DYONYX LP's $10.5M IT Network Support Contract Awarded by Millennium Challenge Corporation

Contract Overview

Contract Amount: $10,482,606 ($10.5M)

Contractor: Dyonyx LP

Awarding Agency: Millennium Challenge Corporation

Start Date: 2004-11-16

End Date: 2008-08-31

Contract Duration: 1,384 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT NETWORK SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $10.5 million to DYONYX LP for work described as: IT NETWORK SUPPORT Key points: 1. Contract focused on IT network support services, indicating a need for ongoing technical assistance. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1384 days (approx. 3.8 years) points to a medium-term service requirement. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services. 6. The contract was awarded as a Purchase Order, a common method for acquiring goods and services. 7. The contract was not set aside for small businesses, implying larger firms were likely participants.

Value Assessment

Rating: fair

Benchmarking the value of this $10.5 million contract for IT network support is challenging without specific performance metrics or detailed service descriptions. The firm fixed price structure provides cost certainty. However, the absence of comparable contract data or detailed cost breakdowns makes a precise value-for-money assessment difficult. The contract's duration suggests a sustained need for these services, but the overall efficiency and effectiveness relative to market rates cannot be definitively determined from the provided data.

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,' which typically means that proposals were solicited from all responsible sources, but certain sources were excluded prior to solicitation. This suggests a competitive process, but the specific reasons for excluding certain sources could impact the breadth of competition. The number of bidders is not specified, but the 'full and open' designation implies an intent to maximize competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower prices and better service offerings from vendors vying for the contract.

Public Impact

The Millennium Challenge Corporation benefits from sustained IT network support, ensuring operational continuity. End-users within the agency likely experience improved network performance and reliability. The contract supports the IT infrastructure necessary for the agency's mission delivery. Workforce implications include potential support roles for IT professionals within DYONYX LP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness.
The specific nature of 'Other Computer Related Services' can be broad, potentially leading to scope creep if not managed tightly.
Reliance on a single vendor for critical IT network support could pose a risk if the vendor faces operational issues.

Positive Signals

Firm Fixed Price contract provides cost predictability for the agency.
Awarded through a full and open competition process, indicating an effort to secure competitive pricing.
The contract duration suggests a stable, long-term relationship for consistent service delivery.

Sector Analysis

The IT network support sector is a critical component of government operations, encompassing a wide range of services from hardware maintenance to cybersecurity. This contract falls under the broader IT services market, which is characterized by rapid technological advancements and a diverse range of specialized providers. Government spending in this area is substantial, driven by the need to maintain secure, efficient, and up-to-date technological infrastructure. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible firms, including large businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The impact on the small business ecosystem is indirect, as they may compete for subcontracts if awarded to a large prime contractor, or they may have participated in the original full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Millennium Challenge Corporation. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

IT Professional Services
Network Infrastructure Services
Computer Systems Design Services
IT Management Consulting Services

Risk Flags

Potential for scope creep in 'Other Computer Related Services' if not clearly defined.
Reliance on a single vendor for critical infrastructure support.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $10.5 million to DYONYX LP. IT NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is DYONYX LP.

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2004-11-16. End: 2008-08-31.

What was the specific scope of IT network support provided under this contract?

The provided data classifies the contract under NAICS code 541519, 'Other Computer Related Services,' and describes the service as 'IT NETWORK SUPPORT.' This broad classification suggests services could range from network design, installation, and maintenance to troubleshooting, system administration, and potentially cybersecurity-related support for the agency's computer networks. Without more granular details on the Statement of Work (SOW), it is difficult to pinpoint the exact services rendered. However, typical IT network support encompasses ensuring the availability, performance, and security of an organization's network infrastructure, including routers, switches, firewalls, and wireless access points.

How does the contract value of approximately $10.5 million compare to similar IT network support contracts?

Comparing the $10.5 million contract value requires context regarding the duration and scope. This contract spanned approximately 3.8 years (1384 days). On an annualized basis, this represents roughly $2.76 million per year. This figure can be benchmarked against other federal IT network support contracts of similar duration and complexity. For instance, contracts for enterprise-level network support in large federal agencies often range from several million to tens of millions of dollars annually, depending on the size of the network, the number of users, and the criticality of the services. The Millennium Challenge Corporation's specific needs and scale would influence this benchmark.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a typical IT network support contract, common KPIs and SLAs might include network uptime percentages (e.g., 99.9% availability), response times for incident resolution (e.g., critical issues resolved within 2 hours), resolution times for service requests, and performance metrics related to network speed and latency. The absence of this information in the summary data makes it impossible to objectively assess the contractor's performance against predefined standards.

What is the track record of DYONYX LP in performing federal IT support contracts?

DYONYX LP has a history of performing federal contracts, including those related to IT services. Analyzing their past performance requires accessing detailed contract databases to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without access to this specific performance history, it's challenging to provide a definitive assessment of their track record. However, their ability to secure a contract of this size and duration suggests they have met the basic qualifications and demonstrated capability to the awarding agency.

Were there any significant risks identified during the procurement or performance of this contract?

The provided data does not explicitly list any significant risks identified during the procurement or performance of this contract. However, general risks associated with IT network support contracts can include technological obsolescence, cybersecurity threats, vendor lock-in, performance failures, and cost overruns (though less likely with a Firm Fixed Price contract). The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation might imply that certain risks related to specific vendors were considered, leading to their exclusion. A thorough risk assessment would typically be documented within the agency's acquisition planning files.

How does the spending on this contract compare to overall IT spending by the Millennium Challenge Corporation?

To compare this $10.5 million contract to the Millennium Challenge Corporation's overall IT spending, one would need access to the agency's total IT budget and expenditures for the contract period (2004-2008). This contract represents a portion of their IT investment. Without the agency's total IT spending figures for those fiscal years, it's impossible to determine the relative significance of this particular contract. However, IT network support is a fundamental operational cost for most federal agencies, suggesting this contract likely supported essential functions.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1235 NORTH LOOP W # 1220, HOUSTON, TX, 77008

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,171,006

Exercised Options: $10,923,934

Current Obligation: $10,482,606

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline