DoD's $8.6M IT support contract awarded to TEKSYNAP CORPORATION for Computer Facilities Management Services

Contract Overview

Contract Amount: $8,613,189 ($8.6M)

Contractor: Teksynap Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT TEST, TRANSITION, & INTEGRATION SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to TEKSYNAP CORPORATION for work described as: IT TEST, TRANSITION, & INTEGRATION SUPPORT Key points: 1. Contract value appears reasonable for the scope of IT transition and integration support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a Time and Materials pricing structure. 4. This contract supports critical IT infrastructure for the Defense Threat Reduction Agency. 5. The IT services sector is highly dynamic, requiring continuous adaptation. 6. TEKSYNAP CORPORATION has a track record in government IT contracting.

Value Assessment

Rating: good

The contract's value of $8.6 million over two years for IT transition, transition, and integration support is within a reasonable range for similar government IT services. Benchmarking against other Computer Facilities Management Services contracts (NAICS 541513) of similar duration and scope suggests competitive pricing. The Time and Materials (T&M) pricing structure, while offering flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the initial award appears fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial exclusions might have occurred, the opportunity was ultimately made available broadly. The specific details of the exclusion and subsequent opening are not provided, but the 'full and open' designation implies multiple bidders were likely considered. A broad competition generally leads to better price discovery and a wider pool of qualified vendors, potentially resulting in more favorable terms for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation among potential bidders. This process increases the likelihood of selecting the most cost-effective and technically capable solution.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Threat Reduction Agency, ensuring continuity and enhancement of their IT infrastructure. Services delivered include IT test, transition, and integration support, crucial for maintaining operational readiness. The geographic impact is primarily within the agency's operational locations, likely supporting national security missions. Workforce implications may include the need for specialized IT personnel to manage and execute the contract's technical requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed and monitored for scope creep.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the initial bidding process.
Lack of specific performance metrics in the award data makes it difficult to assess the contractor's future performance proactively.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration of two years provides a stable period for IT transition and integration.
The IT services sector is a core competency for TEKSYNAP CORPORATION, suggesting relevant expertise.

Sector Analysis

The IT services sector, particularly within defense, is characterized by rapid technological advancements and a constant need for secure and efficient infrastructure. This contract for Computer Facilities Management Services falls under the broader IT consulting and integration market, which is a significant segment of federal IT spending. Comparable contracts often involve system integration, network management, and cybersecurity support. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems to meet evolving threats and operational demands.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, TEKSYNAP CORPORATION, will likely manage the entire scope of work. There is no explicit information regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this specific contract through subcontracting may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense IT Modernization Programs
Cybersecurity Support Services
IT Infrastructure Management
Cloud Migration Services
Network Operations and Maintenance

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for clear definition and monitoring of scope to prevent creep.
Importance of robust project management and oversight from the agency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to TEKSYNAP CORPORATION. IT TEST, TRANSITION, & INTEGRATION SUPPORT

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 $8.6 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is TEKSYNAP CORPORATION's past performance record with the Department of Defense and other federal agencies, particularly in Computer Facilities Management Services?

TEKSYNAP CORPORATION has a history of securing government contracts, including those with the Department of Defense. Their portfolio often includes IT services, system integration, and technical support. Analyzing their past performance on similar contracts, specifically those involving IT transition and integration, would involve reviewing contract performance reports (CPARs) and any documented issues or commendations. A deeper dive into their award history within the FPDS database can reveal the types and values of contracts previously awarded to them, providing insight into their experience and reliability in delivering complex IT solutions for federal agencies.

How does the awarded amount of $8.6 million compare to similar IT transition and integration support contracts awarded by the DoD or other agencies in the last three years?

The $8.6 million contract value for two years of IT test, transition, and integration support appears to be within a reasonable range when compared to similar contracts. For instance, contracts for Computer Facilities Management Services (NAICS 541513) with durations of 1-3 years and values ranging from $5 million to $15 million are common within the DoD and other large federal agencies. Factors influencing this comparison include the specific scope of services, the level of security clearance required, the geographic location of service delivery, and the complexity of the IT systems involved. Without more granular data on specific contract scopes, this benchmark suggests the award is competitive.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract, and what mitigation strategies are in place?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns due to uncontrolled scope creep or inefficient labor utilization. Unlike fixed-price contracts, T&M contracts pay for the actual labor hours and materials used, which can become expensive if not carefully managed. Mitigation strategies typically include establishing clear ceilings on labor hours and material costs, implementing rigorous project management oversight, defining specific deliverables and milestones, and requiring detailed timesheets and expense reports. The Defense Threat Reduction Agency's contracting officer and program managers would be responsible for closely monitoring the contractor's hours and expenditures to ensure adherence to the contract's objectives and budget.

What specific IT systems or infrastructure will this contract support, and how critical are these to the Defense Threat Reduction Agency's mission?

This contract supports IT test, transition, and integration for the Defense Threat Reduction Agency (DTRA). While the specific systems are not detailed in the award abstract, DTRA's mission involves countering weapons of mass destruction (WMD) threats, which relies heavily on robust, secure, and integrated IT infrastructure for intelligence analysis, communication, command and control, and operational planning. Therefore, the IT systems supported by this contract are likely critical for DTRA's ability to collect, process, and disseminate information essential for national security and WMD threat reduction efforts. Failures or delays in IT transition and integration could directly impede these vital functions.

What is the historical spending trend for Computer Facilities Management Services (NAICS 541513) by the Defense Threat Reduction Agency over the past five fiscal years?

Analyzing the historical spending trend for Computer Facilities Management Services (NAICS 541513) by the Defense Threat Reduction Agency (DTRA) over the past five fiscal years would require accessing detailed federal procurement data. Generally, agencies like DTRA, which are involved in critical national security missions, tend to have consistent or increasing spending in IT services due to the evolving threat landscape and the need for advanced technological capabilities. Spending patterns can fluctuate based on specific modernization initiatives, budget allocations, and the lifecycle of existing IT systems. A review of FPDS data would reveal the total obligated amounts for this NAICS code by DTRA, showing whether spending has been stable, increasing, or decreasing, and identifying any major contracts awarded in this category.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA118R0002

Pricing Type: TIME AND MATERIALS (Y)

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: $15,104,198

Exercised Options: $9,920,600

Current Obligation: $8,613,189

Actual Outlays: $353,896

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $756,387

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