DoD's $15.7M IT Services Contract with CNI Federal Services Raises Competition Concerns

Contract Overview

Contract Amount: $15,671,217 ($15.7M)

Contractor: CNI Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2011-05-18

Contract Duration: 1,328 days

Daily Burn Rate: $11.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: LABOR

Place of Performance

Location: WALNUT, BUREAU County, ILLINOIS, 61376

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to CNI FEDERAL SERVICES, LLC for work described as: LABOR Key points: 1. Significant spending on IT services, totaling $15.7M. 2. Contract awarded to CNI Federal Services, LLC. 3. Awarded by the Defense Information Systems Agency (DISA). 4. Contract type is Time and Materials. 5. No indication of small business participation.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, especially for IT services, can lead to cost overruns if not tightly managed. Without a clear benchmark or comparison, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or sole-source award. This lack of competition hinders price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The IT services provided are critical for defense operations. Lack of transparency in the award process raises accountability questions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Time and Materials pricing
No small business participation

Positive Signals

Contract awarded by a key defense agency
Long contract duration indicates sustained need

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. IT spending within the defense sector is substantial, and competitive procurement is crucial for cost efficiency.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award. This is a missed opportunity to support small businesses and potentially foster innovation.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for limiting competition. Oversight is needed to ensure fair pricing and value for taxpayer money.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns with T&M pricing
No small business participation noted
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to CNI FEDERAL SERVICES, LLC. LABOR

Who is the contractor on this award?

The obligated recipient is CNI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-05-18.

What was the specific justification for awarding this contract without competition?

The provided data states 'NOT AVAILABLE FOR COMPETITION' but does not detail the specific justification. Typically, such justifications include urgent needs, unique capabilities, or lack of qualified sources. A thorough review would be required to validate the necessity of a non-competitive award.

How can the agency ensure cost control with a Time and Materials contract?

Effective cost control for Time and Materials contracts relies on robust oversight, clear task orders with defined scopes, and regular performance reviews. The agency must diligently track labor hours, material costs, and ensure that the work performed directly aligns with the contract's objectives to prevent cost escalation.

What is the potential impact of not engaging small businesses on innovation?

Excluding small businesses from contracts can limit the infusion of innovative solutions and technologies they often bring. Small businesses are frequently more agile and specialized, and their participation can drive competition and lead to more cost-effective and advanced service delivery.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC101307R2037

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation (UEI: 070848361)

Address: 7100 N CLASSEN BLVD STE 403, OKLAHOMA CITY, OK, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,098,069

Exercised Options: $19,822,832

Current Obligation: $15,671,217

Contract Characteristics

Cost or Pricing Data: NO

Timeline