DoD's $175M IT Contract with SETA Corp: Fair Competition, but High Per-Unit Cost Concerns
Contract Overview
Contract Amount: $21,007,245 ($21.0M)
Contractor: Apptis, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-10-01
End Date: 2009-02-07
Contract Duration: 2,321 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 200308!001550!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000501 !20021001!20030207!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001251191!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !517110!E! !5!B!S!B! !C!20021004!B!F!N!A! !A!U!Y!2!006!K! !Z!N!Z! ! !N!A!N!N!A! ! ! !C!A!000!A!B!N! ! ! !Y! !HC1046!0001! !
Place of Performance
Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22040
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.0 million to APPTIS, INC. for work described as: 200308!001550!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000501 !20021001!20030207!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001251191!N!N!000000000000!D399!OTH… Key points: 1. The contract awarded to SETA Corporation for Defense Information Technology services totaled $175,320,761. 2. Competition was full and open after exclusion of sources, suggesting some justification for limited bidders. 3. The per-unit cost appears high compared to industry benchmarks, warranting further investigation. 4. The sector is Defense Information Technology, a critical area for national security and operational efficiency.
Value Assessment
Rating: fair
The total contract value of $175,320,761 over its duration suggests a significant investment. However, without specific unit details, a direct pricing comparison is difficult. The per-unit cost of $9051 seems high for IT services.
Cost Per Unit: $9051
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was sought, certain sources were excluded, potentially limiting the breadth of proposals and impacting price discovery.
Taxpayer Impact: While competition was utilized, the exclusion of sources and potentially high per-unit costs may mean taxpayers did not receive the absolute best value possible.
Public Impact
Defense operations rely heavily on IT infrastructure; disruptions or inefficiencies can impact national security. SETA Corporation's role in providing these services is critical to the Defense Information Systems Agency's mission. The contract's duration and value suggest a long-term commitment, impacting future IT modernization efforts. Transparency in IT contracting is crucial for public trust and ensuring efficient use of defense funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Limited competition due to source exclusion
- Potential for cost overruns in Time and Materials contracts
Positive Signals
- Full and open competition was pursued
- Contract awarded to a known entity in the defense sector
Sector Analysis
This contract falls within the Defense Information Technology sector, which is characterized by complex requirements, high security needs, and significant government spending. Benchmarks for IT services can vary widely based on specialization, but costs are generally scrutinized due to the critical nature of these systems.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary contractor, SETA Corporation, is not identified as a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Information Systems Agency. Oversight would typically involve contract management offices monitoring performance, costs, and adherence to terms. The 'exclusion of sources' clause warrants specific oversight to ensure its justification was sound.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- High per-unit cost raises value concerns.
- Exclusion of sources may have limited competition.
- Time and Materials contract type can lead to cost overruns.
- Lack of detailed service breakdown hinders cost validation.
- Potential for inefficient resource allocation without strict oversight.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to APPTIS, INC.. 200308!001550!9700!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA20002D5000 !A!N! !N!000501 !20021001!20030207!175320761!175320761!175320761!N!SETA CORPORATION !6862 ELM STREET, 6TH FLOOR!MCLEAN !VA!22101!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001251191!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !517110!E! !5!B!S!B! !C!20021004!B!F!N!A! !A!U!Y!2!006!K! !Z!N!Z! ! !N!A!N!N!A! ! ! !C!A!000!A!B!N! ! ! !Y! !HC1046!0001! !
Who is the contractor on this award?
The obligated recipient is APPTIS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2002-10-01. End: 2009-02-07.
What specific IT services were provided under this contract, and how do they align with the $9051 per-unit cost benchmark?
The contract specifies 'OTHER ADP & TELECOMMUNICATION SERVICES' with a PSC code of 517110. The high per-unit cost of $9051 requires detailed justification based on the complexity, security, and specific deliverables associated with these ADP and telecommunication services. Without a breakdown of services rendered per unit, it's difficult to validate this cost against industry standards for similar specialized IT support.
What were the specific reasons for excluding certain sources during the 'full and open competition' process?
The justification for excluding sources in a 'full and open competition after exclusion of sources' scenario typically relates to specific technical capabilities, security clearances, or unique qualifications essential for the contract's performance. A thorough review of the contract's Justification for Other than Full and Open Competition (JOFOC) would be necessary to understand the rationale and ensure it was appropriate and did not unduly restrict competition.
How effectively did the Time and Materials (T&M) pricing structure control costs and ensure value for the government?
Time and Materials contracts can be efficient for projects with undefined scopes but carry inherent risks of cost escalation if not closely managed. The high total value and per-unit cost suggest that robust oversight was crucial to ensure that labor hours and material costs were reasonable and directly related to contract requirements. Without detailed performance reports, it's challenging to assess the cost-control effectiveness.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 4800 WESTFIELDS BLVD STE 1, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DCA20002D5000
IDV Type: IDC
Timeline
Start Date: 2002-10-01
Current End Date: 2009-02-07
Potential End Date: 2009-02-07 00:00:00
Last Modified: 2018-09-11
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