DoD awards $17.3M for application management, highlighting IT services competition and contractor performance

Contract Overview

Contract Amount: $17,309,335 ($17.3M)

Contractor: Syneren Technologies Corporation

Awarding Agency: Department of Defense

Start Date: 2023-04-17

End Date: 2026-04-16

Contract Duration: 1,095 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to SYNEREN TECHNOLOGIES CORPORATION for work described as: APPLICATION MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value of $17.3M for application management services indicates significant investment in IT infrastructure. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The contract duration of 1095 days (3 years) allows for sustained support and development. 4. Syneren Technologies Corporation's selection points to their established capabilities in computer systems design. 5. The firm-fixed-price contract type shifts performance risk to the contractor. 6. This award falls within the broader category of IT services, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $17.3 million for application management support services appears reasonable given the 3-year duration and the nature of IT services. Benchmarking against similar contracts for computer systems design services would provide a more precise value assessment. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor can deliver efficiently. Without specific per-unit cost data, a definitive value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

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 multiple vendors were allowed to bid. The presence of 6 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. The level of competition is a strong positive signal for price discovery and ensures that the government is likely receiving a fair market price for the services rendered. The exclusion of sources clause might warrant further investigation to understand its specific implications, but the overall competition level is robust.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective award. It ensures that government funds are used efficiently by leveraging market forces to obtain the best possible price and service quality.

Public Impact

The Department of Defense benefits from enhanced application management and IT support, ensuring operational efficiency. Federal employees and military personnel will have access to reliable and well-maintained applications. The services delivered are crucial for the functioning of various DoD systems and administrative processes. The geographic impact is primarily within the Washington D.C. metropolitan area, supporting the Washington Headquarters Services. The contract supports jobs within the IT services sector, specifically in computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical application management could pose a risk if performance degrades.
Ensuring continued alignment with evolving DoD IT strategies and cybersecurity requirements will be crucial.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a strong pool of qualified bidders, leading to better service selection.
The 3-year duration allows for stable support and the development of long-term application improvements.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing a wide range of support functions. This contract for application management support services falls under computer systems design, a sub-sector focused on the design, development, and implementation of IT systems. The market for these services is highly competitive, with numerous firms offering specialized expertise. Government spending in this area is substantial, reflecting the increasing reliance on technology for mission effectiveness. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by federal agencies for similar services.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. This means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors themselves or choose to subcontract independently. The absence of set-asides or specific subcontracting goals may reduce the direct impact on the small business IT ecosystem for this particular award, though Syneren Technologies Corporation may engage small businesses in their supply chain voluntarily.

Oversight & Accountability

Oversight for this contract will likely be managed by the Washington Headquarters Services contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to meet defined performance standards. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

DoD IT Modernization Programs
Federal Civilian IT Services
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Support

Risk Flags

Potential for performance issues if contractor capabilities are overestimated.
Cybersecurity vulnerabilities associated with third-party application management.
Risk of vendor lock-in impacting future flexibility and cost.
Ensuring alignment with evolving technological standards and DoD requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to SYNEREN TECHNOLOGIES CORPORATION. APPLICATION MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SYNEREN TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2023-04-17. End: 2026-04-16.

What is Syneren Technologies Corporation's track record with the Department of Defense and other federal agencies?

Syneren Technologies Corporation has a history of performing IT services for the federal government. A review of federal procurement data indicates they have been awarded multiple contracts across various agencies, including the Department of Defense. Their past performance typically involves areas such as IT support, systems integration, and application development. Analyzing the value, duration, and customer satisfaction ratings of their previous contracts would provide a more comprehensive understanding of their reliability and capability. Specific details on past performance metrics, such as on-time delivery, adherence to budget, and quality of work, would be crucial for a thorough assessment. However, based on the award of this significant contract, it suggests a positive evaluation of their prior performance by the DoD.

How does the $17.3 million contract value compare to similar application management support services contracts?

The $17.3 million contract value for application management support services over three years is within a typical range for large-scale IT support contracts awarded by federal agencies, particularly for a major entity like the Department of Defense. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and service requirements (e.g., computer systems design services, application development, maintenance). For instance, contracts for enterprise-wide application support or the management of complex IT infrastructures often reach tens of millions of dollars. The firm-fixed-price nature of this contract also influences its value assessment, as it includes contractor profit and risk. Without access to a detailed database of comparable contract values adjusted for inflation and specific service levels, a definitive benchmark is difficult, but the award size is consistent with significant IT support needs.

What are the primary risks associated with this application management support services contract?

Several risks are associated with this contract. A primary risk is performance degradation, where the contractor may fail to meet the service level agreements (SLAs) or deliver the expected quality of application management. Given the firm-fixed-price structure, the contractor bears the financial risk of cost overruns, but this could incentivize cutting corners on quality if not properly monitored. Another risk is vendor lock-in, where the DoD becomes heavily reliant on Syneren Technologies Corporation, making it difficult or costly to switch providers in the future. Cybersecurity risks are also paramount; any lapse in security by the contractor could lead to data breaches or system vulnerabilities. Finally, there's the risk of scope creep, where the requirements expand beyond the initial agreement, potentially leading to cost increases or delays if not managed through formal contract modifications.

How effective is the firm-fixed-price contract type in ensuring value for money for this IT service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for IT services like application management, especially when requirements are well-defined. It shifts the primary financial risk to the contractor, incentivizing them to manage costs efficiently and deliver the specified services within the agreed-upon price. This can lead to cost savings for the government compared to cost-reimbursement contracts. However, the effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). If the SOW is ambiguous or incomplete, the contractor may face challenges, or the government might not receive precisely what it needs, potentially leading to disputes or change orders that negate the FFP benefits. For complex, evolving IT services, careful monitoring and robust performance metrics are crucial to ensure the FFP structure truly delivers value.

What are the historical spending patterns for application management support services within the Department of Defense?

Historical spending patterns for application management support services within the Department of Defense (DoD) show a consistent and significant investment in maintaining and enhancing its vast IT infrastructure. The DoD is one of the largest federal spenders on IT, and application management is a critical component of this spending. Over the years, there has been a trend towards outsourcing these services to specialized contractors to leverage expertise and manage costs. Spending in this area fluctuates based on modernization initiatives, cybersecurity needs, and the lifecycle of various applications. While specific historical dollar amounts for 'application management support services' can vary based on how categories are defined, the overall trend indicates a sustained demand and substantial budget allocation for ensuring the functionality, security, and efficiency of DoD applications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003423R0026

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 14TH ST N, SUITE 730, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $31,020,958

Exercised Options: $17,561,631

Current Obligation: $17,309,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200175W

IDV Type: GWAC

Timeline