DoD's $18.3M IT services contract with Titan Systems Corporation shows potential value concerns

Contract Overview

Contract Amount: $12,918,566 ($12.9M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2002-05-02

End Date: 2005-12-31

Contract Duration: 1,339 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200208!000053!5700!GV47 !ESC/JSK !GS35F5396H !C!N! !N!F1962802F8179 !20020502!20061231!183355874!101918761!048341838!N!TITAN SYSTEMS CORPORATION !700 TECHNOLOGY PARK DR !BILLERICA !MA!01821!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000003893810!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !6! ! ! ! ! !99990909!B!F!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to CACI NSS, LLC for work described as: 200208!000053!5700!GV47 !ESC/JSK !GS35F5396H !C!N! !N!F1962802F8179 !20020502!20061231!183355874!101918761!048341838!N!TITAN SYSTEMS CORPORATION !700 TECHNOLOGY PARK DR !BILLERICA !MA!01821!43975!009!12!MELBOURNE !BREVA… Key points: 1. Contract value appears high relative to duration and scope. 2. Limited public data makes direct value comparison difficult. 3. Competition level was full and open, suggesting potential for better pricing. 4. Contract duration of over 3 years indicates a significant commitment. 5. Services provided fall under IT and engineering technical support. 6. Geographic focus includes Massachusetts and Florida.

Value Assessment

Rating: fair

The total contract value of $18.3 million over approximately 3.7 years (1339 days) averages to about $4.95 million per year. While the specific services are detailed as 'ENGINEERING TECHNICAL SERVICES', the lack of granular performance metrics or comparable contract data makes a definitive value assessment challenging. The contract was awarded via a Delivery Order under a larger IDIQ, which can sometimes lead to less direct price negotiation compared to a standalone RFP. Benchmarking against similar IT engineering services contracts would be necessary for a more precise value-for-money determination.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it was a Delivery Order under an existing IDIQ contract suggests that the initial competition for the IDIQ vehicle itself was robust. However, the number of bidders specifically for this delivery order is not detailed in the provided data, which limits the insight into the intensity of competition at this specific task order level. A high level of competition generally benefits the government through better pricing and service.

Taxpayer Impact: The full and open competition for the underlying IDIQ vehicle suggests that taxpayers likely benefited from a competitive bidding process, potentially leading to more favorable pricing and a wider range of technical solutions being considered.

Public Impact

The Department of Defense benefits from engineering and technical services. IT and related technical support are delivered to support defense operations. Workforce implications include the potential for skilled IT and engineering professionals to be engaged. Geographic impact is noted in Massachusetts (contractor location) and Florida (delivery location).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess efficiency.
Potential for cost overruns if scope creep occurs without adequate oversight.
Reliance on a single contractor for a significant duration may limit flexibility.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contract duration of over three years implies a stable, long-term need.
Services provided are critical for defense operations.

Sector Analysis

This contract falls within the Information Technology (IT) and Professional, Scientific, and Technical Services sector. The IT services sub-sector is a significant area of federal spending, encompassing a wide range of support from software development to network management and engineering. Federal spending in this area often supports modernization efforts, cybersecurity, and operational efficiency across various agencies. Comparable spending benchmarks would typically be found within IT support and engineering services categories for large federal agencies like the Department of Defense.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a delivery order under a larger IDIQ, the small business participation might have been addressed at the IDIQ level or could be managed through specific task order requirements. Without this information, the direct impact on the small business ecosystem remains unclear, though large contracts often present subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and delivery requirements. The contract type (Delivery Order) implies that specific terms and conditions are applied. Transparency is generally facilitated through contract databases like FPDS, but detailed operational oversight and accountability measures are internal to the agency and contractor.

Related Government Programs

IT Professional Services
Engineering Services
Defense Information Technology Contracting
IDIQ Contracts
Delivery Orders

Risk Flags

Potential for high cost relative to duration.
Limited public performance data.
Contract awarded as a Delivery Order under an IDIQ, requiring deeper dive into underlying IDIQ competition and task order specifics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to CACI NSS, LLC. 200208!000053!5700!GV47 !ESC/JSK !GS35F5396H !C!N! !N!F1962802F8179 !20020502!20061231!183355874!101918761!048341838!N!TITAN SYSTEMS CORPORATION !700 TECHNOLOGY PARK DR !BILLERICA !MA!01821!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000003893810!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is CACI NSS, 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 $12.9 million.

What is the period of performance?

Start: 2002-05-02. End: 2005-12-31.

What was the specific nature of the 'ENGINEERING TECHNICAL SERVICES' provided under this contract?

The provided data categorizes the service under NAICS code 541519 ('Other Computer Related Services') and PSC code R425 ('Engineering Technical Services'). While the specific tasks are not detailed, this generally encompasses a broad range of technical support, system integration, design, development, and maintenance activities related to IT and other engineering disciplines. For the Department of Defense, such services often involve supporting complex weapon systems, communication networks, or IT infrastructure. Without access to the Statement of Work (SOW) for this specific delivery order, the precise nature of the services remains generalized.

How does the average annual cost of this contract compare to similar IT engineering services contracts awarded by the DoD?

The average annual cost for this contract is approximately $4.95 million ($18.3M / 3.7 years). Benchmarking this against similar IT engineering services contracts requires access to a broader dataset of DoD procurements with comparable scope, complexity, and duration. Factors such as the specific technologies involved, security requirements, and labor categories significantly influence pricing. Generally, IT engineering services for defense applications can range widely, but this annual figure suggests a substantial, ongoing support requirement. A detailed comparison would necessitate analyzing contracts with similar NAICS codes and service descriptions, adjusted for inflation and contract specifics.

What were the key performance indicators (KPIs) or metrics used to evaluate Titan Systems Corporation's performance?

The provided summary data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. Typically, for engineering and technical services contracts, KPIs might include metrics related to on-time delivery, system uptime, defect rates, response times for technical support, adherence to project milestones, and customer satisfaction. The effectiveness of oversight and the assessment of value for money are heavily reliant on these performance metrics being clearly defined in the contract's Statement of Work and rigorously monitored throughout the contract period.

What is the track record of Titan Systems Corporation with federal contracts, particularly with the Department of Defense?

Titan Systems Corporation has a history of receiving federal contracts, including those with the Department of Defense. The provided data shows this specific contract valued at $18.3 million. Further investigation into federal procurement databases would reveal the full scope of their contract history, including other agencies served, contract types, and performance ratings. Understanding their past performance, including any awards, past performance evaluations, or contract disputes, is crucial for assessing the risk associated with awarding them significant contracts.

Were there any significant cost underruns or overruns reported for this contract during its performance period?

The provided summary data does not contain information regarding cost underruns or overruns for this specific contract. Contract performance data, including financial execution and any deviations from the planned budget, is typically detailed in internal agency reports, contractor performance assessments, or Inspector General audits. Without access to such detailed financial and performance reporting, it is not possible to determine if this contract experienced significant cost variances.

How did the final obligated amount compare to the initial award amount for this contract?

The initial award amount for this contract was $18,335,558.74, and the final obligated amount is listed as $18,335,558.74. This indicates that the full awarded amount was obligated and utilized over the life of the contract. There were no apparent changes or modifications that increased or decreased the total financial commitment beyond the initial award value as presented in this dataset.

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)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 11955 FREEDOM DR STE 12000, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5396H

IDV Type: FSS

Timeline