DoD's $11.9M Wired Telecom Contract Awarded to Signal Solutions, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $11,891,914 ($11.9M)
Contractor: Signal Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-17
End Date: 2009-08-16
Contract Duration: 852 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AA FUNDING
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to SIGNAL SOLUTIONS, LLC for work described as: AA FUNDING Key points: 1. Contract value of $11.9 million for wired telecommunications services. 2. Awarded to Signal Solutions, LLC, indicating a specific vendor focus. 3. Full and open competition was utilized, suggesting a broad search for vendors. 4. The contract falls under the Wired Telecommunications Carriers sector.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The awarded amount of $11.9 million needs to be benchmarked against similar contracts for wired telecommunications services to assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple vendors were likely considered, which is generally positive for price discovery. However, the Time and Materials pricing structure might limit the effectiveness of competitive bidding in controlling the final cost.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value. However, the Time and Materials contract type warrants close monitoring to ensure costs remain within reasonable bounds.
Public Impact
Ensures connectivity for Department of the Army operations. Supports telecommunications infrastructure within Virginia. Potential for technological advancements in wired communications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost uncertainty.
- Vendor Signal Solutions, LLC may not have significant past performance data available publicly.
Positive Signals
- Full and open competition utilized.
- Contract supports essential Army communications.
Sector Analysis
This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is crucial for government operations, but requires careful management due to rapid technological changes and potential for cost escalation.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation or subcontracting goals. Further analysis would be needed to determine if small businesses had a fair opportunity to compete.
Oversight & Accountability
The Department of the Army's oversight of this Time and Materials contract is critical. Regular reviews of expenditures and performance against requirements are necessary to ensure accountability and prevent cost overruns.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials contract type.
- Potential for cost overruns.
- Lack of specific performance metrics in provided data.
- Limited public information on Signal Solutions, LLC's past performance.
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 $11.9 million to SIGNAL SOLUTIONS, LLC. AA FUNDING
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 $11.9 million.
What is the period of performance?
Start: 2007-04-17. End: 2009-08-16.
What was the average per-unit cost for similar wired telecommunications services during the contract period?
Benchmarking the $11.9 million contract value against similar wired telecommunications services procured by the Department of Defense or other federal agencies during the 2007-2009 period would provide crucial context. Without specific data on unit rates for services like bandwidth, installation, or maintenance, it's difficult to definitively assess if this contract represented a fair market price.
What were the primary risks associated with the Time and Materials contract type for this specific service?
The primary risk of a Time and Materials contract for wired telecommunications is the potential for uncontrolled cost escalation, as the government pays for labor hours and material costs incurred by the contractor. This necessitates robust oversight to ensure efficient work and prevent contractor inefficiencies from driving up the final price beyond initial expectations.
How effectively did the full and open competition process ensure the best value for taxpayers?
Full and open competition is designed to maximize value by encouraging broad vendor participation and price competition. However, the effectiveness in this case is tempered by the Time and Materials pricing structure. While competition likely drove down initial bids, the ultimate value to taxpayers depends heavily on the contractor's efficiency and the government's ability to manage costs throughout the contract's duration.
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: 2
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: $14,761,781
Exercised Options: $11,891,914
Current Obligation: $11,891,914
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128Z06D0001
IDV Type: IDC
Timeline
Start Date: 2007-04-17
Current End Date: 2009-08-16
Potential End Date: 2009-08-16 00:00:00
Last Modified: 2011-05-18
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