DoD Awards $175M for Telecom Services to SETA Corp, Raising Competition Concerns

Contract Overview

Contract Amount: $63,024,102 ($63.0M)

Contractor: Apptis, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-09-25

End Date: 2010-02-27

Contract Duration: 2,712 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200212!002479!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000604 !20020925!20030227!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000019324!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !513310!E! !3!B!S!B! !C!20021004!B!F!N!A! !A!N!Y!2!002!B! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! !6920!FAA !0001!

Place of Performance

Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22040

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $63.0 million to APPTIS, INC. for work described as: 200212!002479!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000604 !20020925!20030227!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000019324!N!N!000000000000!D399!OTH… Key points: 1. Contract awarded for Wired Telecommunications Carriers services. 2. Significant contract value of $175.3 million over its life. 3. Competition method raises questions about price discovery. 4. Sector is IT/Defense, with potential for broader impact.

Value Assessment

Rating: fair

The contract's total value of $175.3 million over its duration appears high for the specified services. Benchmarking against similar contracts for wired telecommunications carriers is difficult without more granular data on the specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value for taxpayers.

Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for these essential telecommunications services.

Public Impact

Taxpayers may have overpaid due to restricted competition. Potential for improved service delivery if competition was truly optimized. Lack of transparency in the award process could hinder future cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed service description
Potential for price inflation

Positive Signals

Contract awarded to a specific entity
Services provided to a key defense agency

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically for wired telecommunications services. Spending in this area is critical for national security and operational readiness, but often involves complex and evolving technologies.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The award method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a need for robust oversight to ensure that the exclusion of sources was justified and that the competition, though limited, was fair and effective.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Limited competition raises cost concerns.
Lack of transparency in source exclusion.
Potential for overpayment.
Long contract duration may not reflect technological evolution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.0 million to APPTIS, INC.. 200212!002479!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000604 !20020925!20030227!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000019324!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !513310!E! !3!B!S!B! !C!20021004!B!F!N!A! !A!N!Y!2!002!B! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! !6920!FAA !0001!

Who is the contractor on this award?

The obligated recipient is APPTIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $63.0 million.

What is the period of performance?

Start: 2002-09-25. End: 2010-02-27.

What specific factors led to the exclusion of other potential sources in this full and open competition?

The data does not specify the reasons for excluding other sources. Typically, such exclusions might be due to unique capabilities, proprietary technology, or specific security requirements. However, without explicit justification, it raises concerns about whether the exclusion was truly necessary or if it limited competitive options unnecessarily, potentially impacting the final price.

How does the $175.3 million contract value compare to industry benchmarks for similar telecommunications services over a 10-year period?

Benchmarking this contract's value is challenging without detailed service descriptions and performance metrics. However, a $175.3 million expenditure over approximately 10 years for wired telecommunications services suggests a substantial investment. Industry benchmarks vary widely based on bandwidth, infrastructure, and support levels, but this figure warrants scrutiny to ensure cost-effectiveness compared to market rates.

What is the potential impact of this limited competition on the Defense Information Systems Agency's ability to secure future cost savings or technological advancements?

Limited competition can stifle innovation and reduce pressure on contractors to offer competitive pricing in subsequent procurements. If SETA Corporation was the only viable option due to specific requirements, DISA might face higher costs and fewer choices for future upgrades or services. This could hinder their ability to adopt newer, potentially more cost-effective technologies.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC

Address: 4800 WESTFIELDS BLVD STE 1, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DCA20002D5000

IDV Type: IDC

Timeline