DoD's $15.6M IT contract with VANGENT, INC. for computer facilities management services awarded under full and open competition

Contract Overview

Contract Amount: $15,608,564 ($15.6M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-27

End Date: 2019-01-26

Contract Duration: 3,865 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WBES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to VANGENT, INC. for work described as: WBES Key points: 1. Contract awarded for computer facilities management services, indicating a need for ongoing IT infrastructure support. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. A firm-fixed-price contract type suggests that the price was set at the time of award, providing cost certainty. 4. The contract duration of over 10 years (3865 days) indicates a long-term need for these services. 5. The award was made to VANGENT, INC., a contractor with a significant federal presence. 6. The contract was awarded by the Department of the Air Force, a major component of the DoD. 7. The North American Industry Classification System (NAICS) code 541513 points to specific IT services related to computer facilities management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The firm-fixed-price structure provides some cost predictability. However, the extended duration of over 10 years warrants scrutiny to ensure continued value for money and alignment with evolving technological needs. Comparing the total award amount to similar long-term IT infrastructure support contracts across the federal government would provide a clearer picture of its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bids indicates a degree of competition, which is generally positive for price discovery. However, the specific number of bidders does not inherently guarantee the most competitive pricing without further analysis of the bid proposals and the market landscape for these specialized services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The fact that multiple bids were received suggests that the government had options, potentially driving down costs compared to a sole-source award.

Public Impact

The Department of the Air Force benefits from consistent and reliable computer facilities management services, crucial for its operational readiness. The contract supports the maintenance and operation of critical IT infrastructure, ensuring the availability of essential digital services. Personnel in IT roles within the Air Force may see their workload reduced or refocused due to the outsourcing of these management functions. The geographic impact is likely concentrated around Air Force installations where these facilities are managed, potentially supporting local economies through contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may lead to vendor lock-in and reduced flexibility to adapt to new technologies or market changes.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's effectiveness and value for money over time.
Firm-fixed-price contracts can sometimes disincentivize innovation or cost-saving measures by the contractor once the price is set.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a core IT service requirement for the Department of the Air Force, suggesting strategic alignment.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer facilities management. This sector is characterized by rapid technological advancements and a high demand for specialized expertise. The market for IT services supporting federal agencies is substantial, with significant spending allocated to infrastructure management, cybersecurity, and cloud computing. Comparable spending benchmarks would involve analyzing other large, long-term IT support contracts awarded by defense agencies or other federal departments for similar services.

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 for small businesses stemming from a set-aside provision. The primary contractor, VANGENT, INC., would determine any subcontracting opportunities. Without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is minimal, though VANGENT, INC. may engage small businesses as part of its overall supply chain.

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. Accountability measures would be defined in the contract's performance work statement (PWS) and terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Design Services
Information Technology Professional Services
Defense Information Technology Services
Federal IT Contracts

Risk Flags

Long-term contract duration may limit flexibility and innovation.
Lack of detailed performance metrics makes value assessment difficult.
Potential for vendor lock-in over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to VANGENT, INC.. WBES

Who is the contractor on this award?

The obligated recipient is VANGENT, 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 $15.6 million.

What is the period of performance?

Start: 2008-06-27. End: 2019-01-26.

What is VANGENT, INC.'s track record with federal IT contracts, particularly those involving facilities management?

VANGENT, INC. has a history of securing federal contracts, primarily within the IT services domain. While specific details on their facilities management performance require deeper analysis of past contract performance reports (CPARs), their consistent awards suggest a capacity to meet government requirements. Examining their portfolio for similar long-term, large-value IT infrastructure contracts would provide further insight into their experience and reliability in this specific service area. Understanding their performance trends across various agencies and contract types is crucial for a comprehensive assessment.

How does the $15.6 million total award value compare to similar IT facilities management contracts awarded by the Department of Defense?

The $15.6 million total award value for this 10+ year contract represents an average annual value of approximately $1.5 million. To benchmark this effectively, one would need to compare it against other definitive contracts for IT facilities management services awarded by the DoD or similar agencies over comparable durations. Factors such as the scope of services, number of facilities managed, and specific technical requirements would need to be considered for a fair comparison. Without access to a broader dataset of comparable contracts, it's difficult to definitively state whether this represents a high, low, or average value.

What are the primary risks associated with a firm-fixed-price contract of this duration for IT facilities management?

The primary risks associated with a long-term firm-fixed-price (FFP) contract for IT facilities management include potential for vendor lock-in, where the government may struggle to adopt newer technologies or switch providers if VANGENT, INC.'s solutions become outdated or less cost-effective. There's also a risk that the contractor may have less incentive to innovate or proactively identify cost-saving opportunities once the price is fixed. Conversely, if unforeseen circumstances significantly increase costs for the contractor, they may seek contract modifications or face financial strain, potentially impacting service delivery. Ensuring robust performance metrics and clear scope definition are key mitigations.

How effective has the full and open competition process been in ensuring competitive pricing for this contract, given its long duration?

The full and open competition process, evidenced by 5 bids, suggests an initial level of market engagement and potential for competitive pricing. However, the effectiveness of this competition over the contract's extended duration (over 10 years) is a separate consideration. While the initial award may have been competitive, the long timeframe could lead to market shifts or reduced competitive pressure in subsequent years if follow-on options or modifications are exercised. A thorough analysis would involve reviewing the bid proposals, the pricing structures, and potentially comparing the final negotiated price against independent cost estimates or market research conducted at the time of award.

What are the historical spending patterns for computer facilities management services within the Department of the Air Force?

Analyzing historical spending patterns for computer facilities management services within the Department of the Air Force would involve examining contract data over several fiscal years. This would reveal trends in contract values, types of services procured, dominant contractors, and the prevalence of different contract vehicles (e.g., IDIQs, definitive contracts). Understanding these patterns can help identify periods of increased or decreased investment in IT infrastructure management, potential consolidation of contracts, or shifts towards specific service delivery models. Such analysis provides context for the current $15.6 million award and its place within the Air Force's broader IT budget and strategy.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 4250 FAIRFAX DR STE 1200, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,608,564

Exercised Options: $15,608,564

Current Obligation: $15,608,564

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline