DoD's $20.5M IT contract for computer systems design services awarded to VANGENT, INC. in 2006

Contract Overview

Contract Amount: $20,555,816 ($20.6M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-24

End Date: 2010-05-19

Contract Duration: 1,517 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to VANGENT, INC. for work described as: Key points: 1. The contract's value of over $20 million suggests a significant scope of work. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The firm-fixed-price contract type generally shifts risk to the contractor. 4. The duration of over 4 years implies a long-term need for these services. 5. The contract was awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered. However, a $20.5 million award over four years for IT systems design suggests a moderate per-year expenditure. Comparing this to similar large-scale IT design contracts within the DoD would provide better context for value for money. The firm-fixed-price structure implies that the contractor is responsible for cost overruns, which can be a positive indicator if the contractor successfully manages costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This typically leads to a wider range of proposals and potentially more competitive pricing. The presence of 5 bids suggests a reasonable level of interest from the market, which is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The Department of Defense benefits from enhanced computer systems design and integration. Military branches and associated agencies likely receive improved IT infrastructure and support. The contract supports the operational readiness and technological advancement of defense systems. The geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications may include employment for IT professionals and system designers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not clearly defined.
Risk of vendor lock-in if the system design is highly proprietary.
Dependence on a single contractor for critical IT systems design.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type shifts cost risk to the contractor.
Long contract duration indicates a sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market within the federal government is substantial, with agencies like the Department of Defense being major consumers. Contracts of this size are common for complex system design and integration projects, reflecting the ongoing need for advanced technological solutions to support national security objectives. Comparable spending benchmarks would typically involve analyzing other large IT system design contracts awarded by defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans. Without specific set-aside requirements or reporting on small business participation, the direct impact on the small business ecosystem is unclear. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, which could indirectly benefit them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost control responsibility on the contractor. Transparency would be enhanced through contract award databases and reporting requirements, though specific performance metrics and oversight reports are not detailed here.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Computer Systems Design Services Federal Contracts
IT Services for National Security

Risk Flags

Lack of detailed performance metrics.
Absence of contractor past performance data.
Limited information on specific deliverables.
Potential for scope creep in IT design contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to VANGENT, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is VANGENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2006-03-24. End: 2010-05-19.

What specific computer systems were designed or integrated under this contract?

The provided data does not specify the exact computer systems designed or integrated. The NAICS code 541512, 'Computer Systems Design Services,' broadly covers the design of integrated computer systems, including hardware and software consultation, analysis, and design. This could encompass a wide range of activities, from designing new network architectures to integrating complex software solutions for command and control, logistics, or intelligence analysis within the Department of Defense. Further details would require access to the contract's statement of work or performance reports.

How does the $20.5 million award compare to similar IT systems design contracts awarded by the DoD around 2006?

Comparing this $20.5 million award to similar DoD IT systems design contracts from 2006 requires access to historical contract databases and market analysis. However, for a multi-year contract (over 4 years) awarded under full and open competition, this value is within a reasonable range for significant IT projects. Larger, more complex system integrations or development efforts could easily exceed this amount, while smaller, more focused design tasks would be less. The Defense Information Systems Agency (DISA) frequently awards large contracts, and this figure suggests a substantial, but not exceptionally outlier, investment in IT infrastructure or capability development for its time.

What were the primary risks associated with this firm-fixed-price contract for the government?

With a firm-fixed-price (FFP) contract, the primary risk for the government is that the contractor may cut corners on quality or performance to maintain profitability if they underestimated costs or encountered unforeseen challenges. While FFP shifts cost overrun risk to the contractor, the government still bears the risk of receiving a product or service that does not fully meet the specified requirements. Effective oversight, clear performance metrics, and robust acceptance criteria are crucial to mitigate these risks and ensure the government receives the intended value.

What was the track record of VANGENT, INC. prior to or during this contract award?

The provided data does not include information on VANGENT, INC.'s track record prior to or during this contract award. Assessing a contractor's past performance is crucial for understanding their reliability, quality of work, and ability to manage complex projects. This would typically involve reviewing their performance on previous government contracts, including any awards, penalties, or disputes. Without this information, it's difficult to fully evaluate the contractor's suitability and the potential risks associated with their selection for this significant DoD contract.

How did the number of bidders (5) influence the final contract price and terms?

Having five bidders for this contract, awarded under full and open competition, suggests a healthy level of market interest and competition. A greater number of bidders generally increases the likelihood of receiving competitive pricing, as companies vie for the award. It allows the government to select from a wider pool of options, potentially leading to better value. While five bidders indicate reasonable competition, a significantly higher number (e.g., 10+) might have exerted even more downward pressure on price. The final price and terms would reflect the specific proposals submitted and the negotiation outcomes.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 4250 FAIRFAX DR STE 1200, ARLINGTON, VA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline