DoD's $101M Telecommunications Service Contract with TRUESTONE, LLC Faces Limited Competition Concerns

Contract Overview

Contract Amount: $100,986,857 ($101.0M)

Contractor: Truestone, LLC

Awarding Agency: Department of Defense

Start Date: 2008-06-11

End Date: 2018-06-10

Contract Duration: 3,651 days

Daily Burn Rate: $27.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Telecommunications

Official Description: TAS::21 2020 000::TAS TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT HC101307H0617.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $101.0 million to TRUESTONE, LLC for work described as: TAS::21 2020 000::TAS TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT HC101307H0617. Key points: 1. Significant contract value of $101 million over 10 years. 2. Limited competition raises questions about price discovery and value. 3. Fixed Price with Economic Price Adjustment contract type introduces potential cost escalation risks. 4. The contract falls within the Wired Telecommunications Carriers sector.

Value Assessment

Rating: questionable

The contract's long duration and limited competition make a direct pricing assessment difficult. Without comparable contracts or a competitive bidding process, it's challenging to determine if the $101 million price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source procurement. This lack of competition likely hindered robust price discovery and may have resulted in a higher overall cost to the government.

Taxpayer Impact: The absence of competition suggests taxpayers may have paid a premium for these telecommunications services over the contract's 10-year lifespan.

Public Impact

Taxpayers funded a significant $101 million telecommunications service contract over a decade. The limited competition aspect raises concerns about the government securing the best possible price. The contract's duration and fixed-price with economic adjustment terms could lead to unpredictable costs. Services were provided in Alaska, potentially impacting regional infrastructure costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
Economic price adjustment

Positive Signals

Established telecommunications service provider
Long-term service commitment

Sector Analysis

This contract falls under the Wired Telecommunications Carriers sector (NAICS 517110), which includes providers of telecommunications services via wired infrastructure. Spending in this sector can vary widely based on infrastructure needs and technological advancements.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The focus appears to be on a larger, established provider.

Oversight & Accountability

The contract's long duration and limited competition warrant scrutiny. Further review of the justification for limited competition and the oversight of economic price adjustments would be beneficial for accountability.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns due to economic price adjustments
Long contract duration (10 years)
Limited transparency on justification for sole-source/limited competition
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.0 million to TRUESTONE, LLC. TAS::21 2020 000::TAS TELECOMMUNICATIONS SERVICE ORDERED UNDER BASIC AGREEMENT HC101307H0617.

Who is the contractor on this award?

The obligated recipient is TRUESTONE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $101.0 million.

What is the period of performance?

Start: 2008-06-11. End: 2018-06-10.

What was the specific justification for limiting competition on this $101 million telecommunications contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require accessing the contract file to understand the specific reasons cited, such as unique capabilities, urgent needs, or prior investments that precluded competitive bidding. Without this justification, it's difficult to assess the necessity of this procurement approach.

How were the economic price adjustments calculated and what was their impact on the total contract cost?

The contract type is 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT.' The specific formula and indices used for these adjustments are not detailed in the provided data. Understanding these mechanisms is crucial to determine how much the final cost deviated from the initial fixed price and whether these adjustments were reasonable and adequately controlled.

What performance metrics or service level agreements were in place to ensure the effectiveness of the telecommunications services provided?

The data does not specify any performance metrics or service level agreements (SLAs) associated with this contract. For a contract of this magnitude and duration, robust performance standards are essential to ensure the government receives high-quality, reliable telecommunications services and to hold the contractor accountable for meeting expectations.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 13873 PARK CENTER RD STE 300N, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,986,857

Exercised Options: $100,986,857

Current Obligation: $100,986,857

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline