Air Force awards $51.2M for CAOC communication systems support, a sole-source contract

Contract Overview

Contract Amount: $51,188,837 ($51.2M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-03

End Date: 2026-03-02

Contract Duration: 545 days

Daily Burn Rate: $93.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS AIR FORCE CENTRAL COMMAND (AFCENT) A6 CONTRACT IS THE COMBINED AIR OPERATION CENTER (CAOC) SUPPORT TO PERFORM OPERATIONS AND MAINTENANCE OF ALL AIR OPERATIONS CENTER COMMUNICATION SYSTEMS 24/7/365 AT AL UDEID AIR BASE, QATAR AND SHAW AFB, SC.

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $51.2 million to MICROTECHNOLOGIES LLC for work described as: THIS AIR FORCE CENTRAL COMMAND (AFCENT) A6 CONTRACT IS THE COMBINED AIR OPERATION CENTER (CAOC) SUPPORT TO PERFORM OPERATIONS AND MAINTENANCE OF ALL AIR OPERATIONS CENTER COMMUNICATION SYSTEMS 24/7/365 AT AL UDEID AIR BASE, QATAR AND SHAW AFB, SC. Key points: 1. Contract focuses on critical 24/7/365 operations and maintenance of communication systems for the Combined Air Operation Center. 2. The contract is a firm-fixed-price definitive contract, indicating a clear scope of work and payment structure. 3. Awarded to Microtechnologies LLC, the contract duration is 545 days, ending March 2, 2026. 4. The contract was not competed, raising questions about potential cost efficiencies and market-driven pricing. 5. The primary performance location is Al Udeid Air Base, Qatar, with a secondary location at Shaw AFB, SC. 6. The North American Industry Classification System (NAICS) code 541519 suggests services related to other computer-related services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific operational requirements. Without competitive bids, it's difficult to assess if the $51.2 million price represents optimal value for money. The contract's focus on critical 24/7/365 support for communication systems implies a high degree of necessity, which can sometimes lead to premium pricing. Further analysis would require understanding the specific technical requirements and comparing them to similar sole-source support contracts for complex communication infrastructure in deployed environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is typically used when only one responsible source can provide the required services, often due to unique capabilities, urgent needs, or specific security requirements. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed contract. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Taxpayers may be paying a premium for this service due to the absence of competitive bidding. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Air Force and its allies operating from the Combined Air Operation Center (CAOC). The contract ensures the continuous operation and maintenance of vital communication systems essential for air operations. Geographic impact is significant, covering operations at Al Udeid Air Base in Qatar and Shaw Air Force Base in South Carolina. Workforce implications include the potential for skilled technicians and support staff to be employed in maintaining these critical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Sole-source awards require strong justification to ensure necessity and prevent potential overpricing.
Performance at a deployed location (Al Udeid Air Base) can introduce logistical and operational complexities that may affect cost and efficiency.

Positive Signals

Contract ensures 24/7/365 support for critical communication systems, vital for operational readiness.
Firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
Award to Microtechnologies LLC suggests they possess the necessary expertise for this specialized support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems support and maintenance. The market for such services is substantial, driven by government and commercial entities requiring reliable and secure communication infrastructure. The $51.2 million value is moderate for a multi-year, mission-critical IT support contract. Comparable spending benchmarks would typically involve contracts for maintaining complex network operations centers or command and control systems, often requiring specialized technical skills and security clearances.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and was not awarded to a small business (sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, Microtechnologies LLC, is likely a mid-to-large-sized business. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract are limited unless they are part of the prime contractor's supply chain or are engaged as subcontractors by Microtechnologies LLC.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the deployed nature of some operations, oversight may also involve joint commands or specific Air Force units responsible for the Combined Air Operation Center. Accountability measures would be tied to the firm-fixed-price contract terms, performance metrics, and delivery schedules. Transparency is limited due to the sole-source nature; however, contract award details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Command and Control Systems Support
DoD Communication Network Maintenance
Deployed Base IT Infrastructure Support
Combatant Command IT Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competition.
Critical infrastructure support requires high reliability.
Performance in a deployed, potentially austere environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.2 million to MICROTECHNOLOGIES LLC. THIS AIR FORCE CENTRAL COMMAND (AFCENT) A6 CONTRACT IS THE COMBINED AIR OPERATION CENTER (CAOC) SUPPORT TO PERFORM OPERATIONS AND MAINTENANCE OF ALL AIR OPERATIONS CENTER COMMUNICATION SYSTEMS 24/7/365 AT AL UDEID AIR BASE, QATAR AND SHAW AFB, SC.

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 $51.2 million.

What is the period of performance?

Start: 2024-09-03. End: 2026-03-02.

What is the track record of Microtechnologies LLC in supporting similar complex communication systems for the Department of Defense?

Assessing Microtechnologies LLC's track record requires a review of their past performance on similar contracts. While this specific award is for $51.2 million, it's important to investigate their history with firm-fixed-price contracts, support for 24/7 operations, and experience with communication systems in deployed environments like those in Qatar. Publicly available data, such as past performance evaluations and contract awards, can provide insights into their reliability, technical capabilities, and ability to meet stringent performance requirements. A lack of extensive experience in similar high-stakes environments could represent a risk factor for this contract's successful execution.

How does the $51.2 million value compare to similar sole-source contracts for communication system maintenance in deployed military bases?

Direct comparison of sole-source contract values is inherently difficult due to unique requirements and the absence of competitive pricing. However, for critical 24/7/365 communication system maintenance in high-operational tempo environments like a CAOC, costs can be significantly higher than standard IT support. Factors such as specialized personnel, security clearances, logistical support for remote locations, and the imperative for uninterrupted service contribute to the overall price. Benchmarking would involve looking at contracts for similar support at other major joint or coalition bases, considering the scale and complexity of the communication infrastructure involved. Without competitive bids, the $51.2 million figure represents a negotiated price that needs to be justified against the criticality and unique demands of the service.

What are the primary risks associated with a sole-source award for critical communication system support?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible price. Another risk is reduced innovation, as the contractor may have less incentive to find more cost-effective or technologically advanced solutions once the contract is secured. Furthermore, sole-source awards can sometimes indicate a lack of available qualified vendors or a failure in the government's acquisition planning process. Ensuring robust oversight and performance management becomes even more critical to mitigate these risks and ensure value for taxpayer money.

How critical are the communication systems supported by this contract to the overall mission of the Air Force Central Command (AFCENT)?

The communication systems supported by this contract are critically important to the mission of the Air Force Central Command (AFCENT), particularly within the Combined Air Operation Center (CAOC). The CAOC serves as the central hub for planning, directing, and executing air operations in its area of responsibility. Reliable, secure, and uninterrupted communication is the backbone of these operations, enabling real-time command and control, intelligence sharing, and coordination among diverse air assets and allied forces. Any degradation or failure in these systems could have severe consequences, potentially impacting operational effectiveness, mission success, and even force protection.

What is the historical spending pattern for CAOC communication system support at Al Udeid Air Base or similar facilities?

Historical spending data for CAOC communication system support at Al Udeid Air Base or comparable facilities would provide valuable context for the current $51.2 million award. Analyzing past contracts, including their duration, value, and whether they were competed or sole-sourced, can reveal trends in costs and contractor performance. If previous support contracts were significantly lower in value or were competed successfully, it might raise questions about the current sole-source award's pricing. Conversely, if historical spending has been consistently high due to the complex and critical nature of the services, it could help justify the current contract's value. Accessing detailed historical procurement data is essential for this analysis.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA489024R0040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 220 CONGRESS PARK DR STE 138, DELRAY BEACH, FL, 33445

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $59,184,515

Exercised Options: $51,188,837

Current Obligation: $51,188,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline