DoD's Wyle Information Systems awarded $19.4M for IT services, with a 640-day duration

Contract Overview

Contract Amount: $19,436,411 ($19.4M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2007-04-01

End Date: 2008-12-31

Contract Duration: 640 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: PORTABLE DATA SEAT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to WYLE INFORMATION SYSTEMS, LLC for work described as: PORTABLE DATA SEAT Key points: 1. The contract's value appears reasonable given the scope of IT services required. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Award Fee) introduces performance-based incentives. 4. Performance context is limited without specific deliverables or performance metrics. 5. This contract falls within the IT services sector, specifically computer facilities management. 6. The award was made by DARPA, a high-tech research agency within the DoD.

Value Assessment

Rating: good

The contract value of $19.4 million for 640 days of IT services, including computer facilities management, seems within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for IT support services within the Department of Defense suggests that the overall cost is competitive. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, which can lead to better value if managed effectively. However, a more precise value assessment would require detailed knowledge of the specific services rendered and the associated labor categories and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government compared to sole-source or limited competition awards. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages innovation, and typically drives down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its research arm, DARPA, receiving essential IT support services. Services delivered include computer facilities management, crucial for the operation of research and development infrastructure. The geographic impact is likely concentrated around DARPA facilities, primarily in Virginia. Workforce implications include the employment of IT professionals by WYLE INFORMATION SYSTEMS, LLC to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess true value for money.
The duration of the contract (640 days) is substantial, requiring ongoing oversight.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
The contract includes award fees, incentivizing contractor performance.
WYLE INFORMATION SYSTEMS, LLC is a known entity in government contracting.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer facilities management. This sector is a critical component of government operations, supporting everything from administrative functions to advanced research and development. The market for IT services is vast and highly competitive, with numerous large and small businesses vying for federal contracts. Spending in this area is consistently high across various federal agencies, reflecting the increasing reliance on digital infrastructure and advanced computing capabilities. Comparable spending benchmarks for IT support services can vary significantly based on the complexity of the systems managed and the level of security required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, WYLE INFORMATION SYSTEMS, LLC, is likely a large business, and their internal subcontracting practices would determine any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and specifically the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Award Fee contract, there should be robust mechanisms in place to monitor costs, evaluate performance against award fee criteria, and ensure accountability. Transparency would be enhanced through regular reporting requirements and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Support Services
DARPA Research and Development Support
Computer Facilities Management Contracts
Cost Plus Award Fee Contracts

Risk Flags

Potential for cost overruns due to CPAF structure.
Subjectivity in award fee determination.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to WYLE INFORMATION SYSTEMS, LLC. PORTABLE DATA SEAT

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2007-04-01. End: 2008-12-31.

What is the track record of WYLE INFORMATION SYSTEMS, LLC with the Department of Defense, particularly in IT services?

WYLE INFORMATION SYSTEMS, LLC has a significant history of contracting with the Department of Defense across various service areas, including IT and research support. Their performance record with the DoD would typically be assessed through past performance evaluations included in future bid processes. While specific details of past performance on this particular contract are not provided, their continued awards suggest a generally satisfactory performance history. Agencies often maintain internal databases and utilize contractor performance assessment reporting tools (CPARS) to track contractor performance, which would inform future decisions regarding WYLE INFORMATION SYSTEMS, LLC.

How does the $19.4 million award compare to similar IT services contracts awarded by DARPA or the DoD?

The $19.4 million award for computer facilities management services over approximately two years (640 days) appears to be within a moderate range for federal IT contracts. However, a precise comparison requires detailed analysis of the scope of work, labor categories, geographic location, and specific technical requirements. DARPA contracts can sometimes be higher in value due to the specialized and cutting-edge nature of their research. Without specific benchmarks for comparable DARPA IT facilities management contracts, it's challenging to definitively state if this represents exceptional value. However, given the full and open competition, it suggests the price was deemed competitive by the agency.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract like this one?

The primary risks associated with a CPAF contract involve potential cost growth and the subjective nature of award fee determinations. While CPAF aims to incentivize performance by offering award fees based on meeting or exceeding certain criteria, there's a risk that the government may not effectively define or measure these criteria, leading to disputes or inflated costs. Contractors may also focus on achieving award fees rather than strictly controlling costs. Effective oversight, clear performance metrics, and robust negotiation of the fee structure are crucial to mitigate these risks and ensure the government receives good value.

How effective is 'full and open competition' in ensuring competitive pricing for IT services within the DoD?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services within the DoD. It allows all responsible sources to submit proposals, fostering a robust marketplace where multiple companies vie for the contract. This competition drives innovation, encourages efficiency, and typically leads to lower prices for the government compared to sole-source or limited competition scenarios. The presence of 4 bidders in this case indicates a reasonable level of competition, suggesting that the pricing achieved was likely influenced by market forces and the desire to win the contract.

What is the typical duration for IT services contracts of this nature, and how does this contract's duration compare?

The typical duration for IT services contracts can vary widely depending on the scope and complexity. However, contracts for facilities management and ongoing IT support often have base periods ranging from one to five years, with options for extensions. This contract's duration of 640 days (approximately 21 months) falls within the shorter end of typical multi-year IT support contracts. While not exceptionally long, it is substantial enough to require consistent oversight and performance management from the agency to ensure continued value delivery throughout its term.

What does the NAICS code 541513 signify in terms of the services provided under this contract?

The NAICS code 541513, 'Computer Facilities Management Services,' signifies that the primary services procured under this contract involve the management and operation of computer systems and/or data processing facilities on-site for the client. This typically includes activities such as operating and maintaining computer systems, network infrastructure, and related hardware and software. It can encompass services like system administration, network monitoring, data backup and recovery, and ensuring the overall availability and performance of the client's IT infrastructure. This code is specific to the operational aspects of IT facilities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001105R0001

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)

Address: 1651 OLD MEADOW RD, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,487,750

Exercised Options: $20,487,750

Current Obligation: $19,436,411

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001106D0001

IDV Type: IDC

Timeline