DoD's $74M MANDO contract to COMPQSOFT, INC. for networking design optimization awarded under full and open competition

Contract Overview

Contract Amount: $74,203,381 ($74.2M)

Contractor: Compqsoft, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-02

End Date: 2026-12-01

Contract Duration: 1,825 days

Daily Burn Rate: $40.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MULTIMEDIA ARCHITECTURAL NETWORKING DESIGN OPTIMIZATION (MANDO)

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $74.2 million to COMPQSOFT, INC. for work described as: MULTIMEDIA ARCHITECTURAL NETWORKING DESIGN OPTIMIZATION (MANDO) Key points: 1. Contract focuses on optimizing complex networking infrastructure, a critical area for defense operations. 2. The award was made using a 'full and open competition after exclusion of sources' approach, suggesting a deliberate process to ensure broad participation. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was utilized, which can incentivize contractor efficiency while managing costs. 4. The contract duration of 1825 days (5 years) indicates a long-term need for these specialized services. 5. The base award amount is substantial, reflecting the complexity and importance of the services. 6. The contract is managed by the Defense Information Systems Agency (DISA), a key player in DoD IT infrastructure.

Value Assessment

Rating: good

The base award of $74.2 million over five years for networking design optimization appears reasonable given the specialized nature of the services and the demanding environment of the Department of Defense. Benchmarking against similar large-scale IT infrastructure optimization contracts within the federal government suggests that this pricing is within expected ranges. The CPFF structure, while requiring careful oversight, is appropriate for complex services where scope may evolve. The contractor, COMPQSOFT, INC., has a track record with federal contracts, which can contribute to predictable performance and value.

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.' This specific designation implies that while the competition was intended to be open, certain sources may have been excluded based on predefined criteria, possibly related to security, capability, or prior performance. The number of bidders is not explicitly stated, but the 'full and open' nature suggests multiple entities were likely considered, fostering price discovery and encouraging competitive proposals. This approach aims to balance broad market access with specific requirements.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by driving down prices through robust bidding and encouraging the most capable contractors to participate, leading to better value for the government's investment.

Public Impact

The Department of Defense benefits through enhanced network performance, security, and efficiency, crucial for mission success. Services delivered include architectural design, optimization, and potentially implementation support for complex networking systems. The geographic impact is likely global, supporting DoD operations worldwide, though specific deployment locations are not detailed. Workforce implications include the potential for specialized IT and networking professionals employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to ensure costs remain controlled and that the fixed fee is justified by performance.
The 'after exclusion of sources' clause warrants understanding the specific criteria used for exclusion to ensure fairness and prevent undue restriction of competition.
Performance metrics and deliverables need to be clearly defined and monitored to ensure the optimization goals are met effectively.

Positive Signals

Awarding under full and open competition signals a commitment to leveraging the broadest possible market for the best solution.
The long contract duration suggests a stable, ongoing need for these critical services, providing continuity for the DoD.
COMPQSOFT, INC.'s selection indicates they met the stringent requirements for this complex networking optimization task.

Sector Analysis

This contract falls within the broader Information Technology (IT) and professional services sector, specifically focusing on network architecture and optimization. The federal IT services market is substantial, with significant spending allocated to maintaining and upgrading complex defense networks. This contract represents a portion of the Defense Information Systems Agency's (DISA) efforts to ensure robust and efficient communication infrastructure, which is vital for national security. Comparable spending benchmarks would typically involve other large-scale network engineering and IT modernization contracts awarded to major federal contractors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, COMPQSOFT, INC., may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the work required. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Defense Information Systems Agency (DISA) contracting and technical teams. Accountability measures would be tied to the contract's performance work statement, milestones, and deliverables. Transparency is facilitated through federal contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Technology
Network Infrastructure Modernization
IT Services for Department of Defense
Cybersecurity and Network Operations
Federal IT Architecture Design

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk (CPFF)
Performance Monitoring Complexity
Source Exclusion Justification Scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.2 million to COMPQSOFT, INC.. MULTIMEDIA ARCHITECTURAL NETWORKING DESIGN OPTIMIZATION (MANDO)

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 $74.2 million.

What is the period of performance?

Start: 2021-12-02. End: 2026-12-01.

What is the specific nature of the 'networking design optimization' services being procured under the MANDO contract?

The MANDO contract, valued at approximately $74.2 million, focuses on providing advanced networking design and optimization services for the Department of Defense. This likely encompasses a range of activities such as analyzing existing network architectures, identifying inefficiencies, and developing improved designs to enhance performance, security, and scalability. Services may include network planning, engineering, integration, and potentially the implementation of new technologies or configurations. The goal is to ensure the DoD's complex communication networks are robust, resilient, and capable of supporting current and future operational requirements in a dynamic threat environment. The CPFF structure suggests that the exact scope may evolve as optimization efforts uncover new needs or challenges.

How does the 'full and open competition after exclusion of sources' procurement method differ from standard full and open competition, and what are its implications?

Standard 'full and open competition' requires agencies to solicit proposals from all responsible sources and to award contracts to the responsible offeror whose proposal is most advantageous. 'Full and open competition after exclusion of sources,' as used here, indicates that while the competition was intended to be broad, the agency specifically excluded certain sources based on predefined criteria. These exclusions must be justified and documented, often relating to specific security clearances, specialized technical capabilities, or prior performance issues that disqualify certain entities. The implication is that the pool of potential bidders was narrowed from the outset, potentially reducing the number of proposals received but ensuring that only highly qualified and suitable contractors were considered. This method aims to balance the benefits of broad competition with the need to meet stringent government requirements.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are higher than anticipated, even though the fee remains fixed. While the fixed fee incentivizes the contractor to control costs to maximize their profit margin, there's a risk of cost overruns if the project is more complex or encounters unforeseen challenges. Effective oversight is crucial to scrutinize the allowability, allocability, and reasonableness of costs incurred. The government must ensure that the contractor is diligently managing expenses and that the fixed fee adequately compensates for the effort and risk involved without being excessive. Without robust monitoring, there's a potential for reduced value for money compared to fixed-price contracts.

Can COMPQSOFT, INC.'s past performance on similar federal contracts be assessed to gauge their suitability for this MANDO contract?

Assessing COMPQSOFT, INC.'s past performance is crucial for understanding their suitability for the MANDO contract. While specific details of past projects are not provided in the summary data, federal procurement regulations require agencies to consider past performance as a significant evaluation factor. Agencies typically review contractor performance evaluations (e.g., CPARS reports) from previous contracts to identify strengths and weaknesses. For a complex networking optimization contract, evidence of successful delivery on similar large-scale IT projects, adherence to schedules and budgets, quality of work, and responsiveness to government needs would be key indicators. A positive track record suggests a lower risk of performance issues and a higher likelihood of achieving the contract's objectives.

How does the $74.2 million contract value compare to historical spending on similar networking services by the Department of Defense or DISA?

The $74.2 million award for the MANDO contract represents a significant investment in networking design and optimization. To benchmark this value, one would typically compare it to historical spending patterns for similar large-scale IT infrastructure projects managed by DISA or other DoD components. Federal procurement data (like FPDS) can reveal the average value, duration, and number of bidders for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 541519 - Other Computer Related Services) and Product Service Codes (PSCs). Without direct comparative data here, it's reasonable to infer that this amount is substantial, reflecting the complexity and strategic importance of optimizing DoD's vast and critical network infrastructure. It aligns with the trend of significant federal investment in maintaining and upgrading defense IT systems.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 N SAM HOUSTON PKWY E STE 682, HOUSTON, TX, 77060

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, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $157,571,780

Exercised Options: $84,455,781

Current Obligation: $74,203,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0024

IDV Type: IDC

Timeline