DoD's TRANSCOM awards $5.9M for data management, with 11 bids received

Contract Overview

Contract Amount: $5,901,464 ($5.9M)

Contractor: Fedtec LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-27

End Date: 2026-09-30

Contract Duration: 1,434 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSCOM REFERENCE DATA MANAGEMENT (TRDM)

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to FEDTEC LLC for work described as: TRANSCOM REFERENCE DATA MANAGEMENT (TRDM) Key points: 1. Contract value appears reasonable given the scope of IT services. 2. Strong competition suggests potential for competitive pricing. 3. No immediate red flags identified in contract terms. 4. Performance period spans over three years, indicating a sustained need. 5. This contract falls within the IT services sector, specifically data management. 6. The firm-fixed-price structure aligns with predictable cost expectations.

Value Assessment

Rating: good

The contract value of $5.9 million for data management services over approximately three years appears to be within a reasonable range for IT support. Benchmarking against similar contracts for IT services within the Department of Defense, particularly those involving data management and IT consulting, would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has a clear understanding of the costs involved, which can be a positive indicator of pricing control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with eleven bids received. This indicates a robust bidding process where multiple vendors had the opportunity to compete. A higher number of bidders generally suggests a healthy market and can lead to more competitive pricing as vendors strive to win the contract. The extensive competition is a positive sign for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: The broad competition for this contract is beneficial for taxpayers as it likely drove down costs through market forces. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective solution among numerous qualified providers.

Public Impact

The primary beneficiary is the U.S. Transportation Command (USTRANSCOM), which will receive enhanced data management capabilities. Services delivered include IT support and data management, crucial for operational efficiency. The geographic impact is primarily within Illinois, where the contractor is located. Workforce implications include potential employment opportunities for IT professionals within FEDTEC LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition with a significant number of bidders.
Firm-fixed-price contract type provides cost certainty.
Contract duration of over three years suggests a stable, ongoing requirement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). The IT services market is vast and highly competitive, with significant government spending allocated to data management, cloud services, and cybersecurity. Comparable spending benchmarks for similar IT support contracts within the Department of Defense often range from hundreds of thousands to millions of dollars annually, depending on the complexity and scope of services. This contract's value of approximately $5.9 million over three years aligns with the typical scale for such specialized IT support.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, FEDTEC LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. Therefore, this specific contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by USTRANSCOM contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring FEDTEC LLC to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

TRANSCOM Reference Data Management (TRDM)
Department of Defense IT Services
USTRANSCOM IT Support Contracts
Federal Data Management Solutions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to FEDTEC LLC. TRANSCOM REFERENCE DATA MANAGEMENT (TRDM)

Who is the contractor on this award?

The obligated recipient is FEDTEC LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2022-10-27. End: 2026-09-30.

What is the track record of FEDTEC LLC in performing similar IT and data management services for the federal government?

Assessing FEDTEC LLC's track record requires a deeper dive into their past performance on federal contracts. This would involve reviewing contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for relevant past performance information. Key indicators to examine would include on-time delivery, quality of services, adherence to budget, and any past disputes or contract terminations. Without specific past performance data, it's difficult to definitively assess their capability to successfully execute this TRDM contract. However, the fact that they were awarded this contract under full and open competition with 11 bidders suggests they met the initial qualification criteria.

How does the awarded price of $5.9 million compare to market rates for similar data management services?

The awarded price of $5.9 million for approximately three years of data management services needs to be benchmarked against market rates for similar IT services. This involves comparing the contract's scope, duration, and required expertise against industry pricing for data management, IT support, and related services. Factors such as the complexity of the data, the required security protocols, and the level of technical expertise needed will influence market rates. A comprehensive analysis would involve looking at publicly available data on IT service contracts awarded by other federal agencies or commercial entities for comparable services. Given the firm-fixed-price nature, the government likely conducted some level of price analysis to ensure the proposed cost was fair and reasonable before award.

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

Potential risks for this contract include technical challenges in data management, potential cost overruns if the scope expands beyond the initial fixed price (though less likely with FFP), contractor performance issues, and cybersecurity vulnerabilities. Mitigation strategies are likely embedded within the contract terms and oversight processes. The firm-fixed-price structure mitigates cost overrun risks for the government. Robust performance monitoring by USTRANSCOM, clear service level agreements (SLAs), and adherence to cybersecurity protocols mandated by the DoD are crucial for mitigating performance and security risks. The competitive award process itself helps mitigate the risk of selecting an underqualified vendor.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach, evidenced by 11 bids, is generally highly effective in ensuring value for money. This level of competition creates a strong incentive for bidders to offer competitive pricing and high-quality services to win the contract. It allows the government to select from a wide pool of potential vendors, increasing the likelihood of finding the best combination of price and performance. The extensive bidding process likely drove down the final negotiated price, benefiting taxpayers. The transparency inherent in full and open competition also enhances accountability.

What is the historical spending trend for data management services within USTRANSCOM or the DoD?

Analyzing historical spending trends for data management services within USTRANSCOM or the broader DoD is crucial for context. This would involve examining past contract awards for similar services over several fiscal years. Trends might reveal increasing or decreasing investment in data management capabilities, shifts in technology adoption (e.g., towards cloud-based solutions), and average contract values. Understanding these patterns helps determine if the current $5.9 million award is consistent with historical investment levels, represents an increase or decrease in spending, and aligns with broader strategic priorities within the DoD regarding data utilization and modernization.

Are there any specific performance metrics or KPIs defined in the contract to measure the success of the data management services?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) included in the contract. However, for a firm-fixed-price IT services contract of this nature, it is standard practice to include detailed performance standards and SLAs. These would likely cover aspects such as data accuracy, system uptime, response times for support requests, data security compliance, and timely delivery of reports or system updates. USTRANSCOM's program managers would be responsible for monitoring FEDTEC LLC's performance against these metrics throughout the contract period. The effectiveness of the services is directly tied to meeting these defined KPIs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71122QD017

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,902,056

Exercised Options: $5,902,056

Current Obligation: $5,901,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA013

IDV Type: IDC

Timeline