DoD's $10.5M Computer Services Contract with CSC Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $10,533,095 ($10.5M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Defense

Start Date: 2007-07-11

End Date: 2009-10-31

Contract Duration: 843 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUSTAINMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to COMPUTER SCIENCES CORPORATION for work described as: SUSTAINMENT Key points: 1. The contract awarded to Computer Sciences Corporation (CSC) for sustainment services is substantial, totaling over $10.5 million. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract's duration of 843 days and Time and Materials pricing model may present risks regarding cost control and final expenditure. 4. The 'Other Computer Related Services' NAICS code indicates a broad scope, making direct sector benchmarks challenging without further detail.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, coupled with a significant duration, raises concerns about potential cost overruns compared to fixed-price contracts for similar IT sustainment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. However, the Time and Materials pricing could limit the effectiveness of competition in controlling the final cost.

Taxpayer Impact: Taxpayer funds are utilized for sustainment services. The effectiveness of competition and pricing structure will determine the overall value for money.

Public Impact

Over $10.5 million in federal spending on IT sustainment services. Contract awarded to a major IT services provider, Computer Sciences Corporation. Services provided to the Department of Defense, specifically the Defense Information Systems Agency. Contract duration spans over two years, impacting long-term resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to uncontrolled costs.
Long contract duration may not reflect evolving technological needs.
Broad NAICS code limits specific performance analysis.

Positive Signals

Full and open competition was utilized.
Contract awarded to a well-established IT services company.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on sustainment. Benchmarking requires comparison with similar IT support and maintenance contracts, considering the specific services rendered under NAICS 541519.

Small Business Impact

The data indicates the contract was awarded to Computer Sciences Corporation, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract was awarded by the Defense Information Systems Agency (DISA), a component of the DoD. Oversight would typically involve contract management offices ensuring performance and adherence to terms, with potential for audits.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Time and Materials pricing model.
Long contract duration (843 days).
Broad NAICS code (541519) lacks specificity.
Potential for cost overruns due to T&M structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to COMPUTER SCIENCES CORPORATION. SUSTAINMENT

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 $10.5 million.

What is the period of performance?

Start: 2007-07-11. End: 2009-10-31.

What specific sustainment services were provided under this contract, and how do they align with the broad 'Other Computer Related Services' NAICS code?

The provided data lacks specific details on the sustainment services rendered. The NAICS code 541519, 'Other Computer Related Services,' is very broad and can encompass a wide range of activities from IT support and maintenance to network management and data processing. Without a detailed statement of work, it's difficult to assess if the chosen code accurately reflects the services or if a more specific code would have been more appropriate for benchmarking or analysis.

How did the Time and Materials pricing impact the final cost compared to the initial estimates, given the contract's duration?

The Time and Materials (T&M) pricing model inherently carries a risk of cost escalation, especially over a long duration like 843 days. While full and open competition aims to secure competitive rates, T&M allows costs to fluctuate based on actual labor hours and material expenses. Without post-award data on the final expenditure versus the estimated cost, it's impossible to definitively assess the impact. However, the structure suggests a higher potential for the final cost to exceed initial projections compared to fixed-price contracts.

What mechanisms were in place to ensure effective oversight and accountability for performance and cost control under this T&M contract?

Effective oversight for T&M contracts typically relies on robust contract administration, including detailed tracking of labor hours, verification of material costs, and performance monitoring against defined objectives. Agencies often employ Contracting Officer's Representatives (CORs) to manage day-to-day performance. However, the inherent nature of T&M makes cost control more challenging than fixed-price contracts, placing a greater emphasis on the agency's ability to diligently manage and scrutinize all expenditures throughout the contract lifecycle.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC101300R5003

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 6565 ARLINGTON BLVD, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,533,095

Exercised Options: $10,533,095

Current Obligation: $10,533,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20000D5013

IDV Type: IDC

Timeline