DoD's $30.8M 'OVER AND ABOVE' contract with CNI FEDERAL SERVICES, LLC for IT facilities management raises value concerns

Contract Overview

Contract Amount: $30,840,181 ($30.8M)

Contractor: CNI Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-31

End Date: 2012-11-30

Contract Duration: 1,765 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OVER AND ABOVE WORK

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to CNI FEDERAL SERVICES, LLC for work described as: OVER AND ABOVE WORK Key points: 1. The contract's 'OVER AND ABOVE' designation suggests work beyond the original scope, potentially indicating scope creep or inadequate initial planning. 2. CNI FEDERAL SERVICES, LLC, a single awardee, managed this contract for nearly five years. 3. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' a complex procurement method that warrants scrutiny. 4. The fixed-price contract type offers some cost certainty but may not fully account for unforeseen complexities in IT facilities management. 5. The duration of the contract (1765 days) is substantial for IT services, requiring ongoing performance monitoring. 6. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed task orders and performance metrics. The 'OVER AND ABOVE' designation implies costs incurred beyond the initial agreement, which could indicate a less efficient use of funds if not strictly justified by unforeseen requirements. Comparing this to similar IT facilities management contracts would require access to detailed scope and pricing data for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method implies that while the competition was intended to be open, certain sources were excluded for specific reasons, potentially limiting the pool of eligible bidders. The number of bidders (13) is a positive indicator of some level of competition, but the exclusion of sources needs further investigation to understand its impact on the final price.

Taxpayer Impact: While 13 bidders suggest some competition, the exclusion of certain sources could have potentially led to a higher price than if all qualified vendors had participated.

Public Impact

The Department of the Air Force benefits from IT facilities management services, ensuring the operational readiness of its computer systems. This contract supports the maintenance and management of critical IT infrastructure necessary for Air Force operations. The geographic impact is likely concentrated around the Air Force installations where these IT facilities are located. The contract supports jobs within the IT services sector, particularly those focused on facilities management and computer systems administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep due to 'OVER AND ABOVE' work designation.
Limited transparency on the specific reasons for excluding certain sources in the competition.
Long contract duration may necessitate careful oversight to ensure continued value and relevance.

Positive Signals

Awarded under a competitive process with 13 bidders, indicating some market interest.
Fixed-price contract type provides a degree of cost predictability.
Contract performance status is marked as 'OK', suggesting no major issues reported.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This sector is crucial for government operations, encompassing the maintenance, support, and management of IT infrastructure. The market for IT services is highly competitive, with numerous vendors offering specialized solutions. Government spending in this area is substantial, supporting everything from basic network maintenance to complex data center operations.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the procurement was not specifically designed to award a portion of the work to small businesses. Consequently, the direct impact on the small business ecosystem may be limited unless CNI FEDERAL SERVICES, LLC engages in subcontracting with small businesses, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the fixed-price contract structure, which obligates the contractor to deliver services within agreed-upon terms. Transparency regarding the 'OVER AND ABOVE' work and the reasons for excluding sources would be crucial for a thorough assessment, often facilitated through contract performance reports and potential Inspector General reviews if significant issues arise.

Related Government Programs

IT Infrastructure Management Services
Computer Systems Administration
Data Center Operations Support
Information Technology Support Services
Defense Information Technology Contracting

Risk Flags

Potential for scope creep
Limited competition justification
Long contract duration risks obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to CNI FEDERAL SERVICES, LLC. OVER AND ABOVE WORK

Who is the contractor on this award?

The obligated recipient is CNI FEDERAL SERVICES, LLC.

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 $30.8 million.

What is the period of performance?

Start: 2008-01-31. End: 2012-11-30.

What specific IT facilities management services were covered under the original scope of this contract, and how did the 'OVER AND ABOVE' work differ?

The provided data indicates the contract was for 'Computer Facilities Management Services' (NA 541513). However, the specifics of the original scope versus the 'OVER AND ABOVE' work (d) are not detailed. Typically, 'OVER AND ABOVE' work refers to tasks or services that were not anticipated or included in the original contract statement of work. This could range from unforeseen hardware upgrades, expanded service level agreements, or additional support requirements driven by evolving operational needs. Without access to the contract's statement of work and subsequent modifications or task orders detailing the 'OVER AND ABOVE' components, a precise comparison is not possible. This designation often warrants close scrutiny to ensure it represents genuine, unavoidable changes in requirements rather than poor initial planning or scope creep that inflates costs without proportional benefit.

How does the per-unit cost or overall value of this contract compare to similar IT facilities management contracts awarded by the Department of Defense or other federal agencies?

Directly comparing the value of this $30.8 million contract is difficult without detailed breakdowns of the services rendered, labor rates, and specific performance metrics. The 'OVER AND ABOVE' designation further complicates a straightforward comparison, as it implies costs beyond the initially defined scope. To benchmark effectively, one would need to analyze comparable contracts for similar IT facilities management services, considering factors like contract duration, service level agreements, geographic scope, and the specific technologies supported. Access to a database of federal contract awards with detailed pricing and service descriptions would be necessary to identify relevant benchmarks and assess whether CNI FEDERAL SERVICES, LLC's pricing was competitive or represented a fair value for the services provided over the contract's nearly five-year term.

What were the specific reasons for excluding certain sources during the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement process?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open to all responsible sources, specific entities were deliberately excluded. The reasons for such exclusions are typically documented in the contract file and can include factors like past performance issues, failure to meet specific technical qualifications, or non-compliance with regulatory requirements. Without access to the contract's justification and approval (J&A) document or other procurement records, the precise reasons for excluding sources remain unknown. Understanding these exclusions is critical, as it can impact the level of competition achieved and potentially influence pricing and innovation. A limited pool of bidders, even if technically compliant, might result in less competitive pricing compared to a truly unrestricted open competition.

What is the track record of CNI FEDERAL SERVICES, LLC in managing large federal IT contracts, particularly those involving facilities management?

CNI FEDERAL SERVICES, LLC was the sole awardee of this $30.8 million contract for IT facilities management services, which ran from January 31, 2008, to November 30, 2012. The contract performance status is noted as 'OK,' suggesting it met the government's expectations without major reported deficiencies. However, a comprehensive assessment of the contractor's track record would require examining their performance on other federal contracts, including their history with scope management, adherence to schedules, quality of service delivery, and overall client satisfaction. Information on other contracts awarded to CNI FEDERAL SERVICES, LLC, their values, and performance evaluations would provide a broader picture of their capabilities and reliability in managing complex federal IT projects.

How did the duration of this contract (1765 days) impact the overall cost-effectiveness and the ability to adapt to evolving IT needs?

A contract duration of 1765 days (approximately 4.8 years) for IT facilities management is substantial. While longer contracts can offer stability and reduce administrative burden associated with frequent re-procurement, they also pose risks. For IT services, which evolve rapidly, a lengthy fixed contract might not allow for timely incorporation of new technologies or more efficient solutions that emerge during its term. The cost-effectiveness depends heavily on whether the contract included mechanisms for price adjustments or service modifications to reflect market changes and technological advancements. The 'OVER AND ABOVE' work designation suggests that requirements did evolve, but the fixed-price nature might have led to inefficiencies if the contractor bore the full risk of unforeseen cost increases, or conversely, if the government paid premium prices for work that became standard.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: FA810107R0004

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation (UEI: 070848361)

Address: 2600 JOHN SAXON BLVD STE 2219, OKLAHOMA CITY, OK, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,743,996

Exercised Options: $30,840,181

Current Obligation: $30,840,181

Contract Characteristics

Cost or Pricing Data: NO

Timeline