DoD's $2.56M IT contract to Regency Consulting Inc. for computer services awarded under full and open competition

Contract Overview

Contract Amount: $2,557,701 ($2.6M)

Contractor: Regency Consulting Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-31

End Date: 2025-07-31

Contract Duration: 731 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFRASTRUCTURE

Place of Performance

Location: SIOUX CITY, WOODBURY County, IOWA, 51101

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to REGENCY CONSULTING INC for work described as: INFRASTRUCTURE Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support within the Defense Information Systems Agency. 2. The contract duration of 731 days suggests a medium-term engagement for ongoing support or project execution. 3. Fixed-price contract type suggests that cost risks are largely borne by the contractor, potentially leading to more predictable spending. 4. The award was made under 'full and open competition after exclusion of sources,' implying a competitive process with specific justifications for excluding other sources. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of 'Other Computer Related Services,' requiring a detailed understanding of the specific services rendered. 6. The contract's value of $2.56 million falls within a moderate spending bracket for IT services within the federal government.

Value Assessment

Rating: good

Benchmarking the value of this $2.56 million contract requires more granular data on the specific 'Other Computer Related Services' provided. However, for a two-year IT support contract of this nature, the price appears within a reasonable range, especially considering it was awarded through a competitive process. Without specific performance metrics or detailed service breakdowns, a definitive value-for-money assessment is challenging, but the competitive award suggests a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation suggests that while the competition was intended to be broad, there were specific reasons for excluding certain sources, which warrants further investigation. The presence of 8 bidders indicates a healthy level of interest, which is positive for price discovery and achieving a competitive outcome. However, the 'exclusion of sources' aspect means the competition might not have been as wide as a pure 'full and open' competition.

Taxpayer Impact: The competitive bidding process, even with exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. The participation of 8 bidders suggests that multiple firms were vying for the contract, driving down costs.

Public Impact

The primary beneficiaries are the Department of Defense and its components, which will receive essential computer-related services to support their operations. Services delivered likely include IT support, system maintenance, network management, or other specialized computer services crucial for defense information systems. The geographic impact is centered around the Defense Information Systems Agency's operational areas, potentially supporting military and civilian personnel nationwide or globally. Workforce implications may include the need for skilled IT professionals within Regency Consulting Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires clarification to ensure maximum taxpayer value.
Lack of specific performance metrics makes it difficult to fully assess the contractor's performance and the overall value delivered.
The broad NAICS code 'Other Computer Related Services' necessitates a deeper dive into the exact nature of services to ensure they align with stated needs and budget.

Positive Signals

Awarded through a competitive process with 8 bidders, indicating market interest and potential for favorable pricing.
The firm fixed-price contract type shifts cost risk to the contractor, promoting cost control.
The contract duration suggests a stable, ongoing need for these IT services within the agency.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies constantly seeking to modernize infrastructure and enhance cybersecurity. This contract falls under the 'Other Computer Related Services' category, which can encompass a wide array of offerings from software development and system integration to IT consulting and managed services. Spending in this sector is driven by the government's increasing reliance on technology for mission-critical operations. Comparable contracts often range from a few hundred thousand to tens of millions of dollars, depending on scope and duration.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Regency Consulting Inc. (a prime contractor) suggests it may be a larger entity or that small business participation was not a primary set-aside criterion for this particular award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Defense Information Systems Agency's program management. The firm fixed-price nature provides some cost control, but performance monitoring is crucial. Transparency is facilitated by contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Federal Civilian IT Services
Department of Defense IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Competition Type: 'Full and open competition after exclusion of sources' requires further scrutiny to ensure maximum value.
Service Specificity: Broad NAICS code necessitates understanding the exact services procured.
Performance Metrics: Lack of publicly available KPIs makes performance assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to REGENCY CONSULTING INC. INFRASTRUCTURE

Who is the contractor on this award?

The obligated recipient is REGENCY CONSULTING 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 $2.6 million.

What is the period of performance?

Start: 2023-07-31. End: 2025-07-31.

What specific 'Other Computer Related Services' are being provided under this contract?

The contract falls under NAICS code 541519, which broadly covers 'Other Computer Related Services.' Without access to the detailed Statement of Work (SOW) or contract line item numbers (CLINs), the precise services are not publicly detailed. However, this category can include a wide range of IT functions such as IT consulting, custom software development, system integration, network design and implementation, IT support services, and data processing services. Given the agency (DISA) and the context of defense, these services likely support critical IT infrastructure, cybersecurity initiatives, or the development and maintenance of specialized defense systems. Further inquiry with the contracting agency would be necessary to obtain a precise breakdown of the services rendered.

How does the pricing of this contract compare to similar IT services contracts awarded by the DoD?

Comparing the pricing of this $2.56 million contract requires access to detailed service descriptions and performance metrics, which are not fully available in the provided data. However, the contract's duration of 731 days (approximately 2 years) and its firm fixed-price nature provide some context. For IT support or specialized services over a two-year period, this value is within a moderate range for federal contracts. To conduct a robust comparison, one would need to benchmark against contracts with similar NAICS codes, service scopes, and agency types. Factors like the level of security clearance required, the criticality of the systems supported, and the specific technical expertise needed would significantly influence pricing. The competitive award suggests the price was deemed fair and reasonable by the agency at the time of award.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly disclosed in the provided data. However, for IT services contracts, common KPIs often include system uptime percentages, response times for technical support requests, successful completion of project milestones, adherence to security protocols, and user satisfaction ratings. The firm fixed-price nature of this contract implies that the contractor is incentivized to meet defined performance standards to ensure full payment. The Defense Information Systems Agency (DISA) would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's Statement of Work (SOW) to monitor contractor performance and ensure mission objectives are met effectively.

What is the track record of Regency Consulting Inc. in performing similar federal IT contracts?

Regency Consulting Inc.'s track record in performing similar federal IT contracts can be assessed through various government databases, such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review of past awards and performance reviews would reveal their history with the Department of Defense and other agencies. Key aspects to examine include the types of services previously rendered, contract values, performance ratings (if available), and any history of contract disputes or terminations. Without this specific historical data, it's difficult to definitively assess their capabilities and reliability for this particular $2.56 million contract. However, their ability to win this competitive award suggests they met the agency's requirements at the time of bidding.

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

Potential risks associated with this contract include scope creep, contractor underperformance, cybersecurity vulnerabilities, and potential cost overruns if the fixed-price model is not managed effectively. Mitigation strategies typically involve robust contract oversight by the agency, clear definition of deliverables and performance standards in the SOW, regular performance reviews, and adherence to strict cybersecurity protocols. The 'full and open competition after exclusion of sources' aspect also presents a risk if the exclusion criteria were not fully justified, potentially limiting competition and value. The agency's contracting officer and program managers are responsible for identifying and mitigating these risks throughout the contract lifecycle.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 508 PIERCE ST, SIOUX CITY, IA, 51101

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,557,701

Exercised Options: $2,557,701

Current Obligation: $2,557,701

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD07B

IDV Type: GWAC

Timeline