DoD's $41M LCD contract with Pragmatics, LLC shows fair value but limited competition insights

Contract Overview

Contract Amount: $41,047,825 ($41.0M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2021-03-27

Contract Duration: 911 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STANDARD LECTURE LCD - SUPPLY

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to PRAGMATICS, LLC for work described as: STANDARD LECTURE LCD - SUPPLY Key points: 1. The contract's value appears reasonable when benchmarked against similar IT infrastructure procurements. 2. Limited public data on the specific services delivered makes a precise value-for-money assessment challenging. 3. The 'Full and Open Competition' designation is positive, but the low number of bids warrants scrutiny. 4. Performance context is minimal, with no readily available data on service quality or timeliness. 5. This contract falls within the broader IT infrastructure and telecommunications services sector. 6. The contract's duration and fixed-price nature suggest a degree of cost predictability.

Value Assessment

Rating: fair

The total award amount of approximately $41 million over three years for wired telecommunications carrier services appears within a reasonable range for large-scale federal IT infrastructure. Benchmarking against similar contracts for network equipment and installation suggests that the pricing was likely competitive, especially given the fixed-price nature of the award. However, without detailed breakdowns of the services provided or specific equipment costs, a definitive assessment of 'excellent' value is difficult. The absence of performance metrics also limits a thorough value evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. However, the data indicates only one bid was received. While the competition was open in principle, the low number of actual bidders suggests potential barriers to entry or a lack of widespread interest from qualified vendors in this specific opportunity. This could imply that the solicitation requirements were highly specialized or that the market for this particular service is concentrated.

Taxpayer Impact: A single bid under an open competition can sometimes lead to less aggressive pricing than a multi-bid scenario. Taxpayers may not have received the full benefit of competitive pressure, although the fixed-price nature provides some cost certainty.

Public Impact

The Department of Defense benefits from the provision of essential wired telecommunications infrastructure. This contract supports the operational readiness and communication capabilities of military personnel. The services are likely deployed across various DoD facilities, potentially impacting a wide geographic area. The contract supports jobs within the IT and telecommunications sector, both directly with the contractor and indirectly through supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids received despite full and open competition raises questions about market engagement or solicitation attractiveness.
Lack of detailed performance metrics makes it difficult to assess the quality and effectiveness of services delivered.
Limited public information on the specific scope of work hinders a comprehensive value-for-money analysis.

Positive Signals

Awarded under 'Full and Open Competition' principles, allowing for broad market participation.
Fixed-price contract type provides cost predictability for the government.
The contract duration of over two years suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the Wired Telecommunications Carriers category (NAICS 517110). This sector is characterized by the provision of telecommunications services, including the installation and maintenance of network infrastructure. Federal spending in this area is substantial, supporting everything from basic communication to complex data networks for agencies like the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure contracts awarded to telecommunications providers, looking at price per user, service level agreements, and contract duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to a large business (implied by the contract size and nature). Opportunities for small businesses would primarily exist if Pragmatics, LLC engaged them as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers within the Department of Defense. Accountability measures are typically embedded in the contract's terms and conditions, including delivery schedules, performance standards (if specified), and payment clauses. Transparency is limited by the public availability of detailed contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Infrastructure Contracts
Wired Telecommunications Services Federal Procurements
Large-Scale Network Installation and Maintenance Contracts
General Services Administration (GSA) Schedule Contracts (if applicable)
Information Technology Services

Risk Flags

Low Bidder Count
Lack of Performance Data
Limited Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to PRAGMATICS, LLC. STANDARD LECTURE LCD - SUPPLY

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2018-09-28. End: 2021-03-27.

What specific telecommunications services were included under this $41 million contract?

The contract identifier 'STANDARD LECTURE LCD - SUPPLY' and the NAICS code 517110 (Wired Telecommunications Carriers) suggest the procurement was for services related to wired communication networks. This could encompass a range of activities such as the installation, maintenance, and potentially the provision of bandwidth for voice and data transmission. However, the limited public data does not specify the exact nature of 'STANDARD LECTURE LCD,' which might refer to a specific system or a suite of services. Without further details, it's presumed to cover essential wired network infrastructure supporting DoD operations, potentially including cabling, network hardware integration, and ongoing support services necessary for reliable communication.

How does the pricing of this contract compare to similar federal procurements for wired telecommunications services?

Benchmarking the pricing of this $41 million contract requires comparing it to similar federal procurements for wired telecommunications services, particularly those awarded under firm-fixed-price contracts over a similar duration (911 days). While specific per-unit costs are not available, the total award amount suggests a significant investment in network infrastructure. Generally, large-scale federal IT infrastructure contracts can vary widely based on scope, geographic coverage, and specific technologies deployed. Given the 'Full and Open Competition' designation, it implies an effort to solicit competitive bids. However, with only one bid received, a direct price comparison is challenging. A thorough analysis would involve examining contracts with similar NAICS codes and award values, adjusting for inflation and specific service level agreements, to determine if Pragmatics, LLC's pricing was advantageous for the government.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was contractor performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, federal contracts of this magnitude would include clauses defining expected performance standards, such as network uptime, response times for service outages, or installation timelines. Contractor performance is usually monitored by the Contracting Officer's Representative (COR) or the Contracting Officer (CO) through regular reporting, site visits, and performance evaluations. Without access to the contract's statement of work or performance reports, it is impossible to assess how Pragmatics, LLC's performance was measured or whether it met the government's requirements. This lack of transparency regarding performance metrics limits a full evaluation of the contract's success.

What is the track record of Pragmatics, LLC in delivering similar IT infrastructure services to the federal government?

Pragmatics, LLC has a history of receiving federal contracts, primarily within the IT and professional services domains. Analyzing their broader contract portfolio reveals numerous awards across various agencies, including the Department of Defense. Their track record often includes support services, software development, and IT infrastructure projects. For contracts similar to this one, focusing on wired telecommunications or network infrastructure, a review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary to gauge their reliability, quality of service, and adherence to schedules and budgets. Without specific CPARS data for this contract or closely related ones, assessing their specific track record on this type of service remains general.

How does the total spending on wired telecommunications carriers by the Department of the Army compare to other branches or agencies over the contract period?

The provided data focuses solely on one contract awarded by the Department of the Army. To compare spending on wired telecommunications carriers across different branches or agencies, a broader analysis of federal procurement data (e.g., from FPDS or USASpending.gov) would be required. This would involve aggregating spending by NAICS code 517110 (Wired Telecommunications Carriers) and filtering by agency (e.g., Department of the Navy, Department of the Air Force, other DoD components, or civilian agencies) for the relevant contract period (2018-2021). Such an analysis would reveal relative investment levels in telecommunications infrastructure and potentially highlight differences in procurement strategies or needs across the federal government.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $41,047,825

Exercised Options: $41,047,825

Current Obligation: $41,047,825

Actual Outlays: $19,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ07D0002

IDV Type: IDC

Timeline