GSA awards $24.8M IT support contract to CC Intelligent Solutions for XVIII Airborne Corps' FusionNet initiative

Contract Overview

Contract Amount: $24,876,687 ($24.9M)

Contractor: CC Intelligent Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-01-01

End Date: 2009-08-31

Contract Duration: 1,703 days

Daily Burn Rate: $14.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO OBTAIN INFORMATION TECHNOLOGY (IT) PROGRAM MANAGEMENT, SOLUTIONS ARCHITECTURE, SOFTWARE DEVELOPMENT, SOLUTIONS INTEGRATION, AND NETWORK/SYSTEMS SUPPORT SERVICES FOR THE XVIII AIRBORNE CORPS, ACOS G-6, CORPS KNOWLEDGE MANAGEMENT OFFICE (CKMO) IN SUPPORT OF FUSIONNET AND RELATED KNOWLEDGE AND INFORMATION MANAGEMENT INITIATIVES.

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $24.9 million to CC INTELLIGENT SOLUTIONS, INC. for work described as: TO OBTAIN INFORMATION TECHNOLOGY (IT) PROGRAM MANAGEMENT, SOLUTIONS ARCHITECTURE, SOFTWARE DEVELOPMENT, SOLUTIONS INTEGRATION, AND NETWORK/SYSTEMS SUPPORT SERVICES FOR THE XVIII AIRBORNE CORPS, ACOS G-6, CORPS KNOWLEDGE MANAGEMENT OFFICE (CKMO) IN SUPPORT OF FUSIONNET AND RELATED… Key points: 1. Contract provides critical IT program management and software development for a key military knowledge management system. 2. The Time and Materials (T&M) contract type carries inherent risk of cost overruns if not closely managed. 3. Delivery Order (DO) under a larger contract suggests a competitive process, but specific competition details are limited. 4. The duration of over 1700 days indicates a long-term need for these specialized IT services. 5. Services are concentrated in North Carolina, impacting the local IT workforce and economy. 6. The contract's focus on knowledge and information management aligns with modern military operational needs.

Value Assessment

Rating: fair

The total award of $24.8 million over approximately 4.5 years for IT program management and software development appears within a reasonable range for complex military IT support. However, the Time and Materials (T&M) pricing structure, without a defined ceiling or fixed price components, makes direct value-for-money assessment challenging. Benchmarking against similar T&M contracts for comparable IT services within the Department of Defense would be necessary for a more precise evaluation of cost-effectiveness. The lack of detailed performance metrics in the provided data limits a thorough assessment of service delivery value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was issued as a Competitive Delivery Order (DO), indicating it was likely competed under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The data indicates two bids were received ('no': 2). While competitive, the limited number of bidders suggests that the competition may not have been full and open, or that the specific requirements of the DO narrowed the field of potential offerors. Further investigation into the parent IDIQ contract and the specific solicitation for this DO would clarify the extent of competition.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source awards. However, the true benefit to taxpayers depends on the robustness of the competition and the effectiveness of the evaluation process.

Public Impact

The XVIII Airborne Corps benefits from enhanced knowledge and information management capabilities through FusionNet and related initiatives. Military personnel gain access to improved IT infrastructure and support, potentially increasing operational efficiency. The contract supports IT professionals in North Carolina through employment opportunities. The services delivered are crucial for maintaining and advancing the Corps' technological edge in information management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it incentivizes labor hours over defined deliverables.
Limited number of bidders (2) for the delivery order may indicate restricted competition, potentially impacting price competitiveness.
Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness in delivering value.
The contract duration (over 4.5 years) requires ongoing oversight to ensure continued alignment with evolving military IT needs.

Positive Signals

Awarded as a competitive delivery order, suggesting some level of competition was present.
The contract addresses critical IT needs for a major military command, indicating strategic importance.
The contractor, CC Intelligent Solutions, Inc., is providing specialized IT services essential for military operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services and IT program management. The market for such services is large and highly competitive, driven by government and commercial demand for advanced software development, system integration, and network support. Comparable spending benchmarks for IT support services within the Department of Defense are substantial, with significant portions allocated to software development and system maintenance. This contract represents a specific, albeit significant, investment in enhancing the information management capabilities of a key military unit.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses ('sb': false). CC Intelligent Solutions, Inc. is likely a large business, given the contract value. There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor has robust small business subcontracting goals on its parent IDIQ contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the Department of the Army, specifically the XVIII Airborne Corps' ACOS G-6. As a Delivery Order under a GSA Federal Acquisition Service contract, GSA likely provides contract administration. The Army's contracting officer's representative (COR) would be responsible for day-to-day oversight of performance and technical aspects. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and IG audits are not publicly available in this summary data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

XVIII Airborne Corps IT Support Services
FusionNet Initiative
Knowledge Management Systems
DoD Software Development Contracts
GSA IT Schedule Contracts
Custom Computer Programming Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition (2 bidders) may not yield the best possible pricing.
Lack of detailed performance metrics hinders value assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.9 million to CC INTELLIGENT SOLUTIONS, INC.. TO OBTAIN INFORMATION TECHNOLOGY (IT) PROGRAM MANAGEMENT, SOLUTIONS ARCHITECTURE, SOFTWARE DEVELOPMENT, SOLUTIONS INTEGRATION, AND NETWORK/SYSTEMS SUPPORT SERVICES FOR THE XVIII AIRBORNE CORPS, ACOS G-6, CORPS KNOWLEDGE MANAGEMENT OFFICE (CKMO) IN SUPPORT OF FUSIONNET AND RELATED KNOWLEDGE AND INFORMATION MANAGEMENT INITIATIVES.

Who is the contractor on this award?

The obligated recipient is CC INTELLIGENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2005-01-01. End: 2009-08-31.

What is the track record of CC Intelligent Solutions, Inc. in delivering similar IT services to the Department of Defense?

To assess the track record of CC Intelligent Solutions, Inc., a deeper dive into their contract history with the Department of Defense (DoD) and other federal agencies is required. This would involve examining past performance evaluations, any documented issues or successes on similar IT program management, software development, and network support contracts. Specifically, looking at contracts of comparable size and complexity, and their performance under Time and Materials (T&M) pricing structures, would provide valuable insights. A review of contract awards and modifications for CC Intelligent Solutions, Inc. in the Federal Procurement Data System (FPDS) or other contract databases would reveal their experience and the types of services they have successfully provided. Without this detailed historical data, it's difficult to definitively assess their past performance relevant to this specific award.

How does the awarded amount of $24.8 million compare to similar IT support contracts for military units of comparable size and mission?

Comparing the $24.8 million award for IT support services to the XVIII Airborne Corps requires identifying comparable contracts. This involves looking at contracts for IT program management, software development, and network support awarded to other large military formations or units with similar operational scopes and technological dependencies. Benchmarking would ideally consider contracts with similar durations (approximately 4.5 years) and pricing structures (Time and Materials). Factors such as the specific technological environment, security requirements, and the complexity of the knowledge management initiatives would also influence cost. A preliminary assessment suggests the amount is substantial but potentially reasonable given the critical nature of IT support for a major military corps. However, a definitive comparison necessitates access to detailed contract data for similar procurements, including scope of work, labor categories, and rates.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with the Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not set a ceiling on the total cost, as payment is based on the actual hours worked by contractor personnel and the cost of materials used. This can incentivize contractors to extend project timelines or increase labor hours, as their profit is directly tied to the amount of effort expended. For the government, this necessitates rigorous oversight and management to ensure that labor hours are reasonable, necessary, and productive. Without strong government oversight, the contractor may not be sufficiently motivated to control costs or maximize efficiency, leading to a higher overall expenditure than initially anticipated or budgeted. This risk is particularly relevant for long-duration contracts like this one.

How effective is the competition level (2 bidders) in ensuring competitive pricing for this contract?

A competition level of two bidders for this delivery order suggests that the procurement was competed, which is generally positive for price discovery. However, having only two bidders may indicate that the competition was not as robust as it could have been. Factors contributing to limited competition could include the specialized nature of the services required, the specific requirements of the delivery order, or the pool of contractors qualified under the parent IDIQ contract. While two bidders are better than one, a higher number of qualified bidders typically leads to more aggressive pricing and a greater likelihood of achieving the best value for the government. The effectiveness of this level of competition in ensuring competitive pricing depends heavily on the specific market dynamics, the clarity of the solicitation, and the evaluation criteria used.

What are the potential implications of this contract on the IT workforce in North Carolina?

This contract, with a total value of $24.8 million and a duration of over 4.5 years, is likely to have a positive impact on the IT workforce in North Carolina. The services are being delivered in North Carolina ('sn': 'NORTH CAROLINA'), suggesting that CC Intelligent Solutions, Inc. will either employ local IT professionals directly or engage local subcontractors. This could lead to job creation or the sustained employment of individuals in roles such as software developers, system administrators, network engineers, and IT project managers. The demand for specialized IT skills required for military knowledge management systems could also spur training and development opportunities within the local IT sector, potentially enhancing the region's capacity in this niche.

How does this contract align with the broader IT modernization efforts within the Department of Defense?

This contract aligns with the Department of Defense's (DoD) broader IT modernization efforts by focusing on critical areas such as program management, software development, and network/systems support for a major operational command. The emphasis on knowledge and information management, particularly through initiatives like FusionNet, is crucial for enhancing situational awareness, decision-making, and operational effectiveness in modern warfare. By ensuring that the XVIII Airborne Corps has robust IT capabilities, the DoD is investing in the foundational infrastructure necessary for digital transformation and the integration of advanced technologies. This contract supports the goal of maintaining a technological advantage by ensuring that key units have the IT support needed to leverage information effectively.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7718 SIX FORKS RD STE 200, RALEIGH, NC, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $35,095,429

Exercised Options: $30,738,775

Current Obligation: $24,876,687

Parent Contract

Parent Award PIID: GS35F0726M

IDV Type: FSS

Timeline