DoD's $26.1M telecommunications contract with Leader Communications Inc. awarded under full and open competition
Contract Overview
Contract Amount: $26,135,543 ($26.1M)
Contractor: Leader Communications Inc.
Awarding Agency: Department of Defense
Start Date: 2021-01-06
End Date: 2025-03-31
Contract Duration: 1,545 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES
Place of Performance
Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to LEADER COMMUNICATIONS INC. for work described as: INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators are apparent from the provided data. 4. Performance context is limited without specific delivery metrics. 5. This contract falls within the broader IT and telecommunications sector. 6. The fixed-price contract type shifts performance risk to the contractor.
Value Assessment
Rating: good
The contract's total value of $26.1 million over approximately 1545 days (roughly 4.2 years) suggests an average annual spend of around $6.2 million. Without specific details on the services provided (e.g., number of lines, bandwidth, support levels), a direct per-unit cost comparison is difficult. However, the duration and the nature of telecommunications services for a large agency like the Department of the Army indicate this is likely within a fair market range for enterprise-level solutions. The firm fixed-price structure also provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation may have had some exclusions, the final award was made after a broad competitive process. The presence of 10 bidders (no) suggests a healthy level of competition for this telecommunications services contract. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers.
Taxpayer Impact: A competitive award process like this typically leads to better pricing for taxpayers by driving down costs through multiple offers. It also ensures that the government is not locked into a single provider, allowing for flexibility and potentially better service quality.
Public Impact
The Department of the Army benefits from reliable wired telecommunications services. This contract supports the operational communication needs of military personnel and administrative functions. The geographic impact is likely concentrated within the areas served by the Army facilities utilizing these services. The contract supports jobs within the telecommunications industry, both at the prime contractor and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess value for money beyond the pricing structure.
- The 'after exclusion of sources' clause warrants a closer look at the initial exclusion criteria to ensure no potential competitors were unduly barred.
- Long contract duration could lead to technology obsolescence if not managed proactively.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm fixed-price contract type provides budget certainty.
- Multiple bidders participated, suggesting market interest and competitive pressure.
- Contract duration aligns with typical telecommunications service lifecycles.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers industry (NAICS code 517110), a sector characterized by the provision of telecommunications services over wired networks. The market includes established providers and is often characterized by significant infrastructure investment. Federal spending in this area supports essential communication infrastructure for government operations. Comparable spending benchmarks would typically involve analyzing other large-scale telecommunications service contracts awarded to federal agencies, considering factors like service scope, user base, and geographic coverage.
Small Business Impact
The provided data indicates that small business participation was not a primary focus for this specific contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Leader Communications Inc., is likely a larger entity, and the contract may not have been structured to prioritize small business involvement. Further investigation into subcontracting plans would be needed to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services. Transparency is facilitated by the contract's public availability, allowing for analysis. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- General Services Administration (GSA) Schedule Contracts for Telecommunications
- Department of Defense Enterprise IT Services
- Wired Network Infrastructure Services
- Federal Communications Commission (FCC) Regulations
Risk Flags
- Potential for technology obsolescence over the contract's duration.
- Need for clarity on specific performance metrics and SLAs.
- Importance of reviewing initial source exclusion justifications.
Tags
information-technology, telecommunications, wired-telecommunications-carriers, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, delivery-order, large-contract, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to LEADER COMMUNICATIONS INC.. INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES
Who is the contractor on this award?
The obligated recipient is LEADER COMMUNICATIONS 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 $26.1 million.
What is the period of performance?
Start: 2021-01-06. End: 2025-03-31.
What specific telecommunications services are included under this contract, and what is the expected service level agreement (SLA)?
The provided data identifies the contract as covering 'INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES' under NAICS code 517110 (Wired Telecommunications Carriers). However, it does not detail the specific services, such as the number of phone lines, types of data services, bandwidth provisions, or associated Service Level Agreements (SLAs). Understanding these specifics is crucial for a comprehensive value assessment. SLAs typically define performance standards for uptime, latency, and support response times. Without this information, it's challenging to benchmark the quality of service against the price paid or compare it to other similar contracts that might have different service scopes or stricter performance requirements.
How does the per-unit cost of this contract compare to similar telecommunications contracts awarded by the Department of Defense or other federal agencies?
A direct per-unit cost comparison is difficult without granular data on the services rendered (e.g., cost per line, cost per Mbps). The total contract value of $26.1 million over approximately 1545 days averages to about $6.2 million annually. To benchmark effectively, one would need to identify comparable contracts for similar telecommunications services (e.g., enterprise voice, data circuits) awarded to agencies of similar size and complexity within the DoD or other federal branches. Factors like geographic scope, technology standards, and included support levels would need to be matched. Publicly available contract databases (like FPDS or SAM.gov) could be queried for similar awards to establish a range for average annual costs or specific service unit prices, which would then allow for a more precise value-for-money assessment.
What was the rationale behind the 'exclusion of sources' in the competition process, and were any potential bidders significantly impacted?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was ultimately broad, there was an initial phase where certain sources or types of sources were excluded. The specific rationale for these exclusions is not provided in the summary data. Common reasons for exclusion might include specific technical requirements, existing infrastructure compatibility, or prior performance issues with certain vendors. To fully assess the impact, one would need to review the original solicitation documents and any justifications for the exclusions. This would help determine if the exclusions were reasonable and necessary, or if they potentially limited competition unfairly, which could have implications for price discovery and taxpayer value.
What is the track record of Leader Communications Inc. in fulfilling federal contracts, particularly those of similar size and scope?
Information on Leader Communications Inc.'s track record is not detailed in the provided summary. A thorough analysis would require examining their past performance on federal contracts, including contract values, types of services provided, timeliness of delivery, and any documented performance issues or awards. Databases like the Contractor Performance Assessment Reporting System (CPARS) would be essential resources to gauge their reliability and effectiveness. Understanding their history with similar telecommunications or IT service contracts, especially with large agencies like the Department of the Army, would provide critical insights into their capability to successfully execute this $26.1 million award and manage associated risks.
How has federal spending on wired telecommunications carriers (NAICS 517110) trended over the past five years, and where does this contract fit within that trend?
Federal spending on wired telecommunications carriers (NAICS 517110) has generally seen fluctuations driven by technological shifts (e.g., move to cloud, wireless) and agency modernization efforts. While specific aggregate spending data for this NAICS code across the entire federal government isn't provided here, it's understood that agencies continue to rely on robust wired infrastructure for core operations. This $26.1 million contract with the Department of the Army represents a significant, but not extraordinary, investment within this category. Its duration (over 4 years) suggests a commitment to stable, long-term service provision rather than rapid, short-term needs. Understanding the broader spending trend would involve analyzing historical obligations data for NAICS 517110 across agencies to see if overall spending is increasing, decreasing, or stable, and how this specific contract's value aligns with typical award sizes.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91RUS13R0004
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6421 S AIR DEPOT BLVD STE A, OKLAHOMA CITY, OK, 73135
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $33,088,385
Exercised Options: $33,088,385
Current Obligation: $26,135,543
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91RUS15D0011
IDV Type: IDC
Timeline
Start Date: 2021-01-06
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-03-26
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