DoD's $21M IT Services Contract with Planned Systems International Inc. Shows Mixed Value and Competition

Contract Overview

Contract Amount: $21,335,219 ($21.3M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Defense

Start Date: 2007-08-31

End Date: 2012-01-14

Contract Duration: 1,597 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TAS::21 2020::TAS BASE PERIOD (3 MONTHS)

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21044

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: TAS::21 2020::TAS BASE PERIOD (3 MONTHS) Key points: 1. The contract's value proposition appears fair, with a per-unit cost benchmarked against similar IT services contracts. 2. Competition was robust, indicating potential for price discovery and taxpayer savings. 3. Risk indicators are moderate, with a focus on performance monitoring and adherence to contract terms. 4. The contract's duration and phased delivery suggest a long-term need for these IT services. 5. This contract positions Planned Systems International Inc. as a key IT service provider within the Defense sector.

Value Assessment

Rating: fair

The total award amount of $21.3 million over approximately 1597 days suggests a moderate investment in IT services. Benchmarking against similar contracts for 'Other Computer Related Services' indicates that the pricing is within an acceptable range, though not exceptionally low. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost overruns, but the fixed fee component provides a degree of cost certainty for the government. Value for money is assessed as fair, considering the duration and scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bidders vying for the opportunity. The presence of multiple bidders suggests a healthy competitive environment, which typically leads to more favorable pricing and better service offerings for the government. The agency's ability to attract four bids indicates that the contract requirements were well-defined and accessible to a broad range of qualified contractors.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price than a sole-source or limited competition award, potentially saving taxpayer dollars. A wider pool of bidders generally increases the likelihood of securing services at a price reflective of market value.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure and support services. Services delivered include a range of computer-related support, crucial for operational efficiency. The contract's impact is primarily within the Defense sector's operational framework. Workforce implications are tied to the IT professionals employed by Planned Systems International Inc. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely managed.
The long contract duration (over 4 years) requires sustained oversight to ensure continued value.
Potential for scope creep in IT services contracts necessitates clear performance metrics and change control processes.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Multiple bidders (4) suggest a healthy market response and potential for competitive pricing.
The contract is for essential IT services, supporting critical defense functions.

Sector Analysis

The Information Technology (IT) sector is a critical component of government operations, with significant spending allocated to software development, hardware, and related services. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide array of IT support functions. The market for these services is highly competitive, with numerous large and small businesses offering specialized expertise. Government spending in this area is substantial, driven by the need for modernization, cybersecurity, and operational efficiency across all agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to a large business suggests that the primary focus was on securing specialized IT services, potentially overlooking opportunities to engage the small business sector. Further analysis would be needed to determine if small businesses were indirectly involved as subcontractors or if there were missed opportunities for set-asides.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency is facilitated through contract award databases, but detailed performance reports and Inspector General involvement would provide a more comprehensive view of accountability.

Related Government Programs

IT Services Contracts
Defense IT Modernization
Computer Systems Design Services
Information Technology Professional Services

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of scope creep in broad IT services category
Need for sustained oversight due to long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to PLANNED SYSTEMS INTERNATIONAL INC. TAS::21 2020::TAS BASE PERIOD (3 MONTHS)

Who is the contractor on this award?

The obligated recipient is PLANNED SYSTEMS INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2007-08-31. End: 2012-01-14.

What is the track record of Planned Systems International Inc. with the Department of Defense?

Planned Systems International Inc. (PSI) has a significant history of contracting with the Department of Defense (DoD). Reviewing historical contract data reveals multiple awards across various IT service categories, indicating a sustained relationship. PSI has been involved in providing a range of services, from software development to IT support and systems integration. While specific performance metrics for individual contracts are not detailed here, the continued awarding of contracts suggests a generally satisfactory performance history. However, a deeper dive into past performance reviews, any past disputes, or contract terminations would be necessary for a comprehensive assessment of their track record.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. While this structure is often used for research and development or when the scope is not well-defined, it carries inherent risks for value for money. The government bears the risk of cost overruns, as the contractor has less incentive to control costs once the fee is fixed. To ensure value, rigorous oversight is crucial to scrutinize allowable costs and ensure the fixed fee accurately reflects the effort and risk involved. Without strong oversight, CPFF contracts can be more expensive than fixed-price alternatives.

What are the potential risks associated with the 'Other Computer Related Services' category?

The 'Other Computer Related Services' (NAICS 541519) category is broad and can encompass a wide range of IT functions, from IT consulting and system integration to data processing and disaster recovery. The primary risk associated with this broad classification is the potential for scope creep and unclear deliverables if the contract statement of work is not precisely defined. Contractors may interpret requirements differently, leading to disputes or services that do not fully align with the agency's needs. Additionally, rapid technological changes in the IT sector mean that services defined today might become obsolete quickly, posing a risk of the contract not keeping pace with evolving requirements.

How does this contract's duration compare to typical IT service contracts within the DoD?

This contract has a duration of approximately 1597 days, which translates to roughly 4.37 years, including the base period and potential extensions. This duration is fairly typical for large IT service contracts within the Department of Defense, especially those involving ongoing support, maintenance, or system development. Longer-term contracts allow for greater contractor investment in understanding the agency's complex systems and needs, potentially leading to more stable and integrated service delivery. However, such long durations also necessitate robust performance management and periodic reviews to ensure the services remain relevant and cost-effective throughout the contract's life.

What is the significance of the contract being awarded in 2007 and ending in 2012?

The award date of 2007 and an end date of 2012 place this contract firmly in the pre-cloud computing era for many government IT initiatives. This timeframe suggests the contract likely focused on traditional IT infrastructure, on-premises software solutions, and established service models. The services procured would have been critical for DoD operations during that period, potentially including system maintenance, legacy system support, and initial stages of IT modernization efforts prevalent at the time. Understanding this historical context is important for evaluating the relevance and cost-effectiveness of the services procured compared to current IT solutions and market prices.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKWY STE 200, COLUMBIA, MD, 21044

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $21,956,816

Exercised Options: $21,695,259

Current Obligation: $21,335,219

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0024

IDV Type: IDC

Timeline