TEKSYNAP CORPORATION awarded $18.9M for IT and Telecom services by Defense Threat Reduction Agency

Contract Overview

Contract Amount: $18,925,837 ($18.9M)

Contractor: Teksynap Corporation

Awarding Agency: Department of Defense

Start Date: 2020-06-29

End Date: 2026-06-28

Contract Duration: 2,190 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COLLABORATIVE TECHNOLOGIES IT AND TELECOM (1)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to TEKSYNAP CORPORATION for work described as: COLLABORATIVE TECHNOLOGIES IT AND TELECOM (1) Key points: 1. Contract value represents a significant investment in IT and telecom infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (2190 days) indicates a long-term need for these services. 4. The 'Computer Facilities Management Services' classification points to critical operational support. 5. The 'COST PLUS FIXED FEE' pricing structure requires careful monitoring of costs against the fixed fee. 6. The award amount of $18.9M is substantial within the IT services sector for this agency.

Value Assessment

Rating: good

The contract value of $18.9M for IT and Telecom services appears reasonable given the 6-year duration. Benchmarking against similar contracts for Computer Facilities Management Services within the Department of Defense is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while common, necessitates close oversight to ensure costs remain controlled and the fixed fee is justified by the scope of work and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the number of bidders. Further details on the reasons for exclusion are needed to fully understand the competitive landscape and its impact on price discovery.

Taxpayer Impact: The exclusion of certain sources, even with an initial full and open competition intent, may have reduced competitive pressure, potentially leading to less favorable pricing for taxpayers compared to a truly unrestricted competition.

Public Impact

The Defense Threat Reduction Agency benefits from enhanced IT and telecom capabilities, crucial for its mission. Services delivered likely include network management, system maintenance, and telecommunications support. The primary geographic impact is within the operational areas of the Defense Threat Reduction Agency. The contract supports a workforce skilled in IT and telecommunications management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to CPFF contract type if not rigorously managed.
Limited competition due to source exclusion could impact long-term cost-effectiveness.
Dependency on a single contractor for critical IT and telecom infrastructure.

Positive Signals

Long-term contract provides stability and continuity of essential IT services.
Awarded through a competitive process, indicating some level of market vetting.
Focus on IT and Telecom services aligns with modern defense operational needs.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically focusing on Computer Facilities Management Services. This is a critical area for government operations, particularly within defense agencies. The market for such services is large and competitive, with numerous providers capable of delivering complex IT solutions. The $18.9M award over six years is a significant, but not extraordinary, sum for a specialized agency like DTRA, reflecting the specialized nature of defense IT requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, TEKSYNAP CORPORATION, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery order requirements. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Defense Threat Reduction Agency Support Services
Computer Facilities Management Contracts
Cost Plus Fixed Fee IT Contracts
Full and Open Competition IT Awards

Risk Flags

Potential for cost creep in CPFF contract
Limited competition due to source exclusion
Risk of technology obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to TEKSYNAP CORPORATION. COLLABORATIVE TECHNOLOGIES IT AND TELECOM (1)

Who is the contractor on this award?

The obligated recipient is TEKSYNAP CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2020-06-29. End: 2026-06-28.

What is TEKSYNAP CORPORATION's track record with the Department of Defense and similar agencies?

TEKSYNAP CORPORATION has a history of performing contracts with the Department of Defense. Analyzing their past performance, including contract values, types, and customer satisfaction ratings (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), would provide insight into their reliability and capability. Specific attention should be paid to their experience with Cost Plus Fixed Fee (CPFF) contracts and Computer Facilities Management Services to assess their suitability for this particular award. A review of any past performance issues or disputes would also be crucial for a comprehensive understanding of their track record.

How does the $18.9M value compare to similar IT and Telecom contracts awarded by the Defense Threat Reduction Agency or other DoD components?

To benchmark the $18.9M value, a comparison with similar IT and Telecom contracts awarded by the Defense Threat Reduction Agency (DTRA) and other Department of Defense (DoD) entities for Computer Facilities Management Services over comparable durations (approximately 6 years) is essential. Factors such as the scope of services, specific technologies involved, and the level of security clearance required can influence pricing. If this contract's value is significantly higher or lower than comparable contracts, it warrants further investigation into the reasons, which could include unique service requirements, market fluctuations, or differences in competition levels.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee is predetermined. If costs escalate beyond initial projections due to inefficiencies, scope creep, or unforeseen technical challenges, the contractor may be incentivized to control costs, but the government still bears the risk of higher overall expenditures. Conversely, if the contractor is highly efficient, they may achieve a higher profit margin. Robust oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the government.

What is the significance of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for all responsible sources. However, specific sources were subsequently excluded. This exclusion could be due to various reasons, such as national security concerns, prior performance issues, or specific technical requirements that only a limited number of vendors could meet. While it aims for broad competition, the exclusion inherently limits the pool of potential bidders. The impact on price discovery and overall value for taxpayers depends heavily on the justification for the exclusions and the number of remaining bidders.

What are the potential implications of the 2190-day (6-year) duration for IT service delivery and technology obsolescence?

A 6-year contract duration for IT and Telecom services provides significant continuity and allows the contractor to deeply integrate with the agency's operations. This can lead to efficiencies and a better understanding of the agency's evolving needs. However, a major implication is the risk of technology obsolescence. Over six years, IT landscapes can change dramatically. The contract must include provisions for technology refresh, upgrades, and adaptation to new standards and threats to ensure the services remain relevant and effective throughout its term. Failure to manage this could result in outdated systems and reduced operational effectiveness.

How does the 'Computer Facilities Management Services' NAICS code (541513) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541513, 'Computer Facilities Management Services,' defines the scope of this contract as primarily encompassing the management and operation of clients' computer systems and/or data processing facilities. This typically includes services such as network management, system administration, data storage, disaster recovery, and technical support for computer hardware and software. It implies a focus on maintaining the operational integrity, security, and efficiency of the Defense Threat Reduction Agency's IT infrastructure, rather than the development of new software or hardware.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA118R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1760 RESTON PKWY STE 515, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned 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: $25,869,624

Exercised Options: $21,503,938

Current Obligation: $18,925,837

Actual Outlays: $6,079,855

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $8,861,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA118D0011

IDV Type: IDC

Timeline