DoD's $22.4M Managed Voice/SIPRNet Contract Awarded to A&T Systems Raises Competition Concerns
Contract Overview
Contract Amount: $22,398,491 ($22.4M)
Contractor: A & T Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-29
End Date: 2012-07-31
Contract Duration: 306 days
Daily Burn Rate: $73.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MANAGED VOICE COMMUNICATIONS/SIPRNET
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $22.4 million to A & T SYSTEMS, INC. for work described as: MANAGED VOICE COMMUNICATIONS/SIPRNET Key points: 1. Contract awarded for Managed Voice Communications/SIPRNet services. 2. Significant value of $22.4 million. 3. A&T Systems, Inc. is the sole awardee. 4. Contract falls under Wired Telecommunications Carriers sector. 5. Awarded by the Department of the Army.
Value Assessment
Rating: questionable
The contract value of $22.4 million for managed voice communications is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED,' indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $22.4 million contract means taxpayers may have overpaid due to the lack of market pressure on pricing.
Public Impact
Taxpayers may be paying a premium for voice communication services due to the sole-source award. Lack of competition could stifle innovation in telecommunications services for the Department of the Army. Ensuring the necessity and justification for a sole-source award is crucial for accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential service for DoD operations
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is critical for government operations. Spending benchmarks for managed voice services can vary widely based on scope and security requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny to ensure proper justification and adherence to procurement regulations. Oversight is needed to confirm the necessity of a sole-source award.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs.
- Limited transparency in price discovery.
- Requires strong justification for sole-source status.
Tags
wired-telecommunications-carriers, department-of-defense, nc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.4 million to A & T SYSTEMS, INC.. MANAGED VOICE COMMUNICATIONS/SIPRNET
Who is the contractor on this award?
The obligated recipient is A & T SYSTEMS, 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 $22.4 million.
What is the period of performance?
Start: 2011-09-29. End: 2012-07-31.
What was the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without the specific documentation, it's impossible to determine the exact reason. However, for a contract of this size and duration, a thorough competitive process is generally expected unless exceptional circumstances apply.
How was the price determined if the contract was not competed?
In the absence of competition, pricing is often determined through cost-plus arrangements, historical pricing, or by referencing established government price lists or benchmarks. However, without competitive bids, there's a higher risk that the negotiated price may not be the most cost-effective option available in the market.
What are the potential risks associated with a sole-source award for managed voice communications?
The primary risks include inflated costs due to the lack of competitive pressure, potential for vendor lock-in, and reduced incentive for the vendor to innovate or provide superior service. There's also a risk that the government might not be getting the best available technology or pricing compared to what a competitive market could offer.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9124711R0025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12200 TECH RD STE 100, SILVER SPRING, MD, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,012,315
Exercised Options: $24,012,315
Current Obligation: $22,398,491
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-29
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2014-05-29
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