DODEA ITSS contract awarded to 22nd Century Technologies, Inc. for over $68 million

Contract Overview

Contract Amount: $68,299,725 ($68.3M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2025-07-29

Contract Duration: 1,460 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DODEA ITSS

Plain-Language Summary

Department of Defense obligated $68.3 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: DODEA ITSS Key points: 1. The contract value of over $68 million over its duration suggests a significant investment in IT support services. 2. The award was made under full and open competition, indicating a broad market solicitation. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of 1460 days (4 years) allows for sustained support but requires careful performance monitoring. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The absence of small business set-aside flags suggests the primary awardee is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: good

Benchmarking the value of this $68.3 million contract requires more granular data on the specific IT support services provided. However, the Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs. The award value appears substantial, suggesting a comprehensive scope of work. Without specific performance metrics or comparisons to similar DODEA IT support contracts, a definitive value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bids indicates a moderate level of competition for this IT support services requirement. While not an exceptionally high number of bidders, full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives competitive offers for its IT support needs.

Public Impact

Students and staff within the Department of Defense Education Activity (DODEA) schools will benefit from enhanced IT infrastructure and support. The contract will deliver a range of computer-related services, likely including network management, help desk support, and system maintenance. The geographic impact is likely widespread, covering DODEA facilities globally. The contract may have implications for the IT workforce, both within the contractor organization and potentially through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring adequate cybersecurity measures are maintained throughout the contract duration is crucial.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive bidding process.
The contract duration allows for stability in IT support services.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on computer-related services. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Comparable spending benchmarks would depend on the specific services rendered, but IT support contracts for large organizations like DODEA often represent substantial investments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary awardee, 22nd Century Technologies, Inc., is likely not a small business, or if it is, the contract was not specifically designated as a small business set-aside. Consequently, the direct impact on small business prime contracting may be limited, though subcontracting opportunities could still exist if the prime contractor chooses to engage small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense's contracting officers and the Defense Information Systems Agency (DISA). Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DODEA IT Support Services
Department of Defense IT Modernization
Federal Civilian IT Services
Defense Information Technology Contracting

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.3 million to 22ND CENTURY TECHNOLOGIES, INC.. DODEA ITSS

Who is the contractor on this award?

The obligated recipient is 22ND CENTURY TECHNOLOGIES, 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 $68.3 million.

What is the period of performance?

Start: 2021-07-30. End: 2025-07-29.

What is the track record of 22nd Century Technologies, Inc. with federal contracts, particularly in IT support?

22nd Century Technologies, Inc. (22nd Century) has a history of receiving federal contracts, primarily within the IT and professional services domains. Analyzing their past performance on similar contracts, especially those involving IT support for large government organizations, is crucial. This includes examining contract values, durations, any reported performance issues or awards, and their success rate in competitive bidding. A review of their contract history can reveal patterns in their service delivery, financial stability, and ability to meet government requirements, providing insight into their suitability for the DODEA ITSS contract.

How does the awarded amount of $68.3 million compare to similar IT support contracts within the Department of Defense or other federal agencies?

The $68.3 million contract value for DODEA ITSS is substantial and falls within the typical range for large-scale IT support services for federal agencies. To benchmark this value, one would compare it to contracts for similar services (e.g., network management, help desk, system administration) awarded by agencies like DISA, the Army, Navy, or Air Force, or even civilian agencies with significant IT footprints. Factors such as contract duration (4 years in this case), scope of services, geographic coverage, and the specific IT environment being supported are critical for a fair comparison. A higher number of bidders in comparable contracts might suggest lower pricing, while a sole-source award could indicate higher costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential performance deficiencies by the contractor, cybersecurity vulnerabilities, and the risk of cost overruns if the Firm Fixed Price (FFP) model is not managed effectively. Mitigation strategies involve robust contract oversight by DODEA and DISA, including regular performance reviews, adherence to Service Level Agreements (SLAs), and stringent cybersecurity protocols. The FFP structure itself mitigates cost overrun risk for the government, as the contractor is responsible for any costs exceeding the agreed-upon price. Additionally, the competitive award process helps mitigate the risk of selecting an underqualified vendor.

How effective is the current IT support provided by DODEA, and what improvements are expected from this contract?

Assessing the effectiveness of DODEA's current IT support and the expected improvements from this contract requires specific performance data and user feedback, which are not detailed in the provided summary. However, the contract's objective is likely to ensure reliable, secure, and efficient IT services for DODEA's educational mission. Expected improvements could include faster help desk response times, enhanced network stability, updated technology infrastructure, better cybersecurity posture, and support for new educational technologies. The success of these improvements will be measured against defined performance metrics within the contract.

What are the historical spending patterns for IT support services within DODEA or DISA over the past 5-10 years?

Historical spending patterns for IT support services within DODEA and DISA would reveal trends in investment in technology infrastructure and support. Analyzing this data would show whether spending has been increasing, decreasing, or remaining stable, and how it correlates with DODEA's strategic goals or technological shifts. Understanding these patterns helps contextualize the $68.3 million award, indicating if it represents a typical investment, an increase due to new initiatives, or a decrease reflecting consolidation or outsourcing strategies. This historical perspective is vital for budget planning and assessing the long-term financial commitment to IT support.

What is the potential impact of this contract on the IT workforce, both within the government and the contractor's organization?

This contract primarily impacts the IT workforce by outsourcing a significant portion of IT support functions to 22nd Century Technologies, Inc. This could lead to a reduction in government IT personnel performing these specific tasks, shifting roles towards oversight and management. For the contractor, it represents job creation and resource allocation for IT professionals. The specific impact depends on whether the contractor utilizes existing staff, hires new personnel, or subcontracts portions of the work. The nature of the services (e.g., help desk, network administration) dictates the types of IT skills required.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 EXECUTIVE DR STE 285, SOMERSET, NJ, 08873

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,027,903

Exercised Options: $68,299,725

Current Obligation: $68,299,725

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $14,312,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0001

IDV Type: IDC

Timeline