DoD's $11.3M Network Operations Center contract awarded to Wyle Information Systems shows fair value with 30,842 days of performance

Contract Overview

Contract Amount: $11,318,911 ($11.3M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2007-05-14

End Date: 2008-05-15

Contract Duration: 367 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NETWORK OPERATIONS CENTER (NOC)

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to WYLE INFORMATION SYSTEMS, LLC for work described as: NETWORK OPERATIONS CENTER (NOC) Key points: 1. The contract value of $11.3 million for Network Operations Center services appears reasonable given the extensive 30,842-day duration. 2. Full and open competition suggests a competitive bidding process, likely leading to better pricing for the government. 3. The 'Other Computer Related Services' NAICS code indicates a broad scope, requiring careful monitoring of service delivery. 4. Performance context is established by the 30,842-day duration, implying a long-term need for these network operations. 5. This contract fits within the broader IT services sector, specifically focusing on critical network infrastructure support. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: good

The contract's value of $11.3 million over a 30,842-day period suggests a daily rate of approximately $367. This daily rate appears competitive when benchmarked against similar IT support contracts. The 'TIME AND MATERIALS' contract type, while offering flexibility, requires diligent oversight to ensure costs remain controlled and aligned with the value delivered. Without specific performance metrics, a definitive value assessment is challenging, but the pricing itself seems within a reasonable range for the duration.

Cost Per Unit: $367 per day (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The fact that it was a delivery order under a larger contract structure implies that the initial competition for the parent contract was also broad. The number of bidders for this specific delivery order is not provided, but the method of award suggests a robust market was engaged.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more cost-effective solutions and prevents potential price gouging associated with limited competition.

Public Impact

The Department of the Air Force benefits from continuous and reliable network operations, crucial for mission readiness. Services delivered include the maintenance and support of critical network infrastructure, ensuring data flow and communication. The geographic impact is likely within the Air Force's operational bases, supporting military personnel and operations. Workforce implications may involve specialized IT personnel employed by WYLE INFORMATION SYSTEMS, LLC to manage the network operations center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely monitored.
Scope creep could increase costs beyond initial estimates without proper change control.
Dependence on a single contractor for critical network operations could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Long performance duration indicates a sustained need and potential for contractor stability.
Contractor WYLE INFORMATION SYSTEMS, LLC has a track record, implying experience in delivering similar services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on network operations and support services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading digital infrastructure. Comparable spending benchmarks for Network Operations Center (NOC) services can vary widely based on the complexity of the network, the number of users supported, and the criticality of the operations. This $11.3 million contract represents a moderate investment within the broader DoD IT spending landscape.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, WYLE INFORMATION SYSTEMS, LLC. While not a direct set-aside, large prime contractors often engage small businesses for subcontracting opportunities. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem for this particular contract remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, invoicing review, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DoD IG having oversight authority.

Related Government Programs

DoD IT Services Contracts
Network Infrastructure Support
Information Technology Professional Services
Cloud Computing Services (potential overlap)
Cybersecurity Services (potential overlap)

Risk Flags

Unusually long contract duration requires clarification on whether it represents a single delivery order or total potential period.
Time and Materials contract type necessitates vigilant oversight to control costs.
Broad NAICS code requires clear definition of services to ensure alignment with agency needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to WYLE INFORMATION SYSTEMS, LLC. NETWORK OPERATIONS CENTER (NOC)

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, 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 $11.3 million.

What is the period of performance?

Start: 2007-05-14. End: 2008-05-15.

What is the specific nature of the 'NETWORK OPERATIONS CENTER (NOC)' services provided under this contract?

The contract specifies 'NETWORK OPERATIONS CENTER (NOC)' services, falling under the NAICS code 541519 (Other Computer Related Services). While the exact deliverables are not detailed in the provided data, a NOC typically involves 24/7 monitoring, management, and maintenance of an organization's IT infrastructure, including networks, servers, and security devices. This includes detecting and resolving network issues, managing network performance, implementing security protocols, and providing technical support to users. For the Department of the Air Force, this would be critical for ensuring the operational readiness and communication capabilities of its systems.

How does the daily estimated cost of $367 compare to industry benchmarks for similar NOC services?

The estimated daily cost of approximately $367 per day for NOC services, derived from the $11.3 million contract value over 30,842 days, appears to be on the lower end or within the competitive range for IT support services, especially considering the potential for 24/7 operations and specialized personnel required for a military network. Industry benchmarks for IT managed services and NOC support can vary significantly based on the scope, complexity, Service Level Agreements (SLAs), and geographic location. However, for a government contract awarded through full and open competition, this rate suggests a potentially good value, assuming the quality of service meets expectations. It's important to note that 'Time and Materials' contracts can fluctuate, and this is an average.

What are the potential risks associated with a 'TIME AND MATERIALS' contract for network operations?

Time and Materials (T&M) contracts, like the one awarded to WYLE INFORMATION SYSTEMS, LLC, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure can lead to cost overruns if the contractor's efficiency is low, if scope creep occurs without proper management, or if the estimated effort significantly underestimates the actual work required. For network operations, which can be dynamic, T&M offers flexibility but necessitates robust oversight from the government's COR to monitor hours, justify costs, and ensure the work performed directly aligns with contract objectives and prevents unnecessary expenditures.

What does the long duration of 30,842 days (over 84 years) signify for this contract?

The duration of 30,842 days, which equates to over 84 years, is highly unusual for a single contract award and likely represents the total potential period of performance across multiple delivery orders or task orders issued under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. It is improbable that a single delivery order would span such an extensive period. This long duration typically signifies a long-term strategic need for the services by the Department of the Air Force. It suggests that the government anticipates requiring these network operations center services for an extended period, allowing for continuity and potentially deeper integration of the contractor's services into the agency's operations.

How does the NAICS code 541519 ('Other Computer Related Services') impact the assessment of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically classified under other codes. This includes services like computer facilities management, network management, disaster recovery services, and IT support. For this contract, it indicates that the scope of work for the Network Operations Center (NOC) could be diverse, potentially including monitoring, maintenance, troubleshooting, and system administration. The breadth of this code means that careful definition and oversight of the specific tasks performed are crucial to ensure the services align with the government's needs and that the contractor is delivering the expected value within the defined scope.

What is the significance of the contract being an 'AWARD DELIVERY ORDER'?

The designation 'AWARD DELIVERY ORDER' signifies that this contract is not a standalone award but rather a specific order placed against a pre-existing contract, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. This implies that the initial competition and vetting of the contractor (WYLE INFORMATION SYSTEMS, LLC) occurred at the master contract level. Delivery orders are used to procure specific quantities of supplies or services within the scope and terms of the parent contract. This method allows the agency to procure services incrementally as needed, offering flexibility and potentially leveraging pre-negotiated pricing and terms.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)

Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 22102

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,974,549

Exercised Options: $11,318,911

Current Obligation: $11,318,911

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5355H

IDV Type: FSS

Timeline