DoD's $82.7M IT services contract awarded to RS Information Systems, Inc. shows potential value concerns

Contract Overview

Contract Amount: $13,235,218 ($13.2M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2002-12-23

End Date: 2008-06-15

Contract Duration: 2,001 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200305!000073!5700!GV90 !SSG/PK !GS35F5355H !C!N! !N!F0162003F8926 !20021223!20031228!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001588205!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! !D! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to WYLE INFORMATION SYSTEMS, LLC for work described as: 200305!000073!5700!GV90 !SSG/PK !GS35F5355H !C!N! !N!F0162003F8926 !20021223!20031228!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRF… Key points: 1. The contract's duration and total value suggest a significant investment in IT services. 2. While RS Information Systems, Inc. was the awardee, the competition dynamics are not fully detailed, raising questions about price discovery. 3. The contract's performance period spans several years, indicating a long-term need for these services. 4. The specific IT services procured are classified under 'ADP SYSTEMS ANALYSIS SERVICES', suggesting a focus on system development or support. 5. Benchmarking this contract against similar IT services contracts is crucial to assess value for money. 6. The absence of small business participation raises questions about broader economic impact. 7. The contract's value, while substantial, needs to be contextualized within the DoD's overall IT spending.

Value Assessment

Rating: fair

The total contract value of $82.7 million over its performance period appears substantial for IT services. Without detailed breakdowns of labor categories, hours, and rates, a precise value-for-money assessment is challenging. Comparing this to similar 'ADP SYSTEMS ANALYSIS SERVICES' contracts within the Department of Defense or other federal agencies would be necessary to benchmark pricing and determine if it aligns with market rates. The contract was awarded as a delivery order under a larger contract vehicle, which may have its own pre-negotiated rates that could influence the perceived value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit offers. However, the data does not specify the number of bids received or the evaluation process. A full and open competition generally promotes price discovery and allows for a wider range of solutions to be considered. The effectiveness of this competition in driving down costs depends on the number and quality of the bids submitted.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages a competitive environment, potentially leading to better pricing and more innovative solutions. This approach maximizes the opportunity for the government to secure the best value.

Public Impact

The Department of Defense benefits from the acquisition of critical IT systems analysis services. The services delivered are essential for the operational efficiency and technological advancement of the Air Force. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its mission. The contract supports a workforce skilled in IT systems analysis and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes value assessment difficult.
Competition details are limited, hindering a full understanding of price discovery effectiveness.
No explicit mention of small business participation or subcontracting plans.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified contractors.
The contract addresses a clear need for IT systems analysis services within the DoD.
The contract has a defined performance period, allowing for structured service delivery and oversight.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and ADP systems analysis. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Contracts for systems analysis are crucial for ensuring the efficiency, security, and modernization of government IT systems. Benchmarking this contract's value would involve comparing its total value and duration against other large-scale IT services contracts awarded by defense agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans. This suggests that the primary awardee, RS Information Systems, Inc., likely performed the majority of the work. The lack of small business involvement means that opportunities for small businesses to participate in this specific contract are limited, potentially impacting the broader small business IT ecosystem that relies on federal contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures would be tied to the delivery order terms and conditions, performance metrics, and payment schedules. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Technology Contracting
IT Systems Analysis Services
Department of Defense IT Procurement
Federal IT Services Contracts
ADP Systems Services

Risk Flags

Potential for technological obsolescence given the contract duration.
Lack of detailed cost breakdown hinders value assessment.
Limited information on the number of bidders and evaluation process for the competition.
No explicit mention of small business participation or subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to WYLE INFORMATION SYSTEMS, LLC. 200305!000073!5700!GV90 !SSG/PK !GS35F5355H !C!N! !N!F0162003F8926 !20021223!20031228!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001588205!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2002-12-23. End: 2008-06-15.

What was the specific nature of the 'ADP SYSTEMS ANALYSIS SERVICES' provided under this contract?

The data classifies the service under 'ADP SYSTEMS ANALYSIS SERVICES' (na: 541519, nd: Other Computer Related Services). This broad category typically encompasses a range of activities related to the analysis, design, development, implementation, and maintenance of automated data processing (ADP) systems. For this specific contract, it likely involved tasks such as requirements gathering, system architecture design, feasibility studies, performance analysis, and potentially the development of system specifications for the Department of the Air Force. Without more granular detail, the exact scope remains somewhat generalized, but it points to a focus on the analytical and design phases of IT system lifecycles.

How does the $82.7 million contract value compare to similar IT services contracts awarded by the Department of Defense?

Comparing the $82.7 million value requires context. This figure represents the total value of the delivery order. To assess its comparability, one would need to examine other large IT services contracts awarded by the DoD, particularly those for 'ADP SYSTEMS ANALYSIS SERVICES' or similar categories (like IT Professional Services, IT System Development Services). Factors such as contract duration (2002-2008, approximately 6 years), the specific services rendered, and the number of bidders in those comparable contracts are crucial. If similar contracts of comparable duration and scope were awarded at significantly lower total values, it might indicate that this contract was priced higher than the market average. Conversely, if it falls within the typical range, it suggests a standard market price for such services.

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

Contracts of this magnitude and length carry several potential risks. Firstly, technological obsolescence is a significant concern; IT systems and services can become outdated rapidly, potentially making the procured services less valuable over time. Secondly, scope creep is a common risk, where the requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Thirdly, contractor performance risk exists; the contractor may fail to deliver the required quality or quantity of services, impacting the agency's operations. Finally, vendor lock-in can occur, making it difficult and costly for the government to switch providers or adopt new technologies. Effective project management, clear performance metrics, and regular reviews are essential to mitigate these risks.

What was the track record of RS Information Systems, Inc. with federal IT contracts prior to and during this award?

Information on RS Information Systems, Inc.'s track record prior to and during this award would typically be found by searching federal procurement databases for their past contract history. A review would focus on the number of contracts awarded, their values, the agencies they served, and their performance ratings (if available). For this specific $82.7 million contract, assessing past performance would involve looking at any documented issues, successes, or modifications. A history of successful contract completions and positive performance reviews would suggest reliability, while a pattern of disputes, overruns, or poor performance would raise concerns about their capability to handle large, complex IT service contracts effectively.

How did the 'full and open competition' process for this contract ensure value for taxpayers?

A 'full and open competition' process is designed to ensure value for taxpayers by maximizing the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This broad competition theoretically drives down prices as contractors vie for the award. It also allows the government to explore a wider range of technical solutions and innovations. However, the actual value realized depends on the specifics of the competition: the clarity of the solicitation, the evaluation criteria, the number and quality of bids received, and the negotiation process. If the competition was robust and well-managed, it should have led to a fair and reasonable price for the services. If fewer bids were received than expected, or if the evaluation process was flawed, the value for taxpayers might be diminished.

What is the historical spending trend for 'ADP SYSTEMS ANALYSIS SERVICES' within the Department of Defense?

Analyzing historical spending trends for 'ADP SYSTEMS ANALYSIS SERVICES' within the Department of Defense requires access to comprehensive historical procurement data. This would involve aggregating spending data for this specific service category (or closely related ones) over several fiscal years. Key metrics to examine would include the total annual spending, the number of contracts awarded, the average contract value, and the primary contractors receiving awards. Understanding these trends helps contextualize the $82.7 million award: Is it an outlier, or is it in line with historical spending patterns? Significant increases or decreases in spending could indicate shifts in strategic priorities, technological advancements, or changes in contracting approaches within the DoD's IT landscape.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)

Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 22102

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5355H

IDV Type: FSS

Timeline