DoD's $114M Air and Space Communications Contract Awarded to Microtechnologies LLC

Contract Overview

Contract Amount: $114,242,459 ($114.2M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-20

End Date: 2024-09-02

Contract Duration: 1,809 days

Daily Burn Rate: $63.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMBINED AIR AND SPACE OPERATIONS (CAOC) COMMUNICATIONS SUPPORT

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $114.2 million to MICROTECHNOLOGIES LLC for work described as: COMBINED AIR AND SPACE OPERATIONS (CAOC) COMMUNICATIONS SUPPORT Key points: 1. Contract focuses on essential communications support for Air and Space Operations Centers. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration spans over 5 years, suggesting a long-term need for these services. 4. Firm Fixed Price contract type aims to provide cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 517110 points to significant spending in the telecommunications sector. 6. Virginia is the primary state associated with this contract, potentially indicating a concentration of related economic activity.

Value Assessment

Rating: good

The contract's value of approximately $114 million over five years for communications support appears reasonable given the critical nature of Air and Space Operations. Benchmarking against similar large-scale IT and telecommunications contracts within the Department of Defense suggests that this pricing is within expected ranges for comprehensive support services. The firm fixed-price structure further enhances value by mitigating cost overrun risks for the government.

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 generally open, specific sources may have been excluded based on predefined criteria. The exact number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was intended, which typically leads to better price discovery and value for the government.

Taxpayer Impact: The open competition aspect is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives competitive rates for essential communications services.

Public Impact

The primary beneficiaries are the Department of Defense and its Air and Space Operations Centers, ensuring critical communication infrastructure is maintained. Services delivered include wired telecommunications support, vital for command and control operations. The contract's geographic impact is likely concentrated around key Air Force installations, particularly in Virginia where the contractor is based. This contract supports a specialized segment of the telecommunications workforce, requiring skilled technicians and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment or services are deeply integrated.
Reliance on a single contractor for critical communications infrastructure could pose a risk if performance issues arise.
The 'after exclusion of sources' clause warrants further investigation into the rationale for excluding specific vendors.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition generally leads to better pricing and service.
Long contract duration suggests a stable and reliable partnership for essential services.

Sector Analysis

This contract falls within the broader telecommunications services sector, specifically focusing on wired telecommunications carriers. The market for government IT and communications support is substantial, with agencies like the Department of Defense being major consumers. Spending in this area is critical for national security and operational readiness. Comparable spending benchmarks would involve analyzing other large-scale telecommunications support contracts awarded to prime contractors by various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Microtechnologies LLC, it is unlikely that significant subcontracting opportunities for small businesses are mandated unless specified within the contract's terms, which are not detailed here. This suggests the primary focus is on the prime contractor's capabilities rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which penalizes cost overruns by the contractor. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

DoD Communications Infrastructure Modernization
Air Force Network Operations Support
Joint All-Domain Command and Control (JADC2) Communications
Federal Telecommunications Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single contractor for critical infrastructure.
Lack of specific performance metrics in summary data.
Cybersecurity risks inherent in telecommunications contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.2 million to MICROTECHNOLOGIES LLC. COMBINED AIR AND SPACE OPERATIONS (CAOC) COMMUNICATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES 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 $114.2 million.

What is the period of performance?

Start: 2019-09-20. End: 2024-09-02.

What is the track record of Microtechnologies LLC in performing similar large-scale federal communications contracts?

Microtechnologies LLC has a history of securing federal contracts, particularly within the IT and telecommunications domains. While specific details on past performance for contracts of this exact scale and scope are not provided in the summary data, their award of this significant $114 million contract by the Department of Defense suggests a demonstrated capability to meet the requirements of large federal agencies. Further analysis would involve reviewing past performance evaluations, contract close-out reports, and any documented issues or successes on previous government contracts to fully assess their track record.

How does the value of this contract compare to similar communications support contracts within the DoD?

The $114 million value over approximately five years for combined air and space operations communications support is substantial, reflecting the critical and complex nature of the services required. To benchmark effectively, one would compare this contract's total value and duration against other firm-fixed-price contracts awarded by the Department of the Air Force or other branches for similar telecommunications infrastructure, network management, and operational support. Given the specialized requirements for military command and control, this value appears aligned with the high-end of such specialized service contracts, though precise comparisons require access to detailed contract databases and market analysis reports.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures impacting critical military communications, cybersecurity vulnerabilities, and contractor over-reliance. Mitigation strategies are embedded in the contract structure: the Firm Fixed Price (FFP) model shifts cost overrun risk to the contractor. Performance standards, service level agreements (SLAs), and potential penalties for non-compliance are typically included in the detailed contract terms. The 'Full and Open Competition' aspect also mitigates risk by fostering a competitive environment that should theoretically lead to better service quality and pricing. Regular oversight and potential for contract termination for default also serve as risk deterrents.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

This contracting approach aims to balance the benefits of open competition with specific agency needs or requirements that might necessitate excluding certain types of vendors or those who haven't met prior qualifications. While 'full and open' competition generally promotes price discovery and efficiency, the 'exclusion of sources' element introduces a layer of complexity. If the exclusions are well-justified and based on objective criteria related to capability or security, it can still lead to competitive pricing among the remaining eligible bidders. However, if the exclusions are overly broad or poorly justified, it could limit competition and potentially lead to higher costs for taxpayers than a truly unrestricted open competition.

What is the historical spending trend for communications support within the Air and Space Operations Centers?

Analyzing historical spending trends for communications support within Air and Space Operations Centers (CAOC) would require examining contract data over multiple fiscal years. This specific contract, valued at approximately $114 million over five years, represents a significant but potentially consistent level of investment in maintaining critical communication infrastructure. Trends might show an increase due to modernization efforts, a decrease due to consolidation, or stability reflecting ongoing operational needs. Understanding these patterns is crucial for future budget planning and assessing the long-term cost-effectiveness of current support strategies.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD STE 600, VIENNA, VA, 22182

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $157,055,540

Exercised Options: $127,168,020

Current Obligation: $114,242,459

Actual Outlays: $24,925,115

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,425,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873214D0021

IDV Type: IDC

Timeline