DoD's $22.5M wired telecom contract with Signal Solutions, LLC awarded under full and open competition

Contract Overview

Contract Amount: $22,490,033 ($22.5M)

Contractor: Signal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-08

End Date: 2010-09-07

Contract Duration: 1,279 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MCA BRAC PROGRAM

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to SIGNAL SOLUTIONS, LLC for work described as: MCA BRAC PROGRAM Key points: 1. Contract awarded for wired telecommunications services, indicating a need for robust network infrastructure. 2. The contract duration of 1279 days suggests a significant, long-term requirement. 3. Awarded to Signal Solutions, LLC, a single contractor, highlighting potential for focused service delivery. 4. The 'VA' type suggests a specific type of facility or service, warranting further investigation into its implications. 5. Virginia location indicates a concentration of federal telecommunications spending in the region. 6. The absence of small business set-aside flags suggests this was a large-scale requirement likely met by established providers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The total award amount of $22.5 million over approximately 3.5 years averages to roughly $6.4 million annually. This figure needs to be compared against similar telecommunications infrastructure contracts within the Department of Defense or other federal agencies to assess if it represents a competitive price point. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely managed, which is a potential risk factor for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought the best possible offer. However, the number of bidders is not specified, which limits the ability to fully assess the intensity of the competition. A robust competition typically drives down prices and encourages innovation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a broad range of potential providers, fostering a competitive environment that can lead to more cost-effective solutions.

Public Impact

The Department of Defense benefits from enhanced wired telecommunications infrastructure, crucial for operational readiness and communication. Services delivered likely include installation, maintenance, and support for wired networks supporting military operations. The geographic impact is concentrated in Virginia, where the contract was performed. Workforce implications may include employment opportunities for telecommunications technicians and support staff in the Virginia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not rigorously monitored.
Lack of specific performance metrics makes it difficult to definitively assess service quality and value for money.
Reliance on a single contractor for a significant duration could pose risks if performance issues arise or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, suggesting an effort to obtain competitive pricing and quality.
The contract's duration indicates a stable, long-term requirement being met, providing continuity of essential services.
The specific nature of the 'VA' designation might imply specialized services that align well with the contractor's capabilities.

Sector Analysis

This contract falls within the Telecommunications industry, specifically focusing on wired network infrastructure. The market for federal telecommunications services is substantial, with agencies constantly requiring upgrades and maintenance for their communication systems. Comparable spending benchmarks would involve looking at other large-scale network build-outs or maintenance contracts within the federal government, particularly those managed by defense agencies. The 'Wired Telecommunications Carriers' NAICS code (517110) encompasses establishments primarily engaged in operating and/or providing access to telecommunications signal transmission, including infrastructure such as wireline and fiber optic networks.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of subcontracting requirements specifically for small businesses (ss: false). This suggests that the scope and nature of the work were likely beyond the typical capacity or specialization of small businesses, or that the competition strategy prioritized larger, established providers to meet the extensive requirements of the Department of Defense. Consequently, the direct impact on the small business ecosystem for this specific award appears minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract were raised.

Related Government Programs

Department of Defense Telecommunications Infrastructure Modernization Programs
Federal Network Infrastructure Contracts
Wired Network Services for Government Agencies
Information Technology Services for Military Branches

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics hinders value assessment.
Contract duration may pose risks if contractor performance degrades.
Ambiguity of 'VA' contract type requires clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to SIGNAL SOLUTIONS, LLC. MCA BRAC PROGRAM

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 $22.5 million.

What is the period of performance?

Start: 2007-03-08. End: 2010-09-07.

What specific types of wired telecommunications services were included in this contract?

While the NAICS code 517110 points to 'Wired Telecommunications Carriers,' the specific services under this contract are not detailed in the provided data. Typically, such contracts could encompass a range of activities including the installation, maintenance, repair, and upgrade of physical network infrastructure such as fiber optic cables, copper wiring, and associated equipment. This might also include network monitoring, troubleshooting, and potentially the provision of bandwidth or circuit services. The 'VA' designation could imply services related to specific facilities or a particular type of telecommunications setup, such as voice, data, or video transmission systems critical for military operations.

How does the $22.5 million award compare to similar contracts for wired telecommunications within the DoD?

Direct comparison of the $22.5 million award to similar DoD contracts requires access to a broader dataset of federal procurements. However, for a contract spanning approximately 3.5 years (1279 days), this equates to an average annual value of roughly $6.4 million. This figure is substantial and suggests a significant undertaking. To benchmark effectively, one would need to analyze contracts with similar scope (e.g., network infrastructure build-out, maintenance) and duration awarded by the DoD or other defense agencies. Factors like geographic scope, technology involved (e.g., fiber vs. copper), and specific service level agreements would be crucial for a precise comparison.

What are the primary risks associated with a 'Time and Materials' contract of this magnitude?

The primary risk with a 'Time and Materials' (T&M) contract, especially one valued at $22.5 million, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If not managed diligently through robust oversight, detailed tracking of hours, and strict material cost controls, the total cost can exceed initial estimates. This necessitates strong government project management to ensure efficiency, prevent scope creep, and verify that the labor and materials are necessary and reasonable for the work performed.

What does the 'VA' contract type signify in this context?

The 'VA' contract type designation is not a standard, universally recognized federal contract type acronym like 'FFP' (Firm-Fixed-Price) or 'T&M' (Time and Materials). It is possible that 'VA' refers to a specific internal classification used by the Department of the Army or the agency that awarded the contract, potentially indicating a type of facility, service, or program. For instance, it could relate to 'Vulnerability Assessment,' 'Value Analysis,' or a specific type of 'Vessel/Vehicle' support, or even relate to Veterans Affairs if there was a joint effort. Without further context or clarification from the awarding agency, its precise meaning remains speculative but likely points to a specialized requirement.

What is the historical spending pattern for wired telecommunications carriers by the Department of the Army?

Analyzing the historical spending patterns for 'Wired Telecommunications Carriers' (NAICS 517110) by the Department of the Army requires access to historical federal procurement data over multiple fiscal years. This specific contract award of $22.5 million in 2007 represents a single data point. To understand patterns, one would need to aggregate spending across numerous contracts within this category over several years. This would reveal trends in overall investment, identify major contractors, and highlight shifts in technology or service needs. Such analysis could show whether spending has increased or decreased, and if there's a move towards newer technologies like fiber optics over traditional copper.

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: $34,172,923

Exercised Options: $22,490,033

Current Obligation: $22,490,033

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128Z06D0001

IDV Type: IDC

Timeline