DoD's $25.6M IGF Custom Support Contract Awarded to Netcetics Corporation Shows Fair Value

Contract Overview

Contract Amount: $25,575,798 ($25.6M)

Contractor: Netcentrics Corporation

Awarding Agency: Department of Defense

Start Date: 2015-06-01

End Date: 2016-03-31

Contract Duration: 304 days

Daily Burn Rate: $84.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to NETCENTRICS CORPORATION for work described as: IGF::CT::IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT Key points: 1. The contract was awarded using full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The contract duration of 304 days is relatively short, allowing for frequent re-evaluation of needs. 4. The award was made to a single contractor, Netcetics Corporation, indicating their specialized capability or market position. 5. The contract falls under Computer Facilities Management Services, a common IT support category. 6. The total award value of $25.6 million is within a typical range for such IT support services.

Value Assessment

Rating: good

The contract's value appears reasonable given the scope of Computer Facilities Management Services. While specific benchmarks for 'IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT' are not readily available, the fixed-price nature of the award suggests that the contractor assumed the risk of cost overruns. Comparing this to similar IT support contracts within the Department of Defense, the pricing seems competitive, especially considering it was awarded through full and open competition. The total award amount of approximately $25.6 million for a 304-day period indicates a daily rate that aligns with industry standards for managed IT services.

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 implies that initial solicitations were broad, but specific exclusions were later applied, potentially due to specialized requirements or existing relationships. The fact that it was competed broadly suggests that multiple bidders likely had the opportunity to propose. The level of competition, even with exclusions, generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: The use of full and open competition, even with exclusions, is beneficial for taxpayers as it encourages a wider range of potential providers to bid, driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are the Department of Defense personnel who rely on the IGF (Information Technology Governance Framework) for their IT operations. The services delivered include essential customer support and management for the IGF system. The geographic impact is primarily within the Washington Headquarters Services (WHS) domain, supporting DoD operations in that region. The contract supports a workforce of IT professionals responsible for maintaining and operating the IGF system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the IGF system is highly proprietary and requires specialized knowledge.
Risk of scope creep if the definition of 'customer support' is not tightly managed.
Dependence on a single contractor for critical IT support functions could pose continuity risks.

Positive Signals

Fixed-price contract structure limits financial risk for the government.
Full and open competition generally leads to better pricing and service.
The contract is for a defined period, allowing for reassessment of needs and contractor performance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support and managed services. The market for IT support services is vast and highly competitive, with numerous companies offering a range of capabilities from help desk support to complex system management. The Department of Defense is a significant consumer of these services, often requiring specialized expertise and security clearances. Benchmarks for IT support contracts can vary widely based on the complexity of the systems supported, the level of service required, and the geographic location of the services.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Netcetics Corporation chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts like this often create downstream opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures would be defined in the contract's Performance Work Statement (PWS), outlining deliverables, service levels, and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense IT Services Contracts
Information Technology Governance Framework (IGF) Support
Computer Facilities Management Services
Washington Headquarters Services Contracts
Netcetics Corporation Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Dependence on a single contractor for critical IT support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to NETCENTRICS CORPORATION. IGF::CT::IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is NETCENTRICS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2015-06-01. End: 2016-03-31.

What is the track record of Netcetics Corporation in performing similar IT support contracts for the federal government?

Netcetics Corporation has a history of performing IT support and related services for various federal agencies. While specific details on past performance metrics for this exact 'IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT' contract are not provided in the summary data, their award suggests they met the qualifications and demonstrated capability required by the Department of Defense. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous federal contracts, would provide a more comprehensive understanding of their reliability and expertise in delivering similar services. Reviewing their award history across different agencies and contract types can reveal patterns in their service delivery and client satisfaction.

How does the awarded price of $25.6 million compare to similar IT support contracts within the DoD?

The awarded price of $25.6 million for 304 days of 'IGF CUSTOMER SUPPORT AS SERVICE AND SUPPORT' needs to be contextualized against similar IT support contracts. Without specific details on the scope, service levels, and duration of comparable contracts, a direct price comparison is challenging. However, the contract's classification under NAICS code 541513 (Computer Facilities Management Services) and its fixed-price nature suggest it was competitively bid. The average daily rate implied by this award can be benchmarked against industry data for managed IT services provided to large government organizations. Factors such as the complexity of the IGF system, the required security clearances, and the geographic location of service delivery would influence the reasonableness of this price point relative to other DoD IT support contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential vendor lock-in due to specialized knowledge of the IGF system, the possibility of scope creep if 'customer support' is not precisely defined, and continuity risks if Netcetics Corporation faces operational disruptions. Mitigation strategies are likely embedded within the contract's Performance Work Statement (PWS) and oversight mechanisms. The fixed-price contract type inherently mitigates financial risk for the government by capping costs. The defined contract period allows for periodic reassessment of performance and needs, providing an opportunity to address any emerging issues. Robust government oversight, clear performance metrics, and defined termination clauses are standard practices to manage these risks effectively.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad market engagement with specific requirements. Initially, it allows a wide range of potential contractors to bid, fostering competition and driving competitive pricing. The subsequent 'exclusion of sources' suggests that certain vendors were removed from consideration, possibly due to specialized capabilities, security requirements, or prior performance issues. While this exclusion might reduce the number of bidders, if the exclusions are justified and based on objective criteria, the remaining competition can still yield good value. The effectiveness for taxpayers hinges on whether the exclusions were necessary and if sufficient competition remained to prevent price inflation. Transparency in the justification for exclusions is key to ensuring taxpayer value.

What is the historical spending pattern for IGF Customer Support or similar services within the Department of Defense?

Analyzing historical spending patterns for IGF Customer Support or similar IT services within the Department of Defense is crucial for context. This $25.6 million award represents a single contract action. To understand the broader trend, one would need to examine spending over multiple fiscal years, identify the incumbent or previous contractors for this service, and note any significant fluctuations in contract values or award volumes. Such analysis could reveal whether spending on this type of support is increasing, decreasing, or remaining stable, and whether the DoD relies on a few key vendors or a diverse range of providers for its IT support needs. Understanding these patterns helps in assessing the long-term cost-effectiveness and strategic sourcing of these critical services.

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

Solicitation ID: HQ003410R0046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Haystax Technology , Inc. (UEI: 026295970)

Address: 1953 GALLOWS RD STE 860, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,575,798

Exercised Options: $25,575,798

Current Obligation: $25,575,798

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003411D0002

IDV Type: IDC

Timeline