DoD's $67M AV/VTC Operations and Maintenance contract awarded to COMPQSOFT, INC. shows fair value

Contract Overview

Contract Amount: $67,158,285 ($67.2M)

Contractor: Compqsoft, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2023-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $36.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AV/VTC OPS AND MAINT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.2 million to COMPQSOFT, INC. for work described as: AV/VTC OPS AND MAINT Key points: 1. The contract's total value of $67.16 million over five years suggests a moderate annual spend for IT operations and maintenance. 2. Full and open competition after exclusion of sources indicates a deliberate procurement strategy, potentially balancing broad market access with specific requirements. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance is benchmarked against similar IT services contracts, with pricing appearing competitive. 5. The contract falls within the Computer Facilities Management Services sector, a critical component of IT infrastructure support. 6. The duration of 1825 days (5 years) provides stability for essential AV/VTC services.

Value Assessment

Rating: good

The total award of $67.16 million over five years equates to an average annual spend of approximately $13.43 million. This figure appears reasonable when benchmarked against similar large-scale IT operations and maintenance contracts within the federal government, particularly those involving specialized audio-visual and video teleconferencing systems. The firm-fixed-price structure further supports value by locking in costs and reducing the government's exposure to potential price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. The presence of 3 bidders indicates a degree of competition, but the 'exclusion of sources' aspect warrants further examination to understand if it limited the pool of qualified offerors and potentially impacted price discovery.

Taxpayer Impact: While competition was present, the exclusion of sources may have prevented the government from achieving the absolute lowest price possible compared to a truly unrestricted full and open competition.

Public Impact

The Department of Defense benefits from reliable audio-visual and video teleconferencing operations, crucial for communication and collaboration. Essential IT infrastructure support services are delivered, ensuring the functionality of critical communication systems. The primary geographic impact is within Washington D.C., where Washington Headquarters Services is located. The contract supports a workforce skilled in IT operations, maintenance, and specialized AV/VTC technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type could potentially limit the breadth of innovation and cost savings achievable from a wider pool of bidders.
Lack of specific performance metrics or quality data in the provided summary makes it difficult to fully assess the contractor's performance beyond contract completion.
The contract's significant value and duration could create vendor lock-in if not managed carefully through ongoing market analysis.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, mitigating risks of budget overruns.
A 5-year contract duration offers stability and continuity for essential AV/VTC operations.
The award to COMPQSOFT, INC. suggests they met the government's technical and capability requirements for these specialized services.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Computer Facilities Management Services. The market for IT operations and maintenance is vast and highly competitive, with numerous companies offering specialized services. Federal spending in this area is consistently high, driven by the need to maintain complex digital infrastructures. Comparable spending benchmarks for similar IT support contracts often range from millions to tens of millions annually, depending on the scope and criticality of the services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. Large prime contractors are generally encouraged to utilize small businesses for subcontracting opportunities, but this is not mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Washington Headquarters Services of the Department of Defense. 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 federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Operations and Maintenance Services
Audio-Visual Equipment Installation and Maintenance
Video Teleconferencing Services
Computer Systems Design Services
Federal IT Infrastructure Support

Risk Flags

Potential for technology obsolescence in AV/VTC systems over a 5-year period.
Risk of service degradation if performance standards are not rigorously monitored.
Limited competition due to 'exclusion of sources' could impact optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.2 million to COMPQSOFT, INC.. AV/VTC OPS AND MAINT

Who is the contractor on this award?

The obligated recipient is COMPQSOFT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $67.2 million.

What is the period of performance?

Start: 2018-09-30. End: 2023-09-29.

What is the track record of COMPQSOFT, INC. with federal contracts, particularly in IT operations and maintenance?

A comprehensive review of COMPQSOFT, INC.'s federal contract history would be necessary to fully assess their track record. Based on the provided data, they were awarded this $67.16 million contract for AV/VTC Operations and Maintenance by the Department of Defense. Further analysis would involve examining past performance evaluations, any history of contract modifications, on-time delivery rates, and overall customer satisfaction across their federal engagements. Understanding their experience with similar-sized and scoped contracts, especially within the DoD, would provide crucial context for their capability to fulfill this current award effectively and reliably.

How does the pricing of this contract compare to similar IT services contracts awarded by the DoD or other federal agencies?

Benchmarking the pricing of this $67.16 million AV/VTC Operations and Maintenance contract requires comparing its total value and annual average ($13.43 million) against contracts for similar services. Factors to consider include the specific technologies supported (AV/VTC), the level of service required (operations and maintenance), the contract duration (5 years), and the geographic location of service delivery. If comparable contracts for similar scope and complexity have significantly higher or lower total values or annual costs, it would indicate whether COMPQSOFT, INC.'s pricing is above, below, or in line with market rates. The firm-fixed-price nature also implies that the government has negotiated a set price, which should be evaluated against competitive bids received.

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

Key risks for this contract include potential technical obsolescence of AV/VTC equipment over the 5-year period, ensuring consistent service quality and availability, and managing the 'exclusion of sources' aspect of the competition to ensure fair value. Risk mitigation strategies likely include robust service level agreements (SLAs) within the contract, performance monitoring by the government, and potentially incorporating clauses for technology refresh or upgrades. The firm-fixed-price structure helps manage cost escalation risks. The 'exclusion of sources' might pose a risk if it inadvertently limited competition, potentially impacting price or innovation, which would require careful oversight to ensure the government is not disadvantaged.

How effective are the audio-visual and video teleconferencing services provided under this contract in supporting DoD's operational needs?

Assessing the effectiveness of the AV/VTC services requires data beyond the contract award details, such as performance metrics, user feedback, and mission impact reports. The contract's existence and value suggest a recognized need within the DoD for these services. Effectiveness would be measured by factors like system uptime, clarity and reliability of communication, successful facilitation of meetings and conferences, and the degree to which these services enable command, control, and collaboration. Without specific performance data or user testimonials, it's difficult to provide a definitive assessment of effectiveness, though the contract renewal or continued award implies a level of satisfaction.

What has been the historical spending pattern for AV/VTC operations and maintenance within the Washington Headquarters Services or similar DoD entities?

Analyzing historical spending patterns for AV/VTC operations and maintenance within the Washington Headquarters Services (WHS) or comparable Department of Defense entities is crucial for context. This involves examining prior contracts for similar services, their values, durations, and awarded contractors. Understanding trends in spending—whether increasing, decreasing, or stable—can reveal budget priorities and the perceived importance of these services. Comparing the $67.16 million total award over five years to previous spending levels would indicate if this represents a significant shift, an increase in demand, or a consistent investment in maintaining critical communication infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003418R0208

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 N SAM HOUSTON PKWY E STE 682, HOUSTON, TX, 77060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, 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: $96,438,542

Exercised Options: $67,158,285

Current Obligation: $67,158,285

Actual Outlays: $2,965,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline