Air Force awards $31.8M for COTS sustainment, raising questions on value and competition
Contract Overview
Contract Amount: $31,874,970 ($31.9M)
Contractor: Criterion Systems, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2013-11-22
End Date: 2019-06-30
Contract Duration: 2,046 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF PURPOSE OF THIS TASK ORDER IS TO PROVIDE AF DCGS COTS SUSTAINMENT SUPPORT.
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.9 million to CRITERION SYSTEMS, L.L.C. for work described as: IGF::CT::IGF PURPOSE OF THIS TASK ORDER IS TO PROVIDE AF DCGS COTS SUSTAINMENT SUPPORT. Key points: 1. The contract's value appears high relative to the duration, suggesting potential overspending. 2. Limited competition may have inflated costs and reduced the incentive for contractor efficiency. 3. The fixed-price nature of the contract shifts risk to the government, potentially increasing overall cost. 4. Performance context is limited, making it difficult to assess the true value delivered. 5. This contract falls within the IT services sector, a common area for significant federal spending. 6. The sole-source nature raises concerns about fair pricing and taxpayer value. 7. The duration of the contract (over 5 years) suggests a long-term need for these services.
Value Assessment
Rating: questionable
The contract's total value of $31.8 million over approximately 5.7 years averages to about $5.5 million annually. Without specific performance metrics or comparable contract data, it is difficult to definitively benchmark the value. However, the duration and cost suggest a significant investment. The fixed-price nature, while common, can lead to higher costs if not carefully managed against market rates for similar COTS sustainment services. Further analysis would require understanding the specific COTS products supported and their market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source basis after exclusion of sources, indicating a lack of broad competition. While specific justifications for this approach are not detailed here, it typically implies that only one source was deemed capable or available. This limited competition significantly reduces the government's ability to leverage market forces to achieve the best possible pricing and terms. The absence of multiple bidders means potential cost savings that could arise from a competitive bidding process are likely foregone.
Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as the government does not benefit from competitive pressure driving down costs. This reduces the overall value for money achieved with taxpayer funds.
Public Impact
The primary beneficiaries are the Department of the Air Force, which receives sustainment support for its DCGS systems. The services delivered include Computer Systems Design Services, specifically for COTS sustainment. The geographic impact is primarily within the Department of Defense's operational areas, likely supporting Air Force installations. Workforce implications include the potential need for specialized IT personnel to manage and maintain these COTS systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing raises concerns about fairness and efficiency.
- Fixed-price contract shifts risk to the government, which could lead to higher overall expenditure if not managed effectively.
- Long contract duration without clear performance benchmarks makes value assessment challenging.
- The specific COTS products supported are not detailed, hindering a precise market value comparison.
Positive Signals
- The contract addresses a specific need for sustainment support, indicating a recognized requirement within the Air Force.
- The firm fixed-price structure provides cost certainty for the government, assuming the scope is well-defined.
- The award is to a specific contractor, Criterion Systems, L.L.C., suggesting they possess the necessary expertise for this sustainment task.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and sustainment for Commercial Off-The-Shelf (COTS) software. The IT services market is vast and highly competitive, with significant government spending allocated to software maintenance, support, and development. Benchmarking this contract's value would require comparing its annual cost against similar sustainment contracts for enterprise-level COTS solutions within the federal government or large commercial enterprises, considering the specific software and support levels provided.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The award to Criterion Systems, L.L.C. does not inherently suggest a focus on or exclusion of small business participation in its own subcontracting efforts, which would require further investigation into the prime contractor's practices.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited by the sole-source nature of the award; however, contract modifications, performance reports, and payment data should be available through federal procurement databases, subject to classification or proprietary restrictions.
Related Government Programs
- Air Force DCGS Sustainment
- COTS Software Support Contracts
- IT Services for Defense Agencies
- Computer Systems Design Services
Risk Flags
- Sole Source Award
- Potential Lack of Competition
- Limited Performance Data
- High Contract Value for Duration
Tags
it-services, defense, department-of-the-air-force, full-and-open-competition-after-exclusion-of-sources, delivery-order, firm-fixed-price, computer-systems-design-services, commercial-off-the-shelf, sustainment-support, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.9 million to CRITERION SYSTEMS, L.L.C.. IGF::CT::IGF PURPOSE OF THIS TASK ORDER IS TO PROVIDE AF DCGS COTS SUSTAINMENT SUPPORT.
Who is the contractor on this award?
The obligated recipient is CRITERION SYSTEMS, L.L.C..
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 $31.9 million.
What is the period of performance?
Start: 2013-11-22. End: 2019-06-30.
What specific COTS products are being sustained under this contract, and what is their market value?
The provided data does not specify the exact Commercial Off-The-Shelf (COTS) products that Criterion Systems, L.L.C. is providing sustainment support for under this contract. The purpose is broadly stated as 'AF DCGS COTS SUSTAINMENT SUPPORT.' Without this crucial detail, it is impossible to accurately assess the market value of the services or compare pricing against industry benchmarks. The Defense Ground Systems (DCGS) program encompasses a wide range of intelligence, surveillance, and reconnaissance (ISR) systems, often involving complex software suites. The market value would depend heavily on the specific software licenses, maintenance agreements, and the criticality of the systems being supported. Further inquiry into the contract's detailed statement of work or associated documentation would be necessary to identify the specific COTS products and research their prevailing market costs.
What was the justification for awarding this contract on a sole-source basis after exclusion of sources?
The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This classification suggests that while a competitive process was intended, it ultimately resulted in the exclusion of all but one source, or that only one source was identified as capable or available from the outset. Common justifications for such exclusions include proprietary software requiring specific vendor support, unique technical capabilities possessed by only one firm, or situations where a previous contract's performance necessitates continuation with the incumbent. Without the specific justification documentation (e.g., a Justification and Approval document), it is impossible to ascertain the precise reasons. However, such awards typically bypass the broader market, potentially leading to higher costs and reduced innovation compared to full and open competition.
How does the annual cost of this contract compare to industry benchmarks for similar IT sustainment services?
The contract's total value is $31.8 million over approximately 2046 days (roughly 5.6 years), equating to an average annual cost of approximately $5.6 million. Benchmarking this against industry standards for IT sustainment services is challenging without knowing the specific COTS products and the level of support required (e.g., 24/7 critical support vs. standard business hours). However, for enterprise-level COTS sustainment, annual costs can range significantly, often representing 15-25% of the initial software acquisition cost. If the underlying COTS software represents a substantial investment, this annual sustainment cost might be within a reasonable range. Conversely, if the COTS are less complex or widely available, this annual figure could be considered high, especially given the sole-source nature which may inflate prices.
What performance metrics or key performance indicators (KPIs) were established for this contract?
The provided summary data does not include details on specific performance metrics or Key Performance Indicators (KPIs) established for this contract. For a sustainment contract, typical KPIs might include system uptime, response times for issue resolution, patch deployment success rates, and customer satisfaction. The absence of this information in the summary makes it difficult to assess the contractor's performance objectively and determine if the government is receiving adequate value for the funds expended. A firm fixed-price contract, while offering cost certainty, relies heavily on well-defined performance standards to ensure the contractor is incentivized to deliver quality service. Without these, the government's ability to hold the contractor accountable is diminished.
What is the track record of Criterion Systems, L.L.C. in providing similar COTS sustainment services to the federal government?
Criterion Systems, L.L.C. has a history of performing IT services for the federal government, including contracts related to software and systems support. Publicly available contract data indicates they have received numerous awards across various agencies, including the Department of Defense. Their experience likely encompasses a range of IT solutions. However, assessing their specific track record for 'AF DCGS COTS SUSTAINMENT SUPPORT' requires a deeper dive into past performance evaluations, any contract disputes, or specific commendations related to similar complex sustainment tasks. Without detailed performance reviews tied directly to this type of service, it's difficult to definitively gauge their expertise and reliability in this particular niche beyond their general presence in the federal IT contracting space.
How has the Air Force's spending on DCGS COTS sustainment evolved over time, and does this contract represent a significant shift?
The provided data focuses solely on this specific delivery order ($31.8M from 2013-2019). It does not offer historical spending trends for Air Force DCGS COTS sustainment. To understand the evolution of spending, one would need to analyze prior contracts for DCGS sustainment, including any previous delivery orders under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or separate prime contracts. This analysis would reveal whether the $31.8 million represents a typical, increased, or decreased level of investment compared to historical patterns. A significant shift could indicate changes in system requirements, technology adoption, or strategic priorities within the Air Force's intelligence and ISR capabilities.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8330 BOONE BLVD STE 400, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,957,946
Exercised Options: $31,874,970
Current Obligation: $31,874,970
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0643Z
IDV Type: GWAC
Timeline
Start Date: 2013-11-22
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2021-06-08
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