DoD's $11.45M Contract Replaces SCIF Cabling at Peterson SFB, Lacking Competition

Contract Overview

Contract Amount: $11,449,684 ($11.4M)

Contractor: Puyenpa Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-15

End Date: 2026-04-30

Contract Duration: 350 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO REPLACE EXISTING CABLING FOR SCIFS IN BLDG 2 ON PETERSON SFB.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to PUYENPA TECHNOLOGIES, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO REPLACE EXISTING CABLING FOR SCIFS IN BLDG 2 ON PETERSON SFB. Key points: 1. Significant investment in facility infrastructure upgrades. 2. Sole-source award raises concerns about price discovery and value. 3. Limited competition may lead to higher costs for taxpayers. 4. Focus on essential security infrastructure for a key military installation.

Value Assessment

Rating: questionable

The contract value of $11.45M for cabling replacement is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar projects. Benchmarking against industry standards for SCIF cabling upgrades is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may not ensure the best value for the government, as potential cost savings from competitive bidding are forgone.

Taxpayer Impact: The absence of competition could result in the government paying a premium for these services, impacting taxpayer funds negatively.

Public Impact

Ensures secure communication capabilities at Peterson SFB. Potential for increased costs due to sole-source award. Supports modernization of critical military infrastructure. Limited visibility into the justification for sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services.' Spending in this broad category can vary widely. The specific nature of SCIF cabling suggests a specialized service, potentially with higher costs than general IT infrastructure work.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses. This represents a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The sole-source nature of this award warrants further scrutiny to ensure the justification is robust and that appropriate oversight is in place to manage costs and performance effectively.

Related Government Programs

Risk Flags

Tags

all-other-professional-scientific-and-te, department-of-defense, co, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to PUYENPA TECHNOLOGIES, LLC. THE PURPOSE OF THIS CONTRACT IS TO REPLACE EXISTING CABLING FOR SCIFS IN BLDG 2 ON PETERSON SFB.

Who is the contractor on this award?

The obligated recipient is PUYENPA TECHNOLOGIES, LLC.

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 $11.4 million.

What is the period of performance?

Start: 2025-05-15. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without detailed documentation, it's difficult to ascertain the precise reason. Agencies are generally required to explore competitive options before resorting to sole-source procurement to ensure fair pricing and maximize value for taxpayer dollars.

How does the $11.45M cost compare to industry benchmarks for similar SCIF cabling replacement projects, especially considering the lack of competition?

Benchmarking is challenging without competitive data. However, sole-source contracts often carry a price premium. A thorough review against similar government or private sector projects, factoring in the specific requirements of SCIFs, would be necessary to assess cost-effectiveness. The absence of competition limits the ability to validate the pricing against market rates.

What measures are in place to ensure effective project management and accountability for this sole-source contract to mitigate potential cost overruns or performance issues?

Robust oversight mechanisms, including detailed performance metrics, regular progress reviews, and clear communication channels between the government and the contractor, are crucial. The contracting officer's representative (COR) plays a vital role in monitoring performance and ensuring adherence to contract terms. Transparency in reporting and accountability for deliverables are key.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Puyenpa Services, LLC

Address: 511 DUCKWATER FALLS ROAD, DUCKWATER, NV, 89314

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,449,684

Exercised Options: $11,449,684

Current Obligation: $11,449,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-05-15

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2025-09-29

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