DoD's $10.3M Technical Engineering Services Contract Awarded to Pragmatics, LLC
Contract Overview
Contract Amount: $10,292,469 ($10.3M)
Contractor: Pragmatics, LLC
Awarding Agency: Department of Defense
Start Date: 2007-05-03
End Date: 2008-05-02
Contract Duration: 365 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: TECHNICAL ENGINEERING SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to PRAGMATICS, LLC for work described as: TECHNICAL ENGINEERING SERVICES Key points: 1. Contract awarded for Computer Systems Design Services. 2. Full and open competition was utilized. 3. The contract was a delivery order under an existing agreement. 4. The awardee is Pragmatics, LLC, based in Virginia. 5. The contract type was Cost Plus Award Fee.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can lead to higher costs if not managed carefully. Benchmarking against similar Computer Systems Design Services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure introduces potential for cost overruns if performance incentives are not tightly aligned with cost control.
Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The Cost Plus Award Fee contract type warrants close monitoring to ensure costs remain reasonable.
Public Impact
Supports the Defense Information Systems Agency's technical engineering needs. Contract duration of 365 days with a base value of $10.3M. Awarded to a single vendor, Pragmatics, LLC. The contract is for Computer Systems Design Services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can inflate costs.
- No small business participation noted.
Positive Signals
- Full and open competition utilized.
- Awarded to a single, established vendor.
Sector Analysis
This contract falls under IT services, specifically Computer Systems Design. Spending in this sector is substantial across the government, with significant variation based on complexity and scope.
Small Business Impact
The data indicates that this contract did not involve small business participation. Opportunities for small businesses in IT services are significant, and their exclusion here may represent a missed opportunity.
Oversight & Accountability
The use of a delivery order suggests this is part of a larger, potentially pre-competed, indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of the award fee structure and adherence to the contract's technical requirements.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Award Fee contract type.
- No small business participation.
- Limited duration delivery order, potential for follow-on contracts.
- Specific technical engineering services may be difficult to benchmark.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to PRAGMATICS, LLC. TECHNICAL ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is PRAGMATICS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2007-05-03. End: 2008-05-02.
What was the basis for the Cost Plus Award Fee structure, and how were award fees determined to ensure value for money?
The Cost Plus Award Fee (CPAF) structure is typically used when a precise cost is difficult to estimate, but performance can be measured. Award fees are determined based on pre-defined performance metrics and objectives. For this contract, oversight would be crucial to ensure the award fee criteria genuinely incentivize efficient and effective service delivery, preventing unnecessary cost escalation and maximizing taxpayer value.
Given the full and open competition, what prevented small businesses from participating or being subcontracted?
While the contract was awarded under full and open competition, the absence of small business participation or subcontracting could stem from several factors. The prime contractor, Pragmatics, LLC, may not have identified suitable small business partners for this specific technical engineering requirement, or the contract's scope might have been too specialized. Further investigation into the prime contractor's subcontracting plan and outreach efforts would be necessary.
How does the $10.3M award compare to typical spending for similar technical engineering services within the Defense Information Systems Agency?
Benchmarking this $10.3M award requires detailed comparison with similar contracts for Computer Systems Design Services within DISA. Factors like contract duration (1 year), specific technical requirements, and the CPAF structure influence cost. Without access to detailed cost breakdowns and a broader market analysis of comparable DISA contracts, it's challenging to definitively assess if this represents typical spending or deviates significantly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 11
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1761 BUSINESS CTR DR, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $10,292,469
Exercised Options: $10,292,469
Current Obligation: $10,292,469
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DCA10002D4006
IDV Type: IDC
Timeline
Start Date: 2007-05-03
Current End Date: 2008-05-02
Potential End Date: 2008-05-02 00:00:00
Last Modified: 2023-09-29
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