DoD's $218M ENCORE II IT contract awarded to Data Systems Analysts Inc. for R&D services

Contract Overview

Contract Amount: $217,895,000 ($217.9M)

Contractor: Data Systems Analysts Inc

Awarding Agency: Department of Defense

Start Date: 2015-02-26

End Date: 2019-08-26

Contract Duration: 1,642 days

Daily Burn Rate: $132.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ENCORE II IT SOLUTIONS - FFP

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $217.9 million to DATA SYSTEMS ANALYSTS INC for work described as: ENCORE II IT SOLUTIONS - FFP Key points: 1. Contract awarded for IT solutions, focusing on research and development in physical, engineering, and life sciences. 2. The contract was competed under 'full and open competition after exclusion of sources', indicating a specific procurement approach. 3. Performance period spans from February 2015 to August 2019, totaling over 4 years. 4. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 541712 suggests a focus on R&D services. 6. The contract was awarded as a Delivery Order under a larger IDIQ vehicle (ENCORE II).

Value Assessment

Rating: fair

The total contract value of approximately $218 million over 4 years averages to about $54.5 million annually. Benchmarking this against similar large-scale IT R&D contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the government has a defined scope and expects costs to be managed by the contractor. Further analysis would require comparing the specific deliverables and performance metrics against industry standards and other government R&D awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources'. This procurement method implies that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior arrangements. The number of bidders is not specified, but the 'full and open' designation generally suggests a competitive process aimed at achieving fair market prices.

Taxpayer Impact: This competitive approach aims to ensure that taxpayer funds are used efficiently by fostering a bidding environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring advanced IT research and development capabilities. Services delivered likely include scientific research, experimental development, and engineering services to support defense modernization. The geographic impact is centered around the contractor's location in New Jersey, but the ultimate impact is on national defense capabilities. Workforce implications include skilled researchers, engineers, and IT professionals employed by Data Systems Analysts Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' in the competition process.
The broad NAICS code for R&D makes it difficult to assess the precise nature and value of the services rendered.
No information provided on performance metrics or quality evaluations for the contractor.

Positive Signals

Awarded under a firm fixed-price contract, indicating cost certainty for the government.
The contract was competed, suggesting an effort to achieve competitive pricing.
The contract is part of the ENCORE II IDIQ vehicle, which is designed to streamline IT procurement for the DoD.

Sector Analysis

This contract falls within the IT and Research & Development sectors, specifically focusing on advanced technological solutions for defense applications. The market for defense IT R&D is substantial, driven by the need for continuous innovation to maintain technological superiority. Contracts like this are crucial for developing next-generation capabilities, from cybersecurity to advanced communication systems. Comparable spending benchmarks would typically be found within broader IT services or specialized engineering R&D categories within the federal budget.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Data Systems Analysts Inc., may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. As a delivery order under the ENCORE II IDIQ, oversight mechanisms are likely integrated into the broader contract management framework. Transparency is generally facilitated through contract award databases, but detailed performance reporting and Inspector General jurisdiction would depend on specific contract clauses and agency policies.

Related Government Programs

ENCORE II IDIQ Contract
Department of Defense IT Services
Research and Development Contracts
Information Technology Support Services

Risk Flags

Potential for scope creep in R&D projects.
Risk of technological obsolescence if R&D timelines are extended.
Contractor financial stability and performance risk.
Ambiguity in 'exclusion of sources' justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $217.9 million to DATA SYSTEMS ANALYSTS INC. ENCORE II IT SOLUTIONS - FFP

Who is the contractor on this award?

The obligated recipient is DATA SYSTEMS ANALYSTS 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 $217.9 million.

What is the period of performance?

Start: 2015-02-26. End: 2019-08-26.

What specific R&D projects or technological advancements did Data Systems Analysts Inc. deliver under this contract?

The provided data does not specify the exact R&D projects or technological advancements undertaken by Data Systems Analysts Inc. under the ENCORE II IT Solutions contract. The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is broad. Typical deliverables in this category could range from developing new algorithms for data analysis, engineering prototypes for communication systems, to conducting feasibility studies for advanced defense technologies. Without access to the contract's statement of work, task orders, or performance reports, a precise breakdown of deliverables is not possible. The $218 million value suggests significant scope, likely involving multiple complex research and development efforts over the contract's duration.

How does the $218 million contract value compare to other similar IT R&D contracts awarded by the DoD?

Comparing the $218 million value of this ENCORE II IT Solutions contract to other similar IT R&D contracts requires context regarding the specific nature of the R&D, the duration, and the scope of work. The Department of Defense awards numerous large contracts for IT and R&D services annually, with values often reaching hundreds of millions or even billions of dollars. This particular contract, averaging approximately $54.5 million per year, appears to be a substantial award, indicative of a significant, multi-faceted R&D effort. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes, service descriptions, and agency focus within the defense sector. However, in the realm of large-scale defense IT R&D, this value is within a common range for major programs.

What are the key risks associated with a firm fixed-price contract of this magnitude for R&D services?

A primary risk with a Firm Fixed-Price (FFP) contract of this magnitude for R&D services is the potential for the contractor to underperform or fail to deliver the expected technological advancements if the scope is not precisely defined or if unforeseen technical challenges arise. For the government, the risk is paying for research that does not yield the desired results or is technologically obsolete by the time it is delivered. For the contractor, the risk lies in cost overruns if the R&D proves more complex or expensive than anticipated, potentially leading to financial losses or a drive to cut corners on quality. Effective oversight and clear, achievable milestones are crucial to mitigate these risks.

What does 'full and open competition after exclusion of sources' imply for the procurement process and potential savings?

The term 'full and open competition after exclusion of sources' suggests a procurement process that initially aimed for broad competition but subsequently excluded certain potential offerors based on specific, justifiable criteria. This could be due to factors like prior performance, specific technical capabilities, or proprietary information requirements. While it aims for competition, the exclusion of sources might limit the number of bidders, potentially reducing the downward pressure on price compared to unrestricted full and open competition. The justification for exclusion must be documented and approved to ensure fairness and adherence to procurement regulations. Savings are expected through competition, but the extent may be influenced by the number of remaining eligible bidders.

What is the historical spending pattern for ENCORE II IT Solutions or similar contracts within the DoD?

The provided data pertains to a single contract award for ENCORE II IT Solutions. To understand historical spending patterns, one would need to examine the broader ENCORE II IDIQ contract vehicle, which likely encompasses numerous delivery orders to various contractors over its lifespan. ENCORE II was designed to provide a wide range of IT support services to the DoD. Historical spending under such IDIQ vehicles typically shows significant investment in IT modernization, cybersecurity, network infrastructure, and enterprise IT services. Analyzing past spending trends within ENCORE II or comparable large IT IDIQ contracts would reveal fluctuations based on defense priorities, technological shifts, and budget allocations over different fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 NESHAMINY INTERPLEX DR STE 209, FEASTERVILLE TREVOSE, PA, 19053

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $217,895,000

Exercised Options: $217,895,000

Current Obligation: $217,895,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2006

IDV Type: IDC

Timeline