DoD's $32.8M IT contract with A & T Systems faces scrutiny over competition and value
Contract Overview
Contract Amount: $32,860,438 ($32.9M)
Contractor: A & T Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-11-09
End Date: 2022-06-08
Contract Duration: 2,037 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF CARLISLE BARRACKS IMCS III INFORMATION TECHNOLOGY (IT) SYSTEMS SPT
Place of Performance
Location: CARLISLE, CUMBERLAND County, PENNSYLVANIA, 17013
Plain-Language Summary
Department of Defense obligated $32.9 million to A & T SYSTEMS, INC. for work described as: IGF::OT::IGF CARLISLE BARRACKS IMCS III INFORMATION TECHNOLOGY (IT) SYSTEMS SPT Key points: 1. The contract value of $32.8M for IT systems support is significant. 2. Competition was limited, raising questions about price discovery. 3. Potential risks include overpayment and lack of market-driven pricing. 4. The IT sector is prone to rapid technological change, impacting long-term value.
Value Assessment
Rating: questionable
The contract's firm-fixed-price structure suggests an attempt at cost control. However, without robust competition, it's difficult to benchmark against similar IT support contracts to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a restricted bidding process. This limited competition likely hindered effective price discovery and may have resulted in a higher price than a fully open competition would yield.
Taxpayer Impact: The limited competition raises concerns about taxpayer dollars being spent efficiently, as the government may not have secured the best possible price.
Public Impact
Military base IT infrastructure relies on this contract for operational continuity. Service members and civilian personnel depend on reliable IT systems. The duration of the contract (2037) suggests a long-term commitment to this vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Firm fixed price contract type
- Specific IT systems support
Sector Analysis
This contract falls within the IT sector, specifically wired telecommunications carriers, supporting essential functions at Carlisle Barracks. Spending benchmarks in this area vary widely based on the scope of services, but significant investments are common for maintaining secure and operational IT infrastructure.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract type and award method warrant further oversight to ensure fair pricing and effective service delivery. Regular performance reviews and market research would be beneficial.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in price justification.
- Potential for vendor lock-in due to long duration.
- No clear indication of small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to A & T SYSTEMS, INC.. IGF::OT::IGF CARLISLE BARRACKS IMCS III INFORMATION TECHNOLOGY (IT) SYSTEMS SPT
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 $32.9 million.
What is the period of performance?
Start: 2016-11-09. End: 2022-06-08.
What specific IT systems are covered under this contract, and how does their criticality justify the limited competition award?
The contract covers IT systems support at Carlisle Barracks. While the specific systems aren't detailed, the 'na' code 517110 suggests wired telecommunications infrastructure. Criticality is implied by the need for continuous support, but the justification for excluding other sources needs clearer documentation to ensure the government wasn't deprived of potentially better offers or pricing.
How was the price determined to be fair and reasonable given the limited competition and exclusion of sources?
The determination of fair and reasonable pricing under limited competition often relies on historical pricing, data from similar contracts (if available), or certified cost and pricing data from the contractor. Without transparency into this process, it's difficult to assess if the government truly received competitive pricing or if the exclusion of sources led to an inflated cost.
What is the projected cost savings or benefit achieved by using A & T Systems compared to a fully open and competitive procurement?
It is not possible to determine projected cost savings or benefits without a comparative analysis against a fully open procurement. The current award structure, with limited competition, inherently suggests a potential trade-off between speed/simplicity and cost-effectiveness. A post-award analysis or a hypothetical 'what-if' scenario could attempt to quantify this, but it remains speculative.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91RUS13R0004
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12200 TECH RD STE 200, SILVER SPRING, MD, 20904
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: $35,336,775
Exercised Options: $35,225,530
Current Obligation: $32,860,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91RUS15D0004
IDV Type: IDC
Timeline
Start Date: 2016-11-09
Current End Date: 2022-06-08
Potential End Date: 2022-06-08 00:00:00
Last Modified: 2023-01-03
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