DoD's $18.9M IT support contract awarded to COMPQSOFT, Inc. shows strong competition and fair pricing

Contract Overview

Contract Amount: $18,945,666 ($18.9M)

Contractor: Compqsoft, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2028-01-31

Contract Duration: 1,400 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE OPERATIONS SUPPORT - INFORMATION TECHNOLOGY

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to COMPQSOFT, INC. for work described as: BASE OPERATIONS SUPPORT - INFORMATION TECHNOLOGY Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility while managing expenses. 2. Full and open competition after exclusion of sources indicates a robust bidding process. 3. The award to COMPQSOFT, Inc. suggests a competitive market for IT support services. 4. Performance period of 1400 days provides a stable foundation for IT operations. 5. The contract's focus on IT operations aligns with critical defense infrastructure needs. 6. The base operations support nature of the contract is essential for ongoing mission readiness.

Value Assessment

Rating: good

The contract's pricing appears reasonable given the scope of IT base operations support. While specific cost breakdowns are not provided, the fixed-fee component suggests that the contractor's profit margin is capped, which is a positive sign for value. Benchmarking against similar IT support contracts for defense agencies would provide further insight, but the competitive award process suggests that the pricing was deemed acceptable by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple qualified bidders were likely considered. The presence of 8 bidders (no) suggests a healthy level of competition for this IT support requirement. This broad competition is generally favorable for price discovery and ensures that the government receives proposals from a wide range of capable vendors.

Taxpayer Impact: A competitive bidding process like this helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among offerors.

Public Impact

The Department of the Air Force benefits from reliable IT infrastructure and operational support. Essential IT services are delivered to ensure the continuity of defense operations. The contract's impact is primarily within the Department of Defense, supporting its mission. The workforce implications include employment opportunities for IT professionals within COMPQSOFT, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not closely monitored.
Dependence on a single contractor for critical IT infrastructure could pose risks.
The 'exclusion of sources' clause warrants further examination to ensure no qualified vendors were unfairly excluded.

Positive Signals

Award to a single entity suggests strong qualifications and competitive proposal.
Fixed-fee component helps control contractor profit and manage overall costs.
Long-term contract provides stability for essential IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on IT base operations support. This is a critical area for government agencies, particularly the Department of Defense, which relies heavily on robust and secure IT infrastructure. The market for such services is competitive, with numerous firms offering specialized support. The total addressable market for IT services to the federal government is substantial, with significant annual spending across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside requirement. However, the prime contractor, COMPQSOFT, Inc., may still engage small businesses as subcontractors, depending on their own business practices and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Operations and Support Services
Base Support Services
Information Technology Professional Services
Defense Information Systems Agency (DISA) Contracts
Cloud Computing Services
Cybersecurity Services

Risk Flags

Cost-plus contract type requires diligent oversight to manage potential cost overruns.
Dependence on a single contractor for critical IT functions.
The 'exclusion of sources' clause in the competition type warrants scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to COMPQSOFT, INC.. BASE OPERATIONS SUPPORT - INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is COMPQSOFT, INC..

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 $18.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2028-01-31.

What is the track record of COMPQSOFT, Inc. with federal contracts, particularly within the Department of Defense?

A review of federal procurement data would be necessary to fully assess COMPQSOFT, Inc.'s track record. Key metrics to examine would include the number of previous awards, their total value, the agencies they have served, and their performance ratings on past contracts. Understanding their history with IT base operations support specifically would be crucial. Any past performance issues, such as contract terminations, disputes, or negative CPARS (Contractor Performance Assessment Reporting System) ratings, would be significant risk indicators. Conversely, a history of successful, on-time, and within-budget contract completions would signal reliability and competence.

How does the awarded amount of $18.9 million compare to similar IT base operations support contracts within the Department of Defense?

To benchmark the $18.9 million award, one would compare it to similar contracts for IT base operations support awarded by the Department of Defense or other federal agencies over the past few years. Factors to consider in the comparison include the contract duration (1400 days), the specific services included (e.g., network management, help desk, system maintenance), the geographic location of service delivery, and the number of end-users supported. If similar contracts for comparable scope and duration were awarded for significantly less or more, it would provide context for the value-for-money assessment. The 'full and open competition' aspect suggests the price was competitive, but direct comparison with peer contracts is the most effective way to validate this.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT base operations support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to incur costs that exceed their initial estimates, even though the fee is fixed. While the government only reimburses allowable costs, there's a risk of scope creep or inefficiencies leading to higher overall government expenditure than anticipated if not managed diligently. For IT base operations, risks include unforeseen technical challenges, the need for rapid upgrades or replacements of aging infrastructure, or increased demand for services. Effective oversight, clear performance metrics, and robust change control processes are essential to mitigate these risks and ensure the government receives good value.

What is the expected effectiveness of COMPQSOFT, Inc. in delivering IT base operations support based on the contract details?

The expected effectiveness of COMPQSOFT, Inc. in delivering IT base operations support can be inferred from several factors within the contract details. The award following 'full and open competition after exclusion of sources' with 8 bidders suggests that COMPQSOFT, Inc. submitted a competitive and likely high-quality proposal. The contract type (CPFF) indicates a collaborative approach to managing costs while ensuring service delivery. The duration of the contract (1400 days) allows for sustained operational support. However, actual effectiveness will ultimately depend on the contractor's execution, the clarity of performance work statements, and the government's oversight and performance management.

How has federal spending on IT base operations support evolved, and where does this contract fit within that trend?

Federal spending on IT base operations support has generally trended upwards over the past decade, driven by increasing reliance on digital infrastructure, cybersecurity needs, and modernization efforts across agencies. This contract, valued at $18.9 million over approximately 3.8 years, represents a mid-sized award within this category. It aligns with the ongoing need for agencies like the Department of the Air Force to maintain and operate their essential IT systems. Trends in this area include a greater emphasis on cloud migration, managed services, and cybersecurity integration, which may or may not be fully encompassed within this specific contract's scope.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 N SAM HOUSTON PKWY E STE 682, HOUSTON, TX, 77060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,504,902

Exercised Options: $19,308,809

Current Obligation: $18,945,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0024

IDV Type: IDC

Timeline