DoD's $13.2M contract for ADP services awarded to Dynamics Research Corporation shows potential for cost savings
Contract Overview
Contract Amount: $13,197,558 ($13.2M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Defense
Start Date: 2003-05-29
End Date: 2008-02-29
Contract Duration: 1,737 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: IT
Official Description: 200308!000426!5700!JA04 !12 CONS/CC !GS35F4775G !C!N! !Y!F4169103F0240 !20030529!20040531!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!60608!029!48!RANDOLPH AFB !BEXAR !TEXAS !+000001081414!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.2 million to DYNAMICS RESEARCH CORPORATION for work described as: 200308!000426!5700!JA04 !12 CONS/CC !GS35F4775G !C!N! !Y!F4169103F0240 !20030529!20040531!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!60608!029!48!RANDOLPH AFB !BEXAR… Key points: 1. Contract value of $13.2M for ADP services suggests a significant investment in IT infrastructure. 2. Awarded to Dynamics Research Corporation, a company with a substantial federal contract history. 3. The contract's fixed-price nature, while offering budget certainty, may limit flexibility for evolving needs. 4. Performance period of over 4 years indicates a long-term requirement for these services. 5. The contract was awarded under full and open competition, implying a robust bidding process. 6. The specific services provided under 'Other ADP & Telecommunication Services' warrant further detail to assess value.
Value Assessment
Rating: fair
The contract's total award amount of $13.2 million over approximately 4.8 years (1737 days) averages to about $2.75 million per year. Without specific details on the deliverables or the scope of 'Other ADP & Telecommunication Services,' it is difficult to benchmark against similar contracts. However, the fixed-price level of effort contract type suggests that the government has a defined scope and expects to pay a set price for that effort, which can be advantageous if the scope is well-defined. The number of offers (2) is relatively low for a full and open competition, which might indicate less aggressive pricing than a more competitive scenario.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, only two offers were received. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the low number of bidders in this instance could suggest potential limitations in the market for these specific services or perhaps a lack of aggressive outreach by the agency.
Taxpayer Impact: A low number of bidders in a full and open competition may mean that taxpayers did not benefit from the most competitive pricing possible, as fewer companies vied for the contract.
Public Impact
The primary beneficiaries are likely the Department of Defense and its personnel, who will receive enhanced ADP and telecommunication services. Services delivered include 'Other ADP & Telecommunication Services,' which could encompass a wide range of IT support, network management, or system integration. The contract is geographically tied to Randolph AFB, Texas, suggesting a focus on supporting operations at that installation. Workforce implications may include direct employment for Dynamics Research Corporation staff and potential indirect impacts on military and civilian personnel relying on these IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 offers) may have resulted in higher costs for taxpayers.
- The broad category of 'Other ADP & Telecommunication Services' lacks specificity, making it hard to assess true value for money.
- The contract duration of nearly 5 years could lead to technology obsolescence if not managed proactively.
Positive Signals
- Awarded under full and open competition, adhering to procurement best practices.
- Fixed Price Level of Effort contract type provides budget certainty for the agency.
- Dynamics Research Corporation has a history of federal contracting, suggesting some level of established performance.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically under 'Other ADP & Telecommunication Services.' The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Comparable spending benchmarks for 'Other ADP & Telecommunication Services' are difficult to establish due to the broad nature of the category, but the overall federal IT spending runs into billions annually. This contract represents a small fraction of that total, likely supporting specific operational needs at a particular Air Force base.
Small Business Impact
There is no indication that this contract included a small business set-aside. The award was made to Dynamics Research Corporation, a large business. The contract does not specify any subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor may engage small businesses as subcontractors if their services are required.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices responsible for the services procured. As a Department of Defense contract, it is also subject to oversight by the DoD Inspector General. Transparency is facilitated by contract databases like FPDS, which record award details. However, the level of detail regarding specific performance metrics and deliverables within the public record is limited, making a full assessment of accountability challenging.
Related Government Programs
- Department of Defense IT Services Contracts
- Air Force Telecommunications Contracts
- ADP Services Contracts
- Fixed Price Level of Effort Contracts
Risk Flags
- Limited Competition
- Broad Service Category
- Potential for Cost Overruns if Scope is Poorly Defined
Tags
it, defense, department-of-defense, department-of-the-air-force, randolph-afb, texas, full-and-open-competition, delivery-order, fixed-price-level-of-effort, large-business, professional-services, telecommunication-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.2 million to DYNAMICS RESEARCH CORPORATION. 200308!000426!5700!JA04 !12 CONS/CC !GS35F4775G !C!N! !Y!F4169103F0240 !20030529!20040531!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!60608!029!48!RANDOLPH AFB !BEXAR !TEXAS !+000001081414!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
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: 2003-05-29. End: 2008-02-29.
What is the track record of Dynamics Research Corporation with federal contracts, particularly within the Department of Defense?
Dynamics Research Corporation (DRC) has a significant history of federal contracting, with numerous awards across various agencies, including the Department of Defense. Reviewing publicly available data, DRC has secured contracts for a range of services, often related to information technology, engineering, and professional support. Their performance history with the DoD would typically be assessed through past performance evaluations during the bidding process for new contracts. While specific details of past performance on individual contracts are often proprietary or not fully disclosed in public summaries, their continued success in winning federal awards suggests a generally acceptable or strong performance record in meeting government requirements. Agencies often consider factors like on-time delivery, quality of work, and adherence to budget when evaluating past performance.
How does the $13.2 million award compare to other 'Other ADP & Telecommunication Services' contracts awarded by the Department of the Air Force?
Comparing the $13.2 million award to other 'Other ADP & Telecommunication Services' contracts by the Department of the Air Force requires access to a comprehensive database of contract awards filtered by the specific Product Service Code (PSC) or North American Industry Classification System (NAICS) code and agency. The provided data uses PSC 'D399' (Other ADP and Telecommunication Services) and NAICS '541519' (Other Computer Related Services), with a sub-code of '541511' (Custom Computer Programming Services). Given the broad nature of 'Other ADP & Telecommunication Services,' contract values can vary significantly based on scope, duration, and specific requirements. A $13.2 million contract over nearly five years is a substantial award, but without knowing the precise services rendered, it's difficult to definitively state if it's high or low relative to similar procurements. However, it indicates a significant investment in IT support for the specific needs at Randolph AFB.
What are the specific risks associated with a 'Fixed Price Level of Effort' contract type for IT services?
A 'Fixed Price Level of Effort' (FPLE) contract type aims to provide price certainty for the government while ensuring the contractor expends a defined level of effort. Key risks include: 1) Scope Creep: If the 'level of effort' is not precisely defined or if requirements evolve, the contractor may expend more effort than anticipated, potentially leading to disputes or the need for contract modifications. 2) Inefficiency: The contractor might be incentivized to be less efficient to ensure they meet the 'level of effort' within the fixed price, rather than focusing solely on completing the task efficiently. 3) Lack of Flexibility: For rapidly changing IT environments, an FPLE contract might not offer the flexibility needed to adapt to new technologies or changing requirements without formal modifications, which can be time-consuming. 4) Underestimation of Effort: Conversely, if the government underestimates the effort required, the contractor may not be able to complete the work within the agreed-upon price and effort level, leading to incomplete services.
What does the low number of bidders (2) in this 'Full and Open Competition' suggest about the market for these services?
The fact that only two bids were received for this 'Full and Open Competition' contract, despite its substantial value, could suggest several market dynamics. It might indicate that the specific technical requirements or the location of service delivery (Randolph AFB, TX) limited the pool of qualified and interested contractors. Alternatively, the market for 'Other ADP & Telecommunication Services' as defined by this particular scope might be concentrated among a few large players, or perhaps the solicitation's terms and conditions were perceived as less attractive by potential bidders. It could also imply that the government's market research prior to issuing the solicitation did not adequately identify or engage a broader range of capable vendors. This limited competition raises questions about whether the government achieved the best possible pricing and value.
How has federal spending on 'Other ADP & Telecommunication Services' evolved over the years, and where does this contract fit?
Federal spending on 'Other ADP & Telecommunication Services' (often categorized under broader IT services) has generally trended upwards over the years, reflecting the increasing reliance of government agencies on technology for operations, data management, and communication. Specific data for the 'D399' PSC or '541519' NAICS code would be needed for a precise trend analysis. However, overall federal IT spending is in the tens of billions of dollars annually. This $13.2 million contract, awarded in 2003 for services spanning into 2008, represents a specific, localized investment within the larger federal IT landscape. Its significance lies in supporting the operational needs of the Department of the Air Force at Randolph AFB during that period, rather than indicating a major shift in overall federal spending patterns.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: TWO TECHNOLOGY DR, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4775G
IDV Type: FSS
Timeline
Start Date: 2003-05-29
Current End Date: 2008-02-29
Potential End Date: 2008-02-29 00:00:00
Last Modified: 2021-12-07
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