Department of Defense awarded $26.4M contract for computer systems design services to Oakland Consulting Group Inc

Contract Overview

Contract Amount: $26,357,873 ($26.4M)

Contractor: Oakland Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2013-08-28

End Date: 2019-04-14

Contract Duration: 2,055 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to OAKLAND CONSULTING GROUP INC for work described as: IGF::CL,CT::IGF Key points: 1. Contract value of $26.4M over 2055 days indicates a significant investment in IT services. 2. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not closely monitored. 4. The contract's duration of over 5 years suggests a long-term need for these services. 5. The services provided fall under Computer Systems Design, a critical area for modern defense operations. 6. The awardee, Oakland Consulting Group Inc., has secured a substantial portion of its contract value through this single award.

Value Assessment

Rating: fair

The contract value of $26.4 million over approximately 5.6 years averages to about $4.7 million annually. Benchmarking this against similar IT services contracts for the Department of Defense is challenging without more specific service details. However, the CPFF structure, while common, can lead to higher costs if not managed effectively, as the contractor is reimbursed for allowable costs plus a fixed fee. The total value appears substantial for computer systems design services, warranting scrutiny of the delivered value and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower competitive pool than a truly unrestricted full and open competition. This could impact price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the exclusion of certain potential bidders. The limited competition could mean that the government paid more than it might have in a broader, unrestricted bidding process.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring advanced computer systems design and integration. The services delivered are expected to enhance or maintain critical IT infrastructure and systems for military operations. The geographic impact is likely concentrated around the Department of Defense's operational centers, primarily in Maryland. The contract supports specialized IT workforce roles, including systems designers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize cost overruns if not rigorously managed.
The 'exclusion of sources' in the competition raises questions about the breadth of market engagement.
The long contract duration could lead to vendor lock-in or outdated technology if not managed proactively.
Lack of specific performance metrics makes it difficult to assess the true value for money.

Positive Signals

Awarded under a form of open competition, indicating an attempt to solicit from multiple vendors.
The contract addresses a clear need for computer systems design services within a major federal agency.
The fixed fee component of the CPFF contract provides some level of cost predictability for the contractor's profit.

Sector Analysis

The Computer Systems Design Services sector is a vital component of the IT industry, supporting government and commercial entities in developing, implementing, and managing complex technological solutions. This contract falls within a segment focused on specialized design and integration, crucial for maintaining and upgrading defense systems. The federal government is a significant consumer of these services, with spending often concentrated in areas requiring high security and reliability. Comparable spending benchmarks are difficult without specific service details, but the $26.4M value over five years suggests a substantial, long-term engagement.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract. There is no indication of small business set-asides or subcontracting plans. This suggests that the contract was likely awarded to a larger entity capable of meeting the extensive requirements, and its impact on the small business ecosystem may be indirect, potentially through the prime contractor's supply chain if any.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure allowable costs are reasonable and allocable, and that the fixed fee is earned. Transparency is generally maintained through contract reporting mechanisms, though specific performance reviews and audits are internal. The Inspector General's office for the Department of Defense would have jurisdiction for investigations into fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition due to source exclusion
Long contract duration may lead to technology obsolescence
Lack of specific performance metrics hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to OAKLAND CONSULTING GROUP INC. IGF::CL,CT::IGF

Who is the contractor on this award?

The obligated recipient is OAKLAND CONSULTING 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 $26.4 million.

What is the period of performance?

Start: 2013-08-28. End: 2019-04-14.

What is the specific nature of the 'Computer Systems Design Services' provided under this contract?

The provided data classifies the contract under NAICS code 541512, 'Computer Systems Design Services.' This broad category typically encompasses services such as designing computer systems that integrate hardware, software, and communication technologies, as well as providing consulting services related to the implementation of these systems. Without further details, it's difficult to ascertain the exact scope, but it could range from network architecture design, cybersecurity system integration, to the development of specialized software interfaces for defense applications. The contract's duration and value suggest a significant, ongoing project rather than a one-off consultation.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) structure is common for complex projects where the scope may evolve or is not fully defined at the outset, such as research and development or system design. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. FFP contracts provide greater cost predictability but require a well-defined scope. For IT services, especially design and integration, CPFF can be appropriate if managed diligently, but it carries a higher risk of cost overruns if oversight is insufficient. Other structures like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives that are absent in standard CPFF.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FCAES) method, while still a form of open competition, introduces specific risks. It implies that the agency identified potential sources but chose to exclude some before the solicitation phase. This exclusion could be based on various factors, such as past performance, specific capabilities, or pre-existing relationships. The primary risk for taxpayers is that this exclusion might have inadvertently limited the competitive pool, potentially leading to higher prices or less innovative solutions than might have been achieved in a truly unrestricted competition. It also raises questions about the justification for excluding certain sources and whether the process was perceived as fair and transparent by all potential market participants.

What is the historical spending pattern for Computer Systems Design Services by the Department of the Army?

Historical spending data for Computer Systems Design Services (NAICS 541512) by the Department of the Army is substantial, reflecting the critical role of IT infrastructure in modern military operations. While specific figures for this exact contract's period are not detailed here, the Army consistently awards billions of dollars annually across various IT service categories. Spending in this area often fluctuates based on modernization initiatives, cybersecurity needs, and the deployment of new technologies. Contracts like this one, valued in the tens of millions over several years, are typical for significant system design and integration projects supporting major Army commands or programs. Analyzing broader spending trends would reveal a consistent demand for these services.

What is the track record of Oakland Consulting Group Inc. with federal contracts, particularly with the Department of Defense?

Oakland Consulting Group Inc. has a track record of securing federal contracts, including those with the Department of Defense. The data shows this specific contract represents a significant portion of their awarded value. A comprehensive assessment of their track record would involve analyzing their performance on past contracts, including on-time delivery, quality of services, adherence to budget, and any past performance issues or awards. Without access to detailed contract performance databases, it's challenging to provide a definitive evaluation. However, securing a $26.4 million contract, especially under a competitive process, suggests they possess the necessary qualifications and capabilities to meet the DoD's requirements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9501 SHERIDAN ST STE 200, LANHAM, MD, 20706

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,539,688

Exercised Options: $26,357,873

Current Obligation: $26,357,873

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ11D0018

IDV Type: IDC

Timeline