DoD's $19.9M IT Support Contract with TEKSYNAP Corporation faces scrutiny over competition and value
Contract Overview
Contract Amount: $19,948,856 ($19.9M)
Contractor: Teksynap Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER INFORMATION TECHNOLOGY SUPPORT SERVICES
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $19.9 million to TEKSYNAP CORPORATION for work described as: DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract awarded to TEKSYNAP Corporation for IT support services. 2. Value of the contract is $19.9 million. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract is for Computer Facilities Management Services. 5. The period of performance is 5 years.
Value Assessment
Rating: questionable
The contract's value of $19.9 million for IT support services needs further benchmarking against similar contracts. The 'Cost Plus Fixed Fee' pricing structure can sometimes lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competitive field, potentially impacting price discovery and overall value for taxpayers. It implies that while open, certain sources were initially excluded.
Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than a fully open and unrestricted competition.
Public Impact
Taxpayers may be overpaying due to limited competition. The effectiveness of IT support services is crucial for defense operations. Lack of transparency in the exclusion of sources raises accountability concerns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Pricing structure could lead to inefficiencies.
- Exclusion of sources lacks clear justification.
Positive Signals
- Contract supports critical defense operations.
- Long-term performance period provides stability.
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Benchmarking IT support services costs is essential, as spending in this area can vary significantly based on scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine small business participation.
Oversight & Accountability
The 'Exclusion of Sources' clause warrants closer oversight to ensure fairness and prevent potential impropriety. Accountability for the justification of source exclusion is paramount.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Limited competition may inflate costs.
- Lack of transparency in source exclusion.
- Potential for cost overruns with CPFF structure.
- Need for robust cost benchmarking.
Tags
computer-facilities-management-services, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to TEKSYNAP CORPORATION. DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER INFORMATION TECHNOLOGY SUPPORT SERVICES
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 $19.9 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-29.
What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The justification for excluding specific sources under this contract type is not provided in the data. Typically, such exclusions require a documented rationale, such as specialized capabilities, national security concerns, or prior performance issues. Without this justification, it's difficult to assess if the exclusion was appropriate or if it limited competition unnecessarily, potentially impacting the final price and value received by the government.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT support services in terms of cost efficiency?
Cost Plus Fixed Fee contracts can be advantageous when the scope of work is not precisely defined, allowing flexibility. However, they carry a risk of cost overruns if the contractor's costs escalate beyond initial estimates, as the fixed fee remains constant. For IT support services, fixed-price contracts might offer better cost certainty if requirements are well-defined, potentially leading to greater taxpayer savings. CPFF requires robust government oversight to manage costs effectively.
What is the benchmark cost for similar Computer Facilities Management Services contracts awarded by the DoD or other federal agencies?
Benchmarking the $19.9 million contract value against similar Computer Facilities Management Services contracts is crucial for assessing value. Without specific data on the scope, duration, and service level agreements of comparable contracts, a precise benchmark is difficult. However, general IT support costs can range widely. A detailed comparison with contracts of similar size and complexity, considering factors like personnel rates and overhead, would reveal if this contract is priced competitively.
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 › IT AND TELECOM - DELIVERY
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: $24,314,094
Exercised Options: $23,564,094
Current Obligation: $19,948,856
Actual Outlays: $5,951,013
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $1,491,536
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
Start Date: 2021-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-09-30
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