DoD's $50.3M Wired Telecom Contract to CDO Technologies Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $50,357,429 ($50.4M)

Contractor: CDO Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2019-04-22

End Date: 2024-08-21

Contract Duration: 1,948 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $50.4 million to CDO TECHNOLOGIES INC for work described as: IGF::OT::IGF Key points: 1. Contract value of $50.3M over 5 years indicates significant investment in telecommunications infrastructure. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability. 4. Performance period spans nearly 2000 days, requiring sustained service delivery. 5. The contract is categorized under Wired Telecommunications Carriers, a critical infrastructure sector. 6. The award to CDO Technologies Inc. represents a substantial commitment to a single provider for these services.

Value Assessment

Rating: good

The contract's total value of $50.3M over approximately five years suggests a significant investment. Benchmarking against similar large-scale telecommunications infrastructure contracts is challenging without more specific service details. However, the firm fixed-price structure is generally favorable for the government in managing cost overruns. The absence of detailed performance metrics in the provided data makes a comprehensive value assessment difficult, but the competitive award process implies a degree of price discovery.

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,' indicating that while the competition was broad, specific exclusions were made. The presence of 2 bids suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government. The limited number of bids here might suggest a specialized service or a market with fewer qualified providers.

Taxpayer Impact: The competitive nature of the award, even with a limited number of bidders, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source procurement. However, understanding the reasons for source exclusion is key to ensuring maximum taxpayer value.

Public Impact

The Department of the Air Force benefits from enhanced wired telecommunications capabilities. The contract supports critical communication infrastructure essential for military operations. Services are likely delivered across various Air Force installations, impacting personnel and operations nationwide. The contract supports jobs within CDO Technologies Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specialized services.
Limited competition (2 bids) may indicate a lack of robust market engagement or high barriers to entry.
Reliance on a single contractor for critical infrastructure could pose risks if performance degrades or the contractor faces financial issues.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded through a competitive process, suggesting a baseline level of value for money.
Long performance period allows for stable service delivery and infrastructure development.

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) encompasses establishments primarily engaged in operating and developing telecommunications networks. This includes providing internet access, voice, and data services over wired networks. The federal government is a significant consumer of these services, requiring robust and secure communication infrastructure for its operations. Spending in this sector often involves long-term contracts for network maintenance, upgrades, and service provision, with values ranging from millions to billions of dollars depending on the scope and agency.

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 provision. However, the prime contractor, CDO Technologies Inc., may engage small businesses as subcontractors, depending on their own procurement practices and the specific needs of the contract. Analysis of subcontracting plans would be necessary to determine the extent of 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. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Performance monitoring and quality assurance surveillance plans (QASPs) would be crucial for ensuring the contractor meets service level agreements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Services
General Services Administration (GSA) IT Schedule Contracts
Federal Communications Commission (FCC) Regulatory Oversight

Risk Flags

Limited number of bids received.
Potential for vendor lock-in.
Cybersecurity risks associated with telecommunications infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.4 million to CDO TECHNOLOGIES INC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CDO TECHNOLOGIES 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 $50.4 million.

What is the period of performance?

Start: 2019-04-22. End: 2024-08-21.

What is the track record of CDO Technologies Inc. with federal contracts, particularly within the Department of Defense?

CDO Technologies Inc. has a history of securing federal contracts, primarily within the Department of Defense. Their awards often center around IT services, telecommunications, and infrastructure support. While specific performance details for past contracts are not provided here, their ability to win and execute significant contracts like this $50.3M award suggests a level of established capability and past performance recognized by the agency. Further investigation into contract performance reports, past performance questionnaires, and any documented issues or commendations would provide a more granular understanding of their track record.

How does the $50.3M contract value compare to similar wired telecommunications contracts awarded by the Department of Defense?

The $50.3M contract value over approximately five years places this award in the mid-to-large tier for telecommunications services within the DoD. Large-scale network infrastructure and managed services contracts can easily reach hundreds of millions or even billions of dollars. However, for specific delivery orders or regional support contracts, $50.3M represents a substantial commitment. Benchmarking requires detailed comparison of the scope of services, geographic coverage, and duration. Contracts awarded through full and open competition with multiple bidders typically yield better price points, making this value potentially competitive if the service scope is well-defined and efficiently delivered.

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

Key risks include potential vendor lock-in due to the long-term nature and specialized services, performance degradation by the contractor, and cybersecurity vulnerabilities inherent in telecommunications infrastructure. Mitigation strategies likely involve robust performance monitoring, clearly defined Service Level Agreements (SLAs), and contingency planning for service disruptions. The firm fixed-price structure helps mitigate cost overrun risks for the government. Cybersecurity risks would be addressed through contract clauses mandating compliance with DoD security standards and regular audits.

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

This procurement method aims to balance broad competition with specific needs that might preclude certain vendors. While 'full and open' generally promotes competitive pricing, the 'exclusion of sources' element requires scrutiny. If the exclusions were justified (e.g., based on security, capability, or specific technical requirements), then the competition among the remaining qualified vendors could still yield good value. However, if exclusions were overly broad or unjustified, it could limit competition and potentially increase costs for taxpayers. The fact that only two bids were received warrants further examination of the exclusion criteria and market analysis.

What is the historical spending trend for wired telecommunications carriers by the Department of the Air Force?

Historical spending by the Department of the Air Force on wired telecommunications carriers has been substantial and consistent, reflecting the critical need for reliable communication networks across its global operations. Annual spending can fluctuate based on major infrastructure upgrades, new technology deployments, and the award cycles of large contracts. The Air Force, like other DoD branches, relies heavily on telecommunications for command and control, intelligence, logistics, and daily operations. Trends often show a move towards more integrated, high-bandwidth, and secure network solutions, driving consistent investment in this sector.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5200 SPRINGFIELD ST STE 320, DAYTON, OH, 45431

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $115,749,391

Exercised Options: $110,807,573

Current Obligation: $50,357,429

Actual Outlays: $24,648,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873215D0024

IDV Type: IDC

Timeline