DoD's $43M GENM-O contract awarded to OBXTEK INC for global network modernization
Contract Overview
Contract Amount: $42,998,261 ($43.0M)
Contractor: Obxtek Inc
Awarding Agency: Department of Defense
Start Date: 2022-06-24
End Date: 2027-01-12
Contract Duration: 1,663 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: PROGRAM MANAGEMENT OPERATIONS (PMO) SUPPORT FOR GLOBAL ENTERPRISE NETWORK MODERNIZATION OCONUS (GENM-O)
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.0 million to OBXTEK INC for work described as: PROGRAM MANAGEMENT OPERATIONS (PMO) SUPPORT FOR GLOBAL ENTERPRISE NETWORK MODERNIZATION OCONUS (GENM-O) Key points: 1. Contract focuses on research and development for physical and engineering sciences, specifically network modernization. 2. The contract is a delivery order under a larger contract, indicating a phased approach to modernization. 3. The duration of the contract is over 1600 days, suggesting a long-term commitment to network infrastructure. 4. The firm fixed-price contract type aims to control costs and provide predictable spending. 5. The contract is not set aside for small businesses, implying a focus on larger, established firms. 6. The geographic scope is OCONUS (Outside Continental United States), highlighting a focus on international military installations.
Value Assessment
Rating: good
The total value of $42,998,261.38 for a nearly 5-year period for global enterprise network modernization appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure and R&D contracts for defense agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of 14 bidders suggests a competitive environment, which typically drives better pricing and innovation. The high number of bidders is a positive sign for price discovery and ensures the government received proposals from a wide range of qualified contractors.
Taxpayer Impact: The robust competition for this contract likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition award.
Public Impact
The Department of Defense benefits through the modernization of its global enterprise network infrastructure. Services delivered include research and development for network modernization, enhancing operational capabilities. The geographic impact is global, specifically focusing on OCONUS locations, improving communication and data transfer for deployed forces. Workforce implications may include specialized IT and engineering roles for the contractor, OBXTEK INC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term R&D projects if not managed tightly.
- Reliance on a single contractor for critical network modernization could pose a risk if performance falters.
- Ensuring continuous technological relevance in a rapidly evolving field requires ongoing vigilance.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a strong market response and potential for best value.
- Long contract duration allows for sustained focus and development of specialized expertise.
- Delivery order structure allows for phased implementation and adaptation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on IT infrastructure and network modernization. The market for defense IT modernization is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks for large-scale network upgrades and R&D initiatives within the defense sector often run into tens or hundreds of millions of dollars, making this contract's value proportionate to its ambitious scope.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. The award to OBXTEK INC, a company that may or may not be a small business itself, suggests that the primary focus was on obtaining the best technical solution through full and open competition. There is no explicit indication of subcontracting requirements for small businesses within the provided data, which could limit opportunities for the small business ecosystem on this specific contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring OBXTEK INC to deliver specified outcomes within budget. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Global Enterprise Network Modernization (GENM)
- Defense Information Systems Agency (DISA) contracts
- Army Network Modernization Programs
- OCONUS IT Infrastructure Support
- Research and Development in Communications Technology
Risk Flags
- Long-term R&D project complexity
- Potential for technological obsolescence
- Contractor performance risk
- OCONUS operational challenges
Tags
department-of-defense, department-of-the-army, research-and-development, it-infrastructure, network-modernization, full-and-open-competition, firm-fixed-price, delivery-order, oconus, obxtek-inc, program-management, global-enterprise-network
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.0 million to OBXTEK INC. PROGRAM MANAGEMENT OPERATIONS (PMO) SUPPORT FOR GLOBAL ENTERPRISE NETWORK MODERNIZATION OCONUS (GENM-O)
Who is the contractor on this award?
The obligated recipient is OBXTEK INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $43.0 million.
What is the period of performance?
Start: 2022-06-24. End: 2027-01-12.
What is OBXTEK INC's track record with similar large-scale R&D and network modernization contracts for the Department of Defense?
OBXTEK INC has a history of supporting government contracts, including those related to IT services and program management. While specific details on their track record with large-scale, global network modernization R&D projects of this magnitude are not fully detailed in the provided data, their award for the GENM-O program suggests they possess the necessary qualifications and experience. Further analysis would involve reviewing their past performance evaluations, contract history with DoD agencies, and any documented successes or challenges in delivering complex technological solutions. Their ability to secure this contract under full and open competition indicates they met the government's stringent requirements for technical capability and past performance.
How does the $43 million cost compare to similar global network modernization R&D efforts by other defense agencies?
The $43 million cost for the GENM-O program appears to be within a reasonable range for large-scale, long-term R&D and network modernization initiatives within the defense sector. Similar projects, such as upgrading global communication networks or developing advanced cyber defense systems, often involve budgets in the tens to hundreds of millions of dollars over several years. Factors influencing cost include the geographic scope (OCONUS), the complexity of the existing infrastructure, the desired technological advancements, and the duration of the contract. The firm fixed-price nature of this contract also contributes to cost predictability. Benchmarking against publicly available contract awards for similar IT modernization and R&D efforts by agencies like DISA or other branches of the military would provide a more precise comparison, but the initial assessment suggests the pricing is competitive for the scope of work.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks include technological obsolescence, as network technology evolves rapidly; performance issues from the contractor, OBXTEK INC, potentially impacting critical military communications; and potential cost overruns if the scope of R&D proves more complex than initially assessed, despite the firm fixed-price structure. Mitigation strategies likely involve robust program management and oversight by the Department of the Army, regular performance reviews, clear performance metrics and deliverables, and contingency planning for technical challenges. The phased approach through delivery orders also allows for adjustments and risk assessment at different stages. Furthermore, the competitive nature of the initial award suggests a pool of capable contractors, reducing reliance on a single entity if issues arise.
How effective is the firm fixed-price contract type in ensuring value for money for this specific R&D program?
The firm fixed-price (FFP) contract type is generally effective in ensuring value for money by shifting cost risk to the contractor, OBXTEK INC. This structure incentivizes the contractor to manage costs efficiently and deliver the defined scope of work within the agreed-upon price. For an R&D program like GENM-O, where the scope and technical challenges can be significant, FFP requires careful upfront definition of requirements and milestones. While it provides cost certainty for the government, it might disincentivize the contractor from exploring innovative solutions beyond the defined scope if they are not adequately compensated. However, in this case, with full and open competition, the government likely secured competitive pricing upfront, and the long-term nature allows for iterative development within the fixed price framework, promoting overall value.
What are the historical spending patterns for similar network modernization and R&D programs within the Department of Defense?
Historical spending patterns for network modernization and R&D within the Department of Defense are substantial and consistently high, reflecting the critical importance of advanced communication and information systems. Agencies like the DoD, DISA, and various military branches regularly award multi-million dollar contracts for network infrastructure upgrades, cybersecurity enhancements, and the development of next-generation communication technologies. These programs often span multiple years and involve significant investments in hardware, software, integration services, and research. Spending is driven by the need to maintain a technological edge, counter evolving threats, and ensure seamless global operations. The $43 million for GENM-O aligns with the typical scale of such strategic investments within the DoD's R&D and IT modernization portfolios.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8300 BOONE BLVD STE 800, TYSONS CORNER, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,998,261
Exercised Options: $42,998,261
Current Obligation: $42,998,261
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T19D0089
IDV Type: IDC
Timeline
Start Date: 2022-06-24
Current End Date: 2027-01-12
Potential End Date: 2027-01-12 00:00:00
Last Modified: 2026-03-17
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