DoD awards $5.4M IT services contract to SYSCOM, Inc. under 8(a) STARS III

Contract Overview

Contract Amount: $5,465,956 ($5.5M)

Contractor: Syscom, Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LNOWS III TASK ORDER AGAINST 8(A) STARS III.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to SYSCOM, INC for work described as: LNOWS III TASK ORDER AGAINST 8(A) STARS III. Key points: 1. Contract awarded for Computer Systems Design Services, indicating a need for IT infrastructure and support. 2. The contract utilizes a Firm Fixed Price (FFP) structure, which shifts cost risk to the contractor. 3. Awarded under the 8(a) STARS III GWAC, suggesting a focus on small business participation. 4. The contract duration is 1095 days, providing a medium-term engagement for the services. 5. The award was made after exclusion of sources, which warrants further investigation into the justification. 6. The ordering agency is the Department of the Air Force, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed service descriptions and comparison to similar IT services contracts. The total value of $5.4 million over three years averages to approximately $1.8 million annually. Without specific performance metrics or a breakdown of services, it's challenging to definitively assess value for money. However, the use of a GWAC like 8(a) STARS III often implies pre-negotiated rates that can offer some level of cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under the 8(a) STARS III Government-Wide Acquisition Contract (GWAC), which is a pre-competed vehicle. While the GWAC itself underwent full and open competition, individual task orders can have varying competition levels. The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while the GWAC is broadly available, this specific task order may have had a limited number of bidders or a specific justification for excluding certain sources. Further details on the number of bidders and the rationale for exclusion are needed for a complete assessment.

Taxpayer Impact: The 'exclusion of sources' aspect, even within a GWAC framework, could potentially limit price discovery and may not always yield the most competitive pricing for taxpayers. Transparency regarding the reasons for exclusion is crucial.

Public Impact

The Department of the Air Force will benefit from enhanced computer systems design and support services. This contract supports the Air Force's IT infrastructure and operational capabilities. The services are being delivered in Texas, potentially impacting the local IT workforce and economy. SYSCOM, Inc., as the awardee, will be providing the specified services, contributing to their business growth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' justification needs thorough review to ensure it was appropriate and did not unduly restrict competition.
Lack of detailed service descriptions makes it difficult to fully assess performance expectations and potential risks.
The contract's reliance on a GWAC means understanding the underlying GWAC's terms and conditions is essential for risk assessment.

Positive Signals

Awarded under the 8(a) STARS III GWAC, which is designed to streamline IT procurement for federal agencies and support small businesses.
The Firm Fixed Price contract type helps control costs by shifting risk to the contractor.
The contract is with a reputable agency (Department of the Air Force), suggesting a clear need and established procurement process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with government spending on IT consistently representing a significant portion of the federal budget. Contracts like this are crucial for maintaining and upgrading the technological infrastructure of government agencies. The 8(a) STARS III GWAC is a key vehicle for agencies seeking IT solutions from small, disadvantaged businesses, reflecting a broader government initiative to foster small business participation in federal contracting.

Small Business Impact

The contract is awarded under the 8(a) STARS III GWAC, which is specifically designed to provide IT solutions from 8(a) certified small disadvantaged businesses. While SYSCOM, Inc. is the prime contractor, the nature of the 8(a) STARS III program encourages subcontracting opportunities, potentially benefiting other small businesses. The program aims to increase federal contracting opportunities for small businesses, and this award contributes to that goal. Further analysis would be needed to determine if specific small business subcontracting goals were set for this task order.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force's contracting and program management offices. As a task order under a GWAC, the underlying GWAC also has its own oversight mechanisms managed by GSA. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

8(a) STARS III GWAC
IT Services Contracts
Department of Defense IT Spending
Computer Systems Design Services

Risk Flags

Limited competition due to source exclusion
Potential for performance issues if scope is not well-defined
Cybersecurity risks inherent in IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to SYSCOM, INC. LNOWS III TASK ORDER AGAINST 8(A) STARS III.

Who is the contractor on this award?

The obligated recipient is SYSCOM, 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 $5.5 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What specific computer systems design services are being procured under this contract, and how do they align with the Air Force's strategic IT goals?

The provided data identifies the North American Industry Classification System (NAICS) code as 541512, which corresponds to Computer Systems Design Services. This broad category typically includes designing, developing, and integrating hardware, software, and network systems. Specific services could range from network architecture design, software integration, cybersecurity solutions, cloud migration, to IT infrastructure management. To understand the alignment with strategic goals, one would need to review the Performance Work Statement (PWS) or Statement of Work (SOW) for this task order. This document would detail the exact requirements, deliverables, and objectives, allowing for an assessment of how these services contribute to the Air Force's broader IT modernization efforts, such as enhancing operational readiness, improving data security, or enabling new technological capabilities.

How does the pricing of this contract compare to similar IT services contracts awarded by the Department of Defense or other federal agencies?

A comprehensive price comparison would necessitate access to the detailed pricing structure of this contract (e.g., labor categories, rates, hours) and a database of comparable contracts. The contract is Firm Fixed Price (FFP), meaning the price is set regardless of the contractor's actual costs. Benchmarking would involve comparing SYSCOM, Inc.'s rates for specific labor categories (e.g., systems engineers, network administrators) against average rates for similar roles on other DoD or federal IT contracts, particularly those awarded under the 8(a) STARS III GWAC or similar vehicles. Factors like contract duration, geographic location, and the specific scope of work significantly influence pricing. Without the detailed PWS and rate breakdown, a precise comparison is difficult, but the FFP nature suggests the government has negotiated a ceiling price for the defined scope.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential scope creep if the PWS is not clearly defined, performance deficiencies if SYSCOM, Inc. fails to meet service level agreements, and potential cost overruns if the FFP structure doesn't adequately account for unforeseen complexities (though the risk is primarily on the contractor). Cybersecurity vulnerabilities are also a constant risk in IT contracts. Mitigation strategies typically involve robust contract management by the Air Force, including regular performance reviews, clear communication channels, and defined procedures for change management. The use of the 8(a) STARS III GWAC may also involve certain oversight and compliance requirements. The 'exclusion of sources' aspect could introduce a risk if it limited the pool of qualified bidders, potentially impacting innovation or price.

What is the track record of SYSCOM, Inc. in performing similar federal IT services contracts, particularly under GWACs?

Assessing SYSCOM, Inc.'s track record requires examining their past performance on federal contracts. This includes reviewing contract databases (like FPDS or SAM.gov) for previous awards, contract values, agencies served, and performance evaluations (if publicly available). Particular attention should be paid to their experience with computer systems design services and their history of performance on GWAC vehicles, especially 8(a) STARS III. Positive indicators would include successful completion of similar projects, positive past performance reviews, and a history of meeting deadlines and quality standards. Conversely, any history of contract disputes, performance issues, or significant overruns would be a concern. Information on their specific experience with the Department of the Air Force would also be relevant.

How does the competition level for this specific task order, described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' impact the overall value and taxpayer cost?

The description 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory and requires clarification. Typically, 'full and open competition' implies the widest possible solicitation. However, 'after exclusion of sources' suggests that certain potential bidders were deliberately not considered or invited. This could occur if the agency determined that only specific contractors possessed unique capabilities or if there was a justification for limiting the pool (e.g., based on prior performance or specific socio-economic program requirements). If the exclusion was well-justified and the remaining pool still offered sufficient competition, the value could be good. However, if the exclusion was arbitrary or significantly limited the number of capable bidders, it could lead to reduced price competition, potentially increasing costs for taxpayers and limiting the range of innovative solutions available.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA301623U0141

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1685 W UINTAH ST STE 103, COLORADO SPRINGS, CO, 80904

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,314,165

Exercised Options: $5,466,113

Current Obligation: $5,465,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0179

IDV Type: GWAC

Timeline