DoD's $32.5M Desktop Support Contract Awarded to QSS Group, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $32,540,328 ($32.5M)
Contractor: QSS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-27
End Date: 2009-11-02
Contract Duration: 1,132 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DESKTOP SUPPORT SERVICE
Place of Performance
Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703
Plain-Language Summary
Department of Defense obligated $32.5 million to QSS GROUP, INC. for work described as: DESKTOP SUPPORT SERVICE Key points: 1. The contract value represents a significant investment in essential IT infrastructure support. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The contract duration of over three years indicates a long-term need for these services. 4. The award to QSS Group, Inc. positions them as a key provider for the Department of the Army's IT needs. 5. The fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 6. The absence of small business set-aside flags the need to examine subcontracting opportunities.
Value Assessment
Rating: good
The contract value of $32.5 million over approximately three years for desktop support services appears reasonable given the scope of supporting a major federal agency like the Department of the Army. Benchmarking against similar large-scale IT support contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the award suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a moderate level of competition for this requirement. While more bidders could potentially lead to lower prices, three bidders still provide a basis for price discovery and comparison.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it allows for a wider pool of potential contractors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.
Public Impact
The Department of the Army benefits from reliable and consistent desktop support, ensuring operational readiness. End-users within the Army will receive technical assistance for their computing devices, minimizing downtime. The contract supports IT infrastructure maintenance and troubleshooting, crucial for the agency's daily functions. Workforce implications include potential employment opportunities for IT support personnel managed by QSS Group, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competed.
- Dependence on a single contractor for critical IT support could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm fixed-price contract type aligns incentives for contractor performance and cost control.
- Long contract duration indicates a stable, long-term partnership for essential services.
Sector Analysis
Desktop support services fall under the broader IT services sector, which is a critical component of government operations. This contract represents a typical expenditure for agencies requiring robust end-user computing support. The market for IT support services is highly competitive, with numerous providers ranging from large system integrators to specialized IT service firms. The NAICS code 517110 (Wired Telecommunications Carriers) seems misaligned with the service description; a more appropriate code might be related to IT support services.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates no explicit small business participation. This suggests that the primary award went to a large business. Further analysis would be needed to determine if QSS Group, Inc. has a subcontracting plan that includes small businesses to fulfill parts of this requirement, which is crucial for fostering the small business ecosystem within federal contracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program/technical points of contact within the Department of the Army. Performance metrics and regular reviews are standard mechanisms to ensure accountability. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Desktop Management
- End-User Computing Support
- Department of Defense IT Contracts
- Army IT Services
Risk Flags
- Potential misalignment of NAICS code with service description.
- Lack of explicit small business participation noted.
Tags
it-services, desktop-support, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, large-business, new-jersey, wired-telecommunications-carriers
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to QSS GROUP, INC.. DESKTOP SUPPORT SERVICE
Who is the contractor on this award?
The obligated recipient is QSS GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.5 million.
What is the period of performance?
Start: 2006-09-27. End: 2009-11-02.
What is the historical spending pattern for desktop support services by the Department of the Army?
Analyzing historical spending on desktop support by the Department of the Army requires accessing and aggregating data from previous contract awards. Without specific historical data for this exact service category, it's difficult to provide precise figures. However, federal agencies, particularly large ones like the DoD, consistently allocate significant portions of their IT budgets to end-user support, including desktop hardware, software, and technical assistance. This spending is often characterized by a mix of large, long-term contracts for core services and smaller, task-order-based awards for specialized needs. Trends often show a move towards managed services and cloud-based solutions, but traditional on-site support remains critical. The $32.5 million awarded here should be viewed within the context of the Army's overall IT expenditure, which can run into billions annually.
How does the awarded price compare to market rates for similar desktop support services?
Benchmarking the $32.5 million contract against market rates for similar desktop support services requires detailed analysis of the contract's scope, service level agreements (SLAs), and the specific technologies supported. General market data suggests that large-scale IT support contracts for federal agencies can vary widely. Factors influencing price include the number of users supported, geographic distribution, complexity of the IT environment, and required response times. For a contract of this magnitude and duration, the price per user per year is a common metric. Without knowing the exact number of users supported, a precise comparison is challenging. However, the firm fixed-price nature and full and open competition suggest an effort to secure competitive market pricing. Industry reports often indicate that government contracts, especially those competed broadly, aim to achieve rates at or below commercial equivalents, though the overhead and compliance requirements of federal work can sometimes lead to higher costs.
What are the key performance indicators (KPIs) expected under this contract?
Key Performance Indicators (KPIs) for a desktop support services contract typically focus on service availability, response times, resolution times, user satisfaction, and security compliance. For the Department of the Army, specific KPIs would likely include metrics such as the percentage of help desk calls answered within a target timeframe (e.g., 90% within 30 seconds), the average time to resolve critical incidents (e.g., less than 4 hours), the uptime of supported systems, and the successful patching and vulnerability remediation rates. User satisfaction surveys are also common to gauge the effectiveness of the support provided. Adherence to security protocols and timely completion of assigned tasks are also critical. These KPIs are crucial for ensuring the contractor meets the government's requirements and for evaluating their performance throughout the contract period.
What is QSS Group, Inc.'s track record with similar federal IT support contracts?
QSS Group, Inc. has a history of performing IT support and related services for federal agencies. Examining their past performance on contracts of similar scope, size, and duration is essential for assessing their capability to fulfill this $32.5 million Department of the Army contract. Federal procurement data often includes past performance evaluations, which can provide insights into their reliability, quality of service, and ability to meet deadlines and budgets. A review of their contract history would reveal whether they have successfully managed large-scale IT infrastructure support, help desk operations, and end-user device management for other government entities. Positive past performance is a strong indicator of future success, while any documented issues or performance deficiencies would raise concerns.
What are the potential risks associated with this contract, and how are they mitigated?
Potential risks associated with this desktop support contract include performance failures by the contractor (QSS Group, Inc.), leading to disruptions in Army operations; cybersecurity vulnerabilities introduced or not adequately addressed by the support services; cost overruns if the fixed-price model is poorly managed by the contractor; and potential vendor lock-in if follow-on work is not competitively procured. Mitigation strategies typically involve robust contract oversight by the government, clearly defined Service Level Agreements (SLAs) with associated penalties for non-performance, regular performance reviews, mandatory security compliance checks, and adherence to federal procurement regulations that encourage competition for future contract actions. The firm fixed-price nature itself is a risk mitigation tool, placing the financial burden of cost overruns on the contractor.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: 4500 FORBES BOULEVARD SUIT, LANHAM, MD, 04
Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $32,540,328
Exercised Options: $32,540,328
Current Obligation: $32,540,328
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ04D0005
IDV Type: IDC
Timeline
Start Date: 2006-09-27
Current End Date: 2009-11-02
Potential End Date: 2009-11-02 00:00:00
Last Modified: 2010-09-10
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