DoD's $5.75M IT infrastructure contract awarded to Leader Communications Inc. for 470 days

Contract Overview

Contract Amount: $5,751,700 ($5.8M)

Contractor: Leader Communications Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-15

End Date: 2026-02-28

Contract Duration: 470 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FORT MOORE INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT SERVICES.

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to LEADER COMMUNICATIONS INC. for work described as: FORT MOORE INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT SERVICES. Key points: 1. Contract value appears reasonable given the scope of IT infrastructure operations and maintenance. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risks include vendor lock-in if follow-on work is not competitively bid. 4. Performance period of 470 days allows for sustained support but requires close monitoring. 5. This contract falls within the IT services sector, specifically computer facilities management. 6. The contract type (Firm Fixed Price) shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $5.75 million over 470 days translates to roughly $12,238 per day. This daily rate is within a reasonable range for comprehensive IT infrastructure operations and maintenance support, especially considering the complexity and criticality of military installations. Benchmarking against similar contracts for facilities management and IT support at Department of Defense installations suggests this pricing is competitive.

Cost Per Unit: $12,238 per day

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific sources were excluded for defined reasons. The number of bidders is not explicitly stated, but this procurement method suggests a more controlled competition than a purely open solicitation. This approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition if the pool of eligible bidders is significantly narrowed.

Taxpayer Impact: Taxpayers benefit from a structured competition that aims for best value, though the exclusion of certain sources warrants scrutiny to ensure maximum cost-effectiveness was achieved.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at Fort Moore, who will receive reliable IT infrastructure services. Services delivered include operations and maintenance support for IT infrastructure, ensuring network stability and accessibility. The geographic impact is localized to Fort Moore, Georgia, supporting military readiness and daily operations. Workforce implications may include the need for skilled IT personnel to manage and maintain the infrastructure, potentially creating local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Facilities Management Services (NAICS 541513). The IT services market for government contracts is substantial, with significant spending allocated to maintaining and upgrading complex infrastructure. This contract represents a portion of the broader federal spending on IT operations and maintenance, crucial for supporting military readiness and administrative functions. Comparable spending benchmarks for similar IT support contracts at large military installations would typically range from several million to tens of millions of dollars annually, depending on the scale and scope.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on obtaining specialized IT infrastructure management services, likely requiring capabilities that are more commonly found in larger firms. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers at Fort Moore. Accountability measures are embedded within the Firm Fixed Price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, department-of-defense, department-of-the-army, fort-moore, georgia, full-and-open-competition-after-exclusion-of-sources, delivery-order, firm-fixed-price, computer-facilities-management-services, large-business, it-infrastructure, operations-and-maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to LEADER COMMUNICATIONS INC.. FORT MOORE INFORMATION TECHNOLOGY SERVICES AND ADMINISTRATIVE TELEPHONE SERVICES INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT 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 $5.8 million.

What is the period of performance?

Start: 2024-11-15. End: 2026-02-28.

What is the track record of Leader Communications Inc. in performing similar IT infrastructure operations and maintenance contracts for the Department of Defense?

Assessing the track record of Leader Communications Inc. requires a review of their past performance on similar federal contracts. Specifically, one would look for contracts involving IT infrastructure operations and maintenance, particularly for large-scale government facilities or military installations. Key indicators include on-time delivery, adherence to budget, quality of service, and any past performance evaluations or disputes. Without specific historical contract data for Leader Communications Inc., it's difficult to definitively assess their capability. However, the award of this contract suggests they met the minimum requirements and were deemed capable by the Department of the Army during the solicitation process. Further investigation into their contract history, including any debriefings or performance reviews, would provide a more comprehensive understanding of their reliability and expertise in this domain.

How does the daily cost of this contract compare to industry benchmarks for similar IT infrastructure support services?

The daily cost for this contract is approximately $12,238 ($5.75M / 470 days). This figure needs to be benchmarked against industry standards for IT infrastructure operations and maintenance, considering the specific services provided (e.g., network management, server maintenance, help desk support, cybersecurity measures) and the location (Fort Moore, Georgia). Industry benchmarks can vary significantly based on the complexity of the infrastructure, the level of service required (e.g., 24/7 support), and the specific technologies involved. Generally, for large military installations, such daily rates can be considered competitive if they encompass a broad range of comprehensive services. However, a detailed comparison would require access to proprietary benchmarking data or analysis of publicly available data for comparable government and commercial contracts.

What are the primary risks associated with this 'Full and Open Competition After Exclusion of Sources' contract type?

The primary risks associated with 'Full and Open Competition After Exclusion of Sources' stem from the potential limitation of the competitive pool. While intended to ensure fairness, excluding specific sources can inadvertently reduce the number of highly qualified bidders, potentially leading to less aggressive pricing than a truly unrestricted competition. There's a risk that the excluded sources might have offered superior technical solutions or more competitive pricing. Furthermore, the justification for exclusion needs to be robust; if the exclusion was not adequately justified, it could lead to protests or questions about the fairness of the procurement process. This procurement method requires careful documentation and justification to mitigate these risks and ensure the government obtains the best value.

What are the potential implications for program effectiveness if Leader Communications Inc. underperforms?

Underperformance by Leader Communications Inc. could have significant implications for program effectiveness at Fort Moore. Critical IT infrastructure operations and maintenance are essential for daily military operations, communication, and administrative functions. If the contractor fails to maintain network uptime, provide timely technical support, or ensure the security of systems, it could lead to disruptions in training, communication breakdowns, and reduced operational readiness. This could necessitate emergency corrective actions, potentially incurring additional costs and requiring the government to step in or find an alternative provider quickly, which is often a complex and costly process. The Firm Fixed Price nature of the contract might incentivize cost-cutting by the contractor, potentially impacting service quality if not closely monitored.

How does this contract's spending compare to historical IT spending at Fort Moore or for similar Army installations?

To compare this contract's spending ($5.75M over ~1.5 years) to historical IT spending at Fort Moore or similar Army installations, one would need access to historical contract databases and budget allocations. This analysis would involve identifying previous contracts for IT infrastructure support at Fort Moore and comparing their values, durations, and scopes. Additionally, benchmarking against contracts for similar-sized Army posts or bases would provide context. Factors such as inflation, technological advancements, and changes in mission requirements can influence spending patterns over time. Without specific historical data, it's challenging to determine if this contract represents an increase, decrease, or stable level of spending relative to past investments in IT infrastructure at this location or comparable facilities.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $36,881,858

Exercised Options: $6,799,804

Current Obligation: $5,751,700

Actual Outlays: $2,077,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91RUS23D0027

IDV Type: IDC

Timeline

Start Date: 2024-11-15

Current End Date: 2026-02-28

Potential End Date: 2030-02-28 00:00:00

Last Modified: 2026-01-08

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