DoD IT Support Contract Awarded to MicroTechnologies LLC for Over $19 Million

Contract Overview

Contract Amount: $19,072,231 ($19.1M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Defense

Start Date: 2011-05-02

End Date: 2016-07-31

Contract Duration: 1,917 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OASD PA IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to MICROTECHNOLOGIES LLC for work described as: OASD PA IT SUPPORT SERVICES Key points: 1. Contract value of $19.07 million for IT support services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1917 days (over 5 years) indicates a long-term need for these services. 4. The definitive contract type suggests a single, established agreement for services. 5. The fixed-price nature of the contract aims to control costs for the government. 6. Services provided under NAICS code 541519 (Other Computer Related Services).

Value Assessment

Rating: fair

The contract value of $19.07 million over approximately five years for IT support services appears to be within a reasonable range for a Department of Defense contract of this scope. Benchmarking against similar IT support contracts within the DoD would be necessary for a more precise value-for-money assessment. The firm fixed-price contract type suggests an effort to manage cost certainty, but the overall value proposition depends heavily on the quality and efficiency of the services delivered. Without specific performance metrics or comparisons to industry standards for similar IT support, a definitive assessment of excellence is difficult.

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 bids. The presence of 4 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the specific number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Full and open competition, with 4 bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario. This process helps ensure that the government is not overpaying for the required IT support services.

Public Impact

The Department of Defense benefits from consistent and reliable IT support services, crucial for its operations. The contract ensures the delivery of 'Other Computer Related Services' to support military and civilian personnel. The geographic impact is primarily within the District of Columbia, where the Defense Media Activity is located. The contract supports a workforce skilled in IT support and related computer services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps to establish cost certainty for the government.
Long contract duration suggests a stable and ongoing need for these services, potentially leading to efficiencies.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The IT services market within the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are essential for agencies to procure specialized expertise that may not be available in-house. Comparable spending benchmarks for IT support services within the defense sector often run into the tens or hundreds of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The prime contractor, MicroTechnologies LLC, is identified as a small business, which is a positive signal for the small business ecosystem. However, the absence of a formal set-aside or explicit subcontracting plan means that the direct impact on the broader small business subcontracting community may be limited unless voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Defense, specifically the Defense Media Activity. Accountability measures are inherent in the firm fixed-price contract structure, which incentivizes the contractor to meet defined deliverables within the agreed-upon budget. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services Contracts
IT Services for National Security Agencies

Risk Flags

Potential for performance issues
Cybersecurity vulnerabilities
Contract scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to MICROTECHNOLOGIES LLC. OASD PA IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Media Activity).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2011-05-02. End: 2016-07-31.

What is the track record of MicroTechnologies LLC in performing similar IT support services for the federal government?

MicroTechnologies LLC has a history of performing IT support and related services for various federal agencies. While this specific contract with the Defense Media Activity is a significant award, their broader portfolio includes engagements that demonstrate experience in areas such as network support, system administration, and help desk services. Analyzing past performance reviews, contract modifications, and any reported issues on previous federal contracts would provide a more comprehensive understanding of their reliability and capability. It's important to note that performance can vary across different contracts and agencies, so a detailed review of their specific history with IT support is crucial for assessing their suitability for this role.

How does the per-unit cost or overall value of this contract compare to similar IT support contracts within the Department of Defense?

Directly comparing the per-unit cost or overall value of this $19.07 million contract to similar DoD IT support contracts requires access to detailed pricing structures and service level agreements for comparable awards. Without such granular data, a precise benchmark is challenging. However, the contract's duration of over five years and its firm fixed-price nature suggest an attempt to achieve cost predictability. Generally, IT support services for large federal agencies can range widely in cost depending on the complexity of the systems supported, the number of users, and the specific services required (e.g., help desk, network management, cybersecurity support). A comprehensive analysis would involve comparing the scope of work, number of personnel, and service levels against other awarded contracts within the DoD for similar IT support functions.

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

Key risks associated with this contract include potential performance shortfalls by the contractor, the possibility of cost overruns if the fixed-price model is not well-managed, and risks related to cybersecurity if sensitive data is handled. Mitigation strategies typically involve robust contract oversight by the government, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The firm fixed-price structure itself acts as a risk mitigation tool for the government by capping the financial exposure. Cybersecurity risks are managed through adherence to strict government security protocols, background checks for personnel, and potential penalties for breaches. The long duration also presents a risk of technological obsolescence if the services are not adapted to evolving IT landscapes.

How effective has MicroTechnologies LLC been in meeting the performance requirements of its federal contracts historically?

Assessing the historical effectiveness of MicroTechnologies LLC in meeting performance requirements requires a review of their past contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, if available. Federal agencies typically use these systems to document contractor performance, including timeliness, quality of work, and adherence to contract terms. Without access to specific CPARS reports or similar feedback mechanisms for this contractor, it is difficult to provide a definitive assessment of their historical effectiveness. However, the fact that they were awarded this significant contract suggests they have met certain baseline requirements and demonstrated capability in previous engagements.

What are the historical spending patterns for IT support services within the Defense Media Activity or similar DoD entities?

Historical spending patterns for IT support services within the Defense Media Activity (DMA) and similar Department of Defense (DoD) entities are generally substantial and reflect the critical role of IT in modern military operations. Agencies like DMA rely heavily on IT infrastructure for communication, data management, and media dissemination. Spending in this area often includes contracts for help desk support, network maintenance, system administration, cybersecurity, and software development/maintenance. Over the years, federal IT spending has trended upwards, driven by modernization efforts, increasing cyber threats, and the growing reliance on digital platforms. Analyzing historical budgets and contract awards for DMA or comparable organizations would reveal trends in IT support expenditures, including the types of services procured and the average contract values.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ051611T0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD STE 600, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,824,571

Exercised Options: $19,075,731

Current Obligation: $19,072,231

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline