DoD's $38M wireless equipment contract awarded to New Tech Solutions, Inc. shows strong competition

Contract Overview

Contract Amount: $38,083,192 ($38.1M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2015-11-26

Contract Duration: 62 days

Daily Burn Rate: $614.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF WS-C3850-48U-E

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to NEW TECH SOLUTIONS, INC. for work described as: IGF::OT::IGF WS-C3850-48U-E Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. The fixed-price contract type suggests predictable costs for the government. 3. The short duration of 62 days implies a focused, short-term need for the equipment. 4. The award was made to a single vendor, but the competition was open. 5. The contract value is substantial, requiring careful monitoring of performance and delivery. 6. The North American Industry Classification System (NAICS) code 334220 points to a specialized manufacturing sector.

Value Assessment

Rating: good

The contract value of $38,008,319.21 for wireless communication equipment appears reasonable given the open competition and firm fixed-price structure. Benchmarking against similar contracts for specialized networking hardware would provide a more precise value-for-money assessment. However, the absence of extensive contract modifications or overruns, as suggested by the data, points towards effective initial pricing and management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial exclusions might have occurred, the final award was made after a broad solicitation. The presence of 8 bidders (no) suggests a healthy level of competition for this specialized equipment, which typically benefits price discovery and ensures the government receives competitive offers.

Taxpayer Impact: The strong competition among 8 bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This process helps ensure that government funds are used efficiently.

Public Impact

The Department of the Navy benefits from the acquisition of essential wireless communication equipment. The services delivered include the provision of specific radio and television broadcasting and wireless communications equipment. The contract is geographically focused within California (sn: CALIFORNIA). The contract supports the manufacturing sector, potentially impacting the workforce involved in producing such specialized technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific equipment becomes critical and difficult to replace.
Reliance on a single vendor for delivery within a short timeframe could pose risks if unforeseen issues arise.
The specialized nature of the equipment may limit future interoperability with different systems.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract limits cost uncertainty for the government.
The relatively short performance period (62 days) indicates a well-defined scope and manageable execution.
The existence of 8 bidders demonstrates market interest and potential for future competition.

Sector Analysis

This contract falls within the Information Technology and Communications Equipment manufacturing sector, specifically NAICS code 334220. This industry is characterized by rapid technological advancements and specialized production. The market for such equipment is driven by defense, public safety, and commercial telecommunications needs. Comparable spending benchmarks would involve analyzing other large-scale procurements of advanced wireless infrastructure or communication devices by government agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. As such, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus appears to be on securing the required technology through the most competitive means available, rather than specifically targeting small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award review. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Procurement
Navy Information Technology Contracts
Wireless Communication Equipment Procurement
Federal IT Hardware Acquisition

Risk Flags

Specialized equipment may have limited long-term usability or interoperability.
Short delivery window could pose logistical challenges.
Reliance on specific manufacturing capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to NEW TECH SOLUTIONS, INC.. IGF::OT::IGF WS-C3850-48U-E

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2015-09-25. End: 2015-11-26.

What is the track record of NEW TECH SOLUTIONS, INC. with the Department of Defense, particularly regarding similar wireless equipment contracts?

A comprehensive review of NEW TECH SOLUTIONS, INC.'s contract history with the Department of Defense would be necessary to fully assess their track record. While this specific award of $38,008,319.21 for wireless communication equipment was successfully executed under a firm fixed-price contract with a short duration, understanding their past performance on similar projects is crucial. This includes examining any history of contract modifications, delivery delays, quality issues, or cost overruns on previous DoD contracts. Analyzing their performance on other contracts within the NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) would provide further insight into their capabilities and reliability in delivering specialized technology.

How does the awarded price of $38,008,319.21 compare to market rates for similar wireless communication equipment during the contract period (2015)?

Determining the precise market rate comparison for this $38 million contract in 2015 requires access to historical pricing data for comparable wireless communication equipment. Factors such as the specific technical specifications of the equipment, the volume purchased, and the prevailing market conditions in the manufacturing sector at that time are critical. Given that the contract was awarded under full and open competition with 8 bidders, it suggests that the price achieved was likely competitive. However, without specific benchmark data from industry reports or analyses of similar government procurements from that era, a definitive statement on whether the price was above, below, or at market rate is challenging. The firm fixed-price nature, however, implies that the contractor assumed the risk of cost fluctuations.

What are the primary risks associated with this contract, considering its specialized nature and short performance period?

The primary risks associated with this $38 million contract for specialized wireless communication equipment, despite its short 62-day performance period, include potential supply chain disruptions for the specific components required, unforeseen technical integration challenges, and the possibility of the equipment becoming obsolete quickly given the rapid pace of technological advancement in this sector. While the firm fixed-price contract mitigates cost overrun risks for the government, performance risks remain. The short duration also implies a critical need, making any delivery delays potentially impactful to the Navy's operations. Ensuring the equipment meets all stringent military specifications and interoperability requirements is also a key risk area.

How effective was the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' strategy in ensuring value for money for this specific procurement?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' strategy, coupled with 8 bidders, was likely effective in ensuring value for money for this $38 million wireless equipment contract. This approach, while allowing for initial exclusions, ultimately broadened the competitive field, encouraging multiple vendors to submit proposals. The presence of numerous bidders typically drives down prices and encourages innovation as companies vie for the award. The firm fixed-price contract type further solidifies value by capping the government's financial exposure. The success of this strategy is reflected in the absence of reported issues or significant modifications, suggesting the initial pricing and vendor selection were sound.

What are the historical spending patterns for similar wireless communication equipment within the Department of the Navy or DoD?

Analyzing historical spending patterns for similar wireless communication equipment within the Department of the Navy or the broader DoD would provide crucial context for this $38 million contract. This involves examining the frequency, value, and types of contracts awarded for radio and television broadcasting and wireless communications equipment (NAICS 334220) over several fiscal years. Understanding trends in spending, average contract values, and the primary contractors involved can reveal whether this award represents a typical procurement, an increase in demand, or a shift in technology acquisition strategies. Such analysis helps in assessing whether the current spending aligns with strategic priorities and budget allocations for communication infrastructure.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523613R0017

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,083,192

Exercised Options: $38,083,192

Current Obligation: $38,083,192

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523615D3004

IDV Type: IDC

Timeline