DoD's $22.7M IT services contract with SMARTRONIX, LLC awarded under full and open competition

Contract Overview

Contract Amount: $22,701,911 ($22.7M)

Contractor: Smartronix, LLC

Awarding Agency: Department of Defense

Start Date: 2006-03-06

End Date: 2017-11-16

Contract Duration: 4,273 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to SMARTRONIX, LLC for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure management. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 11 years indicates a long-term need for these services. 4. SMARTRONIX, LLC has a substantial contract history with the federal government. 5. The 'Computer Facilities Management Services' NAICS code points to a focus on IT operations and support. 6. The contract type 'COST PLUS FIXED FEE' allows for cost reimbursement with a negotiated profit. 7. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the services provided and comparable market rates for 'Computer Facilities Management Services' over the 11-year period. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not tightly managed, but it also allows for flexibility in evolving IT environments. The absence of specific performance metrics or detailed cost breakdowns makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that it was competed suggests that the government sought competitive pricing and a range of solutions. However, the 'after exclusion of sources' phrasing might indicate specific requirements or pre-qualification steps that could have limited the pool of potential bidders.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for money.

Public Impact

The Department of the Navy benefits from managed computer facilities, ensuring operational continuity. This contract supports critical IT infrastructure, likely impacting military operations and administrative functions. The services are geographically focused on Maryland (MD), where the contractor is based. The contract likely supports a workforce of IT professionals employed by SMARTRONIX, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict budgetary controls if oversight is insufficient.
The long duration of the contract (over 11 years) may not reflect current market prices or technological advancements.
The 'after exclusion of sources' clause warrants further investigation to understand potential limitations on competition.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness over time.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contract is with an established entity, SMARTRONIX, LLC, suggesting a degree of reliability.
The specific NAICS code indicates a focus on a defined IT service area (Computer Facilities Management).
The contract was awarded as a Delivery Order, implying it aligns with a broader strategic IT acquisition framework.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of support functions. Contracts for computer facilities management are crucial for government agencies to maintain and operate their IT infrastructure efficiently. This $22.7 million contract falls within the broader category of professional services, specifically IT support. Comparable spending benchmarks would typically involve analyzing other contracts for similar services awarded by the Department of Defense or other federal agencies over similar timeframes.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by contract databases like FPDS, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any potential issues that arise during performance.

Related Government Programs

IT Infrastructure Management Services
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services
Information Technology Professional Services

Risk Flags

Long contract duration may not reflect current market value.
CPFF contract type requires diligent oversight to control costs.
Potential for limited competition due to 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to SMARTRONIX, LLC. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2006-03-06. End: 2017-11-16.

What specific computer facilities management services were included under this contract?

The provided data indicates the NAICS code is 541513 for Computer Facilities Management Services. This typically encompasses services such as operating and maintaining clients' computer systems, data processing services, and related support. Specific services could include server management, network administration, data center operations, hardware/software installation and maintenance, and technical support for end-users. However, the exact scope of work, deliverables, and service level agreements are not detailed in the provided summary data and would be found within the contract's Statement of Work (SOW).

How does the $22.7 million contract value compare to similar IT services contracts awarded by the DoD?

Comparing this $22.7 million contract value requires context regarding its duration and the specific services rendered. Awarded in 2006 and ending in 2017, it spanned over a decade. For IT services, especially facilities management, contract values can range significantly. Larger, more comprehensive IT support contracts for major commands or enterprise-wide solutions can reach hundreds of millions or even billions. Smaller, specialized support contracts might be in the low millions. This $22.7 million figure, spread over 11 years, suggests a moderately sized, long-term engagement for specific facility management needs rather than a large-scale enterprise IT overhaul.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

CPFF contracts carry inherent risks, particularly for long durations like this 11-year contract. The primary risk is cost overrun, as the contractor is reimbursed for allowable costs plus a fixed fee (profit). If costs escalate beyond initial projections due to inefficiencies, scope creep, or unforeseen challenges, the government bears the financial burden. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective oversight, robust cost accounting standards, and clear performance metrics are crucial to mitigate these risks. Without strong government management, CPFF contracts can be less cost-effective than fixed-price alternatives.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the bidding process?

This designation suggests a nuanced approach to competition. 'Full and open competition' means the solicitation was made available to all responsible sources. However, 'after exclusion of sources' implies that certain potential bidders were excluded, likely based on pre-defined criteria, capabilities, or specific requirements outlined in the solicitation. This could be due to security clearances, specialized technical expertise, or prior performance requirements. While aiming for broad competition, this exclusion clause means not every company that might theoretically offer the service could participate, potentially limiting the breadth of the competitive landscape compared to a purely 'full and open' competition without exclusions.

What is the historical spending trend for Computer Facilities Management Services (NAICS 541513) within the Department of the Navy?

Analyzing historical spending trends for NAICS 541513 within the Department of the Navy requires access to comprehensive federal procurement data over multiple fiscal years. Generally, spending in this category tends to be relatively stable, reflecting the ongoing need for IT infrastructure operations and maintenance. However, trends can be influenced by factors such as technological shifts (e.g., cloud adoption), budget allocations, and strategic decisions to insource or outsource IT functions. A detailed analysis would involve examining annual spending figures, the number of contracts awarded, and the average contract values to identify patterns, growth, or decline in this service area.

How did SMARTRONIX, LLC perform on this contract, and were there any performance issues?

The provided data does not include specific performance metrics, contractor performance evaluations (like CPARS), or details on any contract modifications or disputes. Therefore, it is impossible to assess SMARTRONIX, LLC's performance on this particular contract based solely on the given information. A thorough review would require accessing performance reports, contract history files, and any official records related to contract administration and quality assurance.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 22685 THREE NOTCH ROAD, CALIFORNIA, MD, 20619

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $30,738,274

Exercised Options: $29,069,393

Current Obligation: $22,701,911

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001404D0496

IDV Type: IDC

Timeline