DoD's $13.4M contract for telecommunications services in Puerto Rico awarded to Cambridge International Systems Inc
Contract Overview
Contract Amount: $13,382,859 ($13.4M)
Contractor: Cambridge International Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2005-12-19
End Date: 2016-06-30
Contract Duration: 3,846 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CERRO DE PUNTA #1
Place of Performance
Location: CAROLINA, SAN JUAN County, PUERTO RICO, 00979
Plain-Language Summary
Department of Defense obligated $13.4 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC. for work described as: CERRO DE PUNTA #1 Key points: 1. The contract's duration of over 10 years suggests a long-term need for these telecommunications services. 2. The firm-fixed-price contract type indicates that the price was set at the time of award, potentially limiting cost overruns but also the flexibility to adapt to changing needs. 3. Awarded under full and open competition, this suggests a robust bidding process. 4. The contract was awarded by the Defense Information Systems Agency, a key player in DoD's IT infrastructure. 5. The North American Industry Classification System (NAICS) code 517910 points to a focus on telecommunications infrastructure and services. 6. The contract's completion date in 2016 means it is no longer active, providing a historical data point for similar procurements.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the services provided and the prevailing market rates in Puerto Rico during the contract period (2005-2016). The total value of $13.4 million spread over more than 10 years suggests an average annual spend of approximately $1.3 million. This figure needs to be compared against the cost of similar telecommunications services procured by the government or private sector in the region during that timeframe. The firm-fixed-price nature of the contract implies that the contractor bore the risk of cost overruns, which can be a positive indicator of value if the price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a competitive environment where multiple companies vied for the contract. The presence of 4 bids (as indicated by 'no': 4) further supports this, showing a reasonable level of interest from potential contractors. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It reduces the risk of overpayment and encourages contractors to offer their best value solutions.
Public Impact
The primary beneficiaries of this contract were the Department of Defense personnel and operations in Puerto Rico requiring reliable telecommunications services. The services delivered likely included the provision, maintenance, and potentially the operation of telecommunications infrastructure, such as voice, data, and network services. The geographic impact is specifically limited to Puerto Rico, supporting military readiness and operations within that territory. The contract supported jobs within the telecommunications sector, both at the prime contractor and potentially at subcontractors, contributing to the local economy in Puerto Rico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) could indicate potential for vendor lock-in or reduced agility in adopting newer technologies if not managed carefully.
- Firm-fixed-price contracts, while good for cost control, can sometimes lead to less flexibility in scope adjustments if requirements evolve significantly over a long period.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- The firm-fixed-price structure shifts cost overrun risk to the contractor, which can be beneficial for the government.
- The contract was managed by the Defense Information Systems Agency, an agency with significant expertise in managing complex IT and telecommunications contracts.
Sector Analysis
This contract falls within the broader telecommunications sector, which is critical for modern military operations. The Defense Information Systems Agency (DISA) is responsible for providing, operating, and assuring the defense information environment. Spending in this area supports the backbone of military communication networks. Comparable spending benchmarks would involve analyzing other DISA contracts for telecommunications services, particularly those in similar geographic locations or with similar service scopes, to assess if the $13.4 million over 10 years was within market norms.
Small Business Impact
The data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engaged small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would have been the responsibility of the Department of Defense, likely managed through the Defense Information Systems Agency (DISA). As a definitive contract, it implies a structured agreement with defined terms and conditions. Accountability measures would be embedded in the contract clauses, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available, though detailed performance metrics might be internal.
Related Government Programs
- Defense Information Systems Agency (DISA) Telecommunications Services
- Department of Defense IT Infrastructure
- Puerto Rico Federal Procurement
Risk Flags
- Long contract duration may indicate potential for outdated technology if not actively managed.
- Lack of specific performance metrics in summary data makes independent value assessment difficult.
Tags
defense, department-of-defense, defense-information-systems-agency, telecommunications, puerto-rico, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, historical-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC.. CERRO DE PUNTA #1
Who is the contractor on this award?
The obligated recipient is CAMBRIDGE INTERNATIONAL SYSTEMS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2005-12-19. End: 2016-06-30.
What specific telecommunications services were included under this contract?
The provided data indicates the North American Industry Classification System (NAICS) code as 517910, which covers 'All Other Telecommunications.' This broad category typically includes services such as satellite telecommunications, telecommunications resellers, and other miscellaneous telecommunications services not elsewhere classified. For this specific contract, it likely encompassed the provision, installation, maintenance, and operation of voice, data, and potentially video communication systems essential for DoD operations in Puerto Rico. Without access to the contract's statement of work, the precise nature of services like bandwidth provisioning, network management, or specific technology platforms remains unspecified.
How does the $13.4 million total contract value compare to similar telecommunications procurements by DISA or the DoD in similar regions?
Comparing the $13.4 million total contract value requires context regarding the duration and scope. Spread over approximately 10.6 years (from December 2005 to June 2016), the average annual value was roughly $1.26 million. To benchmark this, one would need to analyze other DISA or DoD contracts for telecommunications services in comparable geographic areas (e.g., other US territories or regions with similar operational needs) awarded during the same period. Factors such as the type of services (e.g., dedicated fiber, satellite, wireless), bandwidth requirements, and service level agreements significantly influence pricing. A preliminary assessment suggests this annual spend is moderate for supporting significant military operations, but a definitive comparison necessitates a detailed analysis of comparable contract data.
What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for telecommunications services, such metrics would focus on network availability (uptime), latency, jitter, packet loss, and response times for technical support or issue resolution. The firm-fixed-price nature of the contract implies that the contractor was obligated to meet certain performance standards to receive full payment. However, the exact thresholds and penalties or incentives tied to these metrics would be detailed in the contract's statement of work and associated appendices, which are not available in this dataset.
What was the historical spending trend for telecommunications services in Puerto Rico by the DoD prior to this contract?
The provided data focuses solely on this specific contract (CERRO DE PUNTA #1) and does not offer historical spending trends for telecommunications services in Puerto Rico by the DoD prior to its award in December 2005. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for all contracts awarded by DoD agencies to any entity for telecommunications services in Puerto Rico within a relevant timeframe preceding this contract. This would allow for the identification of patterns, average spending levels, and the types of services previously procured, providing context for the scale and nature of the CERRO DE PUNTA #1 award.
Were there any performance issues or contract modifications during the life of this contract?
The summary data provided does not contain information regarding contract modifications, performance issues, or disputes related to the CERRO DE PUNTA #1 contract. Such details are typically found within the contract's official file, including modification records (SF30s) and performance reports. While the contract was active for over 10 years, it is common for long-term contracts to undergo modifications to adjust scope, pricing, or timelines. The absence of readily available information on modifications or issues does not necessarily imply a flawless execution, but rather that this level of detail is not present in the summarized dataset.
Industry Classification
NAICS: Information › Other Telecommunications › Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC101305R2022
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8501 CAPO CT, VIENNA, VA, 22182
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $14,064,863
Exercised Options: $13,382,859
Current Obligation: $13,382,859
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2005-12-19
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2018-01-24
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