Dod's $68M IT Contract for Logicole Technical Refresh Awarded to Mantech Advanced Systems International, Inc

Contract Overview

Contract Amount: $68,046,435 ($68.0M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-28

End Date: 2026-02-27

Contract Duration: 730 days

Daily Burn Rate: $93.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: TECHNICAL REFRESH TO LOGICOLE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78232

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $68.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TECHNICAL REFRESH TO LOGICOLE Key points: 1. Contract value represents a significant investment in maintaining critical IT infrastructure. 2. The full and open competition suggests a potentially competitive bidding process. 3. The cost-plus award fee structure introduces performance incentives but requires careful oversight. 4. The contract duration of two years indicates a focused effort on the technical refresh. 5. The award to a single vendor highlights the need to monitor performance and value. 6. The geographic location of the contractor in Texas may have implications for local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this $68 million contract for IT services is challenging without more specific details on the scope of the 'technical refresh' for LOGICOLE. However, the cost-plus award fee (CPAF) pricing structure, while common for complex IT projects, can lead to higher costs if not managed diligently. Comparing this to similar IT modernization contracts within the Department of Defense would provide a clearer picture of whether the pricing is competitive. The absence of a specific per-unit cost makes direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that there were two bids received suggests a moderate level of competition for this specific requirement. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition, despite only two bidders, provides some assurance that the government sought the best value. However, taxpayers may not have realized the full benefit of competitive pricing that could have been achieved with more interested parties.

Public Impact

The primary beneficiaries are the Department of Defense personnel who rely on the LOGICOLE system for their operations. The contract delivers essential technical updates to ensure the continued functionality and security of a critical IT system. The geographic impact is primarily within the Department of Defense's operational footprint, wherever LOGICOLE is utilized. The contract supports skilled IT professionals employed by MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF structure requires rigorous performance monitoring to ensure costs do not escalate beyond the value delivered.
Limited competition (two bidders) may mean less pressure on the contractor to optimize costs.
The specific nature of 'technical refresh' needs clear definition to avoid scope creep and cost overruns.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
The contract aims to modernize a critical system, which is a positive step for operational efficiency.
The contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., is likely experienced in providing such IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies continually investing in modernizing legacy systems and enhancing cybersecurity. This contract for a technical refresh of the LOGICOLE system is a typical example of ongoing IT maintenance and upgrade spending within the defense sector, aiming to keep critical software and hardware current and secure.

Small Business Impact

This contract does not appear to have a small business set-aside (indicated by 'sb': false). There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract's oversight will likely be managed by the Defense Health Agency's contracting and program management offices. The cost-plus award fee structure necessitates robust performance metrics and regular evaluations to ensure the contractor meets objectives and earns award fees appropriately. Transparency will depend on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Health Information Systems
Military Health System IT Modernization
LOGICIEL Support Contracts
DoD Enterprise IT Services

Risk Flags

Cost-Plus Award Fee (CPAF) requires strong oversight to manage costs.
Limited competition (2 bidders) may reduce price optimization.
Scope definition for 'technical refresh' is critical to prevent overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TECHNICAL REFRESH TO LOGICOLE

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED 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 $68.0 million.

What is the period of performance?

Start: 2024-02-28. End: 2026-02-27.

What is the specific scope of the 'TECHNICAL REFRESH TO LOGICOLE' and what are the key performance indicators (KPIs) for this contract?

The provided data does not detail the specific scope of the 'TECHNICAL REFRESH TO LOGICOLE.' A technical refresh typically involves updating hardware, software, or firmware components of an IT system to maintain performance, security, and compatibility with newer technologies. Key performance indicators (KPIs) would likely include metrics related to system uptime, performance improvements (e.g., speed, processing capacity), successful implementation of new components, security vulnerability remediation, and user satisfaction. Without the SOW (Statement of Work) or PWS (Performance Work Statement), these details remain unspecified, making a precise assessment of the refresh's objectives and success criteria impossible.

How does the $68 million contract value compare to historical spending on LOGICOLE or similar systems within the Defense Health Agency?

The provided data does not include historical spending figures for LOGICOLE or comparable systems. To assess if $68 million is reasonable, one would need to analyze past contracts for LOGICOLE maintenance, upgrades, or replacements, as well as similar IT system refresh projects within the Defense Health Agency (DHA) or the broader Department of Defense (DoD). Factors such as the system's criticality, user base size, complexity, and the pace of technological change would influence historical spending patterns. A significant deviation from historical norms, either higher or lower, would warrant further investigation into the underlying reasons.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with similar large-scale IT refresh contracts for the Department of Defense?

The provided data indicates that MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. is the awardee for this $68 million contract. To assess their track record, one would need to examine their past performance on similar contracts, particularly those involving technical refreshes of complex IT systems for the DoD or other federal agencies. This would involve reviewing past performance evaluations, contract history databases (like SAM.gov), and any publicly available information on their project successes and challenges. A history of successful, on-time, and within-budget delivery of comparable IT modernization projects would be a positive indicator.

What are the potential risks associated with the Cost Plus Award Fee (CPAF) contract type for this LOGICOLE technical refresh?

The Cost Plus Award Fee (CPAF) contract type, while offering flexibility for evolving IT requirements, carries inherent risks. The primary risk is that the government may pay higher costs than necessary if performance objectives are not clearly defined or if oversight is insufficient. The 'award fee' component incentivizes performance, but the determination of whether the fee is earned requires robust evaluation criteria and objective measurement. Without stringent oversight, there's a risk of cost overruns and potential for the contractor to focus on maximizing the award fee rather than achieving the most cost-effective technical refresh. This necessitates diligent program management and clear communication.

Given only two bids were received under full and open competition, what does this suggest about the market for LOGICOLE technical refresh services?

The receipt of only two bids under a full and open competition for this $68 million LOGICOLE technical refresh contract suggests a potentially limited or specialized market for these specific services. This could be due to several factors: the technical complexity requiring highly specialized expertise, the specific nature of the LOGICOLE system limiting the pool of qualified vendors, or perhaps the contract's timing or structure deterred broader participation. While the competition was open, the low number of bidders may indicate less price pressure than if more vendors had competed, potentially impacting the final price achieved for the government.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT942523R0023

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DRIVE, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $166,171,049

Exercised Options: $68,046,435

Current Obligation: $68,046,435

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $64,580,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0031

IDV Type: GWAC

Timeline