DoD's $93.8M ITT Industries contract for IT systems saw 12 bidders, indicating strong competition

Contract Overview

Contract Amount: $93,849,673 ($93.8M)

Contractor: ITT Industries Systems DIV

Awarding Agency: Department of Defense

Start Date: 2000-07-01

End Date: 2005-09-30

Contract Duration: 1,917 days

Daily Burn Rate: $49.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $93.8 million to ITT INDUSTRIES SYSTEMS DIV for work described as: Key points: 1. The contract's value of $93.8 million over approximately 5 years suggests a significant investment in IT infrastructure. 2. With 12 bidders, the competition level was robust, likely driving competitive pricing and innovation. 3. The contract was awarded under full and open competition, maximizing opportunities for qualified vendors. 4. The duration of the contract (1917 days) indicates a long-term need for the IT systems provided. 5. The 'ITT INDUSTRIES SYSTEMS DIV' as the contractor points to a specialized provider in the IT sector. 6. The contract's focus on IT systems implies a critical role in supporting Department of the Army operations.

Value Assessment

Rating: good

Benchmarking the value of this $93.8 million contract requires more granular data on the specific IT systems procured. However, the presence of 12 bidders suggests that the pricing was likely competitive. Without specific unit costs or performance metrics, a definitive value-for-money assessment is challenging. Compared to similar large-scale IT system procurements for defense agencies, the cost appears within a reasonable range, assuming the scope of work was substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The participation of 12 bidders is a strong indicator of a healthy competitive environment. This level of competition typically leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The high number of bidders in this full and open competition suggests that taxpayers benefited from a more efficient allocation of funds, as the government likely secured services at a more competitive price than would have been possible with limited competition.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical IT systems to support its operations. The services delivered likely include the provision, integration, and maintenance of complex IT infrastructure. The geographic impact is likely concentrated within Department of the Army facilities, potentially nationwide or even global. Workforce implications could include IT specialists employed by the contractor and potentially internal IT support staff within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the systems are highly proprietary and difficult to integrate with other solutions.
Risk of cost overruns if the scope of work expands beyond initial projections without adequate change control.
Dependence on a single contractor for critical IT infrastructure could pose a security risk if not managed properly.

Positive Signals

The robust competition (12 bidders) suggests a strong market for these IT systems, indicating potential for future competitive procurements.
Awarding to 'ITT INDUSTRIES SYSTEMS DIV' implies a specialized capability, potentially leading to high-quality system delivery.
The long contract duration suggests a stable and predictable need, allowing for focused development and support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT systems for a major defense agency. The IT market for government contracts is substantial, with significant spending allocated to maintaining and upgrading technological infrastructure. This contract represents a portion of that broader spending, likely for enterprise-level IT solutions that support command, control, and communication functions. Comparable spending benchmarks would involve analyzing other large-scale IT system procurements by defense departments.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, as it was awarded under full and open competition. However, the prime contractor, ITT Industries Systems Division, may have subcontracting opportunities for small businesses. The extent of small business participation would depend on the prime contractor's subcontracting plan and the nature of the IT systems being provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and delivery schedules. Transparency is generally facilitated through contract award databases, though specific performance details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
Command and Control Systems Procurement
Information Systems Development Contracts

Risk Flags

Potential for technological obsolescence given the contract duration.
Risk of cost overruns in complex IT system integration.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.8 million to ITT INDUSTRIES SYSTEMS DIV. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ITT INDUSTRIES SYSTEMS DIV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $93.8 million.

What is the period of performance?

Start: 2000-07-01. End: 2005-09-30.

What specific types of IT systems were procured under this contract?

The provided data does not specify the exact types of IT systems procured. However, given the contractor's name ('ITT INDUSTRIES SYSTEMS DIV') and the awarding agency (Department of the Army), it is highly probable that the contract covered enterprise-level IT infrastructure. This could include hardware (servers, networking equipment, workstations), software (operating systems, applications, databases), and related services such as installation, integration, maintenance, and technical support. The duration of the contract (nearly 5 years) suggests a comprehensive solution rather than a one-time purchase of equipment.

How does the number of bidders (12) compare to similar large IT system contracts awarded by the Department of Defense during that period?

A total of 12 bidders for a large IT systems contract awarded by the Department of Defense between 2000 and 2005 is generally considered a healthy level of competition. During this era, the defense IT market was robust, with many companies vying for significant contracts. While specific comparative data for every contract is not readily available, 12 bidders suggests that the market was sufficiently competitive to attract a wide range of potential suppliers. This number indicates that the solicitation was likely well-publicized and that the requirements were attainable by multiple firms, which is positive for price discovery and value for taxpayers.

What were the potential risks associated with a contract of this size and duration for IT systems?

Contracts of this magnitude ($93.8 million) and duration (nearly 5 years) for IT systems inherently carry several risks. Technological obsolescence is a primary concern; IT evolves rapidly, and systems procured might become outdated before the contract ends. Performance risk is also significant, as complex IT system implementations can face delays, integration issues, or failures to meet performance specifications. Cost overruns are another common risk, especially if the scope of work is not precisely defined or if unforeseen technical challenges arise. Furthermore, dependence on a single contractor for critical infrastructure can create security vulnerabilities and operational risks if the contractor experiences financial instability or breaches.

What does the 'AW: DCA' designation signify in the contract details?

The 'AW: DCA' designation likely refers to the Awarding Activity or Contracting Activity. 'DCA' could stand for various entities within the Department of Defense or a specific contracting command. For instance, it might represent a Defense Contract Administration or a specific Army contracting center responsible for managing this particular procurement. Without further context or a definitive key for 'DCA' within the DoD procurement system of that era, its precise meaning remains somewhat ambiguous, but it clearly identifies the administrative body that oversaw the contract award process.

How might the contractor's track record have influenced the award of this contract?

While the specific track record of 'ITT INDUSTRIES SYSTEMS DIV' for this particular contract is not detailed in the provided data, a contractor's past performance is a critical factor in federal procurement, especially for large and complex IT systems. Agencies typically evaluate a bidder's history of meeting contract requirements, delivering quality products/services on time and within budget, and their overall reliability. A strong track record of successful IT system implementations, particularly for government or defense clients, would significantly enhance a contractor's competitiveness. Conversely, a history of poor performance could lead to disqualification or a lower evaluation score, impacting their ability to win such a substantial award.

What is the significance of the contract type 'COMBINATION (TWO OR MORE)'?

The 'PT: COMBINATION (TWO OR MORE)' designation indicates that the contract utilized a combination of contract types. Federal contracts can be fixed-price (where the price is set regardless of costs incurred) or cost-reimbursement (where the government pays the contractor's actual costs plus a fee). A combination type suggests that different parts of the contract might have employed different pricing structures. For example, a portion of the work might have been awarded on a fixed-price basis (e.g., for hardware delivery), while another portion, perhaps involving research or development, could have been cost-reimbursement. This approach is often used to balance risk between the government and the contractor.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 12

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 4410 E. FOUNTAIN BLVD., COLORADO SPRIN, CO

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline