DoD's $78.8M IT Services Contract with Titan Systems Corporation Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $39,335,966 ($39.3M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2002-03-19
End Date: 2011-07-26
Contract Duration: 3,416 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: 200206!000183!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !GS35F4712G !C!N! !Y!FA877002F8008 !20020319!20030331!788091114!788091114!048341838!N!TITAN SYSTEMS CORPORATION, SEN!700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!09875!017!25!BURLINGTON !MIDDLESEX !MASS !+000003071855!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! !D! !* ! ! ! ! ! ! ! ! ! !0001!
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Defense obligated $39.3 million to ENGILITY CORPORATION for work described as: 200206!000183!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !GS35F4712G !C!N! !Y!FA877002F8008 !20020319!20030331!788091114!788091114!048341838!N!TITAN SYSTEMS CORPORATION, SEN!700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!09875!017!25!BURLINGTON !MIDDL… Key points: 1. The contract awarded to Titan Systems Corporation for IT services represents a significant expenditure of $78.8 million. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. However, the contract's duration of over 9 years and the lack of specific performance metrics raise concerns about value for money. 4. The sector is IT services, specifically Computer Systems Design Services, which is a critical area for defense operations.
Value Assessment
Rating: questionable
The contract's total value of $78.8 million over a 9-year period warrants a closer look at the per-unit cost and overall value delivered. Without clear performance metrics or benchmarks, it's difficult to assess if the pricing is competitive or if taxpayers are receiving optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the extended duration and lack of detailed performance data make it challenging to definitively state if the competition resulted in the best possible price.
Taxpayer Impact: While full and open competition is intended to benefit taxpayers, the long duration and potential for cost overruns without clear performance indicators could lead to suboptimal use of funds.
Public Impact
Taxpayers may be overpaying for IT services if performance is not rigorously tracked and managed over the contract's long lifespan. The extended duration could lock the DoD into potentially outdated technologies or services if not managed proactively. Lack of transparency in specific performance metrics makes it difficult for the public to gauge the effectiveness of this significant IT investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration without clear performance milestones.
- Potential for cost overruns due to extended period.
- Lack of detailed public performance data.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical IT infrastructure for the Department of Defense.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is crucial for modern defense operations, but it's also an area prone to rapid technological change and potential cost inefficiencies if not managed carefully.
Small Business Impact
There is no specific information provided regarding the involvement of small businesses in this contract. Further analysis would be needed to determine if opportunities were made available to small businesses.
Oversight & Accountability
The contract's long duration and the absence of readily available performance metrics suggest a need for enhanced oversight to ensure accountability and value for taxpayer money. Regular reviews and performance audits are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 9 years).
- Lack of clearly defined performance metrics.
- Potential for cost overruns.
- Difficulty in assessing value for money without detailed performance data.
- Limited public transparency on service effectiveness.
Tags
computer-systems-design-services, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to ENGILITY CORPORATION. 200206!000183!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !GS35F4712G !C!N! !Y!FA877002F8008 !20020319!20030331!788091114!788091114!048341838!N!TITAN SYSTEMS CORPORATION, SEN!700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!09875!017!25!BURLINGTON !MIDDLESEX !MASS !+000003071855!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $39.3 million.
What is the period of performance?
Start: 2002-03-19. End: 2011-07-26.
What specific IT services were procured, and how do their costs compare to industry benchmarks for similar services over the contract's duration?
The contract is for 'OTHER ADP & TELECOMMUNICATION SERVICES' and 'Computer Systems Design Services'. Without detailed breakdowns of services rendered and specific performance metrics, a direct cost comparison to industry benchmarks is difficult. The total value is $78.8 million over approximately 9 years. Further investigation into the specific tasks and deliverables is needed to assess value for money.
What are the key performance indicators (KPIs) for this contract, and how is Titan Systems Corporation's performance being measured against them?
The provided data does not specify the key performance indicators (KPIs) for this contract. The lack of explicit performance metrics makes it challenging to assess the effectiveness of the services provided by Titan Systems Corporation and to ensure accountability for the $78.8 million expenditure.
Given the contract's long duration, what mechanisms are in place to ensure the services remain relevant and cost-effective as technology evolves?
The contract's duration of over 9 years raises concerns about technological relevance and cost-effectiveness. While awarded under full and open competition, the data lacks details on contract modification clauses, technology refresh cycles, or exit strategies that would ensure the services adapt to evolving technological landscapes and maintain value.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 700 TECHNOLOGY PARK DR, BILLERICA, MA, 90
Business Categories: Category Business, Small Business
Parent Contract
Parent Award PIID: GS35F4712G
IDV Type: FSS
Timeline
Start Date: 2002-03-19
Current End Date: 2011-07-26
Potential End Date: 2011-07-26 00:00:00
Last Modified: 2010-09-09
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