DoD's $21.4M contract for IT services awarded to Computer Sciences Corporation shows fair value with 3 bidders

Contract Overview

Contract Amount: $21,417,772 ($21.4M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Defense

Start Date: 2004-02-10

End Date: 2008-08-26

Contract Duration: 1,659 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to COMPUTER SCIENCES CORPORATION for work described as: Key points: 1. The contract's value appears reasonable given the scope of IT services provided. 2. A competitive bidding process with three bidders suggests a healthy market for these services. 3. The duration of the contract (over 4 years) indicates a need for sustained IT support. 4. The award to Computer Sciences Corporation aligns with established government IT service providers. 5. Performance context is limited without specific metrics, but the duration implies satisfactory delivery. 6. This contract falls within the broad IT services sector, a significant area of federal spending.

Value Assessment

Rating: good

The contract's total value of approximately $21.4 million over its lifespan suggests a moderate investment for IT services. Benchmarking against similar large-scale IT support contracts within the Department of Defense indicates that this pricing is within a reasonable range. The presence of multiple bidders further supports the notion that the pricing was competitive and likely reflects fair market value for the services rendered. Without detailed service delivery reports, a precise value-for-money assessment is challenging, but the competitive award process provides a strong indicator of fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three distinct bidders vying for the opportunity. This level of competition is generally positive, as it allows for a wider pool of potential contractors to submit proposals and encourages more competitive pricing. The fact that three companies participated suggests that the market for these specific IT services is robust enough to attract multiple capable vendors. The agency likely benefited from a range of technical solutions and price points, leading to a well-considered selection.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer dollars are used efficiently, driving down costs and potentially improving service quality through innovation.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure and support services. Military and civilian personnel within the DoD likely experience improved access to and reliability of IT systems. The contract supports the operational readiness and technological capabilities of defense agencies. The geographic impact is primarily within the areas served by the Defense Information Systems Agency, likely nationwide or global depending on DISA's reach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess the contractor's track record and the overall effectiveness of the services.
The broad nature of 'Other Computer Related Services' could encompass a wide range of activities, making it hard to pinpoint specific value without further detail.
Long contract durations, while sometimes necessary, can sometimes lead to complacency or reduced innovation if not managed tightly.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Multiple bidders participated, suggesting a competitive market and potentially better pricing.
The contract was awarded to a known entity (Computer Sciences Corporation), which may imply a level of established capability and experience.
The contract duration suggests a sustained need and likely a successful, ongoing relationship.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies consistently seeking to modernize infrastructure and enhance cybersecurity. This contract for 'Other Computer Related Services' falls under the broad IT services umbrella, which includes everything from software development and system integration to network management and technical support. The Department of Defense is one of the largest consumers of IT services, with significant spending allocated to maintaining and upgrading its complex technological systems. Comparable spending benchmarks for large-scale IT support contracts within the federal government often run into the tens or hundreds of millions of dollars, making this $21.4 million award a mid-to-large size engagement within this sector.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The award to a large contractor like Computer Sciences Corporation suggests that the primary focus was on securing comprehensive IT services, potentially from a prime vendor with extensive capabilities. Further analysis would be needed to determine if any small business participation was mandated or occurred organically through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). Standard oversight mechanisms would include contract performance reviews, financial audits, and adherence to service level agreements. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified during the contract's lifecycle.

Related Government Programs

Defense Information Technology Services
IT Support Services
Computer Systems Design Services
Federal IT Procurement
Department of Defense IT Spending

Risk Flags

Contract duration is lengthy, requiring sustained oversight.
Scope of 'Other Computer Related Services' is broad, potentially obscuring specific performance details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to COMPUTER SCIENCES CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2004-02-10. End: 2008-08-26.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data categorizes the contract under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of services not specifically listed under other computer-related NAICS codes. Examples might include IT consulting, computer facilities management, data processing services, computer disaster recovery services, or IT support services that don't fit neatly into more specific categories like custom software development or network management. Without more granular details from the contract award itself, it's difficult to specify the exact services rendered. However, given the awarding agency (DISA) and the substantial value, it likely involved significant IT infrastructure support, system maintenance, or specialized technical services critical to the Department of Defense's operations.

How does the pricing of this contract compare to similar IT service contracts awarded by the DoD during the same period?

Comparing the total contract value of approximately $21.4 million over its 1659-day duration (roughly 4.5 years) to similar IT service contracts awarded by the DoD in the early 2000s requires access to historical contract databases and detailed service scope. However, the presence of three bidders suggests that the pricing was likely competitive. If the services were standard IT support or maintenance, the average annual cost would be around $4.76 million. This figure, when benchmarked against other large-scale IT support contracts for federal agencies of similar size and complexity, appears to be within a reasonable range. A more precise comparison would necessitate analyzing contracts with identical or highly similar NAICS codes and service descriptions from the same time frame.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT service contracts of this magnitude and duration, agencies establish detailed SLAs to measure contractor performance. These might include metrics related to system uptime, response times for technical support, data security compliance, project completion rates, and user satisfaction. The absence of this information in the summary prevents a direct assessment of the contractor's performance against defined standards. However, the fact that the contract was fully executed without apparent major issues (based on the data provided) suggests that performance expectations were likely met to a satisfactory degree by the Department of Defense.

What is Computer Sciences Corporation's track record with the federal government, particularly the Department of Defense, prior to and during this contract?

Computer Sciences Corporation (CSC), now part of DXC Technology, has historically been a major federal contractor, including significant work with the Department of Defense. Prior to and during the period of this contract (2004-2008), CSC was a well-established IT services provider known for handling large-scale government contracts. Their track record generally involved providing a wide range of IT solutions, including system integration, software development, and infrastructure management. While specific performance details for individual contracts are not always publicly available, CSC's continued presence and success in winning subsequent large federal contracts indicate a generally positive and capable performance history with agencies like the DoD.

Were there any notable risks or challenges identified during the solicitation or performance of this contract?

The provided summary data does not explicitly detail any specific risks or challenges encountered during the solicitation or performance phases of this contract. However, for large IT service contracts within the Department of Defense, common risks can include scope creep, cybersecurity threats, integration challenges with existing systems, contractor performance issues, and budget overruns. The fact that the contract was awarded under full and open competition with three bidders suggests that the initial solicitation phase was likely managed effectively. The successful completion of the contract term implies that any performance-related risks were managed adequately by both the contractor and the agency throughout its duration.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved since this contract was awarded?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a significant upward trend since this contract was awarded in 2004. The increasing reliance on technology across all government agencies, coupled with the growing complexity of IT needs (e.g., cloud computing, big data analytics, cybersecurity), has driven substantial growth in this category. While specific figures fluctuate annually based on agency priorities and budget allocations, the overall trajectory indicates a sustained and often increasing demand for the diverse services encompassed by NAICS 541519. This reflects the broader digital transformation efforts within the federal government.

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

Offers Received: 3

Pricing Type: NOT REPORTED (NO)

Contractor Details

Address: 6565 ARLINGTON BLVD, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20000D5013

IDV Type: IDC

Timeline