DoD Awards $137.5M Network Upgrade Contract to LGS Innovations LLC Under Full and Open Competition
Contract Overview
Contract Amount: $137,477,033 ($137.5M)
Contractor: LGS Innovations LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-20
End Date: 2025-09-18
Contract Duration: 2,829 days
Daily Burn Rate: $48.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST NO FEE
Sector: IT
Official Description: SUPPLY DELIVERY ORDER FOR THE NETWORK MODERNIZATION AND CAPABILITY SET UPGRADE REQUIREMENT FOR THE PACIFIC THEATER. INCIDENTAL SERVICE POP IS 1 BASE YEAR PLUS 4 ADDITIONAL OPTION YEARS.
Place of Performance
Location: HIGH POINT, GUILFORD County, NORTH CAROLINA, 27265
Plain-Language Summary
Department of Defense obligated $137.5 million to LGS INNOVATIONS LLC for work described as: SUPPLY DELIVERY ORDER FOR THE NETWORK MODERNIZATION AND CAPABILITY SET UPGRADE REQUIREMENT FOR THE PACIFIC THEATER. INCIDENTAL SERVICE POP IS 1 BASE YEAR PLUS 4 ADDITIONAL OPTION YEARS. Key points: 1. Significant investment in network modernization for the Pacific theater. 2. Contract awarded to LGS Innovations LLC, a known entity in telecommunications. 3. Potential for long-term support with 4 option years. 4. Spending aligns with the Wired Telecommunications Carriers sector.
Value Assessment
Rating: good
The total award amount of $137.5M over approximately 7.5 years suggests a substantial but potentially reasonable investment for a large-scale network modernization. Benchmarking against similar large-scale telecommunications infrastructure projects would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method is expected to yield competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Enhances critical communication infrastructure for military operations in the Pacific. Supports technological advancement and capability upgrades for the Army. Ensures continued service delivery through a multi-year contract structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in option years.
- Dependency on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Addresses a clear modernization requirement.
- Includes multiple option years for sustained support.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is crucial for maintaining robust and modern communication networks. Spending benchmarks for similar large-scale network modernization projects are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While the contract was awarded under full and open competition, there is no explicit indication of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The multi-year nature of the contract necessitates ongoing monitoring of performance and costs to ensure accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may lead to vendor lock-in.
- Reliance on a single vendor for critical infrastructure.
- Potential for cost overruns if scope is not tightly managed.
- Geopolitical risks in the Pacific theater could impact delivery.
Tags
wired-telecommunications-carriers, department-of-defense, nc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.5 million to LGS INNOVATIONS LLC. SUPPLY DELIVERY ORDER FOR THE NETWORK MODERNIZATION AND CAPABILITY SET UPGRADE REQUIREMENT FOR THE PACIFIC THEATER. INCIDENTAL SERVICE POP IS 1 BASE YEAR PLUS 4 ADDITIONAL OPTION YEARS.
Who is the contractor on this award?
The obligated recipient is LGS INNOVATIONS 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 $137.5 million.
What is the period of performance?
Start: 2017-12-20. End: 2025-09-18.
What specific technological advancements does this network modernization entail, and how do they align with current and future military requirements?
The data does not specify the exact technological advancements. However, 'Network Modernization and Capability Set Upgrade' implies upgrades to hardware, software, and potentially cybersecurity measures to enhance speed, reliability, and security. These upgrades are likely intended to meet evolving operational demands in the Pacific theater, ensuring seamless communication for command and control, intelligence, and logistics.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?
Key performance indicators are not detailed in the provided data. Typically, for such contracts, KPIs would focus on network uptime, data transfer speeds, latency, security compliance, and successful implementation of new capabilities. Performance will likely be measured through regular reporting, system audits, and user feedback from the Pacific theater.
What is the projected cost per user or per base for the network services provided under this contract, and how does it compare to industry standards?
The data does not provide a per-user or per-base cost breakdown. The total award is $137.5M over approximately 7.5 years. To assess value, this total cost would need to be divided by the number of users or bases supported and compared against benchmarks for similar military or large enterprise network deployments.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 4090 PREMIER DRIVE, HIGH POINT, NC, 27265
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $137,477,033
Exercised Options: $137,477,033
Current Obligation: $137,477,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873215D0042
IDV Type: IDC
Timeline
Start Date: 2017-12-20
Current End Date: 2025-09-18
Potential End Date: 2025-09-18 12:09:00
Last Modified: 2025-09-17
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