DoD's $13M Wired Telecom Contract Awarded to THE CENTECH GROUP INC. for 1 Year
Contract Overview
Contract Amount: $12,983,089 ($13.0M)
Contractor: THE Centech Group Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-28
End Date: 2008-09-27
Contract Duration: 365 days
Daily Burn Rate: $35.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: IT
Official Description: JOCAS
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to THE CENTECH GROUP INC. for work described as: JOCAS Key points: 1. Contract value of $12.98M for a 365-day duration. 2. Awarded under full and open competition. 3. Potential risk associated with a single award for a critical service. 4. Sector: Information Technology (Wired Telecommunications Carriers).
Value Assessment
Rating: fair
The contract's pricing structure is 'Cost No Fee', which can make direct value assessment challenging without detailed cost breakdowns. Benchmarking against similar contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the 'Cost No Fee' structure might limit price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The 'Cost No Fee' structure requires careful monitoring to ensure costs remain reasonable and aligned with services rendered.
Public Impact
Ensures essential wired telecommunications services for the Department of the Air Force. Supports military operations and administrative functions through reliable communication infrastructure. Potential for cost overruns if not managed effectively due to the 'Cost No Fee' structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee pricing can obscure true value and lead to potential overspending.
- Limited duration (1 year) may necessitate frequent re-competition, increasing administrative burden.
- Lack of small business participation noted (sb: false).
Positive Signals
- Awarded under full and open competition, promoting a competitive marketplace.
- Supports critical Department of Defense infrastructure.
Sector Analysis
The contract falls within the IT sector, specifically wired telecommunications carriers. Spending in this area is crucial for government operations, but benchmarks vary widely based on service scope and duration.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that larger businesses were likely the primary bidders, potentially limiting opportunities for small and medium-sized enterprises in this procurement.
Oversight & Accountability
Oversight would focus on the Department of the Air Force's management of the 'Cost No Fee' contract, ensuring that incurred costs are reasonable, allocable, and allowable, and that the contractor meets all performance requirements.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost No Fee pricing risks uncontrolled spending.
- Limited contract duration may lead to recurring procurement costs and potential service gaps.
- No small business participation noted.
- Potential for vendor lock-in if specialized infrastructure is deployed.
- Reliance on a single awardee for critical infrastructure.
Tags
wired-telecommunications-carriers, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to THE CENTECH GROUP INC.. JOCAS
Who is the contractor on this award?
The obligated recipient is THE CENTECH GROUP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2007-09-28. End: 2008-09-27.
What was the primary driver for selecting a 'Cost No Fee' contract type over other pricing structures for this telecommunications service?
The 'Cost No Fee' structure is often chosen when the scope of work is difficult to define precisely upfront or when the government wants to incentivize the contractor to control costs without a direct profit motive on those costs. For telecommunications, this might be used for emergency services or highly dynamic network requirements where exact usage is unpredictable. However, it necessitates robust government oversight to prevent cost escalation.
How does the lack of small business participation impact the overall competition and innovation for this contract?
A lack of small business participation can limit the diversity of solutions and potentially reduce competitive pressure, as smaller, agile firms might offer innovative approaches or more cost-effective services. While full and open competition was used, the absence of small business involvement suggests barriers to entry or a focus on large-scale providers, which could impact long-term market dynamics and innovation.
What are the key performance indicators (KPIs) used to measure the effectiveness of THE CENTECH GROUP INC.'s wired telecommunications services under this contract?
Effectiveness would likely be measured by service availability (uptime), network performance metrics (latency, bandwidth), response times to outages or issues, and adherence to security protocols. Given the 'Cost No Fee' structure, KPIs would be critical for the Air Force to ensure they are receiving adequate service for the costs incurred, even without direct profit incentives tied to performance.
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
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 4600 FAIRFAX DR STE 400, ARLINGTON, VA, 08
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $182,569,393
Exercised Options: $111,323,973
Current Obligation: $12,983,089
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0002
IDV Type: IDC
Timeline
Start Date: 2007-09-28
Current End Date: 2008-09-27
Potential End Date: 2010-09-07 00:00:00
Last Modified: 2013-02-14
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