DoD Awards $18.1M for SIPRNET Support Services to Signal Solutions, LLC
Contract Overview
Contract Amount: $18,135,302 ($18.1M)
Contractor: Signal Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2007-01-29
End Date: 2030-12-25
Contract Duration: 8,731 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SIPRNET SUPPORT SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.1 million to SIGNAL SOLUTIONS, LLC for work described as: SIPRNET SUPPORT SERVICES Key points: 1. Contract awarded to Signal Solutions, LLC for SIPRNET support. 2. Significant contract value of $18.1 million over its duration. 3. Full and open competition was utilized. 4. The contract spans a long period, from 2007 to 2030. 5. NAICS code 517110 indicates Wired Telecommunications Carriers.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The total award value is substantial, and the long duration suggests ongoing needs, but without specific cost breakdowns or performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and potentially lead to higher costs compared to fixed-price contracts.
Taxpayer Impact: The $18.1 million awarded over the contract's lifespan represents taxpayer funds allocated for essential defense telecommunications infrastructure. The long duration and T&M nature warrant scrutiny for cost-effectiveness.
Public Impact
Ensures continued operation of secure military communication networks (SIPRNET). Supports critical Department of Defense and Army operations. Long-term contract may indicate stable service provision. Potential for cost increases due to Time and Materials pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2007-2030) with T&M pricing.
- No specific small business set-aside noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security infrastructure.
Sector Analysis
This contract falls under the IT and Telecommunications sector, specifically supporting secure government networks. Spending benchmarks for similar wired telecommunications services can vary widely based on scope and duration, but $18.1M over 23 years suggests a moderate annual spend for specialized support.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no specific information provided regarding small business participation or subcontracting goals within this award.
Oversight & Accountability
The contract's long duration and Time and Materials nature necessitate robust oversight from the Department of the Army to ensure cost control and adherence to contract terms. Regular performance reviews and audits would be crucial for accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Time and Materials pricing structure.
- No small business participation noted.
- Lack of specific performance metrics in award data.
- Potential for cost overruns.
Tags
wired-telecommunications-carriers, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to SIGNAL SOLUTIONS, LLC. SIPRNET SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SIGNAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2007-01-29. End: 2030-12-25.
What is the average annual cost of SIPRNET support services under this contract, and how does it compare to industry benchmarks for similar secure network maintenance?
The total award is $18.1 million over approximately 23 years (2007-2030), averaging roughly $787,000 per year. Comparing this to industry benchmarks is challenging without knowing the specific services rendered, number of users supported, and geographic coverage. However, for specialized secure network support, this annual figure appears moderate, but a detailed analysis of the T&M rates and actual hours billed is needed for a true comparison.
What are the primary risks associated with the Time and Materials pricing structure over such a long contract duration, and what mitigation strategies are in place?
The primary risk is cost escalation due to undefined labor hours and material costs, potentially exceeding the initial $18.1M estimate. Mitigation strategies typically include strict oversight, defined labor categories with capped rates, regular performance reviews, and clear task order limitations. The agency must actively manage the scope and effort to prevent uncontrolled spending and ensure value for money.
How effectively does this contract ensure the continuous and secure operation of SIPRNET, and what performance metrics are used to gauge success?
The contract's long duration and renewal suggest a level of effectiveness in maintaining SIPRNET operations. However, the provided data lacks specific performance metrics (e.g., uptime, response times, security incident rates). Effectiveness is likely measured through adherence to service level agreements (SLAs) and successful completion of assigned tasks, but without explicit details, a definitive assessment of effectiveness is limited.
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
Solicitation ID: W9128Z05R0003
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3040 WILLIAMS DRIVE, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,930,352
Exercised Options: $23,355,329
Current Obligation: $18,135,302
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128Z06D0001
IDV Type: IDC
Timeline
Start Date: 2007-01-29
Current End Date: 2030-12-25
Potential End Date: 2030-12-25 00:00:00
Last Modified: 2011-05-18
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