DoD Awards $14.5M for Computer Systems Design Services to 22nd Century Technologies, Inc

Contract Overview

Contract Amount: $14,531,047 ($14.5M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR - EMPRS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: LABOR - EMPRS Key points: 1. The contract is for computer systems design services, a critical area for defense operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The award to 22nd Century Technologies, Inc. represents a significant investment in IT infrastructure. 4. The sector is IT, specifically computer systems design, which is a growing area of government spending.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. However, the award amount of $14.5M for a 3-year period suggests a reasonable price point for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

This contract supports the Department of the Navy's IT infrastructure, impacting military readiness and operations. The services provided are crucial for maintaining and upgrading complex computer systems essential for defense. Taxpayers can expect this spending to contribute to the modernization of defense technology and cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to control costs.
The duration of the contract (3 years) may not fully account for rapidly evolving technology needs.

Positive Signals

Awarded under full and open competition.
Supports critical Department of Defense IT modernization efforts.

Sector Analysis

The IT sector, particularly computer systems design services, is a significant area of government spending. Benchmarks for similar contracts vary widely based on scope and complexity, but this award appears within a typical range for a multi-year defense IT project.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle. Oversight will be crucial to ensure the fixed fee remains appropriate and that the services delivered meet the Navy's requirements throughout the contract period.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
No small business participation indicated in the award data.
Contract duration may not align with rapidly evolving IT needs.
Specific scope of services not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to 22ND CENTURY TECHNOLOGIES, INC.. LABOR - EMPRS

Who is the contractor on this award?

The obligated recipient is 22ND CENTURY TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What specific computer systems design services are included in this contract, and how do they align with current and future Navy technological needs?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact scope isn't detailed here, these services typically encompass designing, developing, and integrating hardware and software solutions. For the Navy, this could involve network architecture, cybersecurity infrastructure, data management systems, or specialized operational software. Alignment with future needs would depend on the specific tasks outlined in the Statement of Work, which is not provided. However, such contracts often aim to modernize legacy systems or implement new capabilities to enhance operational effectiveness and information superiority.

Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms are in place to mitigate cost overruns and ensure the fixed fee remains reasonable?

CPFF contracts require robust government oversight to manage costs effectively. Mechanisms typically include detailed review of the contractor's actual costs, negotiation of the fixed fee based on estimated costs and risk, and clear performance metrics. The government contracting officer must actively monitor expenditures, ensure adherence to the contract's scope, and verify that the contractor's efforts are efficient. Regular audits and progress reviews are essential to identify potential cost creep early and address any deviations from the planned budget or scope.

How does the $14.5M award for 3 years compare to industry benchmarks for similar computer systems design services within the defense sector?

Comparing this $14.5M award for 3 years ($4.83M annually) requires detailed knowledge of the specific services and complexity. However, for large-scale defense IT projects involving system design and integration, this figure appears to be within a reasonable range, especially considering the specialized nature of military requirements and the potential for advanced technology integration. Industry benchmarks vary significantly based on factors like security clearances, specific technologies, and the level of integration required. Without a detailed Statement of Work, a precise benchmark is difficult, but the full and open competition suggests a competitive market price was likely achieved.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018921RZ032

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8251 GREENSBORO DR STE 900, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,135,359

Exercised Options: $19,642,049

Current Obligation: $14,531,047

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018921DZ050

IDV Type: IDC

Timeline