DoD Awards $18.9M Lease for Southwest Asia DISN Backbone to AOC Connect, LLC
Contract Overview
Contract Amount: $18,941,392 ($18.9M)
Contractor: AOC Connect, LLC
Awarding Agency: Department of Defense
Start Date: 2025-10-12
End Date: 2032-07-30
Contract Duration: 2,483 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: EICT000445EBM - START A DISN BACKBONE (2.5GB) COMMERCIAL LEASE IN SOUTHWEST ASIA.
Plain-Language Summary
Department of Defense obligated $18.9 million to AOC CONNECT, LLC for work described as: EICT000445EBM - START A DISN BACKBONE (2.5GB) COMMERCIAL LEASE IN SOUTHWEST ASIA. Key points: 1. Contract awarded to AOC Connect, LLC for a 2.5GB commercial lease in Southwest Asia. 2. The contract falls under the Wired Telecommunications Carriers sector (NAICS 517110). 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract has a long duration of 2483 days (over 6 years).
Value Assessment
Rating: fair
The contract is a fixed-price with economic price adjustment, which can lead to cost overruns if not managed carefully. Benchmarking against similar commercial leases in the region is difficult without more specific data on bandwidth and service level agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for a critical telecommunications infrastructure lease in a strategic location. The long-term nature and economic price adjustment clause warrant close monitoring for cost efficiency.
Public Impact
Ensures critical communication infrastructure for DoD operations in Southwest Asia. Supports military readiness and personnel connectivity in a key operational theater. Long-term lease commitment may offer stability but also locks in costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could increase final cost.
- Long contract duration may not reflect evolving technology needs.
- Geographic location in Southwest Asia presents potential logistical and security risks.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense communications infrastructure.
- Long-term commitment provides service stability.
Sector Analysis
This contract is within the Wired Telecommunications Carriers sector, which is essential for providing the backbone of modern communication networks. Spending in this sector is driven by demand for high-speed data transmission and reliable connectivity for government and commercial entities.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The long duration and economic price adjustment clause necessitate robust oversight from the Defense Information Systems Agency to ensure costs remain reasonable and performance meets requirements throughout the contract's life.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) clause
- Long contract duration (over 6 years)
- Geographic location in Southwest Asia
- Potential for technological obsolescence
- Reliance on a single vendor for a critical backbone
Tags
wired-telecommunications-carriers, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to AOC CONNECT, LLC. EICT000445EBM - START A DISN BACKBONE (2.5GB) COMMERCIAL LEASE IN SOUTHWEST ASIA.
Who is the contractor on this award?
The obligated recipient is AOC CONNECT, 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 $18.9 million.
What is the period of performance?
Start: 2025-10-12. End: 2032-07-30.
What is the specific bandwidth requirement and how does it compare to commercial market rates for similar services in Southwest Asia?
The contract specifies a 2.5GB backbone lease. Benchmarking this against commercial market rates requires detailed knowledge of service level agreements, uptime guarantees, and specific geographic serviceability in Southwest Asia, which are not fully detailed in the provided data. Without this granular information, a precise value assessment is challenging.
What are the potential risks associated with a long-term (over 6 years) telecommunications lease in a potentially volatile region like Southwest Asia?
Risks include geopolitical instability impacting service delivery or security, rapid technological obsolescence rendering the leased capacity insufficient or outdated, and potential for increased costs due to the economic price adjustment clause if inflation is high. Contractual flexibility for early termination or technology upgrades should be assessed.
How effectively does this lease support the DISA's mission and overall DoD communication strategy in the region?
The lease directly supports the Defense Information Systems Network (DISN) backbone, which is critical for DoD operations. A 2.5GB capacity suggests a significant requirement for data transmission, likely supporting various command, control, intelligence, and logistics functions. Its effectiveness hinges on reliable service delivery and alignment with evolving operational needs.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 19955 HIGHLAND VISTA DR STE 175, ASHBURN, VA, 20147
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,941,392
Exercised Options: $18,941,392
Current Obligation: $18,941,392
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17NSD3003
IDV Type: IDC
Timeline
Start Date: 2025-10-12
Current End Date: 2032-07-30
Potential End Date: 2032-07-30 00:00:00
Last Modified: 2025-12-19
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