DoD's $38M contract for computer systems design services awarded to DATA SYSTEMS ANALYSTS INC

Contract Overview

Contract Amount: $38,135,704 ($38.1M)

Contractor: Data Systems Analysts Inc

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2011-02-07

Contract Duration: 2,019 days

Daily Burn Rate: $18.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to DATA SYSTEMS ANALYSTS INC for work described as: Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of nearly 6 years suggests a long-term need for these services. 3. Awarded by the Defense Information Systems Agency, indicating a focus on critical defense IT infrastructure. 4. The 'Cost Plus Award Fee' pricing structure can incentivize performance but may lead to higher costs if not managed carefully. 5. The lack of competition suggests potential risks related to price discovery and innovation. 6. The contract's value of $38 million over its period warrants scrutiny for value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific service requirements. The 'Cost Plus Award Fee' (CPAF) structure, while allowing for performance incentives, can sometimes lead to costs exceeding fixed-price contracts if performance targets are not well-defined or if costs escalate unexpectedly. Without competitive bids, it's difficult to definitively assess if the pricing reflects market rates or if there were opportunities for cost savings through a more competitive procurement process. The total award amount of $38 million over its lifespan indicates a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor is deemed uniquely qualified or when circumstances prevent full and open competition. The absence of bidders means there was no direct price comparison or negotiation against market alternatives, which can limit the government's ability to secure the most favorable pricing.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive pressure on pricing is lost. It also raises questions about whether the government fully explored all avenues for competition.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, which receives essential computer systems design services. These services likely support the development, integration, and maintenance of critical IT systems vital for national security operations. The contract's impact is concentrated within the defense sector, ensuring the operational readiness of military information technology. While not directly creating a large public workforce, the contract supports specialized IT professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Cost Plus Award Fee structure may lead to higher costs if not tightly managed.
Lack of transparency in the procurement process due to sole-source nature.

Positive Signals

Contract awarded to a company with a track record in providing IT services to the government.
Long contract duration suggests a stable and potentially effective working relationship.
Focus on critical defense IT infrastructure aligns with national security priorities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial component of the broader Information Technology industry. This sector is characterized by high demand for specialized expertise in software development, system integration, and IT consulting. The market size is substantial, driven by continuous technological advancements and the increasing reliance of organizations, particularly government agencies, on robust and secure IT infrastructure. This specific contract likely supports complex defense systems, where specialized knowledge and security clearances are paramount, often leading to less open competition.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it was not a specifically designated small business contract. Therefore, the primary impact is on large businesses within the IT services sector. There is no explicit information provided regarding subcontracting plans to small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting this significant defense contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls would be critical areas of oversight. The contract's duration and value suggest regular reporting and review processes would be in place. Inspector General (IG) jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution. Transparency may be limited due to the sole-source nature of the award.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense IT Modernization Programs
Computer Systems Design and Related Services Contracts
Cost Plus Award Fee Contracts

Risk Flags

Sole-source award
Cost Plus Award Fee pricing structure
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to DATA SYSTEMS ANALYSTS INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is DATA SYSTEMS ANALYSTS 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 $38.1 million.

What is the period of performance?

Start: 2005-07-29. End: 2011-02-07.

What is the track record of DATA SYSTEMS ANALYSTS INC. in performing similar government contracts?

DATA SYSTEMS ANALYSTS INC. has a history of performing IT services for the U.S. government. While specific details on past performance metrics for this exact contract are not provided in the summary data, their engagement by the Department of Defense for computer systems design services suggests a level of established capability and trust. Further investigation into their contract history, including past performance reviews, past performance information (PPI) databases, and any reported issues or successes on similar contracts, would be necessary for a comprehensive assessment. Understanding their experience with Cost Plus Award Fee contracts and the specific types of defense systems they have supported would provide deeper insights into their suitability and performance reliability.

How does the pricing structure (Cost Plus Award Fee) compare to other contract types for similar services?

Cost Plus Award Fee (CPAF) contracts are often used when the scope of work is not precisely defined or when innovation and performance quality are paramount, and a fixed-price contract might stifle these aspects. Compared to Firm-Fixed-Price (FFP) contracts, CPAF offers more flexibility for the contractor to incur costs while providing incentives for meeting or exceeding performance targets. However, FFP contracts generally offer better price certainty for the government. Other cost-reimbursement types, like Cost Plus Fixed Fee (CPFF), have a fixed fee regardless of performance. CPAF's variable fee based on performance aims to balance flexibility with accountability, but it requires robust government oversight to ensure costs remain reasonable and award fees are justified. Without competitive bids, it's hard to benchmark if this CPAF structure was the most cost-effective choice.

What are the primary risks associated with a sole-source award for computer systems design services?

The primary risks associated with a sole-source award for computer systems design services include a lack of price competition, which can lead to inflated costs for the government. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the most competitive pricing. Additionally, sole-source awards can limit the government's access to innovative solutions or alternative approaches that might be offered by other qualified vendors. There's also a potential risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions more difficult and costly. Transparency in the procurement process is reduced, potentially raising concerns about fairness and the best use of taxpayer funds.

How effective has the Defense Information Systems Agency (DISA) been in managing similar IT service contracts?

Assessing the overall effectiveness of DISA in managing similar IT service contracts requires a broad review of their procurement history, contract performance data, and independent evaluations. DISA is a major procurer of IT services for the Department of Defense, responsible for critical infrastructure. Their effectiveness can vary depending on the specific contract, the complexity of the services, and the oversight mechanisms in place. Factors to consider include on-time delivery, adherence to budget, system performance, and user satisfaction. While this specific contract's performance data isn't detailed here, DISA's mission-critical role implies a strong focus on contract management, though challenges can arise, particularly with long-term, complex, and sole-source agreements.

What are the historical spending patterns for computer systems design services within the Department of Defense?

The Department of Defense (DoD) is a significant investor in Information Technology (IT) services, including computer systems design. Historical spending patterns show a consistent and substantial allocation of funds towards IT modernization, cybersecurity, network infrastructure, and software development to maintain technological superiority. Spending in this category has generally increased over the years, driven by evolving threats, the need for interoperability across different branches, and the adoption of new technologies like cloud computing and artificial intelligence. Contracts for computer systems design services are a major component of this overall IT expenditure, often awarded to large, specialized defense contractors. Analyzing DoD's budget justifications and contract award databases would reveal trends in specific service areas and the average contract values over time.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 10400 EATON PL STE 500, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline