DoD's $25.2M Incremental Funding for Wired Telecom Services Awarded to The Centech Group Inc
Contract Overview
Contract Amount: $25,239,368 ($25.2M)
Contractor: THE Centech Group Inc.
Awarding Agency: Department of Defense
Start Date: 2012-06-15
End Date: 2015-12-20
Contract Duration: 1,283 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: INCREMENTAL FUNDING FOR CLIN 7008
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $25.2 million to THE CENTECH GROUP INC. for work described as: INCREMENTAL FUNDING FOR CLIN 7008 Key points: 1. The contract awarded to The Centech Group Inc. for wired telecommunications carriers represents a significant investment in infrastructure. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The duration of the contract (1283 days) indicates a long-term need for these services. 4. The NAICS code 517110 points to a specific segment within the telecommunications sector.
Value Assessment
Rating: fair
The contract's value of $25.2M over approximately 3.5 years needs to be benchmarked against similar wired telecommunications carrier contracts to assess its fairness. Without specific per-unit cost data or comparison points, a definitive pricing assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple vendors to bid, theoretically driving down costs. The award to The Centech Group Inc. suggests they offered the best value under this competitive process.
Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications infrastructure, with the competitive nature of the award aiming to ensure cost-effectiveness.
Public Impact
Ensures continued operation and maintenance of critical wired telecommunications infrastructure for the Department of the Air Force. Supports the broader Department of Defense's communication network capabilities. Provides employment opportunities within the telecommunications sector. The long-term nature of the contract suggests a stable demand for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for benchmarking.
- Potential for cost overruns in long-term, labor-hour based contracts.
- Dependence on a single awardee for a critical service.
Positive Signals
- Awarded under full and open competition.
- Supports essential government operations.
- Long contract duration indicates sustained need.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector (NAICS 517110), which includes establishments primarily engaged in operating and/or providing access to telecommunications infrastructure. Spending in this sector is crucial for government operations, supporting everything from basic communication to advanced network services.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded as a delivery order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this specific order and its alignment with the parent contract's terms and conditions.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for scope creep in long-term contracts.
- Dependence on a single vendor for critical infrastructure.
- Limited visibility into subcontractor performance.
Tags
wired-telecommunications-carriers, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to THE CENTECH GROUP INC.. INCREMENTAL FUNDING FOR CLIN 7008
Who is the contractor on this award?
The obligated recipient is THE CENTECH GROUP 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 $25.2 million.
What is the period of performance?
Start: 2012-06-15. End: 2015-12-20.
What was the competitive landscape like for this full and open competition, and did multiple bids significantly drive down the initial price?
While the contract was awarded under full and open competition, the provided data does not detail the number of bids received or the initial proposed prices. To fully assess the value, a review of the solicitation documents and bid history would be necessary to understand if competitive pressures effectively lowered costs compared to initial estimates or a sole-source scenario.
How does the per-unit cost of wired telecommunications services under this contract compare to industry benchmarks or other government contracts for similar services?
Benchmarking the per-unit cost is challenging without specific line-item details or defined service units (e.g., cost per circuit, cost per Mbps). The contract is labor-hour based, making direct comparisons difficult. A detailed cost analysis comparing labor rates and overhead against market data for telecommunications services would be required for a robust assessment.
What is the long-term effectiveness and scalability of the wired telecommunications infrastructure being funded by this contract?
The effectiveness and scalability depend on the specific technologies and network architecture implemented under this contract. The 3.5-year duration suggests a focus on maintaining and potentially upgrading existing infrastructure. Assessing long-term effectiveness would require evaluating the technology roadmap, performance metrics, and adaptability to future communication needs.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 4600 FAIRFAX DR STE 400, ARLINGTON, VA, 22203
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $25,239,368
Exercised Options: $25,239,368
Current Obligation: $25,239,368
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0002
IDV Type: IDC
Timeline
Start Date: 2012-06-15
Current End Date: 2015-12-20
Potential End Date: 2015-12-20 00:00:00
Last Modified: 2016-04-19
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