DoD's $39M IT contract for system integration services awarded to ASRC Federal Data Network Technologies

Contract Overview

Contract Amount: $39,051,693 ($39.1M)

Contractor: Asrc Federal Data Network Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-19

End Date: 2019-02-02

Contract Duration: 1,355 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SYSTEM INTEGRATION AND ENGINEERING SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC for work described as: IGF::OT::IGF SYSTEM INTEGRATION AND ENGINEERING SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics suggest a robust market for these specialized services. 3. Performance period indicates a long-term need for sustained IT support. 4. Sector positioning highlights the critical role of IT in defense operations. 5. Value for money is assessed by comparing pricing to similar IT service contracts.

Value Assessment

Rating: good

The contract's total value of approximately $39 million over its period of performance suggests a substantial investment. Benchmarking against similar IT system integration and engineering support services contracts within the Department of Defense is crucial for a precise value assessment. Factors such as the specific technical requirements, the level of expertise required, and the duration of the contract will influence its overall value proposition. Without direct cost comparisons for identical services, the assessment relies on general market rates for comparable IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 10 bidders suggests a healthy level of competition for this type of IT service. A competitive bidding process generally leads to more favorable pricing and better service offerings for the government, as contractors strive to win the award by providing the most compelling proposal.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The Defense Health Agency benefits from enhanced IT system integration and engineering support. Services delivered ensure the operational readiness and efficiency of critical defense IT systems. The contract supports IT infrastructure primarily within Virginia, impacting the local tech workforce. Workforce implications include employment opportunities for IT professionals specializing in system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Risk of vendor lock-in if specialized knowledge is not adequately transferred.
Dependence on a single contractor for critical IT system support.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Long-term contract suggests a stable and reliable IT support solution.
Focus on system integration and engineering points to critical infrastructure support.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT industry. The market for IT services, particularly those supporting government agencies, is substantial and highly competitive. This contract represents a significant portion of spending within this niche, focusing on the complex integration and engineering required for defense IT systems. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by federal agencies.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, ASRC Federal Data Network Technologies, LLC, may engage small businesses for subcontracting. The impact on the small business ecosystem depends on the extent to which subcontracting opportunities are offered and utilized. A robust subcontracting plan could provide valuable experience and revenue streams for smaller IT firms.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Health Agency's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement, including service level agreements and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense IT Modernization Programs
Health IT Infrastructure Support
Federal Civilian IT Services
Cloud Computing Services for Defense

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technical obsolescence
Vendor lock-in concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC. IGF::OT::IGF SYSTEM INTEGRATION AND ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $39.1 million.

What is the period of performance?

Start: 2015-05-19. End: 2019-02-02.

What is the track record of ASRC Federal Data Network Technologies, LLC with similar government contracts?

ASRC Federal Data Network Technologies, LLC has a history of performing IT services for government agencies. Their portfolio often includes system integration, network engineering, and cybersecurity support. Analyzing past performance on contracts of similar size and scope, particularly within the Department of Defense, would provide insight into their reliability, technical capabilities, and ability to meet performance requirements. Past performance reviews and contract close-out data are key indicators. A review of their contract history reveals multiple awards across various federal agencies, demonstrating a broad range of experience. Specific to system integration and engineering, their success is often measured by on-time delivery, adherence to budget, and successful system implementation as documented in performance reports.

How does the pricing of this contract compare to market rates for similar IT system integration services?

Assessing the value for money requires comparing the contract's pricing structure and rates against industry benchmarks for IT system integration and engineering support. Given the Cost Plus Fixed Fee (CPFF) contract type, the government pays allowable costs plus a fixed fee representing profit. This structure can be advantageous for complex projects where costs are difficult to predict. However, it necessitates rigorous oversight to ensure costs remain reasonable. Benchmarking would involve analyzing the labor rates, overhead, and fee percentages against data from other federal contracts and commercial IT service providers. Without specific cost breakdowns, a definitive comparison is challenging, but the competitive nature of the award suggests pricing was likely within an acceptable range at the time of bidding.

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

Key risks for this contract include potential scope creep, which could lead to cost overruns, and technical obsolescence if the implemented systems are not future-proof. Dependence on a single vendor for critical IT functions also poses a risk. Mitigation strategies likely involve robust contract management, including detailed performance metrics, regular progress reviews, and change control processes to manage scope. The Defense Health Agency would also likely have contingency plans and knowledge transfer requirements to reduce vendor lock-in. Furthermore, the CPFF structure, while offering flexibility, requires diligent cost monitoring by the government to ensure efficiency and prevent unnecessary expenditures. Proactive risk management by both the contractor and the agency is essential.

How effective has the Defense Health Agency been in managing IT system integration contracts of this nature?

The Defense Health Agency (DHA) manages a vast portfolio of IT contracts critical to military health operations. Their effectiveness in managing system integration contracts is generally assessed through contract performance metrics, audit reports from the Inspector General, and the overall reliability of the IT systems they support. The DHA has undertaken significant initiatives to modernize its IT infrastructure, indicating a commitment to effective management. However, the complexity of military healthcare IT, with its stringent security and interoperability requirements, presents ongoing challenges. Success is often measured by the agency's ability to maintain system uptime, protect sensitive data, and adapt to evolving technological landscapes and user needs.

What are the historical spending patterns for IT system integration and engineering support services within the Department of Defense?

Spending on IT system integration and engineering support services within the Department of Defense (DoD) has historically been substantial and represents a significant portion of the overall IT budget. The DoD consistently invests heavily in maintaining and upgrading its complex technological infrastructure to ensure operational readiness and superiority. This includes contracts for network modernization, software development, cybersecurity, and the integration of diverse systems. Spending trends often reflect evolving threats, technological advancements (like cloud computing and AI), and strategic priorities. Analyzing historical spending data reveals a consistent demand for these services, often fluctuating based on specific modernization efforts or new defense initiatives.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001114R0041

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,688,176

Exercised Options: $45,916,877

Current Obligation: $39,051,693

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $13,515,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HHSN316201200127W

IDV Type: GWAC

Timeline