Nearly $10.2 million awarded for telecommunications operations support services to Alternative Telecommunication Solutions, Inc

Contract Overview

Contract Amount: $10,176,107 ($10.2M)

Contractor: Alternative Telecommunication Solutions, Inc.

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2007-09-01

End Date: 2011-11-30

Contract Duration: 1,551 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TELECOMMUNICATIONS OPERATIONS SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $10.2 million to ALTERNATIVE TELECOMMUNICATION SOLUTIONS, INC. for work described as: TELECOMMUNICATIONS OPERATIONS SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded on a time and materials basis, which can pose cost control risks. 4. Services were delivered in Maryland, impacting the local workforce and economy. 5. The contractor, Alternative Telecommunication Solutions, Inc., has a history of performing similar services. 6. The North American Industry Classification System (NAICS) code indicates a focus on electrical contractors and wiring installation.

Value Assessment

Rating: good

The contract's total value of approximately $10.2 million over 1551 days (roughly 4.25 years) suggests an average annual spend of around $2.4 million. This figure needs to be benchmarked against similar telecommunications support contracts to fully assess value for money. The time and materials pricing structure, while flexible, requires diligent oversight to ensure costs remain within reasonable bounds and do not escalate due to inefficiencies or scope creep. Without specific per-unit cost data or comparisons to market rates for similar services, a definitive value assessment is challenging, but the overall spend is not immediately indicative of overpayment.

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, certain sources were initially excluded. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government. The fact that it was not a completely unrestricted full and open competition might warrant further investigation into the reasons for source exclusion, though the presence of multiple bidders is a positive sign.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation. The inclusion of multiple bidders helps ensure that the government is receiving services at a fair market price.

Public Impact

The primary beneficiary is the Nuclear Regulatory Commission (NRC), which receives essential telecommunications operations support. Services delivered include maintaining and operating telecommunications infrastructure, ensuring reliable communication for the NRC. The geographic impact is concentrated in Maryland, where the contract was performed. The contract likely supported a workforce skilled in telecommunications installation, maintenance, and operations within the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not closely monitored.
Potential for scope creep exists with T&M contracts, requiring robust management.
The 'after exclusion of sources' clause in the competition type warrants understanding the rationale behind exclusions.

Positive Signals

Full and open competition was utilized, indicating a broad search for qualified contractors.
Multiple bidders participated, suggesting a competitive marketplace for these services.
The contract duration of over four years implies a stable, long-term need for these services.

Sector Analysis

Telecommunications operations support services fall within the broader IT and professional services sector. This contract specifically relates to the installation and maintenance of electrical and wiring infrastructure, aligning with the NAICS code for Electrical Contractors and Other Wiring Installation Contractors. The market for such services is competitive, with numerous firms capable of providing specialized support. The NRC's spending in this area is critical for its operational continuity, and benchmarks would typically be set against similar government contracts for telecommunications infrastructure management and support.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. However, the prime contractor may still engage small businesses as subcontractors, which would need to be assessed based on the contractor's subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily reside with the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to service level agreements and technical specifications. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Telecommunications Infrastructure Modernization Programs
Government IT Support Services Contracts
NRC IT Operations and Maintenance
Electrical and Wiring Installation Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need to verify justification for 'exclusion of sources' in competition.
Requires diligent oversight to ensure value for money on T&M contract.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $10.2 million to ALTERNATIVE TELECOMMUNICATION SOLUTIONS, INC.. TELECOMMUNICATIONS OPERATIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALTERNATIVE TELECOMMUNICATION SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2007-09-01. End: 2011-11-30.

What is the track record of Alternative Telecommunication Solutions, Inc. with federal contracts, particularly for telecommunications support?

Alternative Telecommunication Solutions, Inc. (ATS) has a history of performing federal contracts, including those related to telecommunications and IT support. A review of federal procurement data would reveal the number and value of contracts awarded to ATS across various agencies. Analyzing past performance on similar contracts, including customer satisfaction ratings and any documented performance issues, would provide a clearer picture of their reliability and capability. Understanding their experience with the specific types of telecommunications operations support required by the Nuclear Regulatory Commission is crucial for assessing their suitability and the potential risks associated with this award.

How does the $10.2 million contract value compare to similar telecommunications support contracts awarded by the NRC or other agencies?

Benchmarking the $10.2 million contract value requires comparing it to similar telecommunications operations support services procured by the Nuclear Regulatory Commission (NRC) and other federal agencies over comparable timeframes. Factors such as contract duration, scope of work (e.g., installation, maintenance, network management), labor categories, and geographic location significantly influence pricing. If this contract represents a substantial portion of the NRC's telecommunications support budget or is significantly higher/lower than comparable contracts, it would warrant further investigation. Access to detailed contract line item numbers (CLINs) and service descriptions would enable a more precise value-for-money assessment against market rates and historical government spending.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or increased labor hours if not meticulously managed. For taxpayers, this means the final cost is not predetermined, and the government bears the risk of cost escalation. Effective oversight, detailed tracking of labor hours, material costs, and robust change order management are critical to mitigate these risks and ensure the government receives good value.

How effective are the oversight mechanisms in place for this contract to ensure performance and cost control?

The effectiveness of oversight for this contract hinges on the Nuclear Regulatory Commission's (NRC) established procedures for managing Time and Materials (T&M) contracts. Key oversight mechanisms typically include a dedicated Contracting Officer's Representative (COR) responsible for monitoring contractor performance against the Performance Work Statement (PWS), reviewing invoices for accuracy, and approving or rejecting work. Regular progress meetings, site inspections, and performance metrics tracking are also crucial. The NRC's internal policies and the diligence of the assigned COR in scrutinizing labor hours, material costs, and deliverables are paramount in controlling costs and ensuring the contractor meets all contractual obligations. Without specific details on the NRC's internal oversight protocols for this contract, a definitive assessment is difficult, but the T&M nature necessitates heightened vigilance.

What is the historical spending pattern for telecommunications operations support services at the Nuclear Regulatory Commission?

Analyzing historical spending patterns for telecommunications operations support services at the Nuclear Regulatory Commission (NRC) would involve examining procurement data over several fiscal years. This would reveal the total amount spent on such services, the primary contractors utilized, and the types of contract vehicles employed (e.g., T&M, fixed-price). Understanding these patterns can help identify trends, potential increases or decreases in spending, and whether the NRC relies heavily on a few key vendors or maintains a diverse supplier base. Significant year-over-year fluctuations or a consistent rise in spending might indicate evolving needs, market price changes, or potential inefficiencies that warrant further investigation.

What does the 'after exclusion of sources' clause in the contract's competition type imply for the bidding process and potential cost savings?

The 'after exclusion of sources' clause in the contract's competition type indicates that while the procurement was intended to be broadly competitive, certain potential sources were deliberately excluded from the bidding process. The reasons for such exclusions can vary, ranging from specific capability requirements, past performance issues, or national security concerns. While the inclusion of 3 bidders suggests some level of competition, the exclusion of other potential sources might have limited the overall competitive pressure. This could potentially lead to higher prices than if all qualified sources had been allowed to compete. Understanding the rationale behind the source exclusion is key to assessing whether it was justified and if it impacted the final price paid by taxpayers.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RS-33-07-360

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 5600 GENERAL WASHINGTON DR B210, ALEXANDRIA, VA, 08

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,176,107

Exercised Options: $10,176,107

Current Obligation: $10,176,107

Timeline