DOE awarded $28M for wired telecommunications, a sole-source contract with a firm fixed price
Contract Overview
Contract Amount: $28,092,018 ($28.1M)
Contractor: TSA Systems, Ltd.
Awarding Agency: Department of Energy
Start Date: 2003-09-15
End Date: 2005-04-30
Contract Duration: 593 days
Daily Burn Rate: $47.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: ARVADA, JEFFERSON County, COLORADO, 80002
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $28.1 million to TSA SYSTEMS, LTD. for work described as: Key points: 1. The contract's value of $28 million for wired telecommunications services represents a significant investment in the Department of Energy's infrastructure. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential price efficiencies and market responsiveness. 3. The firm fixed-price contract structure shifts cost risk to the contractor, which can be beneficial for budget predictability. 4. The contract duration of 593 days (approximately 1.6 years) suggests a need for ongoing, stable telecommunications support. 5. The award to TSASYSTEMS, LTD. indicates a specific capability or relationship that led to the non-competitive selection. 6. The NAICS code 517110 points to services related to operating telecommunications networks, including wired infrastructure.
Value Assessment
Rating: questionable
Benchmarking the value of this $28 million contract is challenging without competitive data. As a sole-source award, it's difficult to assess if the pricing reflects market rates or if a competitive process could have yielded better value. The firm fixed-price nature provides budget certainty but doesn't inherently guarantee optimal cost-effectiveness compared to potentially lower prices achieved through competition. Further analysis would require understanding the specific services rendered and comparing them to industry benchmarks for similar telecommunications infrastructure support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, TSASYSTEMS, LTD., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct comparison of pricing or technical solutions from alternative providers, potentially limiting the government's ability to secure the most advantageous terms.
Taxpayer Impact: Taxpayers may not have received the benefit of potentially lower prices that could have resulted from a competitive bidding process. The absence of competition can lead to higher costs than might otherwise be achievable.
Public Impact
The primary beneficiaries are the Department of Energy's internal operations, which rely on robust wired telecommunications infrastructure for its mission. The services delivered likely include the maintenance, upgrade, or provision of wired network infrastructure essential for data transmission and communication. The geographic impact is centered around the Department of Energy's facilities, particularly in Colorado where the contractor is located. Workforce implications may involve specialized technicians and engineers required for the installation, management, and support of telecommunications networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have resulted in higher costs for taxpayers.
- Sole-source awards can reduce transparency and accountability in the procurement process.
- The firm fixed-price contract, while managing cost risk for the government, might not incentivize the contractor to find the most cost-efficient solutions if competition is absent.
Positive Signals
- Firm fixed-price contract provides budget certainty for the Department of Energy.
- The award suggests TSASYSTEMS, LTD. possesses specialized capabilities required by the agency.
- The contract duration indicates a stable, ongoing need for these telecommunications services.
Sector Analysis
The wired telecommunications carriers sector (NAICS 517110) encompasses establishments primarily engaged in operating and/or providing access to telecommunications infrastructure. This includes operating systems of telecommunications lines, fiber optic networks, and related infrastructure. The Department of Energy's reliance on such services is critical for its vast network of facilities and research operations. Comparable spending benchmarks are difficult to ascertain without more specific service details, but federal spending on telecommunications infrastructure is substantial across various agencies.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it was not a small business prime award. Therefore, the direct impact on small businesses as prime contractors is likely minimal. However, the prime contractor, TSASYSTEMS, LTD., may engage small businesses as subcontractors, though this information is not detailed in the provided data. The absence of a set-aside means opportunities for small businesses to compete directly for this specific contract were not prioritized.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award.
Related Government Programs
- Federal Telecommunications Services - Next Generation (Networx)
- General Services Administration (GSA) Schedule Contracts
- Department of Defense Telecommunications Infrastructure
Risk Flags
- Sole-source award lacks competitive pricing validation.
- Limited transparency due to non-competitive procurement.
- Potential for higher costs compared to a competitive process.
Tags
wired-telecommunications, department-of-energy, sole-source, firm-fixed-price, large-contract, colorado, tsa-systems-ltd, naics-517110, infrastructure, telecommunications-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $28.1 million to TSA SYSTEMS, LTD.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is TSA SYSTEMS, LTD..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $28.1 million.
What is the period of performance?
Start: 2003-09-15. End: 2005-04-30.
What specific wired telecommunications services were procured under this $28 million contract?
The provided data indicates the contract falls under NAICS code 517110, 'Wired Telecommunications Carriers.' This broadly covers services related to operating and providing access to telecommunications networks via wired infrastructure. Specific services could include the installation, maintenance, and operation of fiber optic networks, copper lines, and related equipment necessary for data transmission and communication across Department of Energy facilities. Without more granular details on the contract's statement of work, it's difficult to pinpoint the exact nature of the services, but they are fundamental to the agency's operational connectivity and data transfer needs.
Why was this contract awarded on a sole-source basis instead of through full and open competition?
Sole-source awards are typically justified when only one responsible source is available or capable of providing the required goods or services. For this Department of Energy contract, the justification for a sole-source award to TSASYSTEMS, LTD. could stem from several factors. It might be due to highly specialized technical expertise possessed exclusively by this contractor, unique proprietary technology, or a critical need for continuity of services where switching providers would be exceptionally disruptive or costly. The 'NOT COMPETED' status suggests that the agency determined that soliciting bids from multiple vendors was not feasible or advantageous in this specific instance, potentially due to urgency, unique requirements, or existing infrastructure integration.
How does the firm fixed-price contract type impact the risk and cost for the government and the contractor?
A firm fixed-price (FFP) contract shifts the majority of the cost risk from the buyer (the Department of Energy) to the seller (TSASYSTEMS, LTD.). This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government, this provides significant budget certainty, as the total cost is known upfront. However, it can also mean that the government might pay a premium compared to other contract types if the contractor's actual costs are lower than anticipated. The contractor, in turn, has a strong incentive to control costs and manage performance efficiently to maximize their profit margin. If costs exceed the fixed price, the contractor absorbs the loss.
What is the historical spending pattern for wired telecommunications services at the Department of Energy?
The provided data only details a single contract award of $28 million to TSASYSTEMS, LTD. from September 15, 2003, to April 30, 2005. This limited snapshot does not provide sufficient information to establish a historical spending pattern for wired telecommunications services at the Department of Energy. To understand historical trends, one would need to analyze multiple contracts over several fiscal years, examining the total obligated amounts, types of services procured, and the number and nature of contractors involved. This would reveal whether spending has been consistent, increasing, or decreasing, and whether it has predominantly been through competitive or sole-source awards.
What is the track record of TSASYSTEMS, LTD. with federal contracts, particularly with the Department of Energy?
The data indicates that TSASYSTEMS, LTD. was awarded this specific $28 million contract by the Department of Energy. The contract dates (2003-2005) suggest this was a past engagement. To assess their track record, one would need to examine other federal contract awards to this company, looking at the total value of contracts, the agencies they've served, the types of services provided, and their performance history (e.g., any contract terminations, disputes, or positive performance reviews). Without access to a broader contract database or performance records, it's difficult to provide a comprehensive assessment of TSASYSTEMS, LTD.'s overall track record beyond this single award.
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: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 14320 LONGS PEAK CT, LONGMONT, CO, 02
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $28,092,018
Exercised Options: $28,092,018
Current Obligation: $28,092,018
Parent Contract
Parent Award PIID: DEAM5203NA99605
IDV Type: IDC
Timeline
Start Date: 2003-09-15
Current End Date: 2005-04-30
Potential End Date: 2005-04-30 00:00:00
Last Modified: 2009-08-22
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