DoD's $48.8M Network Equipment Contract Awarded to Wildflower International for Modernization Efforts

Contract Overview

Contract Amount: $48,811,743 ($48.8M)

Contractor: Wildflower International, Ltd.

Awarding Agency: Department of Defense

Start Date: 2019-08-30

End Date: 2024-10-31

Contract Duration: 1,889 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REQUIREMENT TO PROCURE NETWORK EQUIPMENT ACROSS INSTALLATIONS WITHIN THE DEPARTMENT OF DEFENSE. THE EQUIPMENT WILL BE IN SUPPORT OF NETWORK MODERNIZATION EFFORTS (NETMOD).

Place of Performance

Location: SANTA FE, SANTA FE County, NEW MEXICO, 87505

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to WILDFLOWER INTERNATIONAL, LTD. for work described as: REQUIREMENT TO PROCURE NETWORK EQUIPMENT ACROSS INSTALLATIONS WITHIN THE DEPARTMENT OF DEFENSE. THE EQUIPMENT WILL BE IN SUPPORT OF NETWORK MODERNIZATION EFFORTS (NETMOD). Key points: 1. The contract supports critical network modernization (NETMOD) across Department of Defense (DoD) installations. 2. Awarded via full and open competition, indicating a broad market search. 3. The contract's duration of over 5 years suggests a long-term need for network infrastructure. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 6. The North American Industry Classification System (NAICS) code 334111 points to electronic computer manufacturing, aligning with network equipment procurement.

Value Assessment

Rating: good

The total contract value of $48.8 million over approximately 5 years (1889 days) for network equipment is substantial. Benchmarking this against similar large-scale network modernization efforts within the DoD is crucial for a precise value-for-money assessment. The firm-fixed-price (FFP) contract type is generally favorable for the government as it caps costs, but the specific pricing of individual line items or delivery orders would require detailed analysis against market rates for comparable network hardware and services. Without specific unit costs or detailed comparisons to other DoD network procurements, a definitive value assessment is challenging, but the FFP structure is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The data indicates two bids were received (no: 2). A higher number of bidders typically fosters greater price competition and can lead to more favorable pricing for the government. However, the specific number of bidders (two) might suggest a somewhat concentrated market for this particular type of specialized network equipment or service, or it could be that only two were deemed technically capable.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers, potentially driving down prices and ensuring the government receives competitive rates for its spending.

Public Impact

The primary beneficiaries are the Department of Defense and its various installations, which will receive upgraded network equipment. This contract directly supports the modernization of critical IT infrastructure, enhancing operational capabilities and cybersecurity. The geographic impact is broad, covering multiple installations within the Department of Defense, though specific locations are not detailed. The procurement of network equipment may have implications for the IT workforce involved in installation, maintenance, and network management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could potentially lead to higher prices than if more vendors had participated.
The long contract duration (over 5 years) might introduce risks related to technology obsolescence if not managed proactively.
The specific nature of 'network equipment' is broad; detailed specifications are needed to ensure the procured items meet evolving cybersecurity and performance standards.

Positive Signals

Awarded under full and open competition, maximizing potential vendor participation.
Firm-fixed-price contract type shifts cost risk to the contractor.
Supports critical network modernization efforts, indicating a strategic investment in defense infrastructure.
The contract is a delivery order, suggesting it aligns with a pre-established framework, potentially streamlining future procurements.

Sector Analysis

The procurement falls within the broader Information Technology (IT) sector, specifically focusing on network infrastructure and hardware. The market for defense-related IT and network equipment is substantial, driven by continuous modernization needs and evolving threats. Companies operating in this space often specialize in high-reliability, secure, and robust solutions tailored for government and military applications. Comparable spending benchmarks would involve analyzing other large-scale network upgrades within federal agencies, particularly within the Department of Defense, to assess cost-effectiveness and market pricing trends for similar equipment and services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside criterion for this contract (sb: false). While the contract itself may not have direct small business set-aside provisions, the prime contractor, Wildflower International, Ltd., could potentially engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and the specific requirements of the network equipment and services. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, but opportunities may exist depending on the prime's sourcing practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management offices within the Department of the Army and the Department of Defense. The firm-fixed-price nature of the contract provides a degree of financial oversight by capping costs. Transparency is facilitated through contract award databases like FPDS. Accountability measures would involve performance monitoring against delivery schedules and technical specifications. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Network Modernization (NETMOD) Programs
General Services Administration (GSA) IT Schedule Contracts
Defense Information Systems Agency (DISA) procurements
Federal Information Technology Acquisition Reform Act (FITARA) initiatives

Risk Flags

Potential for technology obsolescence due to long contract duration.
Limited competition (2 bidders) may impact price competitiveness.
Need for detailed specifications to ensure equipment meets evolving cybersecurity standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to WILDFLOWER INTERNATIONAL, LTD.. REQUIREMENT TO PROCURE NETWORK EQUIPMENT ACROSS INSTALLATIONS WITHIN THE DEPARTMENT OF DEFENSE. THE EQUIPMENT WILL BE IN SUPPORT OF NETWORK MODERNIZATION EFFORTS (NETMOD).

Who is the contractor on this award?

The obligated recipient is WILDFLOWER INTERNATIONAL, LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.8 million.

What is the period of performance?

Start: 2019-08-30. End: 2024-10-31.

What is the track record of Wildflower International, Ltd. in fulfilling large-scale Department of Defense IT contracts?

Assessing the track record of Wildflower International, Ltd. requires a review of their past performance on similar government contracts, particularly within the Department of Defense. This would involve examining contract databases for previous awards, delivery orders, and any reported performance issues or successes. Key indicators include on-time delivery, adherence to technical specifications, and any history of contract disputes or terminations. A thorough analysis would compare their past performance metrics against contract requirements and industry standards to gauge their reliability and capability in executing complex IT procurements like this network equipment contract.

How does the per-unit cost of the network equipment compare to market rates or similar government procurements?

A detailed comparison of the per-unit cost for the network equipment procured under this contract against market rates and similar government procurements is essential for a value-for-money assessment. This analysis would involve identifying the specific types and models of network equipment purchased and researching their commercial off-the-shelf (COTS) prices. Additionally, comparing these costs to prices paid by other federal agencies for comparable equipment, potentially through GSA schedules or other IDIQ contracts, would provide valuable benchmarks. Significant deviations from market or benchmark prices, even under a firm-fixed-price contract, could indicate potential issues with pricing strategy or the competitive landscape.

What are the primary risks associated with a contract of this duration (over 5 years) for network equipment?

Contracts for network equipment spanning over five years carry inherent risks, primarily related to technological obsolescence and evolving security threats. Network hardware can become outdated relatively quickly, potentially diminishing its effectiveness or compatibility with newer systems. Furthermore, cybersecurity landscapes change rapidly, and equipment that meets current standards may not adequately protect against future threats. To mitigate these risks, the contract should include provisions for technology refresh, software updates, and cybersecurity patches. Proactive management by the Department of Defense, including regular reviews of the equipment's performance and security posture, is crucial to ensure the investment remains valuable and secure throughout the contract's lifecycle.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this specific network equipment procurement?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in procurements where the scope of work and specifications are well-defined, such as for standardized network equipment. Under an FFP agreement, the contractor assumes the primary risk for cost overruns, which incentivizes them to manage their expenses efficiently. This structure provides budget certainty for the government, as the total price is fixed regardless of the contractor's actual costs. However, the effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the technical requirements. If the initial estimates are flawed or the requirements are ambiguous, the contractor may build in significant contingencies, potentially leading to a higher initial price than necessary.

What is the historical spending pattern for network equipment within the Department of the Army or Department of Defense?

Analyzing historical spending patterns for network equipment within the Department of the Army and the broader Department of Defense is crucial for contextualizing this $48.8 million award. This involves examining past contract awards for similar equipment, tracking spending trends over several fiscal years, and identifying major network modernization initiatives. Understanding the typical contract values, durations, and competition levels for such procurements can reveal whether this award is within the expected range or represents a significant deviation. It also helps in identifying key vendors, common contract types, and the overall investment trajectory in network infrastructure, providing a baseline for evaluating current spending efficiency and strategic alignment.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1516 PACHECO ST, SANTA FE, NM, 87505

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $48,811,743

Exercised Options: $48,811,743

Current Obligation: $48,811,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0015

IDV Type: IDC

Timeline