DoD's $25.4M ILS-S SUSTAINMENT contract to THE CENTECH GROUP INC. for computer systems design services
Contract Overview
Contract Amount: $25,426,821 ($25.4M)
Contractor: THE Centech Group Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-25
End Date: 2015-10-23
Contract Duration: 1,854 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: IT
Official Description: ILS-S SUSTAINMENT
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to THE CENTECH GROUP INC. for work described as: ILS-S SUSTAINMENT Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Performance context is crucial given the multi-year duration and the nature of IT sustainment. 4. Sector positioning places this within the broader defense IT services market. 5. Risk indicators may include vendor lock-in and the complexity of sustainment operations.
Value Assessment
Rating: fair
Benchmarking this contract's value against similar IT sustainment contracts is challenging without more specific service details. The total award of $25.4 million over approximately five years suggests an average annual spend of around $5 million. This figure needs to be compared to the scope and complexity of the services provided to determine true value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to foster competitive pricing and encourage innovation. The presence of two bids suggests a moderate level of competition for this specific award.
Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining services at a competitive market rate, preventing potential overpayment.
Public Impact
The Department of Defense benefits through the sustainment of its IT systems, ensuring operational readiness. Computer systems design and related services are delivered, supporting critical defense functions. The geographic impact is likely concentrated within areas where the Air Force operates or manages its IT infrastructure. Workforce implications may include the need for skilled IT professionals to perform sustainment and design tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in sustainment contracts if not clearly defined.
- Reliance on a single vendor for critical IT sustainment could pose risks.
- Ensuring continued technological relevance and integration with evolving DoD systems.
Positive Signals
- Full and open competition suggests a robust procurement process.
- The contract duration implies a stable, long-term need for these services.
- Award to THE CENTECH GROUP INC. indicates a track record with the agency.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and sustainment. The defense IT market is substantial, with agencies like the Department of Defense being major consumers of these services. Comparable spending benchmarks would involve analyzing other large-scale IT sustainment contracts awarded by federal agencies, particularly within the defense sector, to gauge cost-effectiveness and market rates.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether THE CENTECH GROUP INC. actively engages small businesses as subcontractors for specialized services.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of the Air Force's contracting officers and program managers. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed performance data may be limited. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Services
- Air Force Network Integration Center
- DoD Enterprise IT Services
- IT Support Services Contracts
Risk Flags
- Potential for vendor lock-in
- Risk of technological obsolescence
- Complexity of IT sustainment operations
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-air-force, full-and-open-competition, delivery-order, sustainment, logistics-systems, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to THE CENTECH GROUP INC.. ILS-S SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is THE CENTECH GROUP 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 $25.4 million.
What is the period of performance?
Start: 2010-09-25. End: 2015-10-23.
What is the specific nature of the 'ILS-S SUSTAINMENT' services provided under this contract?
The contract identifier 'ILS-S SUSTAINMENT' suggests services related to the sustainment of an Integrated Logistics System (ILS). This likely involves maintaining, updating, and supporting the software and hardware components of a logistics information system used by the Department of the Air Force. Such sustainment activities can include software patching, bug fixing, system upgrades, database management, user support, and ensuring the overall operational availability and performance of the logistics system. The exact scope would be detailed in the contract's Statement of Work (SOW).
How does the awarded price compare to market rates for similar computer systems design services?
Determining if the $25.4 million award is competitive requires a detailed comparison with market rates for similar computer systems design and sustainment services. Factors influencing market rates include the complexity of the systems, the level of security required, the geographic location of services, and the specific skill sets of personnel. Benchmarking would involve analyzing data from other federal contracts for comparable services, as well as private sector IT service pricing. Without a detailed breakdown of labor categories, hours, and overhead, a precise comparison is difficult, but the full and open competition suggests an effort to achieve market-aligned pricing.
What are the key performance indicators (KPIs) used to measure the success of this sustainment contract?
Key Performance Indicators (KPIs) for an IT sustainment contract like this typically focus on system availability, response times for support requests, resolution times for issues, and successful implementation of updates or patches. For an Integrated Logistics System (ILS), KPIs might also include data accuracy, system uptime percentages, and user satisfaction ratings. The specific KPIs would be defined in the contract's Performance Work Statement (PWS) and would be used by the Air Force to evaluate THE CENTECH GROUP INC.'s performance and ensure the system meets operational requirements.
What is THE CENTECH GROUP INC.'s track record with the Department of Defense for similar IT services?
THE CENTECH GROUP INC. has a history of contracting with the Department of Defense, as evidenced by this award. Analyzing their past performance on similar IT services contracts would involve reviewing their contract history for on-time delivery, adherence to budget, quality of work, and any past performance issues or awards. Federal procurement data can provide insights into the types and values of contracts they have previously held with DoD, helping to assess their experience and capability in managing complex IT sustainment projects.
What are the potential risks associated with a multi-year sustainment contract for critical IT systems?
Multi-year sustainment contracts for critical IT systems carry several potential risks. These include vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors. There's also the risk of technological obsolescence if the contractor does not keep pace with advancements or if the contract terms do not adequately address upgrades. Furthermore, the long duration can lead to potential cost overruns if not managed tightly, and performance degradation if the contractor's focus shifts or resources are mismanaged. Ensuring clear contract terms, regular performance reviews, and contingency planning are crucial mitigation strategies.
How does this contract fit into the broader IT modernization efforts within the Department of the Air Force?
This contract for 'ILS-S SUSTAINMENT' likely plays a role in maintaining the operational capability of existing logistics systems while the Air Force potentially pursues broader IT modernization. Sustainment contracts ensure that current critical systems remain functional and supported, preventing disruptions. Depending on the contract's flexibility, it might also incorporate elements that support modernization, such as facilitating data migration or integrating with newer systems. However, the primary focus is on maintaining the status quo of the ILS, which could be a precursor to or run in parallel with larger modernization initiatives.
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: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6402 ARLINGTON BLVD FL 10, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,261,720
Exercised Options: $28,611,472
Current Obligation: $25,426,821
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: GS00Q09BGD0021
IDV Type: GWAC
Timeline
Start Date: 2010-09-25
Current End Date: 2015-10-23
Potential End Date: 2015-10-23 00:00:00
Last Modified: 2018-09-10
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