Education contract for IT services awarded to SIGNAL SOLUTIONS, LLC for over $46 million

Contract Overview

Contract Amount: $46,043,409 ($46.0M)

Contractor: Signal Solutions, LLC

Awarding Agency: Department of Education

Start Date: 2000-09-15

End Date: 2000-09-30

Contract Duration: 15 days

Daily Burn Rate: $3.1M/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $46.0 million to SIGNAL SOLUTIONS, LLC for work described as: Key points: 1. Value for money appears fair given the long duration and fixed-price nature, but detailed cost breakdowns are unavailable. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators include the sole-source nature and the long contract duration, which could lead to cost overruns if not managed closely. 4. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status, making direct comparisons difficult. 5. Sector positioning places this contract within the IT services sector supporting federal education initiatives. 6. The contract's significant value suggests a critical role in supporting the Department of Education's IT infrastructure.

Value Assessment

Rating: fair

The contract value of over $46 million for a 15-day period (though likely a typo and intended for a longer duration given the start and end dates) is substantial. Without more information on the specific services rendered and the contractor's prior performance, it's difficult to benchmark against similar contracts. The firm fixed-price structure suggests a defined scope, but the lack of competition raises questions about whether the government achieved the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The 'NOT AVAILABLE FOR COMPETITION' status suggests that only one vendor was deemed capable of fulfilling the requirement, or that there were specific circumstances justifying a non-competitive award. The lack of multiple bidders means there was no direct price comparison through a bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of Education is the primary beneficiary, receiving IT services. The services delivered are critical for the operational functioning of the department's IT systems. The geographic impact is likely national, supporting the department's nationwide operations. Workforce implications are not directly detailed but could involve IT support personnel managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Long contract duration (implied by start/end dates) without competitive re-evaluation poses a risk of escalating costs.
Limited transparency due to sole-source award makes assessing value for money challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
Award to an established entity (SIGNAL SOLUTIONS, LLC) may indicate a level of trust or specialized capability.
The contract supports a critical government function within the Department of Education.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a broad category encompassing software development, hardware maintenance, network management, and IT consulting. The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. This contract likely supports the Department of Education's core IT infrastructure or specific technology initiatives, fitting within the broader trend of government reliance on specialized IT contractors.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it may not have been subject to the same small business utilization requirements as a competed contract. Further investigation would be needed to determine if SIGNAL SOLUTIONS, LLC is a small business or if any subcontracting opportunities were mandated.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Education. Accountability measures would be tied to the terms of the firm fixed-price contract and performance standards. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process more difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Education IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
Information Technology Professional Services
Government-Wide IT Acquisition Vehicles

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration may increase risk of cost escalation.
Limited public information on specific services and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $46.0 million to SIGNAL SOLUTIONS, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SIGNAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2000-09-15. End: 2000-09-30.

What specific IT services were provided under this contract?

The provided data does not specify the exact IT services rendered under this contract. However, given the awarding agency (Department of Education) and the broad nature of IT services contracts, it could encompass a wide range of support, such as network administration, software development, cybersecurity, help desk support, or IT infrastructure management. The firm fixed-price nature suggests a defined scope of work was agreed upon, but without further details, the precise services remain unknown. Understanding the specific services is crucial for evaluating the contract's necessity and value.

Why was this contract awarded on a sole-source basis?

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Common justifications for sole-source procurements include situations where only one responsible source can satisfy the agency's needs, or when there's a compelling urgency. For instance, a unique capability possessed by SIGNAL SOLUTIONS, LLC, or a critical, time-sensitive requirement that could not be met through a competitive process, might have led to this decision. Without specific documentation from the agency, the precise rationale remains speculative but is a key area for further inquiry.

How does the contract value of over $46 million compare to similar IT services contracts for the Department of Education?

The contract value of over $46 million is substantial. However, comparing it directly to similar IT services contracts for the Department of Education is challenging without knowing the specific services, duration, and performance period. Federal IT contracts can range widely in cost depending on complexity and scope. A 15-day duration (as indicated by 'dur': 15) seems unusually short for such a high value, suggesting either a typo in the data or that this represents a very specific, high-intensity task order within a larger framework. Benchmarking would require identifying contracts with comparable service categories, contract types (firm fixed-price), and agency needs.

What is the track record of SIGNAL SOLUTIONS, LLC in performing federal IT contracts?

The provided data indicates SIGNAL SOLUTIONS, LLC was awarded this contract. To assess their track record, one would need to examine their past performance on other federal contracts, including contract values, types of services rendered, timeliness of delivery, and any past performance evaluations or disputes. A history of successful contract completion and positive performance reviews would suggest reliability, while a record of issues could indicate potential risks. Further research into federal procurement databases and contract award histories would be necessary to build a comprehensive picture of their performance.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially those with significant financial values like this one (over $46 million), carry inherent risks. The primary risk is the lack of competition, which can lead to inflated prices and reduced incentive for the contractor to innovate or provide optimal value. For a long-duration contract (implied by the start and end dates), there's also a risk of scope creep, cost overruns if not managed diligently, and potential vendor lock-in. Without competitive pressure, the government may not receive the most cost-effective solution. Robust oversight and performance management are critical to mitigate these risks.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3040 WILLIAMS DR STE 200, FAIRFAX, VA, 11

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: DTTS5900R00295

IDV Type: IDC

Timeline