DoD's $15.8M IT contract with Computer Sciences Corporation awarded under full and open competition

Contract Overview

Contract Amount: $15,863,329 ($15.9M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Defense

Start Date: 2005-06-17

End Date: 2010-11-30

Contract Duration: 1,992 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to COMPUTER SCIENCES CORPORATION for work described as: Key points: 1. Contract awarded to a large, established IT services provider. 2. Significant duration of over 5 years suggests a need for sustained IT support. 3. Time and Materials contract type may pose cost control challenges. 4. Awarded by the Defense Information Systems Agency, indicating a focus on critical defense IT infrastructure. 5. No small business set-aside indicates the primary focus was on best value rather than specific socio-economic goals. 6. The contract's value is moderate within the context of large federal IT procurements.

Value Assessment

Rating: fair

Benchmarking the value of this $15.8 million contract requires more detailed cost breakdowns and comparisons to similar IT support services procured by the DoD during the 2005-2010 period. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not managed rigorously, as it doesn't have a fixed ceiling on labor hours. Without specific performance metrics or a detailed cost analysis, it's difficult to definitively assess value for money, but the duration and scope suggest a substantial investment in IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids (no) indicates a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access to the widest range of solutions, the relatively low number of bids might warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bidders, the price discovery mechanism may not have been as robust as it could have been with a larger pool of competitors.

Public Impact

The Department of Defense benefits from sustained IT support services, crucial for its operational effectiveness. Personnel within the DoD, particularly those reliant on the IT infrastructure managed under this contract, receive improved or maintained services. The contract supports IT infrastructure and potentially the workforce within Virginia, where the contractor's facility is located. The services delivered likely encompass a range of IT support, potentially including network management, system maintenance, and user support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited competition (2 bids) may indicate potential market limitations or barriers to entry for other vendors.

Positive Signals

Awarded through full and open competition, ensuring a broad solicitation.
Contract awarded to a reputable IT services provider with a track record in the federal sector.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and support for a major government agency. The federal IT services market is vast, with significant annual spending across various departments. Contracts like this are essential for maintaining the complex technological infrastructure required by agencies such as the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded to major federal contractors within the defense and civilian sectors.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no indication of subcontracting with small businesses (sb: false). This suggests that the primary focus was on securing the necessary IT services from a qualified vendor, likely a large corporation, without specific mandates for small business participation. Consequently, the direct impact on the small business IT ecosystem for this particular award appears minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Defense Information Systems Agency (DISA), and potentially the Department of Defense's Inspector General. Mechanisms would include regular performance reviews, audits of billing under the Time and Materials structure, and adherence to contract terms. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible to the public.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
Time and Materials IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition (2 bids) may reduce price discovery effectiveness.
Contract duration of over 5 years requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 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 $15.9 million.

What is the period of performance?

Start: 2005-06-17. End: 2010-11-30.

What was Computer Sciences Corporation's track record with the federal government prior to this award?

Prior to this specific award in June 2005, Computer Sciences Corporation (CSC) was a well-established federal contractor with a significant history of serving various government agencies, including the Department of Defense. CSC specialized in a broad range of IT services, including systems integration, IT outsourcing, and consulting. Their extensive experience in managing large-scale federal IT projects, coupled with their existing security clearances and infrastructure, likely positioned them as a strong contender for this DISA contract. Federal procurement data would show numerous prior awards to CSC across different agencies, reflecting their substantial presence in the federal IT market.

How does the $15.8 million value compare to similar IT support contracts awarded by DISA during that period?

The $15.8 million value for this 5-year IT support contract awarded in 2005 is considered moderate within the context of large federal IT procurements, especially for an agency like DISA which manages critical defense networks. During the mid-2000s, DISA and other DoD components were awarding contracts ranging from tens to hundreds of millions of dollars for comprehensive IT services, including network operations, cybersecurity, and system development. While not among the largest, this contract's value indicates a significant, ongoing requirement for specialized IT support that justified a multi-year commitment and a substantial budget allocation.

What were the primary risks associated with a Time and Materials contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, like the one awarded to CSC, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If the scope of work is not well-defined, or if project management is lax, the contractor could incur more hours or use more expensive materials than anticipated, leading to a final cost significantly higher than initially projected. Effective oversight, detailed tracking of hours, and clear task definitions are crucial to mitigate these risks for the government.

How effective was the full and open competition in ensuring competitive pricing, given only two bids were received?

The effectiveness of full and open competition in ensuring competitive pricing can be debated when only two bids are received. While full and open competition theoretically maximizes the pool of potential bidders, a low number of actual bids might suggest factors such as high barriers to entry (e.g., specialized requirements, security clearances), a limited number of qualified vendors in the market, or perhaps a lack of aggressive outreach by the procuring agency. In this case, with two bids, some level of price competition likely occurred, but it may not have reached the optimal level achievable with a more robust field of offerors. Further analysis of the bid prices relative to independent government cost estimates would be needed to fully assess pricing effectiveness.

What was the historical spending trend for similar IT support services by the Department of Defense leading up to this contract?

Leading up to this contract in 2005, the Department of Defense had a consistent and substantial historical spending trend on IT support services. Driven by the increasing reliance on technology for command, control, communications, and intelligence (C3I), as well as ongoing modernization efforts, DoD's IT budget had been growing significantly. Agencies like DISA were central to managing and executing much of this spending. This trend indicated a sustained demand for IT services, encompassing everything from infrastructure maintenance to advanced systems development, making contracts like the one awarded to CSC a regular feature of DoD's procurement landscape.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,890,775

Exercised Options: $15,890,775

Current Obligation: $15,863,329

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20000D5013

IDV Type: IDC

Timeline