DoD's $37.2M IT Services Contract Awarded to ACS Defense, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $37,218,763 ($37.2M)

Contractor: ACS Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2002-03-29

End Date: 2008-03-04

Contract Duration: 2,167 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $37.2 million to ACS DEFENSE, LLC for work described as: Key points: 1. Contract awarded for IT services, indicating a need for specialized computer-related support within the Department of Defense. 2. The contract was competed under 'full and open competition', suggesting a broad market solicitation. 3. Awarded to ACS Defense, LLC, the contract duration was 2167 days, spanning over six years. 4. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of hours worked. 5. The base award amount was $17.17 million, with potential for growth to $37.21 million. 6. The contract was awarded in 2002, reflecting IT needs from over two decades ago.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of IT services. The contract's value grew from an initial award of $17.17 million to a final value of $37.21 million over its six-year duration. Without specific deliverables or performance metrics, it's difficult to assess if this represented good value for money. The 'Labor Hours' contract type can sometimes lead to cost overruns if not managed tightly, but it also allows for flexibility in adapting to evolving IT needs.

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 a bid. This suggests a competitive process aimed at achieving the best value for the government. The fact that there were two bids received (no: 2) implies a moderate level of competition for this specific IT services requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better service at a more reasonable cost.

Public Impact

The Department of Defense benefited from specialized IT services, likely supporting critical defense operations and infrastructure. The contract provided computer-related services, contributing to the modernization and maintenance of defense IT systems. The geographic impact is likely national, given the nature of defense IT support, though specific deployment locations are not detailed. The contract supported a workforce skilled in IT services, potentially including software development, network management, and cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's age (awarded in 2002) means the technology and IT needs may be significantly outdated, potentially impacting current defense capabilities.
The 'Labor Hours' contract type requires diligent oversight to prevent scope creep and ensure efficient use of billable hours.
Limited competition (2 bidders) might suggest that the market for this specific niche service was not robust, or that barriers to entry were high.

Positive Signals

Awarded under full and open competition, which typically promotes fair pricing and access for a wide range of potential contractors.
The contract was successfully completed, indicating that ACS Defense, LLC met its obligations over the contract's extended period.
The significant increase in contract value from base to final indicates the government's continued need for the services provided.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically 'Other Computer Related Services'. The IT services market is vast and constantly evolving, with government spending on IT being a significant portion of overall federal expenditures. Contracts like this support the government's need for specialized technical expertise in areas such as software development, system integration, and IT support. Comparable spending benchmarks would typically involve analyzing other IT service contracts awarded by the DoD or other federal agencies for similar services and durations.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract may be limited unless subcontracting occurred without explicit reporting in the provided data.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) given the 'sa' field. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

IT Services Contracts
Defense IT Modernization
Computer Systems Design Services
Information Technology Professional Services
Department of Defense IT Procurement

Risk Flags

Contract Age
Labor Hours Pricing Risk
Limited Competition
Outdated Technology Relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to ACS DEFENSE, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ACS DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2002-03-29. End: 2008-03-04.

What was the specific nature of the 'Other Computer Related Services' provided under this contract?

The provided data classifies the service under NAICS code 541519, 'Other Computer Related Services'. This is a broad category that can encompass a wide range of IT activities not specifically covered by other NAICS codes, such as IT consulting, computer facilities management, computer disaster recovery services, and IT support services. Without more detailed contract documentation, the precise services rendered by ACS Defense, LLC remain unspecified. However, given the duration and value, it likely involved ongoing support, maintenance, or development of IT systems crucial to the Department of Defense's operations during the period of 2002-2008.

How did the final contract value of $37.21 million compare to the initial award amount of $17.17 million, and what does this growth signify?

The final contract value of $37.21 million represents a significant increase of approximately 117% over the initial base award of $17.17 million. This substantial growth over the contract's six-year period (2002-2008) suggests that the Department of Defense had a sustained and potentially expanding need for the IT services provided by ACS Defense, LLC. Such increases often occur due to contract modifications, exercising of option periods, or the addition of new tasks and requirements within the scope of the original contract. It indicates a strong demand for the contractor's services and potentially evolving requirements within the DoD's IT landscape during that era.

What are the potential risks associated with a 'Labor Hours' contract type, especially for a long-duration IT services contract?

The 'Labor Hours' contract type, while offering flexibility, carries inherent risks, particularly for long-duration IT services contracts. The primary risk is the potential for cost overruns if the contractor's labor hours are not efficiently managed or if the scope of work expands without adequate controls. For the government, it necessitates robust oversight to ensure that the hours billed are reasonable, necessary, and directly related to the contract's objectives. Without stringent monitoring of labor input and productivity, taxpayers could end up paying more than the value received. Additionally, it can be more challenging to establish a fixed price for services, making budget forecasting less precise.

Given the contract was awarded in 2002, how relevant are the services and pricing to current IT needs and market rates?

A contract awarded in 2002 is largely irrelevant for assessing current IT needs and market rates. The technology landscape, cybersecurity threats, and IT service delivery models have evolved dramatically in the two decades since. Pricing for IT services in 2002 would not reflect today's market, which is influenced by cloud computing, AI, advanced analytics, and different workforce dynamics. Furthermore, the specific 'Other Computer Related Services' required by the DoD in the early 2000s may no longer align with contemporary defense IT requirements. Therefore, using this contract as a benchmark for current procurements would be highly misleading.

What does the limited number of bidders (2) in a 'full and open competition' suggest about the market for these IT services in 2002?

The fact that only two bidders responded to a 'full and open competition' for these IT services in 2002 suggests several possibilities. It could indicate a highly specialized niche market where only a few companies possessed the required expertise or security clearances. Alternatively, it might imply that the contract's requirements, duration, or geographic scope were unattractive to a broader range of potential bidders. High barriers to entry, such as significant pre-qualification requirements or the need for specific certifications, could also have limited the pool of interested and capable companies. This limited competition could potentially lead to less aggressive pricing compared to a more crowded field.

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: 2

Pricing Type: LABOR HOURS (Z)

Contractor Details

Address: 12410 MILESTONE CENTER DR STE 600, GERMANTOWN, MD, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,486,071

Exercised Options: $1,486,071

Current Obligation: $37,218,763

Parent Contract

Parent Award PIID: GS35F4039G

IDV Type: FSS

Timeline