DoD's $12.2M custom computer programming contract with Data Systems Analysts Inc. awarded in 2006

Contract Overview

Contract Amount: $12,224,529 ($12.2M)

Contractor: Data Systems Analysts Inc

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2012-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BASE PERIOD REQUIRED TASKS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to DATA SYSTEMS ANALYSTS INC for work described as: BASE PERIOD REQUIRED TASKS Key points: 1. Contract value appears reasonable for the duration and scope of custom programming services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract awarded to a single bidder, warranting further investigation into the competition dynamics. 4. Performance period spans over five years, indicating a long-term need for these services. 5. Services fall under custom computer programming, a critical area for defense operations. 6. Contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The total contract value of $12.2 million over approximately 5.5 years averages to about $2.2 million per year. This figure needs to be benchmarked against similar custom computer programming contracts for the Department of Defense to assess value for money. Without specific comparable data, it's difficult to definitively state if the pricing was competitive or represented excellent value. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data provided does not specify the number of bids received. A high number of bidders typically suggests robust competition, which can lead to better pricing and innovation. However, if only one bid was received despite full and open competition, it might suggest market limitations or issues with the solicitation process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of offers. However, the ultimate benefit depends on the number of bids actually received and the final negotiated price.

Public Impact

The Department of Defense benefits from custom computer programming services to support its data systems. These services likely enhance the functionality and efficiency of critical defense information systems. The geographic impact is primarily within the Department of Defense's operational areas, potentially worldwide. The contract supports skilled labor in the IT sector, specifically in custom software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope creep and labor hours.
Awarding to a single bidder under full and open competition raises questions about the breadth of market interest or potential barriers to entry for other firms.

Positive Signals

The use of full and open competition suggests an effort to maximize market participation and potentially achieve competitive pricing.
The long performance period indicates a sustained need and potential for building contractor expertise within the DoD.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for such services is vast and highly competitive, with numerous firms offering specialized development capabilities. The Department of Defense is a significant consumer of IT services, often requiring highly specialized solutions tailored to its unique operational needs. Benchmarking this contract's value would require comparing its annual cost against similar custom development projects within the defense sector, considering factors like complexity, security requirements, and labor rates.

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 specifically mandated for small businesses through a set-aside. However, the prime contractor, Data Systems Analysts Inc., may still engage small businesses as subcontractors based on their own procurement strategies, which could contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the Department of Defense. Mechanisms would include contract performance reviews, milestone tracking, and financial audits. Accountability is ensured through adherence to contract terms, delivery schedules, and performance standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency IT Services
Department of Defense Software Development Contracts
Custom Computer Programming Services
Time and Materials IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition indicated if only one bid was received under full and open competition.
Need for robust oversight to manage contractor performance and costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to DATA SYSTEMS ANALYSTS INC. BASE PERIOD REQUIRED TASKS

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 $12.2 million.

What is the period of performance?

Start: 2006-10-01. End: 2012-03-31.

What was the specific nature of the custom computer programming services provided under this contract?

The contract, awarded to Data Systems Analysts Inc. (DSAI), falls under the North American Industry Classification System (NAICS) code 541511 for Custom Computer Programming Services. While the data does not detail the specific projects, these services typically involve designing, developing, modifying, testing, and supporting software applications tailored to the unique requirements of the Department of Defense. This could range from developing new command and control systems, enhancing existing databases, creating specialized analytical tools, to integrating disparate software systems within the DoD's complex IT infrastructure. The Time and Materials (T&M) pricing structure suggests that the scope might have been less defined initially, allowing for flexibility as requirements evolved, or that the primary cost drivers were labor hours and materials used.

How does the average annual cost of this contract compare to similar DoD IT programming contracts?

The contract's base period value of $12.2 million over approximately 5.5 years (October 1, 2006, to March 31, 2012) equates to an average annual expenditure of roughly $2.2 million. To assess value for money, this figure should be benchmarked against comparable contracts for custom computer programming services awarded by the DoD during the same period. Factors such as contract complexity, security requirements (e.g., Top Secret clearances), specific technologies used, and the geographic location of service delivery significantly influence pricing. Without access to a database of similar contracts with detailed cost breakdowns, a precise comparison is challenging. However, for complex, mission-critical defense software development, an annual spend in the low millions is not uncommon, though the efficiency and effectiveness of the spending remain key evaluation points.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

Time and Materials (T&M) contracts, like the one awarded to Data Systems Analysts Inc., carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure can incentivize longer task durations and potentially less efficient work if not rigorously managed. For the government, the primary risk is cost overrun, as the final price is not predetermined and can escalate if the effort takes longer than anticipated or if material costs increase. Effective oversight, detailed tracking of hours and materials, and strong contract administration are crucial to mitigate these risks and ensure that the government receives good value.

What does the fact that this contract was awarded under 'full and open competition' but potentially had only one bidder imply?

Awarding a contract under 'full and open competition' signifies that the solicitation was broadly advertised, allowing any qualified vendor to submit a proposal. However, if only one bid was ultimately received, it can imply several possibilities. It might suggest that the market for this specific type of specialized service is limited, with few companies possessing the required technical expertise, security clearances, or capacity. Alternatively, it could indicate that the solicitation's requirements were highly specific or restrictive, inadvertently deterring other potential bidders. Another possibility is that the timing or terms of the solicitation were not optimal for attracting a wider range of competitors. This situation warrants scrutiny to ensure that the government did not miss out on potentially better pricing or innovative solutions that a more competitive environment might have yielded.

How has spending on custom computer programming services by the DoD evolved since this contract was awarded in 2006?

Spending on custom computer programming services by the DoD has likely seen significant evolution since 2006, driven by technological advancements, changing geopolitical landscapes, and evolving defense strategies. Post-2006, the DoD has increasingly focused on areas like cybersecurity, cloud computing, artificial intelligence, data analytics, and agile development methodologies. While specific figures require detailed analysis of historical spending data, it's probable that the overall investment in IT services, including custom programming, has grown substantially. There's also been a trend towards more modular, service-oriented architectures and potentially a greater emphasis on commercial off-the-shelf (COTS) solutions where feasible, balanced against the need for highly specialized, classified systems. The rise of cloud platforms may also have shifted some custom development towards cloud-native applications.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4300 HADDONFIELD ROAD, PENNSAUKEN, NJ, 08109

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,224,530

Exercised Options: $12,224,529

Current Obligation: $12,224,529

Parent Contract

Parent Award PIID: GS35F0074K

IDV Type: FSS

Timeline