DoD's $44.7M contract for network operations at Maxwell AFB awarded to The Centech Group Inc
Contract Overview
Contract Amount: $44,712,262 ($44.7M)
Contractor: THE Centech Group Inc.
Awarding Agency: Department of Defense
Start Date: 2012-01-24
End Date: 2015-03-08
Contract Duration: 1,139 days
Daily Burn Rate: $39.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACTOR MANPOWER TO SUPPORT THE 26TH NETWORK OPERATIONS SQUADRON AT MAXWELL AFB, AL WITH NETWORK OPERATIONS, SECURITY OPERATIONS, AND MAINTENANCE OPERATIONS 24/7/365
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.7 million to THE CENTECH GROUP INC. for work described as: CONTRACTOR MANPOWER TO SUPPORT THE 26TH NETWORK OPERATIONS SQUADRON AT MAXWELL AFB, AL WITH NETWORK OPERATIONS, SECURITY OPERATIONS, AND MAINTENANCE OPERATIONS 24/7/365 Key points: 1. The contract's value of $44.7 million over approximately three years suggests a significant investment in maintaining critical network infrastructure. 2. Awarded under full and open competition, this contract indicates a competitive bidding process aimed at securing the best value for the government. 3. The fixed-price contract type likely transfers some risk to the contractor, incentivizing efficient service delivery. 4. The services provided are essential for the 24/7/365 operational readiness of the 26th Network Operations Squadron. 5. The contractor, The Centech Group Inc., has been awarded this significant contract, highlighting its role in supporting defense network operations. 6. The duration of the contract (1139 days) points to a long-term need for these specialized network support services.
Value Assessment
Rating: good
The contract value of $44.7 million for approximately three years of network operations and security support appears reasonable given the critical nature of 24/7/365 operations for a military installation. Benchmarking against similar contracts for network operations and maintenance at other Air Force bases would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be advantageous for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar services, a definitive assessment of pricing efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit bids. The presence of multiple bidders in such a scenario typically fosters price competition and allows the government to select the offer that provides the best overall value, considering both price and technical factors. The fact that it was competed openly suggests that the requirement was well-defined and that there was sufficient market interest to encourage participation.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government is not locked into a single provider, which could lead to inflated costs over time.
Public Impact
The primary beneficiaries are the 26th Network Operations Squadron and the broader U.S. Air Force, ensuring the continuous operation and security of vital network infrastructure. Services delivered include network operations, security operations, and maintenance, crucial for maintaining command and control capabilities. The geographic impact is localized to Maxwell Air Force Base, Alabama, but the network's functionality supports wider Air Force operations. The contract supports a workforce skilled in network engineering, cybersecurity, and IT support, contributing to the defense sector's specialized labor market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen technical challenges or scope creep.
- Dependence on a single contractor for critical 24/7/365 network operations could pose a risk if the contractor experiences performance issues or financial instability.
- Ensuring continuous knowledge transfer and avoiding vendor lock-in are important considerations for long-term network sustainment.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that should yield favorable pricing and service quality.
- The firm-fixed-price contract type incentivizes the contractor to manage costs efficiently and deliver services within budget.
- The contract's duration suggests a stable, long-term requirement, providing predictability for both the government and the contractor.
- The services are critical for national defense, implying a high level of importance and likely robust performance expectations.
Sector Analysis
This contract falls within the Information Technology and Telecommunications sector, specifically supporting network operations and security. The North American Industry Classification System (NAICS) code 517110 (Wired Telecommunications Carriers) is relevant, though the services extend beyond basic carrier functions to encompass comprehensive network management. Spending in this area is substantial across the federal government, as robust and secure networks are fundamental to all agency operations. Comparable contracts often involve significant dollar values due to the complexity and criticality of maintaining secure, high-availability networks for defense and other government functions.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, The Centech Group Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is minimal unless the prime contractor actively engages small businesses for subcontracting opportunities, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, quality assurance, and compliance with contract terms are key oversight functions. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if allegations of fraud, waste, or abuse arise. The firm-fixed-price nature of the contract shifts some performance risk to the contractor, but government oversight remains crucial to ensure mission requirements are met.
Related Government Programs
- DoD Network Modernization Programs
- Air Force Cyber Security Initiatives
- Base Infrastructure Support Contracts
- Information Technology Services for Federal Agencies
- Network Operations and Maintenance Contracts
Risk Flags
- Potential for performance issues impacting critical operations
- Risk of cost overruns if scope is not tightly managed
- Dependence on contractor personnel expertise and retention
Tags
it, defense, department-of-defense, department-of-the-air-force, maxwell-afb, alabama, full-and-open-competition, firm-fixed-price, network-operations, cyber-security, telecommunications, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.7 million to THE CENTECH GROUP INC.. CONTRACTOR MANPOWER TO SUPPORT THE 26TH NETWORK OPERATIONS SQUADRON AT MAXWELL AFB, AL WITH NETWORK OPERATIONS, SECURITY OPERATIONS, AND MAINTENANCE OPERATIONS 24/7/365
Who is the contractor on this award?
The obligated recipient is THE CENTECH GROUP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $44.7 million.
What is the period of performance?
Start: 2012-01-24. End: 2015-03-08.
What is the track record of The Centech Group Inc. in performing similar network operations and security contracts for the Department of Defense?
Assessing The Centech Group Inc.'s track record requires a review of their past performance on similar contracts. This would involve examining contract histories for on-time delivery, quality of service, adherence to budget, and any past performance issues or disputes. For a contract of this magnitude supporting critical 24/7/365 operations, the Air Force would have likely conducted a thorough past performance evaluation as part of the source selection process. Information on specific past performance ratings or awards related to network operations and security at military installations would provide insight into their capability and reliability. Without direct access to these internal evaluations, it's difficult to definitively state their track record, but the award itself suggests a positive assessment by the contracting agency.
How does the awarded value of $44.7 million compare to industry benchmarks for similar network operations and security services at military bases?
The awarded value of $44.7 million over approximately three years (1139 days) translates to an average annual value of roughly $14.9 million. To benchmark this, one would compare it to the costs of similar contracts awarded by the Department of Defense or other federal agencies for network operations, security, and maintenance at comparable military installations. Factors such as the size and complexity of the network, the specific security requirements (e.g., classified vs. unclassified networks), the level of support (24/7 vs. standard hours), and the geographic location all influence pricing. If The Centech Group Inc. won this contract through full and open competition, it suggests their proposed price was deemed competitive and represented good value. However, a detailed comparison would require access to a database of similar contract awards and their associated costs, adjusted for relevant variables.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks include potential performance failures (e.g., network outages, security breaches), cost overruns (though mitigated by the firm-fixed-price structure), and contractor personnel issues (e.g., turnover, lack of qualified staff). Mitigations are embedded in the contract and oversight processes. The firm-fixed-price nature transfers cost risk to the contractor. The government's mitigation strategies involve rigorous performance monitoring by the COR, defined service level agreements (SLAs), and potential penalties for non-performance. The requirement for 24/7/365 operations necessitates robust contingency and backup plans from the contractor. Furthermore, the full and open competition process likely selected a contractor with a demonstrated ability to manage these risks effectively, based on past performance evaluations.
How effective is the firm-fixed-price contract type in ensuring value for money for this specific network operations requirement?
The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and performance requirements are clear, as is likely the case for established network operations at a military base. Under an FFP contract, the contractor assumes the primary risk for cost overruns, incentivizing them to control expenses and operate efficiently to maximize profit. This shifts the burden of cost management to the contractor, potentially leading to lower overall costs for the government compared to cost-reimbursement contracts. However, the government must ensure the initial price is fair and reasonable and maintain strong oversight to verify that the contractor is meeting all performance standards and not cutting corners to save costs.
What are the historical spending patterns for network operations and security support at Maxwell AFB or similar Air Force installations?
Analyzing historical spending patterns for network operations and security at Maxwell AFB or similar Air Force installations would involve examining contract data over several years. This contract, awarded in January 2012 and ending in March 2015, represents a specific period. Understanding historical spending would reveal trends in contract values, the number of competitors, and the types of contract vehicles used. For instance, were there previous contracts for these services at Maxwell AFB? Were they awarded competitively or sole-source? How did their values compare? Such analysis helps in understanding the long-term investment in network infrastructure, identifying potential cost efficiencies or escalations over time, and assessing the stability of requirements. Without access to historical data specific to Maxwell AFB's network operations, a precise analysis is not possible.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4600 FAIRFAX DR STE 400, ARLINGTON, VA, 08
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $144,981,645
Exercised Options: $48,483,087
Current Obligation: $44,712,262
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0002
IDV Type: IDC
Timeline
Start Date: 2012-01-24
Current End Date: 2015-03-08
Potential End Date: 2015-03-08 00:00:00
Last Modified: 2014-09-29
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