DoD's $63.7M Netcents Contract for Computer Facilities Management Services: A 5-Year Delivery Order
Contract Overview
Contract Amount: $63,756,436 ($63.8M)
Contractor: Netcentrics Corporation
Awarding Agency: Department of Defense
Start Date: 2011-04-06
End Date: 2017-09-30
Contract Duration: 2,369 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GUARANTEED MINIMUM
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $63.8 million to NETCENTRICS CORPORATION for work described as: GUARANTEED MINIMUM Key points: 1. The contract awarded to Netcents Corporation for computer facilities management services represents a significant investment by the Department of Defense. 2. Competition was conducted under a 'full and open competition after exclusion of sources' clause, suggesting a specific justification for limiting initial bidders. 3. The firm fixed-price contract type aims to control costs, but the duration and potential for modifications warrant scrutiny. 4. The sector is IT services, specifically computer facilities management, a critical area for government operations.
Value Assessment
Rating: fair
The contract's value of $63.7 million over approximately five years needs comparison against similar IT facilities management contracts to assess value. Without specific benchmarks for this service type and duration, it's difficult to definitively state if the pricing is excellent or concerning.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'full and open competition after exclusion of sources' indicates that while competition was sought, it was not entirely unrestricted from the outset. This method can impact price discovery by potentially limiting the pool of qualified bidders, which could lead to higher prices than a truly open competition.
Taxpayer Impact: The impact on taxpayers is moderate, as the contract value is substantial, but the competitive process, even if limited, aims to secure a reasonable price for essential services.
Public Impact
Ensures continued operation of critical Department of Defense computer facilities. Supports national security infrastructure through reliable IT services. Potential for job creation within the IT services sector. Taxpayer funds are allocated for essential government technology infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited initial competition could impact price.
- Contract duration may exceed actual need.
- Lack of small business participation noted.
Positive Signals
- Firm fixed-price contract type.
- Essential service for DoD operations.
- Delivery order structure allows flexibility.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services. Spending in this area is crucial for government operations, and benchmarks vary widely based on the scope and complexity of the facilities managed.
Small Business Impact
The data indicates that small businesses were not a primary focus or participant in this contract, as the 'sb' field is false. Efforts to ensure small business participation in future IT service contracts should be considered to promote economic diversity and competition.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract vehicle, suggesting some level of pre-qualification and oversight. However, the specific oversight mechanisms for this delivery order, particularly regarding performance and cost control, are not detailed in the provided data.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for price inflation due to limited initial competition.
- Risk of scope creep or unmanaged changes impacting cost.
- Lack of explicit small business participation.
- Dependency on a single contractor for critical facilities.
Tags
computer-facilities-management-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.8 million to NETCENTRICS CORPORATION. GUARANTEED MINIMUM
Who is the contractor on this award?
The obligated recipient is NETCENTRICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $63.8 million.
What is the period of performance?
Start: 2011-04-06. End: 2017-09-30.
What was the specific justification for excluding sources in the initial competition phase?
The justification for excluding sources would typically relate to specific technical requirements, existing infrastructure compatibility, or prior performance that narrowed the field of potential contractors. Understanding this rationale is key to assessing whether the limited competition was appropriate or potentially restrictive, impacting the final price and service quality.
How does the actual performance and cost align with the firm fixed-price structure over the contract's duration?
While the firm fixed-price structure aims to cap costs, monitoring actual performance against the contract's scope is crucial. Deviations or change orders could increase the total cost. Analyzing performance metrics and any modifications would reveal if the initial pricing remained effective throughout the contract's life and if taxpayers received good value.
What is the long-term strategy for computer facilities management services beyond this contract?
Understanding the government's long-term strategy is vital for assessing the effectiveness of this contract. Was this a stop-gap measure, or part of a larger modernization plan? Evaluating its role within a broader IT infrastructure roadmap helps determine if the investment was strategically sound and contributed to future operational goals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ003410R0046
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Haystax Technology , Inc. (UEI: 026295970)
Address: 1953 GALLOWS RD STE 860, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,756,436
Exercised Options: $63,756,436
Current Obligation: $63,756,436
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003411D0002
IDV Type: IDC
Timeline
Start Date: 2011-04-06
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2020-07-29
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