potential for technological obsolescence
Dependence on a single vendor for critical infrastructure
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to VENTRAQ CORP. TELECOMMUNICATIONS MANAGEMENT SYSTEM, 7TH SIGNAL COMMAND (THEATER), 24 SITES

Who is the contractor on this award?

The obligated recipient is VENTRAQ CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2022-09-07. End: 2027-01-10.

What specific telecommunications management functionalities does this system provide?

The provided data does not detail the specific functionalities of the 'TELECOMMUNICATIONS MANAGEMENT SYSTEM'. Typically, such systems can encompass network monitoring, performance analysis, fault detection and isolation, configuration management, security management, and resource allocation for voice, data, and video communications. For the 7th Signal Command (Theater), these functionalities would be critical for maintaining operational command and control across its 24 sites, ensuring reliable communication pathways for military operations in a theater environment. Further details would likely be found in the contract's Statement of Work (SOW).

How does Ventraq Corp's track record compare for similar government contracts?

Information regarding Ventraq Corp's specific track record for similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous awards. Agencies typically use past performance as a key evaluation factor in competitive procurements. Without access to these records, it's difficult to benchmark Ventraq Corp's capabilities and reliability against industry peers for telecommunications management systems.

What is the benchmark for a telecommunications management system of this scale?

Benchmarking a telecommunications management system for 24 sites is complex without knowing the specific technical requirements, service level agreements (SLAs), and the nature of the telecommunications infrastructure involved. However, for a system supporting a military command, the emphasis on reliability, security, and interoperability would likely place it at the higher end of complexity and cost. Comparable contracts might involve large-scale network management solutions for enterprise-level organizations or other Department of Defense entities with similar geographic spread and operational demands. The $3.8 million price tag over 4.3 years suggests an average annual cost of approximately $884,000, which needs to be evaluated against the specific features and support provided.

What are the potential risks associated with this contract?

Potential risks include technological obsolescence if the system is not updated to keep pace with evolving telecommunications standards, performance issues if the system fails to meet the demanding operational requirements of a military command, and security vulnerabilities that could be exploited. Contractor performance risk also exists, although mitigated by the firm fixed price structure. Furthermore, the reliance on a single system across 24 sites creates a single point of failure risk if not adequately redundant.

How does this spending compare to historical telecommunications spending by the 7th Signal Command?

The provided data does not include historical spending patterns for the 7th Signal Command (Theater) on telecommunications management systems. To assess this, one would need to analyze previous contracts awarded for similar services to this command or related units. Comparing the current $3.8 million award against past expenditures would reveal whether spending has increased, decreased, or remained consistent, potentially indicating changes in technology needs, operational scope, or procurement strategies over time.

What is the expected impact on operational readiness for the 7th Signal Command?

The successful implementation and operation of this telecommunications management system are expected to significantly enhance the operational readiness of the 7th Signal Command (Theater). Reliable and efficient communication is fundamental to military command and control, especially in a theater environment. By providing robust management capabilities across 24 sites, the system should improve network uptime, reduce communication latency, facilitate faster information dissemination, and enhance the overall ability of the command to execute its mission effectively. This directly supports the warfighter by ensuring they have the communication infrastructure needed to operate.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91RUS22R0157

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ariston Global

Address: 6 MONTGOMERY VILLAGE AVE STE 610, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,777,603

Exercised Options: $3,777,603

Current Obligation: $3,777,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21D00DK

IDV Type: FSS

Timeline