DoD's $61.5M IT Services Contract with Onpoint Consulting Faces Scrutiny Over Pricing and Competition
Contract Overview
Contract Amount: $61,559,318 ($61.6M)
Contractor: Onpoint Consulting, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-11-04
End Date: 2020-07-31
Contract Duration: 2,461 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 20
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: IGF::OT::IGF INFORMATION ASSURANCE IGF::OT::IGF IT SERVICES
Place of Performance
Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $61.6 million to ONPOINT CONSULTING, INC. for work described as: IGF::OT::IGF INFORMATION ASSURANCE IGF::OT::IGF IT SERVICES Key points: 1. The contract value of $61.5 million for IT services is substantial, requiring careful oversight. 2. Competition was 'Full and Open Competition After Exclusion of Sources,' suggesting potential limitations. 3. The fixed-price with economic price adjustment structure introduces risk related to cost escalation. 4. The sector is IT Services, a critical area for defense operations.
Value Assessment
Rating: questionable
The contract's fixed-price with economic price adjustment (EPA) structure can lead to cost overruns if not managed tightly. Benchmarking against similar Computer Systems Design Services contracts is difficult without detailed cost breakdowns, but the EPA component raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method, 'Full and Open Competition After Exclusion of Sources,' indicates that while open, certain sources were initially excluded, potentially limiting the competitive pool and impacting price discovery. This could lead to less favorable pricing than a truly unrestricted competition.
Taxpayer Impact: The use of EPA and potentially limited competition may result in higher costs for taxpayers than a fully competitive, fixed-price contract without adjustments.
Public Impact
Taxpayers may be overpaying due to economic price adjustments in a long-term IT services contract. The exclusion of sources in the competition process raises questions about fairness and optimal pricing. The Department of Defense relies on these IT services, making contract effectiveness crucial for operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment (EPA) risk
- Limited competition concerns
- Long contract duration (2013-2020)
Positive Signals
- Contract awarded to a specific entity for IT services
- Clear contract end date
Sector Analysis
This contract falls within the IT Services sector, specifically Computer Systems Design Services. Spending in this area is significant across government, with benchmarks varying widely based on service complexity and duration. The $61.5M value over 7 years is considerable for this type of service.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Analysis should explore if opportunities were missed to engage small businesses in subcontracting roles or if similar services could have been procured from smaller, specialized firms.
Oversight & Accountability
The contract's long duration and the use of economic price adjustments necessitate robust oversight to ensure costs remain reasonable and performance meets expectations. Audits and regular performance reviews are critical for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Economic Price Adjustment (EPA).
- Limited competition due to exclusion of sources.
- Long contract duration increases exposure to market changes and performance degradation.
- Lack of transparency on specific performance metrics and cost breakdowns.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.6 million to ONPOINT CONSULTING, INC.. IGF::OT::IGF INFORMATION ASSURANCE IGF::OT::IGF IT SERVICES
Who is the contractor on this award?
The obligated recipient is ONPOINT CONSULTING, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $61.6 million.
What is the period of performance?
Start: 2013-11-04. End: 2020-07-31.
What was the justification for excluding specific sources in the competition, and did this exclusion impact the final price?
The justification for excluding sources is not detailed in the provided data. However, excluding potential bidders typically limits the competitive landscape. This reduction in competition can lead to less downward pressure on pricing, potentially resulting in a higher contract cost for the government than if all qualified sources had been allowed to compete.
How were the economic price adjustments calculated, and what was the actual cost increase incurred due to these adjustments over the contract's life?
The specific methodology for calculating economic price adjustments (EPA) is not provided. EPAs are typically tied to economic indices (e.g., inflation rates, labor cost changes). Without the exact formula and historical index data, it's impossible to quantify the exact cost increase. However, EPAs inherently carry a risk of cost escalation, potentially increasing the total contract value beyond initial projections.
What performance metrics were used to evaluate the effectiveness of Onpoint Consulting's IT services, and did they meet the Department of the Air Force's requirements?
Performance metrics are not detailed in the provided contract data. Effectiveness would typically be measured against defined service level agreements (SLAs), technical requirements, and delivery timelines. A thorough review would require access to performance reports, user feedback, and any documented issues or successes during the contract period to assess if the services delivered met the Air Force's needs.
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: 20
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Publicis Groupe S.A. (UEI: 275145670)
Address: 2107 WILSON BLVD STE 510, ARLINGTON, VA, 22201
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,322,799,561
Exercised Options: $520,285,990
Current Obligation: $61,559,318
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS06F0648Z
IDV Type: GWAC
Timeline
Start Date: 2013-11-04
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2020-04-03
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