FCC's $10.7M custom programming contract with COMPUTECH, INC. awarded non-competitively

Contract Overview

Contract Amount: $10,690,887 ($10.7M)

Contractor: Computech, Inc.

Awarding Agency: Federal Communications Commission

Start Date: 2003-10-31

End Date: 2008-01-10

Contract Duration: 1,532 days

Daily Burn Rate: $7.0K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROGRAM SERVICES TASK 2002-01

Place of Performance

Location: DISTRICT OF COLUMBIA

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $10.7 million to COMPUTECH, INC. for work described as: PROGRAM SERVICES TASK 2002-01 Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 1532 days suggests a long-term need for these services. 3. Task order awarded under a broader program, but specific details on its original competition are unavailable. 4. The 'time and materials' pricing model can lead to cost overruns if not closely managed. 5. No small business set-aside was applied, indicating potential missed opportunities for smaller firms. 6. The contract's value is moderate within the context of federal IT services.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging due to its non-competitive nature and lack of detailed performance metrics. However, the 'time and materials' pricing structure, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Without comparable sole-source awards for similar custom programming services, it's difficult to definitively assess if the pricing represents excellent value. The contract's duration suggests a sustained need, which could justify the investment if the services are critical and effectively delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, meaning it was not openly competed. The specific justification for the sole-source award is not provided in the data. This lack of competition means that the Federal Communications Commission did not solicit bids from multiple vendors, which typically allows for price negotiation and selection of the most cost-effective solution. The absence of a competitive process limits the government's ability to ensure it is receiving the best possible price and service.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and potentially leads to less efficient use of public funds.

Public Impact

The Federal Communications Commission (FCC) is the primary beneficiary, receiving custom computer programming services. These services are intended to support the FCC's internal operations and potentially its regulatory functions. The contract is geographically focused on the District of Columbia, where the FCC is headquartered. The contract likely supports a team of programmers and IT professionals, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to 'time and materials' pricing without clear caps.
Lack of competition may lead to suboptimal pricing and reduced vendor innovation.
Potential for vendor lock-in given the sole-source nature and duration.
Limited transparency into the specific services delivered and their effectiveness.

Positive Signals

Addresses a specific, potentially critical, custom programming need for the FCC.
Long duration suggests a stable, ongoing requirement that has been met.
Awarded to a single vendor, potentially allowing for deep expertise development.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the federal IT market. This sector encompasses firms that design, develop, and implement custom software solutions. Federal spending in this area is substantial, driven by the need for tailored applications to meet unique agency requirements that off-the-shelf software cannot fulfill. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded custom development contracts within federal agencies for similar scope and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. This means that the opportunity was not specifically reserved for small businesses. Consequently, large businesses were eligible to compete, and potentially were the only ones considered given the sole-source nature. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is unclear, but it is unlikely to have directly benefited small businesses through a set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Communications Commission's internal contracting and program management offices. As a delivery order under a larger program, its specific oversight mechanisms are not detailed here. Accountability would be measured by the successful delivery of the custom programming services as defined in the task order. Transparency is limited due to the non-competitive award; details regarding the justification and evaluation process are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Services
Custom Software Development
Information Technology Professional Services
Federal Communications Commission IT Contracts

Risk Flags

Sole-source award
Time and materials pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $10.7 million to COMPUTECH, INC.. PROGRAM SERVICES TASK 2002-01

Who is the contractor on this award?

The obligated recipient is COMPUTECH, INC..

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2003-10-31. End: 2008-01-10.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of this contract. Typically, sole-source awards are granted when only one responsible source is available or capable of providing the required services. This could be due to proprietary technology, unique expertise, or urgent, unforeseen needs. Without the official justification document (e.g., a Justification and Approval or J&A), it is impossible to determine the precise rationale behind the Federal Communications Commission's decision to not compete this requirement. This lack of transparency is a common concern with sole-source procurements.

How does the 'time and materials' pricing model compare to fixed-price for custom programming?

The 'time and materials' (T&M) pricing model, used in this contract, compensates the contractor for the actual labor hours expended and the cost of materials used. This offers flexibility, especially when the scope of work is not well-defined or is expected to change. However, it shifts the cost risk to the government, as the final price is not known upfront and can escalate if the project takes longer than anticipated or requires more resources. In contrast, fixed-price contracts establish a set price for the entire scope of work, placing the cost risk on the contractor. While fixed-price contracts offer better cost certainty for the government, they require a very well-defined scope to be effective and can lead to disputes if changes occur. For custom programming, T&M can be suitable for exploratory phases, but fixed-price is often preferred for projects with clear deliverables to ensure budget control.

What is the typical cost range for custom computer programming services for federal agencies of similar size?

Determining a precise 'typical' cost range for custom computer programming services for federal agencies is complex, as it depends heavily on the specific services, complexity, duration, and the agency's size and mission. However, the Federal Communications Commission (FCC) is a mid-to-large sized agency with significant IT needs. Contracts for custom programming can range from tens of thousands to millions of dollars. The $10.7 million value of this contract over approximately four years suggests a substantial, ongoing development effort. Benchmarking would involve comparing this contract's total value and duration against other custom programming contracts awarded by agencies of similar size (e.g., other independent agencies or bureaus within larger departments) for comparable tasks, considering factors like labor rates, overhead, and profit margins.

What are the potential risks associated with a long-duration, sole-source contract like this?

Long-duration, sole-source contracts present several potential risks. Firstly, the lack of competition throughout the contract's life can lead to complacency and reduced incentive for the contractor to innovate or offer cost savings, as there is no threat of losing the business to a competitor. Secondly, the government may overpay compared to what could be achieved through competitive bidding. Thirdly, there's a risk of vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor's specific knowledge and systems, making it difficult and costly to switch providers later. Finally, without regular competitive re-evaluation, the agency might not be leveraging the latest technologies or best practices available in the market.

Has the FCC historically relied on COMPUTECH, INC. for similar services?

The provided data indicates that COMPUTECH, INC. was awarded this specific task order. To determine if the FCC has historically relied on this contractor for similar services, one would need to examine historical contract databases for other awards made by the FCC to COMPUTECH, INC., particularly for custom computer programming or related IT services. Without access to that broader historical data, it's impossible to definitively state the extent of their past relationship. However, the award of a multi-year, sole-source contract often suggests a pre-existing relationship or a recognized capability that led to this specific procurement approach.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 7735 OLD GEORGETOWN ROAD, BETHESDA, MD, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $25,000,000

Exercised Options: $15,000,000

Current Obligation: $10,690,887

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: FCCCON01000006

IDV Type: IDC

Timeline