DoD's $31.2M IT contract for computer systems design services awarded to OBXTEK INC

Contract Overview

Contract Amount: $31,240,714 ($31.2M)

Contractor: Obxtek Inc

Awarding Agency: Department of Defense

Start Date: 2011-08-25

End Date: 2013-03-01

Contract Duration: 554 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MATERIAL

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to OBXTEK INC for work described as: MATERIAL Key points: 1. Contract value of $31.2M over 554 days suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract's duration of over 1.5 years points to a need for sustained IT support. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. The specific NAICS code (541512) highlights a focus on computer systems design. 6. Awarded by the Defense Information Systems Agency, a key IT provider for the DoD. 7. The contract was awarded to OBXTEK INC., a single entity, suggesting specific capabilities were sought.

Value Assessment

Rating: fair

The contract value of $31.2M for 554 days equates to approximately $56,391 per day. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar contracts. However, the daily rate is within a plausible range for complex IT systems design services. The firm fixed-price nature suggests an attempt to manage costs, but the overall value for money depends heavily on the quality and impact of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a specific type of full and open competition. This implies that the agency initially considered excluding certain sources but ultimately opened the competition broadly. The presence of two bids (no: 2) suggests that while the competition was open, the number of responsive bidders was limited. This level of competition may not have driven the most aggressive pricing.

Taxpayer Impact: A limited number of bidders in a full and open competition can sometimes lead to higher prices for taxpayers compared to scenarios with numerous competitive bids.

Public Impact

The Department of Defense benefits from enhanced computer systems design services, crucial for its operational effectiveness. This contract supports the Defense Information Systems Agency's mission to provide IT services to the military. The services delivered likely contribute to the modernization and efficiency of DoD's IT infrastructure. The geographic impact is primarily within the Department of Defense's operational sphere, potentially worldwide. Workforce implications include employment for IT professionals and support staff at OBXTEK INC. and potentially within DISA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids could indicate potential for higher costs.
The specific nature of 'Computer Systems Design Services' can be broad, making it hard to assess if the price reflects the exact scope.
The 'after exclusion of sources' clause warrants further investigation into why certain sources were initially considered for exclusion.

Positive Signals

Awarded under full and open competition, ensuring a wide search for qualified contractors.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is with a specialized IT service provider, suggesting relevant expertise.

Sector Analysis

The IT services sector, particularly computer systems design, is a critical component of government operations. The Department of Defense is a major consumer of these services, investing heavily in maintaining and upgrading its complex technological infrastructure. This contract fits within the broader trend of government outsourcing specialized IT functions to private sector firms. Benchmarks for similar IT services contracts within the federal government vary widely based on scope, duration, and complexity, but a $31.2M award over 1.5 years for systems design is substantial.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses (sb: false). The award to OBXTEK INC. does not preclude subcontracting opportunities for small businesses, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on whether OBXTEK INC. utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring OBXTEK INC. to deliver specified services within budget. Transparency is facilitated by contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Defense Information Systems Agency (DISA) IT Support Contracts
Federal IT Services Acquisition
Computer Systems Design and Related Services Contracts

Risk Flags

Limited competition (2 bidders) may indicate potential for higher pricing.
Contract duration (554 days) requires sustained oversight to ensure value.
The 'after exclusion of sources' clause warrants understanding the initial rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to OBXTEK INC. MATERIAL

Who is the contractor on this award?

The obligated recipient is OBXTEK 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 $31.2 million.

What is the period of performance?

Start: 2011-08-25. End: 2013-03-01.

What specific computer systems design services were rendered under this contract?

The provided data indicates the contract falls under NAICS code 541512, 'Computer Systems Design Services.' This broad category typically includes designing, developing, and integrating hardware and software systems. Services could encompass requirements analysis, system architecture, software development, network design, hardware integration, and IT consulting. Without access to the contract's Statement of Work (SOW) or performance reports, the precise nature of the services delivered remains unspecified. However, given the awarding agency (DISA) and the substantial value, it likely involved complex systems critical to national defense operations.

How does the $31.2M contract value compare to similar IT systems design contracts awarded by the DoD?

Benchmarking this $31.2M contract requires comparing it to similar IT systems design contracts awarded by the DoD over a comparable timeframe (August 2011 - March 2013) and for similar service scopes. The daily rate of approximately $56,391 is a starting point. However, the complexity, criticality, and specific technologies involved in DoD systems design can vary significantly. Contracts for enterprise-wide system overhauls or development of highly specialized defense software would command different price points than routine system integration. A comprehensive comparison would necessitate analyzing contract databases for similar NAICS codes, contract types, and agencies within the DoD during that period.

What are the potential risks associated with a firm fixed-price contract for complex IT systems design?

Firm Fixed Price (FFP) contracts aim to provide cost certainty, but they carry inherent risks, especially for complex IT systems design. For the contractor (OBXTEK INC.), the risk lies in underestimating the scope, effort, or technical challenges, potentially leading to reduced profit margins or even losses if costs exceed the fixed price. For the government, the risk is that the contractor might cut corners on quality or scope to maintain profitability, or that the fixed price might be inflated due to the contractor pricing in significant risk contingencies. Changes in requirements during the contract period can also be costly to manage under an FFP structure, often requiring formal change orders that can increase the overall price.

What was the historical spending pattern for computer systems design services by the Defense Information Systems Agency prior to this award?

Analyzing historical spending patterns for DISA in computer systems design services prior to August 2011 would provide context for the $31.2M award. This would involve examining DISA's contract awards for NAICS code 541512 and similar IT design services over preceding years. Understanding whether this award represents an increase, decrease, or stable level of investment in such services would be key. Factors like technological shifts, evolving defense requirements, and budget allocations would influence these patterns. Without access to historical DISA procurement data, it's impossible to definitively state the pattern, but such analysis is crucial for assessing the significance of this particular contract.

How effective was OBXTEK INC. in delivering services under this contract, and were there any performance issues?

Assessing the effectiveness of OBXTEK INC. requires access to contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, which are not publicly available in this dataset. CPARS reports typically detail a contractor's performance in areas like technical quality, cost control, schedule adherence, and management. Without this information, it's impossible to determine if the services were delivered effectively or if there were any performance issues, disputes, or contract modifications related to performance. The fact that the contract was awarded and completed without immediate red flags in the summary data suggests a baseline level of satisfactory performance, but does not confirm excellence.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BLVD STE 550, VIENNA, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,240,714

Exercised Options: $31,240,714

Current Obligation: $31,240,714

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0551Z

IDV Type: GWAC

Timeline