Agriculture Forest Service Awards $72.2M Computer Systems Contract to Centuria Corp

Contract Overview

Contract Amount: $72,925,228 ($72.9M)

Contractor: Centuria Corporation

Awarding Agency: Department of Agriculture

Start Date: 2007-08-01

End Date: 2012-07-31

Contract Duration: 1,826 days

Daily Burn Rate: $39.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 9

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AWARD OF DELIVERY ORDER NUMBER AG-7604-D-07-0330 AS A RESULT OF SOLICITATION NUMBER AG-3187-07-0005. DUE TO FUNDING THIS ORDER IS REQUIRED TO BE FUNDED INCREMENTALLY. CURRENT FUNDING IS $2,210,000. BASE PERIOD NOT TO EXCEED $6,946,001.00. IF ALL FOUR OPTIONS ARE EXERCISED THE TOTAL CONTRACT AMOUNT SHALL NOT EXCEED $72,258,473.40.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $72.9 million to CENTURIA CORPORATION for work described as: AWARD OF DELIVERY ORDER NUMBER AG-7604-D-07-0330 AS A RESULT OF SOLICITATION NUMBER AG-3187-07-0005. DUE TO FUNDING THIS ORDER IS REQUIRED TO BE FUNDED INCREMENTALLY. CURRENT FUNDING IS $2,210,000. BASE PERIOD NOT TO EXCEED $6,946,001.00. IF ALL FOUR OPTIONS ARE EXERCISED THE… Key points: 1. Contract awarded for Computer Systems Design Services. 2. Centuria Corporation is the awardee. 3. Potential total value reaches $72.2 million over five years. 4. This is a competitive delivery order.

Value Assessment

Rating: fair

The total contract value of $72.2 million is substantial. Benchmarking against similar Computer Systems Design Services contracts would be necessary to assess pricing effectiveness, especially considering the incremental funding and option periods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded competitively via a delivery order against a solicitation. This suggests a degree of price discovery, but the incremental funding and option structure warrant scrutiny to ensure continued competition and fair pricing throughout the period of performance.

Taxpayer Impact: Taxpayer funds are being used for computer systems design services. The competitive nature of the award is a positive sign for cost efficiency, but the total potential value requires careful monitoring.

Public Impact

Supports the Forest Service's IT infrastructure needs. Potential for long-term IT support services. Funding is incremental, indicating phased allocation of resources. Contract duration spans five years with options.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Incremental funding requires careful management.
Long contract duration with options could lead to cost creep.
Potential for scope changes over the contract life.

Positive Signals

Awarded competitively.
Supports critical agency functions.
Clear period of performance defined.

Sector Analysis

This contract falls under IT services, specifically Computer Systems Design. Spending in this sector is consistently high across government agencies, with significant variation based on agency needs and technological advancements. Benchmarks for similar services are crucial for evaluating value.

Small Business Impact

The data indicates this was not awarded to a small business. Further analysis would be needed to determine if small business set-aside goals were considered or met through other contract vehicles.

Oversight & Accountability

The incremental funding approach suggests a need for ongoing oversight to ensure funds are allocated appropriately and that the contract remains within budget. The multiple option periods also necessitate careful performance monitoring.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for cost growth over option periods.
Risk of funding instability due to incremental allocation.
Lack of transparency on specific labor rates.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $72.9 million to CENTURIA CORPORATION. AWARD OF DELIVERY ORDER NUMBER AG-7604-D-07-0330 AS A RESULT OF SOLICITATION NUMBER AG-3187-07-0005. DUE TO FUNDING THIS ORDER IS REQUIRED TO BE FUNDED INCREMENTALLY. CURRENT FUNDING IS $2,210,000. BASE PERIOD NOT TO EXCEED $6,946,001.00. IF ALL FOUR OPTIONS ARE EXERCISED THE TOTAL CONTRACT AMOUNT SHALL NOT EXCEED $72,258,473.40.

Who is the contractor on this award?

The obligated recipient is CENTURIA CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $72.9 million.

What is the period of performance?

Start: 2007-08-01. End: 2012-07-31.

How does the per-unit cost for labor hours compare to industry benchmarks for similar computer systems design services, considering the contract's duration and scope?

Without specific labor category rates or detailed task orders, a precise per-unit cost comparison is challenging. However, the total contract value of $72.2 million over five years suggests an average annual value of approximately $14.4 million. This figure should be benchmarked against government-wide IT service contracts and private sector equivalents for similar complexity and service levels to assess cost-effectiveness.

What are the specific risks associated with the incremental funding and multiple option periods for this contract?

Incremental funding introduces the risk of funding lapsing or being de-obligated if future appropriations are not secured, potentially disrupting service delivery. Multiple option periods, while providing flexibility, increase the risk of cost escalation if not managed tightly, and could lead to vendor lock-in or reduced competition for follow-on work if not carefully planned.

How effectively does this contract support the Forest Service's mission objectives, and what metrics are in place to measure its success?

The contract's effectiveness hinges on its ability to deliver robust computer systems design services that enhance the Forest Service's operational capabilities. Success metrics should align with IT modernization goals, system uptime, user satisfaction, and the successful implementation of new or upgraded systems. Without specific performance standards outlined in the contract, assessing its true effectiveness remains difficult.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11955 DEMOCRACY DR STE 1620, RESTON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $72,925,228

Exercised Options: $72,925,228

Current Obligation: $72,925,228

Parent Contract

Parent Award PIID: GS06F0541Z

IDV Type: GWAC

Timeline