Leader Communications Inc. awarded $16.5M for ADP and Telecommunication Services, with a 7-bid competition

Contract Overview

Contract Amount: $16,571,586 ($16.6M)

Contractor: Leader Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2003-01-21

End Date: 2009-03-31

Contract Duration: 2,261 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: 200304!000316!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0003 !A!N! !Y!P00001 !20030121!20031130!046657412!046657412!046657412!N!LEADER COMMUNICATIONS, INC (LC!4600 SE 29TH ST SUITE 300 !DEL CITY !OK!73115!19900!109!40!DEL CITY !OKLAHOMA !OKLAHOMA !+000002505552!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541513!E! !3! ! !C! ! !99990909!B!F!N!A! !A!N!J!2!007!K! !C!N!Z! ! !N!B!N!N! !A!A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to LEADER COMMUNICATIONS INC. for work described as: 200304!000316!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0003 !A!N! !Y!P00001 !20030121!20031130!046657412!046657412!046657412!N!LEADER COMMUNICATIONS, INC (LC!4600 SE 29TH ST SUITE 300 !DEL CITY !OK!73115!19900!109!40!DEL CITY !OKLAH… Key points: 1. Contract value of $16.5M suggests a significant service requirement. 2. The competition involved 7 bidders, indicating a moderately competitive market. 3. Contract duration of 2261 days (over 6 years) points to a long-term need. 4. The award was made under 'Full and Open Competition After Exclusion of Sources', requiring justification. 5. The primary service category is 'Other ADP & Telecommunication Services', a broad but essential IT function. 6. The contractor, Leader Communications Inc., has a track record with this type of service.

Value Assessment

Rating: fair

The contract value of $16.5M for over six years averages to approximately $2.76M per year. Benchmarking this against similar contracts for 'Other ADP & Telecommunication Services' would be necessary for a precise value-for-money assessment. However, the presence of 7 bidders suggests that the pricing was likely competitive, though without specific performance metrics or detailed cost breakdowns, a definitive assessment of excellent value is difficult. The contract type and duration also play a role in the overall value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources', which implies that while the competition was intended to be open, specific sources may have been excluded for documented reasons. The fact that 7 bidders participated indicates a reasonable level of interest and competition within the market for these services. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competition with 7 bidders suggests that taxpayers likely benefited from a reasonably competitive price, as multiple companies vied for the contract. The 'exclusion of sources' clause warrants further scrutiny to ensure no artificial limitations were placed on the competitive pool.

Public Impact

The primary beneficiaries are likely military personnel and support staff within the Department of the Air Force who rely on ADP and telecommunication services. The services delivered are crucial for maintaining communication networks and information technology infrastructure. The geographic impact is centered around Oklahoma City, where the Air Force Logistics Command (ALC/PK) is located. Workforce implications may include the need for skilled IT professionals to manage and maintain these systems, potentially supporting local employment in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause requires careful review to ensure it was justified and did not unduly limit competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of services delivered.
The long contract duration could lead to vendor lock-in if not managed properly with performance reviews.

Positive Signals

The award to Leader Communications Inc. for a significant sum suggests a level of trust and capability recognized by the Air Force.
The participation of 7 bidders indicates a healthy interest in this contract, suggesting market viability.
The contract falls under a broad IT services category, which is essential for modern military operations.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on 'Other ADP & Telecommunication Services'. This is a broad category encompassing a wide range of IT support, network management, and communication infrastructure services. The market for such services is large and diverse, with numerous providers ranging from small businesses to large corporations. This contract's value of $16.5M over more than six years places it as a mid-to-large-sized contract within this domain. Comparable spending benchmarks would typically look at annual spending on IT services by agencies like the Department of Defense.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss=false, sb=false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the extent to which small businesses may have benefited from this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General (IG) of the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance monitoring and accountability measures are internal to the agency and the contractor.

Related Government Programs

Defense Information Technology Contracting
Telecommunications Services Contracts
ADP Equipment and Software
IT Support Services
Air Force Logistics Command IT Procurement

Risk Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Risk of technological obsolescence given the long contract duration.
Lack of specific performance metrics makes value assessment difficult.
Potential for vendor lock-in over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to LEADER COMMUNICATIONS INC.. 200304!000316!5700!GD20 !OKLAHOMA CITY ALC/PKO !F3465003C0003 !A!N! !Y!P00001 !20030121!20031130!046657412!046657412!046657412!N!LEADER COMMUNICATIONS, INC (LC!4600 SE 29TH ST SUITE 300 !DEL CITY !OK!73115!19900!109!40!DEL CITY !OKLAHOMA !OKLAHOMA !+000002505552!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541513!E! !3! ! !C! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is LEADER COMMUNICATIONS 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 $16.6 million.

What is the period of performance?

Start: 2003-01-21. End: 2009-03-31.

What is the specific nature of the 'Other ADP & Telecommunication Services' provided under this contract?

The provided data categorizes this contract under NAICS code 541513, which is 'Computer Facilities Management Services'. However, the contract description is 'OTHER ADP & TELECOMMUNICATION SERVICES'. This suggests the services likely encompass a broad range of IT infrastructure management, network operations, telecommunications support, and potentially related hardware/software maintenance. Without more granular details from the contract's statement of work, it's difficult to pinpoint the exact services. These could include managing data centers, ensuring network uptime, providing voice and data communication services, and offering technical support for related systems critical to the Oklahoma City Air Logistics Complex (ALC/PK).

How does the $16.5M contract value compare to similar IT services contracts awarded by the Air Force?

The $16.5M contract value, spread over approximately 6 years (2261 days), equates to an average annual value of roughly $2.75M. To benchmark this effectively, one would need to compare it against other 'Other ADP & Telecommunication Services' or 'Computer Facilities Management Services' contracts awarded by the Department of the Air Force or similar defense agencies during the period of 2003-2009. Contracts of this size are not uncommon for supporting major military installations or commands, especially those with extensive IT and communication needs. However, a precise comparison would require analyzing the scope, duration, and specific services of comparable contracts.

What are the potential risks associated with a contract of this duration (over 6 years)?

Contracts with a duration exceeding six years, like this one (2261 days), carry several potential risks. Firstly, there's the risk of technological obsolescence; IT and telecommunications technologies evolve rapidly, and a six-year-old contract might not reflect the most current or cost-effective solutions by its end. Secondly, there's the risk of vendor lock-in, where the incumbent contractor becomes deeply integrated into the agency's systems, making it difficult and costly to switch providers. Thirdly, long contracts can sometimes lead to complacency in performance if oversight is not rigorous. Finally, market prices for services can fluctuate significantly over such a long period, potentially leading to the government overpaying if the contract terms don't allow for adjustments.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for this contract?

This designation indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that, for specific reasons documented by the agency, certain potential offerors were not allowed to compete. This exclusion must be justified based on regulations, such as national security concerns, specific technical requirements that only a limited number of firms could meet, or other valid reasons. While 7 bidders participated, the exclusion clause warrants a review to ensure it was applied appropriately and did not unnecessarily restrict the competitive landscape, potentially impacting the best value obtained for taxpayer funds.

Can we assess the contractor's performance history based on this award data alone?

The provided data indicates that Leader Communications, Inc. (LC) was awarded this contract. The fact that they received a $16.5M award for a significant duration suggests they were deemed capable of performing the required services. However, this data alone does not provide insights into their past performance quality, timeliness, or adherence to budget on this or other contracts. A comprehensive assessment of the contractor's track record would require accessing performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS), past performance questionnaires, and potentially other contract history databases.

What is the significance of the primary PSC code (D399) and NAICS code (541513) in understanding this contract?

The Product or Service Code (PSC) D399 is listed as 'Other ADP and Telecommunication Services'. This is a broad category that aligns with the contract's description. The North American Industry Classification System (NAICS) code 541513, 'Computer Facilities Management Services', provides further context, indicating the contract likely involves managing and operating computer systems and/or data processing facilities. Together, these codes suggest the contract focuses on the operational and support aspects of IT and communication infrastructure, rather than the procurement of specific hardware or software development, although related services might be included.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 6421 SOUTH AIR DEPOT STE#A, OKLAHOMA CITY, OK, 90

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline