DoD's $17.9M IT services contract for Navy support awarded to Compqsoft, Inc. via full and open competition

Contract Overview

Contract Amount: $17,917,635 ($17.9M)

Contractor: Compqsoft, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-27

End Date: 2024-09-26

Contract Duration: 1,644 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR FOR IT SERVICES TO SUPPORT THE NAVY.

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03804

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to COMPQSOFT, INC. for work described as: LABOR FOR IT SERVICES TO SUPPORT THE NAVY. Key points: 1. Contract value represents a significant investment in IT support for naval operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Contract duration of over 4 years indicates a long-term need for these services. 5. The award to a single contractor highlights the need for specialized IT expertise. 6. The contract is managed by the Defense Information Systems Agency, a key IT provider for the DoD.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. While specific value-for-money metrics are not provided, the competitive award process suggests that pricing was evaluated against market standards. Benchmarking against similar IT service contracts for the Navy would provide further insight into whether the awarded price represents a fair market value. The contract's total value of approximately $17.9 million over its duration indicates a substantial but potentially reasonable investment for comprehensive IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition. While more bidders could potentially drive prices lower, a competitive process was still utilized, which is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it allows for a wider range of potential contractors to bid, increasing the likelihood of obtaining services at a competitive price and fostering a more efficient use of public funds.

Public Impact

Naval personnel and operations benefit from enhanced IT support. The contract delivers custom computer programming services essential for modern naval systems. The geographic impact is primarily within New Hampshire, where the contractor is located, but the services support the Navy nationwide. The contract supports a workforce skilled in IT services and custom computer programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT services could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract helps manage cost overruns.
Full and open competition process generally leads to better value.
Long contract duration suggests a stable and ongoing need, potentially leading to efficiencies.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The IT services market is vast and highly competitive, with significant government spending allocated to software development, system integration, and IT support. This contract represents a portion of the Department of Defense's broader IT modernization and operational support efforts, aligning with the sector's trend towards specialized, high-value services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Compqsoft, Inc. voluntarily engages small businesses for subcontracting. Further investigation into subcontracting reports would be needed to assess any indirect benefits.

Oversight & Accountability

The contract is managed by the Defense Information Systems Agency (DISA), which typically has robust oversight mechanisms for IT procurements. Oversight would likely involve performance monitoring, quality assurance, and adherence to contract terms. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Navy IT Modernization Programs
Defense Information Systems Agency IT Support Contracts
Custom Computer Programming Services for Government

Risk Flags

Contract duration exceeds typical IT service task orders, requiring careful performance monitoring.
Reliance on a single vendor for critical IT functions could present a single point of failure risk.
Cybersecurity risks associated with handling sensitive Navy data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to COMPQSOFT, INC.. LABOR FOR IT SERVICES TO SUPPORT THE NAVY.

Who is the contractor on this award?

The obligated recipient is COMPQSOFT, 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 $17.9 million.

What is the period of performance?

Start: 2020-03-27. End: 2024-09-26.

What is Compqsoft, Inc.'s track record with federal IT service contracts, particularly with the Department of Defense?

Compqsoft, Inc. has a history of performing IT services for the federal government. While specific details on their track record with the DoD are not provided in this data snippet, their ability to win a contract of this size and duration suggests they have met the necessary qualifications and performance standards. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the full scope of their past performance, including other contracts, past performance evaluations, and any reported issues or successes. This would provide a more comprehensive understanding of their reliability and expertise in delivering IT solutions to government agencies.

How does the awarded price compare to market rates for similar custom computer programming services?

Without specific details on the scope of work and the labor categories involved, a precise comparison of the awarded price to market rates is challenging. However, the contract's firm fixed-price nature and the fact that it was awarded under full and open competition suggest that the pricing was vetted through a competitive process. To benchmark effectively, one would need to analyze the contract's statement of work, identify comparable IT service contracts awarded by the DoD or other federal agencies for similar services (e.g., custom software development, system integration), and compare the estimated labor hours, rates, and total value. Industry reports on IT service pricing in the government sector could also provide a general market context.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance deficiencies by the contractor, cost overruns (though mitigated by fixed-price), schedule delays, and cybersecurity vulnerabilities. Given the critical nature of IT support for naval operations, any disruption could have significant consequences. Mitigation strategies likely involve robust contract management by DISA, including regular performance reviews, adherence to service level agreements (SLAs), and potentially penalties for non-performance. Cybersecurity compliance and regular audits would be crucial to address security risks. The fixed-price nature inherently shifts some cost risk to the contractor.

How effective has DISA been in managing similar IT service contracts for the Navy?

The Defense Information Systems Agency (DISA) is a primary IT service provider for the DoD and has extensive experience managing a wide array of IT contracts. Their effectiveness in managing similar contracts can be assessed by examining contract performance data, user satisfaction surveys (if available), and the overall success rate of IT initiatives they oversee. DISA's mission is to provide, operate, and defend information networks, so they have a vested interest and established processes for ensuring contract success. However, like any large organization, their performance can vary, and specific contract outcomes depend on numerous factors, including the complexity of the requirement and the contractor's capabilities.

What has been the historical spending trend for custom computer programming services by the Department of Defense?

The Department of Defense consistently represents one of the largest government spenders on IT services, including custom computer programming. Historical data indicates a sustained and often increasing investment in this area as the military modernizes its systems, enhances cybersecurity, and adopts new technologies. Spending trends are influenced by geopolitical factors, technological advancements, and strategic priorities. Analyzing past fiscal years' spending on NAICS code 541511 (Custom Computer Programming Services) within the DoD would reveal specific growth patterns, major contract awards, and shifts in focus areas, such as cloud computing, AI, or data analytics.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS ROAD NE, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,917,635

Exercised Options: $17,917,635

Current Obligation: $17,917,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0034Y

IDV Type: FSS

Timeline