Interior Department awards $5.6M for Cisco network hardware, with 4 bidders competing

Contract Overview

Contract Amount: $5,589,589 ($5.6M)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of the Interior

Start Date: 2023-09-20

End Date: 2028-09-30

Contract Duration: 1,837 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO NETWORK SWITCHES AND VOIP HARDWARE

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $5.6 million to COLOSSAL CONTRACTING LLC for work described as: CISCO NETWORK SWITCHES AND VOIP HARDWARE Key points: 1. Value appears reasonable given the scope of network hardware and services. 2. Strong competition level suggests potential for competitive pricing. 3. Contract duration extends over several years, indicating a long-term need. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. This award falls within the 'Other Computer Related Services' NAICS code. 6. The award is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $5.6 million for network hardware and related services appears to be within a reasonable range for a federal agency's IT infrastructure needs. Benchmarking against similar awards for Cisco equipment and VoIP hardware would provide a more precise assessment, but the number of bidders suggests a competitive environment that likely drove a fair price. The Firm Fixed Price contract type is standard for hardware procurement and helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, specific circumstances led to the exclusion of certain sources. With four bidders participating, the competition level is moderate, suggesting that the government received multiple offers. This level of competition is generally sufficient to promote price discovery and encourage competitive bidding, though a wider pool of bidders could potentially yield even more favorable pricing.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from a reasonably competitive price, avoiding the higher costs often associated with sole-source or highly restricted procurements.

Public Impact

The Bureau of Reclamation within the Department of the Interior benefits from upgraded network infrastructure. Services include the provision of Cisco network switches and VoIP hardware. The geographic impact is likely concentrated within the operational areas of the Bureau of Reclamation. This contract supports the IT workforce responsible for maintaining and operating the agency's network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause warrants further investigation into the reasons for exclusion.
Long contract duration (over 4 years) could lead to technology obsolescence if not managed proactively.
Reliance on a single vendor's hardware (Cisco) can create vendor lock-in.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Moderate competition among four bidders suggests a healthy bidding environment.
Delivery Order structure allows for phased procurement and flexibility.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network hardware and telecommunications equipment. The market for enterprise networking solutions, including Cisco products, is mature and highly competitive, with numerous vendors offering similar capabilities. Federal spending in this area is substantial, driven by the need for secure, reliable, and high-performance communication networks across all agencies. This award represents a typical procurement for essential IT infrastructure components.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the procurement (network hardware from a specific vendor), it is likely that larger, established resellers or integrators were the primary participants. Subcontracting opportunities for small businesses may exist if the prime contractor engages them for installation, maintenance, or related IT services, but this is not explicitly detailed in the award information.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a Delivery Order, it falls under the terms of the parent contract vehicle, which would have its own oversight mechanisms. The Department of the Interior's Inspector General may have jurisdiction for audits and investigations related to this spending. Transparency is facilitated by public contract databases where such awards are reported.

Related Government Programs

General Services Administration (GSA) Schedules
IT Hardware Procurement
Network Infrastructure Modernization
Telecommunications Equipment

Risk Flags

Competition Limited by Source Exclusion
Potential for Technology Obsolescence
Vendor Lock-In Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.6 million to COLOSSAL CONTRACTING LLC. CISCO NETWORK SWITCHES AND VOIP HARDWARE

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2023-09-20. End: 2028-09-30.

What specific Cisco product models are being procured under this contract, and how do their features align with the Bureau of Reclamation's current and future needs?

The provided data does not specify the exact Cisco product models (e.g., Catalyst switches, specific VoIP phone models). To assess alignment, a detailed review of the Statement of Work (SOW) or the specific delivery order requirements would be necessary. This would involve examining the technical specifications, port densities, throughput capabilities, and VoIP features required. Benchmarking these specifications against the Bureau of Reclamation's existing network architecture and projected growth in user base and data traffic would reveal how well the procured hardware meets their operational demands. Without this granular detail, the assessment remains at a general level of network hardware provision.

How does the pricing of these Cisco network switches and VoIP hardware compare to commercial off-the-shelf (COTS) prices or prices from other federal contracts?

Direct comparison to COTS pricing is challenging without knowing the specific models, quantities, and any negotiated discounts. Federal contracts often benefit from volume discounts and specific government pricing agreements. However, the presence of four bidders in a 'full and open competition after exclusion of sources' scenario suggests that the pricing was likely competitive within the federal acquisition landscape. To perform a robust comparison, one would need to access pricing data from similar federal awards for comparable Cisco equipment or consult GSA Schedule pricing for relevant items. The Firm Fixed Price nature of the award implies that the agreed-upon price is the maximum the government will pay, providing a degree of cost control.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential technology obsolescence given the contract's duration (ending Sept 2028), vendor lock-in with Cisco hardware, and the possibility of performance issues if the hardware is not configured or maintained correctly. Mitigation strategies could involve phased deployments, ensuring robust warranty and support agreements are included, and potentially incorporating refresh clauses into future contracts. The Firm Fixed Price structure shifts the risk of cost overruns to the contractor. The 'after exclusion of sources' aspect also presents a risk if legitimate potential bidders were unfairly excluded, potentially limiting competition and innovation.

What is the track record of Colossal Contracting LLC in delivering similar IT hardware and network services to federal agencies?

Information regarding Colossal Contracting LLC's specific track record for delivering Cisco network switches and VoIP hardware is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the value and complexity of previous similar contracts they have held, and any history of contract disputes or performance issues. Understanding their experience with the Department of the Interior or similar agencies would also be beneficial in gauging their capability to successfully execute this delivery order.

How does the $5.6 million spending on network hardware compare to the Department of the Interior's overall IT budget or historical spending in this category?

The provided data does not include the Department of the Interior's total IT budget or historical spending figures for network hardware. To contextualize the $5.6 million award, one would need to analyze the agency's annual IT budget allocations and track spending trends for similar procurements over the past several fiscal years. Comparing this award as a percentage of the total IT budget or as a proportion of network infrastructure spending would indicate its relative significance. Without this broader financial context, it's difficult to determine if this represents a substantial increase, decrease, or consistent level of investment in network hardware.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140R3023R0029

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,315,981

Exercised Options: $5,589,589

Current Obligation: $5,589,589

Actual Outlays: $5,589,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline