Department of the Army awards $44M contract for wired telecommunications, with a potential value of $48M

Contract Overview

Contract Amount: $43,999,102 ($44.0M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-23

End Date: 2019-03-29

Contract Duration: 917 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE CONTRACT AWARD CLASSROOM XXI - IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to PRAGMATICS, LLC for work described as: BASE CONTRACT AWARD CLASSROOM XXI - IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The base contract value is $43.99M, with a potential ceiling of $47.98M, indicating room for growth or additional services. 3. The contract duration is 917 days, spanning over two years. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The North American Industry Classification System (NAICS) code 517110 points to services related to wired telecommunications carriers. 6. The contractor, PRAGMATICS, LLC, has secured this award, with further performance context needed to assess value. 7. The contract is categorized under 'Other Functions' within the Department of the Army's procurement activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed information on the specific services provided under the 'Other Functions' category. Without comparable contract data for similar telecommunications services within the Department of the Army or other federal agencies, it is difficult to definitively assess if the $43.99M base award represents excellent value. The potential ceiling of $47.98M suggests a need to monitor how much of this potential is realized and if it aligns with market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing among potential offerors. The level of competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are likely components within the Department of the Army requiring wired telecommunications infrastructure and services. The services delivered are related to wired telecommunications, potentially encompassing installation, maintenance, and support of network infrastructure. The geographic impact is primarily within Virginia, where the contractor is located and likely where services are rendered. Workforce implications could include employment opportunities for telecommunications technicians, engineers, and support staff employed by PRAGMATICS, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'Other Functions' makes it difficult to assess the full value proposition.
The potential contract value is higher than the base award, requiring scrutiny of any future modifications or task orders.
Performance metrics and quality assurance details are not provided, hindering an assessment of contractor performance.
The contract is a delivery order, suggesting it might be one of many under a larger IDIQ, making it harder to evaluate in isolation.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, PRAGMATICS, LLC, has secured a significant federal contract.
The contract duration of over two years provides a degree of stability for service delivery.
The base award amount is clearly defined, providing a baseline for financial oversight.

Sector Analysis

The telecommunications industry is a vast and critical sector for government operations, encompassing a wide range of services from basic connectivity to advanced network solutions. Wired telecommunications carriers, as defined by NAICS code 517110, are involved in operating and providing telecommunications services over a network of wires. This contract likely fits within the broader IT and communications infrastructure spending of the Department of Defense, which relies heavily on robust and secure wired networks for command, control, and daily operations. Comparable spending benchmarks would typically be found within other large federal contracts for telecommunications services, often awarded under IDIQ vehicles.

Small Business Impact

There is no indication from the provided data that this contract includes a small business set-aside. The contractor, PRAGMATICS, LLC, is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides appears minimal. However, the potential for subcontracting opportunities with PRAGMATICS, LLC could exist, offering avenues for small businesses to participate in delivering these telecommunications services. Further investigation into the subcontracting plan would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be established through the terms and conditions of the delivery order, including performance standards and reporting requirements. Transparency is facilitated by the public nature of federal contract awards, though specific details of the service delivery and performance are not readily available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Telecommunications Contracts
Army IT Services Procurement
Wired Network Infrastructure Services
Federal Communications Contracts
Information Technology Services

Risk Flags

Potential for scope creep beyond base award
Lack of detailed performance metrics
Ambiguity in 'Other Functions' service definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to PRAGMATICS, LLC. BASE CONTRACT AWARD CLASSROOM XXI - IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, 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 $44.0 million.

What is the period of performance?

Start: 2016-09-23. End: 2019-03-29.

What specific wired telecommunications services are included under the 'Other Functions' category for this contract?

The provided data classifies this contract under NAICS code 517110 (Wired Telecommunications Carriers) and lists the description as 'CLASSROOM XXI - IGF::OT::IGF FOR OTHER FUNCTIONS'. However, the specific nature of the 'Other Functions' is not detailed. This could encompass a wide range of services such as the installation, maintenance, repair, and upgrade of physical network infrastructure (cabling, switches, routers), potentially including voice and data services delivered over these wired networks. Without further documentation, such as the Statement of Work (SOW) or Performance Work Statement (PWS), the precise services remain ambiguous. It is crucial to understand these specifics to properly benchmark cost and performance against industry standards.

How does the potential contract value of $47.98M compare to the base award of $43.99M, and what does this difference signify?

The potential contract value of $47.98M represents an increase of approximately $3.99M, or about 9%, over the base contract award of $43.99M. This difference typically signifies the maximum amount that can be obligated under the contract through modifications, task orders, or option periods, depending on the contract type. For a delivery order, this could mean the ceiling for additional services or supplies that can be ordered. It suggests flexibility for the Department of the Army to expand the scope or quantity of services if needed, up to this ceiling. However, it also necessitates careful monitoring to ensure that any increase in spending is justified by actual requirements and represents continued good value for money.

What is the track record of PRAGMATICS, LLC in delivering similar wired telecommunications services to the federal government?

Information regarding the specific track record of PRAGMATICS, LLC in delivering similar wired telecommunications services to the federal government is not provided in the data snippet. To assess their capabilities and past performance, one would typically review their contract history, including past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any awards or penalties received, and the types and scale of previous telecommunications contracts they have held. A strong track record with similar services would increase confidence in their ability to successfully execute this current contract. Conversely, a history of performance issues or a lack of relevant experience would raise concerns.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include information on the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected quality, timeliness, and reliability of the services to be delivered by PRAGMATICS, LLC. Typically, KPIs and SLAs would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). They might include metrics related to network uptime, response times for service requests, installation completion rates, and customer satisfaction. Without these, it is challenging to objectively measure the contractor's performance and ensure the Department of the Army is receiving the expected value for its investment.

How does the duration of 917 days (approximately 2.5 years) impact the assessment of this contract's value and risk?

A contract duration of 917 days, approximately 2.5 years, provides a substantial period for service delivery, which can be beneficial for establishing stable operations and potentially achieving economies of scale. For the government, a longer duration can reduce the administrative burden and costs associated with frequent re-procurement. However, it also introduces risks related to technological obsolescence, changes in government requirements, and potential contractor performance degradation over time. The value assessment should consider whether the services are likely to remain relevant and cost-effective throughout this period. Risk mitigation strategies might include performance-based incentives, clear termination clauses, and regular performance reviews.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $43,999,102

Exercised Options: $43,999,102

Current Obligation: $43,999,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ07D0002

IDV Type: IDC

Timeline