Air Force awards $45.6M for tactical data link support, with 3 bidders competing

Contract Overview

Contract Amount: $45,598,383 ($45.6M)

Contractor: KT Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-20

End Date: 2026-02-25

Contract Duration: 1,650 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: IT

Official Description: MOBILITY AIR FORCE TACTICAL DATA LINK OPERATIONAL SUPPORT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85048

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to KT CONSULTING, INC. for work described as: MOBILITY AIR FORCE TACTICAL DATA LINK OPERATIONAL SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of operational support. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The number of bidders (3) indicates moderate competition, potentially impacting price discovery. 4. Contract performance period spans over 4 years, requiring sustained operational support. 5. This contract falls within engineering services, supporting critical Air Force communication systems. 6. The contractor, KT Consulting, Inc., is tasked with providing essential data link services.

Value Assessment

Rating: good

The contract's total value of $45.6 million over approximately 1650 days (around 4.5 years) suggests an average annual spend of roughly $10.1 million. This figure seems aligned with the specialized nature of tactical data link operational support, which requires skilled personnel and continuous system maintenance. Benchmarking against similar contracts for complex defense communication systems indicates that this pricing is within a competitive range, reflecting the technical expertise and reliability demanded by the Department of Defense.

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 implies that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or prior relationships, possibly due to the specialized nature of the required support. With three bidders participating, the competition level was moderate, suggesting that while multiple firms were considered, the pool of qualified and eligible contractors might have been limited.

Taxpayer Impact: A moderate level of competition, while better than a sole-source award, may mean taxpayers did not benefit from the most aggressive pricing possible. However, it likely ensured a qualified vendor was selected for critical operational support.

Public Impact

The primary beneficiaries are the U.S. Air Force units relying on the tactical data link systems for operational effectiveness. Services delivered include crucial operational support for tactical data links, ensuring seamless communication. The geographic impact is likely nationwide, supporting Air Force operations across various bases and deployments. Workforce implications include the need for specialized technical personnel to maintain and operate these complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated.
Risk of cost overruns if scope creep occurs without adequate oversight.
Dependence on a single contractor for critical operational support could be a vulnerability.

Positive Signals

Contract specifies operational support, indicating a focus on maintaining existing capabilities.
The use of a delivery order structure allows for flexibility in tasking.
Competition, even if limited, suggests a degree of market validation for the chosen vendor.

Sector Analysis

This contract operates within the Defense Information Technology and Engineering Services sector. The market for tactical data link support is specialized, involving a limited number of defense contractors with the requisite security clearances and technical expertise. Spending in this niche area is driven by the need for advanced communication capabilities in modern military operations. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of tactical data links, but overall defense IT and engineering services represent a significant portion of the DoD budget.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, potentially through subcontracting opportunities if KT Consulting, Inc. chooses to engage small businesses for specific tasks. However, without explicit subcontracting plans detailed in the award, the direct benefit to small businesses is uncertain.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Air Force contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Air Force Command and Control Systems
Tactical Communications Modernization
Defense Information Systems Network
Joint All-Domain Command and Control (JADC2)

Risk Flags

Moderate competition level may impact price optimization.
Procurement method 'Exclusion of Sources' warrants scrutiny for fairness and breadth of competition.
Long contract duration requires sustained oversight to manage performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to KT CONSULTING, INC.. MOBILITY AIR FORCE TACTICAL DATA LINK OPERATIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is KT CONSULTING, 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 $45.6 million.

What is the period of performance?

Start: 2021-08-20. End: 2026-02-25.

What is the track record of KT Consulting, Inc. in providing similar tactical data link support services to the Department of Defense?

KT Consulting, Inc. has a history of providing various technical and engineering services to the Department of Defense. While specific details on their performance for tactical data link operational support under this particular contract are not fully elaborated in the provided data, their award suggests they possess the necessary qualifications and experience. Further analysis would require examining past performance reviews, contract modifications, and any documented successes or challenges in previous engagements with the Air Force or other DoD branches related to complex communication systems. Their ability to secure this contract indicates a baseline level of competence and a positive assessment of their capabilities by the procuring agency.

How does the annual cost of this contract compare to similar tactical data link support contracts awarded by other military branches?

The annual cost for this contract averages approximately $10.1 million ($45.6M / 4.5 years). Benchmarking this against similar contracts across other military branches requires access to a broader dataset of defense procurements for tactical data link operational support. However, given the specialized nature of these systems, costs can vary significantly based on the specific technology, geographic scope of support, and the level of service required (e.g., 24/7 operations vs. standard business hours). Generally, contracts for advanced military communication systems demand significant investment due to the need for high reliability, security, and technical expertise. Without direct comparative data, this annual figure appears within a plausible range for specialized defense engineering services.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is the potential for a reduced competitive landscape, which could lead to less favorable pricing for the government compared to truly unrestricted full and open competition. While it aims to ensure qualified bidders are considered, the exclusion criteria might inadvertently limit the number of capable vendors, potentially stifling innovation and aggressive bidding. This method can also raise concerns about fairness and transparency if the exclusion criteria are perceived as overly restrictive or tailored to specific incumbents. For taxpayers, this could translate to higher costs if the limited competition results in a higher-than-market price for the services rendered.

How effective is the current operational support provided by KT Consulting, Inc. in maintaining the readiness and functionality of the Air Force's tactical data link systems?

The effectiveness of the current operational support provided by KT Consulting, Inc. cannot be definitively assessed solely from the contract award data. Effectiveness is typically measured through performance metrics outlined in the contract, such as system uptime, response times to issues, and successful data transmission rates. These metrics are usually evaluated through contractor performance assessments (CPARs) and regular program reviews. The fact that the contract was awarded and is ongoing suggests that, at a minimum, the contractor is meeting baseline performance requirements. However, a comprehensive evaluation would necessitate reviewing detailed performance reports, user feedback from Air Force units, and any documented instances of system failures or successes attributed to the support provided.

What has been the historical spending trend for tactical data link operational support within the Department of the Air Force over the past five years?

Analyzing the historical spending trend for tactical data link operational support within the Department of the Air Force requires accessing comprehensive historical contract data. The provided data point represents a single contract award. To determine trends, one would need to aggregate spending across all similar contracts awarded by the Air Force over the last five fiscal years. This would involve searching databases like FPDS for contracts with relevant Product Service Codes (PSCs) and keywords related to 'tactical data link,' 'operational support,' and 'engineering services.' Such an analysis would reveal whether spending in this area is increasing, decreasing, or remaining stable, potentially indicating shifts in technology adoption, operational tempo, or strategic priorities within the Air Force.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA873021R0003

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4435 E CHANDLER BLVD STE 130, PHOENIX, AZ, 85048

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

Financial Breakdown

Contract Ceiling: $92,286,351

Exercised Options: $56,217,139

Current Obligation: $45,598,383

Actual Outlays: $979,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS322

IDV Type: IDC

Timeline