DoD's $29.1M Stock Control System Maintenance Contract Awarded to Segue Technologies, Inc

Contract Overview

Contract Amount: $29,144,200 ($29.1M)

Contractor: Segue Technologies, Inc

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2024-06-20

Contract Duration: 1,848 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STOCK CONTROL SYSTEM (SCS) MAINTENANCE AND SUSTAINMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to SEGUE TECHNOLOGIES, INC for work described as: STOCK CONTROL SYSTEM (SCS) MAINTENANCE AND SUSTAINMENT Key points: 1. The contract focuses on maintaining and sustaining the Stock Control System (SCS). 2. The award was made under full and open competition after exclusion of sources. 3. The total value is over $29 million, spanning approximately five years. 4. The sector is IT services, specifically custom computer programming. 5. The contract type is Firm Fixed Price, indicating defined costs.

Value Assessment

Rating: good

The contract value of $29.1M over five years for IT maintenance and sustainment appears reasonable, especially given the firm fixed price structure which limits cost overruns. Benchmarking against similar custom programming services contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process was initiated. This method aims to ensure fair pricing and access to the widest possible range of qualified vendors.

Taxpayer Impact: The competitive award process is designed to secure the best value for taxpayers by fostering price discovery and ensuring fair market rates for essential IT sustainment services.

Public Impact

Ensures the continued operation of critical stock control systems for the Air Force. Supports the logistical capabilities of the Department of Defense. Provides stability for IT services supporting defense operations. The firm fixed price contract offers budget predictability for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in a full and open competition needs clarification.
Lack of specific performance metrics provided.
Potential for vendor lock-in if system is highly specialized.

Positive Signals

Firm Fixed Price contract type.
Awarded under Full and Open Competition.
Long-term sustainment contract provides stability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for IT maintenance and sustainment vary widely based on system complexity and criticality, but a $29M contract over five years for a specialized system is substantial.

Small Business Impact

The data indicates the awardee is Segue Technologies, Inc. There is no explicit information provided regarding small business participation or subcontracting goals within this contract, which warrants further investigation.

Oversight & Accountability

The contract's duration and value suggest a need for robust oversight to ensure performance, cost control, and adherence to competition regulations. Monitoring the 'exclusion of sources' clause is particularly important for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential lack of transparency regarding 'exclusion of sources'.
Absence of clear performance metrics.
No explicit mention of small business participation.
Need for detailed cost benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to SEGUE TECHNOLOGIES, INC. STOCK CONTROL SYSTEM (SCS) MAINTENANCE AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is SEGUE TECHNOLOGIES, 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 $29.1 million.

What is the period of performance?

Start: 2019-05-30. End: 2024-06-20.

What was the specific reason for the 'exclusion of sources' within the full and open competition process, and did it impact the final price?

The 'exclusion of sources' clause within a full and open competition typically means that while the competition was open, certain potential sources were identified and excluded based on specific criteria, such as prior performance, security clearances, or specialized knowledge. The rationale behind this exclusion is crucial to understand if it limited competition and potentially influenced the final price achieved. Without further details on the exclusion criteria, it's difficult to definitively assess its impact on price discovery.

How does the per-unit cost of maintaining the Stock Control System compare to industry benchmarks for similar custom programming services?

Assessing the per-unit cost requires detailed breakdowns of the services provided and the system's complexity, which are not available in the provided data. Benchmarking against industry standards for custom computer programming services would necessitate comparing factors like lines of code maintained, user support hours, or system uptime requirements. Given the $29.1M contract value over five years, a detailed cost-benefit analysis against comparable systems is recommended to ensure optimal value.

What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the sustainment services being measured?

The provided data does not specify the key performance indicators (KPIs) or the methods used to measure the effectiveness of the Stock Control System maintenance and sustainment. Effective oversight would involve tracking metrics such as system availability, response times for issues, successful implementation of updates, and user satisfaction. Understanding these KPIs is essential for evaluating whether the contractor is meeting the Department of Defense's needs and delivering value for the taxpayer.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Solicitation ID: FA877018R0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 2300 WILSON BLVD # 420, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,556,945

Exercised Options: $29,144,200

Current Obligation: $29,144,200

Actual Outlays: $140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1009

IDV Type: IDC

Timeline