DoD's Missile Defense Agency awards $41.1M for web-based information system support to PHACIL, LLC

Contract Overview

Contract Amount: $41,153,574 ($41.2M)

Contractor: Phacil, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-18

End Date: 2012-11-30

Contract Duration: 1,900 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB-BASED INFORMATION SYSTEM SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to PHACIL, LLC for work described as: WEB-BASED INFORMATION SYSTEM SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure for a critical defense agency. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of approximately 5 years indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. PHACIL, LLC, as the sole awardee, will be responsible for delivering these specialized services. 6. The contract is for computer systems design services, a key component of modern defense systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts. The total award of over $41 million for five years of IT support suggests a substantial but potentially reasonable cost for specialized systems design. However, without details on the scope of work and deliverables, a definitive value-for-money assessment is difficult. The fixed-price nature of the contract implies that the contractor is incentivized to manage costs effectively, but it also means the government bears the risk if costs exceed estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of multiple bidders (implied by 'full and open') typically fosters price competition and encourages contractors to offer their best terms. The Missile Defense Agency likely sought proposals that met specific technical requirements and offered competitive pricing. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the most advantageous offer available.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, which will receive enhanced web-based information system support. This support is crucial for the operational effectiveness and strategic planning of missile defense initiatives. The services delivered will likely involve the design, development, and maintenance of critical IT systems. The geographic impact is primarily within the Department of Defense's operational footprint, potentially supporting personnel and operations nationwide and globally. Workforce implications may include the need for specialized IT professionals within PHACIL, LLC and potentially within the agency for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems could pose a risk if performance issues arise.
Ensuring PHACIL, LLC maintains adequate cybersecurity measures for sensitive defense information.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type aligns incentives for contractor efficiency.
Long-term contract duration indicates a stable need and potential for sustained support.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for defense applications is substantial, driven by the need for advanced technological solutions to support national security. Comparable spending benchmarks in this area are difficult to establish without detailed scope, but IT support for critical infrastructure often represents a significant portion of agency budgets. The Missile Defense Agency's reliance on sophisticated IT underscores the importance of this contract within the broader defense IT landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. PHACIL, LLC is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on obtaining the best technical solution and price from the broader market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Missile Defense Agency. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Missile Defense Systems
Information Technology Services
Computer Systems Design
Defense Information Systems Agency (DISA) Contracts
Federal IT Procurement

Risk Flags

Contract Duration
Sole Awardee
Cybersecurity Risk
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to PHACIL, LLC. WEB-BASED INFORMATION SYSTEM SUPPORT

Who is the contractor on this award?

The obligated recipient is PHACIL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2007-09-18. End: 2012-11-30.

What specific web-based information systems are being supported under this contract?

The provided data does not specify the exact web-based information systems supported. However, given the agency (Missile Defense Agency) and the contract's classification (Computer Systems Design Services), it is highly probable that these systems are critical to missile defense operations, planning, intelligence, or logistics. This could include systems for tracking threats, managing defense assets, simulating scenarios, or facilitating communication among defense personnel. Further details would require access to the contract's statement of work or performance work statement.

How does the $41.1 million contract value compare to similar IT support contracts within the Department of Defense?

Comparing this $41.1 million contract value requires context on the duration, scope, and specific services rendered. For a five-year contract (approximately 1900 days) for computer systems design services, this equates to roughly $8.2 million per year. This figure is within the range for significant IT support contracts in large federal agencies. However, the unique nature of missile defense systems might command higher or lower costs depending on specialization. Without specific benchmarks for comparable MDA or DoD IT support contracts of similar complexity and duration, a precise comparison is difficult. The 'br' (bid ratio) of 21660 is unusually high and may represent a specific metric not immediately clear, potentially indicating a high level of detail or complexity in bids received.

What are the key performance indicators (KPIs) used to evaluate PHACIL, LLC's performance on this contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for IT support and systems design contracts, KPIs would focus on aspects such as system uptime, response times for issue resolution, successful implementation of new features or updates, adherence to security protocols, and user satisfaction. The Missile Defense Agency would have established these KPIs in the contract's performance work statement to ensure PHACIL, LLC meets the required standards for critical defense systems. Performance would be monitored by the Contracting Officer's Representative (COR).

What is PHACIL, LLC's track record with the Missile Defense Agency or similar defense contracts?

Information regarding PHACIL, LLC's specific track record with the Missile Defense Agency (MDA) or similar defense contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, other contracts awarded to PHACIL, LLC by the MDA or other defense entities, and any reported issues or successes. Generally, agencies consider past performance as a significant factor in award decisions. PHACIL, LLC's ability to secure this contract suggests they met the MDA's requirements and likely have a satisfactory performance history, though specific details are needed for a full evaluation.

What is the historical spending trend for web-based information system support by the Missile Defense Agency?

The provided data only pertains to a single contract award from 2007-2012. To analyze historical spending trends for web-based information system support by the Missile Defense Agency (MDA), one would need to examine spending data over multiple fiscal years, looking at various contracts for similar services. This would involve querying federal procurement databases for all MDA contracts categorized under IT services, computer systems design, and related areas. Analyzing these trends would reveal whether spending has increased, decreased, or remained stable, and identify major contractors and contract types utilized over time.

What are the potential risks associated with relying on PHACIL, LLC for these critical IT services?

Potential risks associated with relying on PHACIL, LLC include contractor performance issues (failure to meet deadlines, quality problems), cybersecurity vulnerabilities if the contractor's systems are compromised, key personnel loss impacting service continuity, and potential cost overruns if the fixed-price contract proves insufficient for unforeseen complexities (though less likely than with cost-reimbursement). For critical defense systems, a failure in these IT services could have significant operational impacts. The Missile Defense Agency would mitigate these risks through robust contract oversight, clear performance standards, and contingency planning.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 N GLEBE RD STE 700, ARLINGTON, VA, 22203

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,916,703

Exercised Options: $42,916,703

Current Obligation: $41,153,574

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0869R

IDV Type: FSS

Timeline