Transportation IT support contract awarded to CSRA LLC for over $40 million across its duration

Contract Overview

Contract Amount: $40,299,861 ($40.3M)

Contractor: Csra LLC

Awarding Agency: Department of Transportation

Start Date: 2007-04-18

End Date: 2011-04-30

Contract Duration: 1,473 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TRANSPORTATION INFORMATION PROJECT SUPPORT (TRIPS) CONTRACT DTRT57-06-D-30004, TASK ORDER DTRTV-T7003 FOR CONTRACT YEAR 2, MAY 1, 2007 - APRIL 30, 2008, WITH COMPUTER SCIENCES CORPORATION

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $40.3 million to CSRA LLC for work described as: TRANSPORTATION INFORMATION PROJECT SUPPORT (TRIPS) CONTRACT DTRT57-06-D-30004, TASK ORDER DTRTV-T7003 FOR CONTRACT YEAR 2, MAY 1, 2007 - APRIL 30, 2008, WITH COMPUTER SCIENCES CORPORATION Key points: 1. The contract utilized a Cost Plus Award Fee (CPAF) structure, incentivizing performance but potentially leading to higher costs if not managed closely. 2. With 7 bidders, the competition level suggests a reasonably contested market for these IT services. 3. The contract duration of nearly 4 years indicates a significant, long-term need for these services. 4. The primary contractor, CSRA LLC, has a substantial presence in the federal IT services market. 5. The contract's value of over $40 million places it in the mid-to-large tier for IT support contracts. 6. The task order was for contract year 2, suggesting this is part of a larger, ongoing program.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee (CPAF) structure makes direct value-for-money assessment challenging without detailed performance metrics and award fee payouts. While the total value is substantial, the CPAF model means the final cost is tied to performance, which can be positive if performance is excellent, but could also inflate costs if not tightly controlled. Benchmarking against similar IT support contracts is difficult without knowing the specific scope and deliverables, but the overall value suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 7 bidders vying for the work. This level of competition is generally positive, suggesting that multiple capable vendors were interested and that the government sought the best value from a broad pool of offerors. The presence of multiple bidders typically aids in price discovery and can lead to more competitive pricing.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used more efficiently by fostering a competitive environment that drives down costs.

Public Impact

The Department of Transportation benefits from continued IT support services essential for its operations. The contract supports the Immediate Office of the Secretary of Transportation, indicating a focus on high-level administrative and operational IT needs. The services provided likely encompass a range of computer-related support, ensuring the smooth functioning of the department's technological infrastructure. The contract's duration and value suggest a stable IT support presence for a significant period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF structure requires careful monitoring to ensure award fees are justified by exceptional performance and do not simply inflate costs.
The long duration of the contract could lead to vendor lock-in if not managed with regular performance reviews and potential re-competition.
The specific IT services provided are not detailed, making it difficult to assess if the most cost-effective solutions are being utilized.

Positive Signals

Full and open competition with 7 bidders indicates a healthy market and potential for competitive pricing.
The contract's value suggests a significant need and commitment from the agency, implying the services are critical.
The CPAF structure, if managed well, can incentivize high performance and quality service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This category includes a wide range of IT support, consulting, and integration services. The federal IT services market is vast, with agencies consistently investing heavily in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Transportation's overall IT spending, contributing to its operational efficiency and data management capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is likely that the prime contractor, CSRA LLC, is a large business. There is no explicit information on subcontracting plans or performance related to small businesses within this specific task order, but large prime contractors are often required to meet small business subcontracting goals on their overall contract portfolio.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's contracting officers and program managers. The CPAF structure implies performance monitoring to determine award fees. Transparency is generally facilitated through contract databases like FPDS, where basic award information is available. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Department of Transportation IT Modernization Efforts
Federal Civilian Agency IT Support Services
Information Technology Professional Services
Contract Vehicles for IT Services

Risk Flags

Potential for cost overruns due to CPAF structure if not managed tightly.
Lack of specific performance metrics in provided data makes value assessment difficult.
Long contract duration could lead to vendor lock-in.
No explicit small business subcontracting data provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $40.3 million to CSRA LLC. TRANSPORTATION INFORMATION PROJECT SUPPORT (TRIPS) CONTRACT DTRT57-06-D-30004, TASK ORDER DTRTV-T7003 FOR CONTRACT YEAR 2, MAY 1, 2007 - APRIL 30, 2008, WITH COMPUTER SCIENCES CORPORATION

Who is the contractor on this award?

The obligated recipient is CSRA LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $40.3 million.

What is the period of performance?

Start: 2007-04-18. End: 2011-04-30.

What was the specific performance criteria used to determine award fees for CSRA LLC under this contract?

The provided data does not detail the specific performance criteria used for the Cost Plus Award Fee (CPAF) structure of this contract. CPAF contracts typically outline key performance areas (KPAs) and objective metrics in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These might include metrics related to system uptime, response times for IT support tickets, project completion rates, adherence to security protocols, and user satisfaction surveys. The Contracting Officer's Representative (COR) and program managers would monitor these metrics throughout the performance period. The final award fee determination would be a subjective assessment by the government, based on the contractor's performance against these pre-defined criteria, often documented in a Contractor Performance Evaluation Report (CPAER).

How does the per-contract-year cost of this contract compare to similar IT support contracts within the Department of Transportation or other civilian agencies?

Calculating a precise per-contract-year cost requires dividing the total award amount by the contract duration in years. The total award (a) is $40,299,861, and the duration (dur) is 1473 days, which is approximately 4.03 years (1473 / 365.25). This yields an average annual cost of roughly $10 million ($40.3M / 4.03 years). However, this is a blended rate across multiple years and potentially includes base fee, cost reimbursement, and award fee components. Without knowing the specific breakdown of these components and the exact scope of services (e.g., help desk, network management, cybersecurity, application development), direct comparison is difficult. Generally, IT support contracts for large federal agencies can range from a few million to tens or hundreds of millions annually, depending on complexity and scale. This contract appears to be in the mid-to-high range for a specific office's IT support needs.

What is CSRA LLC's track record with the Department of Transportation and other federal agencies for similar IT support services?

CSRA LLC (now part of General Dynamics IT) has a significant history of performing IT services for various federal agencies, including the Department of Transportation (DOT). Prior to its acquisition, CSRA was a major federal IT contractor. Its track record generally includes large-scale system integration, IT infrastructure management, cybersecurity, and application development support. Performance evaluations, often available through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS), would provide more granular detail on past performance, including any past issues or commendations. Given the award of this substantial contract, it suggests a positive or at least acceptable performance history with the DOT or a strong competitive offering that outweighed any past concerns.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for IT services?

The primary risk with a CPAF contract is the potential for cost growth if the award fee criteria are not sufficiently stringent or if the government's oversight is lax. Unlike fixed-price contracts, the total cost is not predetermined. While CPAF aims to incentivize performance by linking a portion of the fee to achieving specific metrics, there's a risk that contractors may focus on easily achievable metrics to maximize their award fee, potentially at the expense of other critical but harder-to-measure aspects of performance. Furthermore, the administrative burden of defining, monitoring, and evaluating performance criteria can be significant for the government. If the award fee determination process is subjective or poorly documented, it can lead to disputes or perceptions of unfairness.

How has the spending on IT support services within the Department of Transportation evolved over the period this contract was active (2007-2011)?

The period of 2007-2011 saw significant federal investment in IT, driven by initiatives like the President's Management Agenda and increasing reliance on technology for agency operations. Within the Department of Transportation, IT spending during this era likely focused on modernizing legacy systems, enhancing cybersecurity, improving data management for transportation infrastructure projects, and supporting the growing digital needs of its workforce. Agencies were also beginning to explore cloud computing and shared services. While this specific contract represents a portion of that spending, overall DOT IT expenditures would have fluctuated based on budget appropriations, strategic priorities, and specific project needs, generally trending upwards as technology became more integral to government functions.

What is the significance of the NAICS code 541519 ('Other Computer Related Services') in the context of federal IT spending?

NAICS code 541519 is a broad category that encompasses a wide array of IT services not specifically classified under other codes like custom software development (541511) or computer systems design (541512). This includes IT consulting, IT project management, IT support services, network management, data processing services, and IT infrastructure maintenance. Federal agencies utilize this code extensively for procuring services that maintain and enhance their existing IT environments, provide expert advice on technology adoption, or manage complex IT operations. Its broadness means contracts under this code can vary significantly in scope, value, and complexity, reflecting the diverse IT needs across the government.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 7700 HUBBLE DR, LANHAM SEABROOK, MD, 20706

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,299,861

Exercised Options: $40,299,861

Current Obligation: $40,299,861

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTRT5706D30004

IDV Type: IDC

Timeline