DoD's $41.6M IGF Service Desk Contract Awarded to NetCentrics Corporation

Contract Overview

Contract Amount: $41,648,631 ($41.6M)

Contractor: Netcentrics Corporation

Awarding Agency: Department of Defense

Start Date: 2017-07-01

End Date: 2018-06-30

Contract Duration: 364 days

Daily Burn Rate: $114.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGFSERVICE DESK SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to NETCENTRICS CORPORATION for work described as: IGF::OT::IGFSERVICE DESK SUPPORT SERVICES Key points: 1. Contract awarded to NetCentrics Corporation for $41.6M. 2. Service desk support for the Department of Defense. 3. Contract was not competed, raising potential value concerns. 4. IT sector spending benchmark for similar services needs review.

Value Assessment

Rating: questionable

The contract's value of $41.6M for a single year of service desk support appears high, especially given the lack of competition. Benchmarking against similar IT support contracts is crucial to determine if this represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to inflated costs for taxpayers. The rationale for not competing this significant IT service contract requires scrutiny.

Taxpayer Impact: The lack of competition for a $41.6M contract suggests potential overspending, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be overpaying for essential IT support services due to a lack of competitive bidding. The Department of Defense relies on this contract for critical service desk operations. Future IT service contracts may be awarded without competition if this precedent is not addressed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential overpricing
Sole-source award

Positive Signals

Essential IT service provided
Contract completed within duration

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for similar IT service desk contracts can vary widely based on scope and complexity, but a $41.6M annual spend warrants close examination.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis is needed to determine if small businesses were considered or had opportunities to bid on this requirement.

Oversight & Accountability

The sole-source nature of this contract raises questions about the oversight processes that led to its award without competition. Robust oversight is needed to ensure fair pricing and maximize value for taxpayer dollars.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Lack of competition
Potential for overpricing
Sole-source award justification unclear
Limited small business participation potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to NETCENTRICS CORPORATION. IGF::OT::IGFSERVICE DESK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NETCENTRICS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2017-07-01. End: 2018-06-30.

What was the justification for awarding this significant IT service desk contract on a sole-source basis, and were alternative competitive strategies explored?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. The specific justification is not detailed here. Typically, sole-source awards require extensive justification, such as a lack of qualified sources, urgent and compelling needs, or national security imperatives. Without this justification, it's difficult to assess if alternative competitive strategies were adequately explored or if this represents a missed opportunity for cost savings through competition.

How does the $41.6M contract value compare to industry benchmarks for similar IT service desk support over a one-year period?

Benchmarking the $41.6M contract value against industry standards for IT service desk support is essential. Factors like the number of users supported, service level agreements (SLAs), and the scope of services (e.g., hardware, software, network support) significantly influence pricing. Without these details, a precise comparison is difficult, but this annual spend is substantial and warrants a thorough review against comparable government and commercial contracts to ensure cost-effectiveness and identify potential overpricing.

What is the potential impact on future IT service procurements if sole-source awards for large contracts become a common practice within the Department of Defense?

If sole-source awards for large IT contracts become common, it could significantly reduce competition, potentially leading to higher prices and reduced innovation across the DoD. Agencies might become accustomed to non-competitive processes, diminishing the incentive for vendors to offer competitive bids. This could also limit opportunities for new or smaller businesses to enter the market, ultimately impacting the government's ability to secure the best value and most effective IT solutions for taxpayer funds.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003417R0160

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Haystax Technology , Inc. (UEI: 026295970)

Address: 205 VAN BUREN ST STE 420, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,648,631

Exercised Options: $41,648,631

Current Obligation: $41,648,631

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline