MicroTechnologies LLC awarded $41.4M for Air Force network control services, facing limited competition

Contract Overview

Contract Amount: $41,390,162 ($41.4M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2024-09-09

Contract Duration: 1,897 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK CONTROL CENTER SERVICES (NCCS) SUPPORT TO US AIR FORCES IN EUROPE AND AFRICA (USAFE-AFAFRICA), INCLUDING PLANS AND PROGRAMS SUPPORT, CLIENT SYSTEMS, CYBER TRANSPORT, AND CYBER OPERATIONS

Plain-Language Summary

Department of Defense obligated $41.4 million to MICROTECHNOLOGIES LLC for work described as: NETWORK CONTROL CENTER SERVICES (NCCS) SUPPORT TO US AIR FORCES IN EUROPE AND AFRICA (USAFE-AFAFRICA), INCLUDING PLANS AND PROGRAMS SUPPORT, CLIENT SYSTEMS, CYBER TRANSPORT, AND CYBER OPERATIONS Key points: 1. Contract value represents a significant investment in critical cyber infrastructure for USAFE-AFAFRICA. 2. The contract type, Firm Fixed Price, shifts performance risk to the contractor. 3. A long duration of 1897 days suggests a need for sustained support. 4. The award was made under 'Full and Open Competition After Exclusion of Sources,' indicating a unique procurement path. 5. The North American Industry Classification System (NAICS) code 517110 points to telecommunications infrastructure services. 6. The contract's focus on cyber operations and client systems highlights its strategic importance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total award amount of $41.4 million over approximately five years suggests a substantial investment. However, the absence of detailed cost breakdowns or performance-based payment structures makes a precise value-for-money assessment difficult. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method is not standard full and open competition and suggests that specific circumstances led to the exclusion of some potential bidders. While competition was sought, the exclusion implies a potentially narrowed field, which could impact price discovery and potentially lead to higher costs than a truly open competition. Further details on the reasons for exclusion would be necessary for a complete assessment.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a broader bidding process. This procurement strategy warrants scrutiny to ensure fair market value was obtained.

Public Impact

Provides essential network control and cyber operations support to the U.S. Air Forces in Europe and Africa (USAFE-AFAFRICA). Ensures the operational readiness and security of critical communication networks for U.S. military operations in the European and African theaters. Supports a range of services including plans and programs, client systems, cyber transport, and cyber operations. Indirectly benefits military personnel and their families by maintaining reliable communication infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation.
The 'Exclusion of Sources' clause requires further investigation into justification and impact on market fairness.
Lack of detailed performance metrics makes objective assessment of contractor effectiveness challenging.

Positive Signals

Firm Fixed Price contract structure places cost risk on the contractor.
Long contract duration indicates a stable, ongoing need for these critical services.
Award to a single contractor suggests specialized capabilities or a streamlined procurement process.

Sector Analysis

This contract falls within the telecommunications and IT services sector, specifically focusing on network operations and cybersecurity. The market for such services is highly competitive, with numerous providers offering specialized solutions. The U.S. Department of Defense is a major consumer of these services, often requiring robust security clearances and operational capabilities. Spending in this area is critical for maintaining global communication and defense readiness, with significant government investment allocated annually to ensure network integrity and cyber defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, MicroTechnologies LLC, is responsible for fulfilling the contract requirements. Analysis of their subcontracting plan, if any, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program management office within the Department of the Air Force. The firm fixed-price nature of the contract provides some inherent accountability, as the contractor is incentivized to manage costs. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost audits are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USAFE-AFAFRICA IT Support Contracts
DoD Cyber Operations and Maintenance
Global Network Infrastructure Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Limited competition procurement method.
Potential for cost overruns despite fixed-price contract.
Cybersecurity vulnerabilities inherent in network infrastructure.
Contract duration may lead to technology obsolescence concerns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to MICROTECHNOLOGIES LLC. NETWORK CONTROL CENTER SERVICES (NCCS) SUPPORT TO US AIR FORCES IN EUROPE AND AFRICA (USAFE-AFAFRICA), INCLUDING PLANS AND PROGRAMS SUPPORT, CLIENT SYSTEMS, CYBER TRANSPORT, AND CYBER OPERATIONS

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 $41.4 million.

What is the period of performance?

Start: 2019-07-01. End: 2024-09-09.

What is the track record of MicroTechnologies LLC in performing similar network control and cyber support services for the Department of Defense?

MicroTechnologies LLC has a history of performing IT and telecommunications services for various government agencies, including the Department of Defense. Their contract portfolio often includes network support, cybersecurity, and infrastructure management. While specific performance reviews for this particular contract are not publicly detailed, their sustained presence in the government contracting space suggests a capacity to meet contractual obligations. A deeper dive into past performance evaluations and any reported issues on previous contracts would provide a more comprehensive understanding of their track record. However, the award of a significant, multi-year contract like this one generally implies a satisfactory performance history on prior engagements.

How does the awarded price compare to similar network control center services contracts within the DoD or other federal agencies?

Directly comparing the $41.4 million award for Network Control Center Services (NCCS) to similar contracts is challenging without access to detailed service level agreements, scope of work, and specific performance metrics for comparable contracts. The nature of 'USAFE-AFAFRICA NCCS Support' implies a unique operational environment and potentially specialized requirements that may not be directly mirrored in other contracts. However, general benchmarks for IT and telecommunications support services can be used. The firm fixed-price structure suggests that the contractor is expected to deliver the defined services within the budget. Without more granular data on per-unit costs or service delivery benchmarks, a definitive price comparison is difficult, but the overall value should be assessed against the criticality and scope of the services provided to the Air Force in Europe and Africa.

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

Key risks include potential cybersecurity threats to the network infrastructure, performance degradation of critical services, and contractor underperformance or financial instability. Cybersecurity risks are inherent in any network support contract and are typically mitigated through stringent security protocols, regular audits, and compliance with DoD cybersecurity standards. Performance risks are addressed by the firm fixed-price contract type, which incentivizes the contractor to deliver services efficiently. Mitigation strategies may also include defined performance standards, service level agreements (SLAs), and potential penalties for non-compliance. Contractor stability is usually assessed during the pre-award phase, and ongoing monitoring by the contracting officer is crucial. The long duration also presents a risk of technological obsolescence if not managed proactively.

How effective is the current contract in ensuring the operational readiness and security of USAFE-AFAFRICA's cyber infrastructure?

The effectiveness of this contract in ensuring operational readiness and security is primarily measured by the performance of MicroTechnologies LLC against the contract's defined objectives and service level agreements. Given the critical nature of cyber operations for a major combatant command like USAFE-AFAFRICA, the contract's success hinges on uninterrupted network availability, timely threat response, and robust system integrity. While specific performance metrics are not publicly available, the continued award and duration suggest a level of effectiveness. However, periodic reviews, independent assessments of network performance, and incident response times would provide a clearer picture of its actual impact on operational readiness and security posture.

What are the historical spending patterns for network control and cyber support services within USAFE-AFAFRICA or similar commands?

Historical spending on network control and cyber support services within USAFE-AFAFRICA and similar commands typically shows a consistent and often increasing trend, reflecting the growing reliance on digital infrastructure and the escalating cyber threat landscape. These services are fundamental to military operations, encompassing network maintenance, cybersecurity, system upgrades, and incident response. Spending levels are influenced by factors such as the size and complexity of the network, the number of users, the geopolitical environment, and evolving technological requirements. While specific historical data for this exact contract is not detailed, it is reasonable to assume that spending in this category represents a significant portion of the command's IT budget, often running into tens of millions of dollars annually, and has likely grown over time due to increased cyber threats and operational demands.

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

Solicitation ID: FA564119RA002

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: $41,448,535

Exercised Options: $41,440,162

Current Obligation: $41,390,162

Actual Outlays: $8,289,981

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