DoD's $123M Defense Health System Code Maintenance Contract Awarded to Planned Systems International
Contract Overview
Contract Amount: $122,894,679 ($122.9M)
Contractor: Planned Systems International Inc
Awarding Agency: Department of Defense
Start Date: 2011-12-09
End Date: 2017-06-08
Contract Duration: 2,008 days
Daily Burn Rate: $61.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DEFENSE HEALTH SERVICES SYSTEM CODE MAINTENANCE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $122.9 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: DEFENSE HEALTH SERVICES SYSTEM CODE MAINTENANCE Key points: 1. Significant contract value of $123M for critical health system maintenance. 2. Planned Systems International Inc. secured the award. 3. The contract falls under the 'Other Computer Related Services' NAICS code. 4. Awarded via full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar IT maintenance contracts is difficult without detailed scope and labor rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. However, the Time and Materials (T&M) pricing model may limit definitive cost certainty compared to fixed-price contracts.
Taxpayer Impact: Taxpayers benefit from competitive bidding, but the T&M structure necessitates vigilant oversight to ensure cost-effectiveness and prevent potential overspending.
Public Impact
Ensures the continued operation and maintenance of the Defense Health System, critical for military healthcare. Supports a key IT infrastructure within the Department of Defense. Potential for long-term reliance on the incumbent contractor for system evolution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Potential for scope creep
- Long contract duration
Positive Signals
- Full and open competition
- Established contractor for critical system
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer-related services for a government agency. IT services spending for defense applications is substantial, with benchmarks varying widely based on system complexity and criticality.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The contract was awarded to Planned Systems International Inc., a company that may or may not qualify as a small business depending on its size standards.
Oversight & Accountability
The contract's Time and Materials pricing requires robust oversight from the Defense Health Agency to monitor labor hours, rates, and ensure the work performed is necessary and efficient. Regular audits and performance reviews are crucial.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Time and Materials pricing
- Potential for cost overruns
- Long contract duration
- Limited incentive for innovation under T&M
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.9 million to PLANNED SYSTEMS INTERNATIONAL INC. DEFENSE HEALTH SERVICES SYSTEM CODE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is PLANNED SYSTEMS INTERNATIONAL INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $122.9 million.
What is the period of performance?
Start: 2011-12-09. End: 2017-06-08.
What is the projected cost efficiency of this Time and Materials contract over its full duration?
Assessing cost efficiency for T&M contracts is challenging due to inherent variability. Without detailed labor hour tracking, rate justifications, and comparison to industry benchmarks for similar maintenance tasks, it's difficult to provide a definitive projection. However, the risk of cost overruns is present, necessitating strong government oversight and contractor accountability to manage expenses effectively.
What are the primary risks associated with the long duration and T&M pricing of this contract?
The primary risks include potential cost escalation beyond initial estimates due to the T&M structure, where hours and rates directly impact total cost. A long duration increases the risk of scope creep and potential obsolescence of the system if not actively managed. Furthermore, the government may be locked into a specific vendor, potentially limiting future innovation or cost-saving opportunities through competitive re-procurement.
How effectively does this contract ensure the long-term value and modernization of the Defense Health System?
The effectiveness in ensuring long-term value and modernization hinges on the contract's management and the contractor's performance. While maintenance is covered, the T&M structure might not inherently incentivize proactive modernization or innovation unless explicitly defined and managed within the scope. The government must actively steer the contractor towards future-proofing the system and incorporating advancements to maximize long-term value.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 10632 LITTLE PATUXENT PKW, COLUMBIA, MD, 21044
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $142,959,460
Exercised Options: $122,894,679
Current Obligation: $122,894,679
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4649G
IDV Type: FSS
Timeline
Start Date: 2011-12-09
Current End Date: 2017-06-08
Potential End Date: 2017-06-08 00:00:00
Last Modified: 2021-12-07
More Contracts from Planned Systems International Inc
- Enterprise Testing Service Support Services — $162.4M (Department of Veterans Affairs)
- ETS Support Services — $120.5M (Department of Veterans Affairs)
- Base Period Testing Service Support SVS — $97.0M (Department of Veterans Affairs)
- C2MS III Command Control Mission Systems Afsoc — $83.7M (General Services Administration)
- Independent Enterprise Testing and Support Services (ietss) — $58.3M (Department of Veterans Affairs)
View all Planned Systems International Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)