DoD OIG awards $22.2M contract for managed IT services to 22nd Century Technologies, Inc

Contract Overview

Contract Amount: $22,184,331 ($22.2M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-04

End Date: 2026-06-30

Contract Duration: 1,852 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEPARTMENT OF DEFENSE OFFICE OF INSPECTOR GENERAL MANAGED SERVICE PROVIDER

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: DEPARTMENT OF DEFENSE OFFICE OF INSPECTOR GENERAL MANAGED SERVICE PROVIDER Key points: 1. Contract provides essential managed IT services for the DoD Inspector General. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. Fixed-price contract type aims to control costs for the government. 5. The award was a delivery order under a larger contract vehicle. 6. The contractor, 22nd Century Technologies, Inc., is a significant player in the IT services sector.

Value Assessment

Rating: good

The contract value of $22.2 million over approximately 5 years for managed IT services appears reasonable given the scope. Benchmarking against similar managed service contracts for oversight bodies within large federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, full and open competition generally promotes a fair market price.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a competitive process, rather than potentially overpaying through a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense Office of Inspector General, which receives critical IT support. Services delivered include managed IT support, ensuring the operational effectiveness of the OIG. The geographic impact is primarily within Virginia, where the OIG is located. Workforce implications include the potential for direct employment by the contractor and indirect support for DoD personnel relying on IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 5 years may lead to vendor lock-in if not managed carefully.
Reliance on a single managed service provider for critical IT infrastructure could pose a risk if the provider fails to perform adequately.
The specific details of the managed services and performance metrics are not fully detailed in the provided data, making a comprehensive risk assessment challenging.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps control costs and provides budget predictability.
The contractor, 22nd Century Technologies, Inc., has experience in providing IT services to the federal government.
The contract supports a critical function of the DoD OIG, ensuring accountability and oversight.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on managed services. The IT services market for the federal government is substantial, with significant spending on outsourcing various IT functions. This contract represents a portion of the government's investment in maintaining and operating its complex IT infrastructure, ensuring the efficiency and security of its operations. Comparable spending benchmarks for managed IT services can vary widely based on scope, complexity, and service level agreements.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small business participation is a requirement or a goal under the broader contract vehicle from which this delivery order was issued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense Office of Inspector General itself, given its role in managing IT services. The contract is likely subject to standard federal procurement regulations and oversight mechanisms, including performance monitoring and audits. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office would be responsible for ensuring accountability and adherence to contract terms.

Related Government Programs

DoD IT Modernization Programs
Federal Managed Services Contracts
IT Support Services for Government Agencies
Cybersecurity Services Contracts

Risk Flags

Potential for vendor lock-in due to long contract duration.
Reliance on a single provider for critical IT infrastructure.
Data security and privacy risks associated with sensitive OIG information.
Performance degradation if contractor fails to meet SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to 22ND CENTURY TECHNOLOGIES, INC.. DEPARTMENT OF DEFENSE OFFICE OF INSPECTOR GENERAL MANAGED SERVICE PROVIDER

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 $22.2 million.

What is the period of performance?

Start: 2021-06-04. End: 2026-06-30.

What is the track record of 22nd Century Technologies, Inc. in performing similar managed IT services contracts for federal agencies?

22nd Century Technologies, Inc. has a history of performing IT services contracts for various federal agencies. While specific details on their performance for managed IT services for Inspector General offices are not provided here, their broader federal contracting experience suggests familiarity with government IT environments. A deeper dive into their past performance evaluations, contract history, and any reported issues or successes on similar contracts would be necessary for a comprehensive assessment. This would include examining contract close-outs, any disputes, and client feedback to gauge their reliability and effectiveness in delivering managed IT solutions.

How does the awarded price compare to market rates for similar managed IT services?

The awarded price of approximately $22.2 million over five years for managed IT services for the DoD OIG needs to be benchmarked against market rates for comparable services. Factors influencing market rates include the scope of services (e.g., help desk, network management, cybersecurity), service level agreements (SLAs), number of users supported, and geographic location. Without a detailed breakdown of the services included and the specific SLAs, a precise comparison is difficult. However, given the full and open competition and the firm-fixed-price nature, it suggests the government aimed for competitive pricing. Further analysis would involve comparing this contract's unit costs (if derivable) or overall value against industry reports and government databases of similar IT service contracts.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this managed IT services contract. Typically, such contracts would include metrics related to system uptime, response times for help desk support, incident resolution times, and cybersecurity compliance. Monitoring these KPIs and SLAs is crucial for ensuring the contractor meets its obligations and provides value for money. Oversight would likely involve regular performance reviews between the contracting officer's representative (COR) and the contractor, with formal reporting mechanisms to track performance against agreed-upon metrics. Failure to meet SLAs could result in penalties or corrective actions.

What is the potential impact of this contract on the cybersecurity posture of the DoD OIG?

As a managed IT services contract, this award has a direct and significant impact on the cybersecurity posture of the DoD OIG. The contractor is responsible for maintaining and securing the IT infrastructure, which includes implementing security controls, managing patches and updates, monitoring for threats, and responding to incidents. The effectiveness of the contractor's cybersecurity practices, adherence to DoD security policies, and the robustness of their security personnel are critical. A well-executed contract can enhance the OIG's cybersecurity, while a poorly managed one could introduce vulnerabilities. Continuous monitoring, security audits, and strict adherence to cybersecurity standards are essential to mitigate risks.

Are there any specific risks associated with the contractor, 22nd Century Technologies, Inc., or the nature of managed IT services for an Inspector General's office?

Risks associated with 22nd Century Technologies, Inc. would typically be assessed during the pre-award phase, looking at their past performance, financial stability, and technical capabilities. For managed IT services, general risks include vendor lock-in, over-reliance on the provider, potential for service disruptions, and data security breaches. For an Inspector General's office specifically, there's an added layer of sensitivity as the IT systems likely contain confidential information related to audits and investigations. Therefore, ensuring the contractor's personnel are properly vetted and that robust data protection measures are in place is paramount. The contract's oversight mechanisms are key to mitigating these risks.

How does this contract fit into the broader IT spending landscape of the Department of Defense?

This $22.2 million contract for managed IT services for the DoD OIG represents a small fraction of the Department of Defense's overall IT spending, which runs into the tens of billions of dollars annually. The DoD is one of the largest consumers of IT services and products in the federal government, encompassing everything from enterprise resource planning systems and network infrastructure to advanced research and development. This contract specifically addresses the IT support needs of a distinct component (the OIG), ensuring its operational capability. It fits within the category of IT support and services, which is a critical but often less visible part of the DoD's vast technology ecosystem.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 2

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: $27,592,154

Exercised Options: $22,209,331

Current Obligation: $22,184,331

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