DoD's $26.8M contract for IT services awarded to Blue Tech Inc. shows fair value with 9 bidders
Contract Overview
Contract Amount: $26,796,494 ($26.8M)
Contractor: Blue Tech Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-30
End Date: 2013-10-30
Contract Duration: 30 days
Daily Burn Rate: $893.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BORDER SA IPS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $26.8 million to BLUE TECH INC. for work described as: BORDER SA IPS Key points: 1. The contract's value appears reasonable given the scope of IT services provided. 2. Strong competition with 9 bidders suggests a healthy market for these services. 3. The firm fixed-price contract type mitigates cost overrun risks. 4. Performance duration of 30 days is relatively short, indicating a focused task. 5. This contract fits within the broader IT services sector for defense agencies. 6. The award to Blue Tech Inc. represents a specific instance of IT support procurement.
Value Assessment
Rating: good
The contract's total value of $26.8 million for a 30-day period suggests a significant daily rate, but without specific deliverables or service levels, a precise value-for-money assessment is challenging. Benchmarking against similar IT support contracts of comparable scope and duration would be necessary for a more definitive evaluation. However, the presence of multiple bidders indicates that the pricing was likely competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. The participation of 9 bidders suggests a robust level of interest and a competitive marketplace for the required IT services. This level of competition generally leads to more favorable pricing and better service offerings for the government.
Taxpayer Impact: The high number of bidders ensures that taxpayer dollars are likely being used efficiently, as the contract was awarded to the most competitive offer. This process helps prevent inflated pricing and encourages innovation among contractors.
Public Impact
The Department of Defense benefits from enhanced IT support capabilities. Critical IT services are delivered to support defense operations. The geographic impact is primarily within the operational areas of the Defense Information Systems Agency. Workforce implications include the potential for specialized IT professionals to be engaged in supporting this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the quality of services delivered.
- The short duration of the contract may limit the depth of impact or long-term solutions.
- Specific details on the nature of the IT services are not provided, hindering a full understanding of the value.
Positive Signals
- Awarded under full and open competition, indicating a fair and transparent process.
- Firm fixed-price contract type helps control costs and manage budget.
- Multiple bidders suggest a healthy market and competitive pricing.
Sector Analysis
The IT services sector is a vast and critical component of government operations, particularly within defense. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a wide range of IT support functions. The market for such services is highly competitive, with numerous firms capable of providing specialized IT solutions. Benchmarking this contract's value against the broader IT services market for federal agencies would reveal its relative cost-effectiveness.
Small Business Impact
The contract details do not indicate any specific small business set-aside provisions, nor is there information on subcontracting plans. The award was made to Blue Tech Inc., and without further details, it's unclear if small businesses were involved either as prime contractors or subcontractors. Further analysis would be needed to determine the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the contracting agency, the Defense Information Systems Agency (DISA), and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the contract's performance clauses and the firm fixed-price nature of the award. Transparency is facilitated by the public nature of contract awards, though specific performance details may be less accessible.
Related Government Programs
- Defense Information Systems Agency IT Support Contracts
- Department of Defense IT Services
- Federal IT Services Procurement
- Computer Related Services Contracts
Risk Flags
- Lack of detailed service description
- Short contract duration for high value
- Limited performance metrics available
Tags
it-services, department-of-defense, defense-information-systems-agency, full-and-open-competition, firm-fixed-price, large-contract, computer-related-services, california, blue-tech-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to BLUE TECH INC.. BORDER SA IPS
Who is the contractor on this award?
The obligated recipient is BLUE TECH 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 $26.8 million.
What is the period of performance?
Start: 2013-09-30. End: 2013-10-30.
What specific IT services were rendered under this contract?
The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can include a wide array of services such as IT consulting, systems integration, custom software development, IT support, and data processing services. However, without more specific contract line item numbers (CLINs) or a detailed statement of work (SOW), the precise nature of the IT services delivered under this $26.8 million award to Blue Tech Inc. remains unspecified. Understanding the exact services is crucial for a thorough assessment of value for money and performance effectiveness.
How does the $26.8 million value compare to similar IT support contracts awarded by DISA or the DoD?
Benchmarking the $26.8 million value requires comparing it to contracts with similar scope, duration, and service complexity. Given this contract's 30-day duration, the daily expenditure is substantial. However, without knowing the specific services (e.g., cybersecurity, network management, software maintenance), direct comparisons are difficult. Generally, IT services for defense agencies can range from tens of thousands to billions of dollars, depending on the scale and criticality. The fact that 9 bidders competed suggests the price was perceived as reasonable within the market for the services offered, but a detailed analysis against comparable contracts would be needed for a definitive value assessment.
What are the key performance indicators (KPIs) associated with this contract, and how was Blue Tech Inc.'s performance measured?
The provided data does not include specific Key Performance Indicators (KPIs) or details on how Blue Tech Inc.'s performance was measured. For a firm fixed-price contract, performance is typically evaluated against the requirements outlined in the Statement of Work (SOW). Success would likely be determined by the timely and complete delivery of the contracted IT services, adherence to any technical specifications, and potentially user satisfaction or system uptime, depending on the service. Without access to the SOW or performance reports, a detailed assessment of Blue Tech Inc.'s track record on this specific contract is not possible.
What is the historical spending pattern for 'Other Computer Related Services' by the Defense Information Systems Agency?
Historical spending patterns for 'Other Computer Related Services' (NAICS 541519) by the Defense Information Systems Agency (DISA) would reveal trends in procurement volume, average contract values, and key contractors over time. Analyzing this data could indicate whether this $26.8 million contract is an outlier, typical, or represents an increase/decrease in spending for such services. Such analysis requires access to historical federal procurement databases (like FPDS-NG or SAM.gov) to aggregate and analyze past contract awards within this specific NAICS code for DISA. This context is vital for understanding the agency's ongoing reliance on external IT support.
What is the risk profile associated with a 30-day firm fixed-price IT services contract of this magnitude?
A 30-day firm fixed-price contract of $26.8 million presents a unique risk profile. The short duration suggests a potentially high-intensity, specialized task or a bridge contract. The firm fixed-price nature mitigates the government's risk of cost overruns, placing that burden on the contractor, Blue Tech Inc. However, the high value for a short period could indicate a critical need or a high-risk, high-reward scenario. Risks for the government could include potential quality issues if the contractor rushes to meet the deadline, or if the scope is not perfectly defined, leading to disputes. For the contractor, the risk lies in accurately estimating the resources needed for such a high-value, short-term engagement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2251 SAN DIEGO AVE, SAN DIEGO, CA, 90
Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $26,796,494
Exercised Options: $26,796,494
Current Obligation: $26,796,494
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG07DA22B
IDV Type: GWAC
Timeline
Start Date: 2013-09-30
Current End Date: 2013-10-30
Potential End Date: 2013-10-30 00:00:00
Last Modified: 2014-05-22
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