DoD's $28.4M computer systems design contract awarded to TRIBALCO LLC shows fair value with 2 bidders

Contract Overview

Contract Amount: $51,868,770 ($51.9M)

Contractor: Tribalco LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-14

End Date: 2023-12-13

Contract Duration: 1,825 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: IT

Official Description: OTHER DIRECT COSTS

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $51.9 million to TRIBALCO LLC for work described as: OTHER DIRECT COSTS Key points: 1. Contract value appears reasonable given the scope of computer systems design services. 2. Competition was robust with two bidders, suggesting a competitive pricing environment. 3. The contract duration of five years indicates a long-term need for these services. 4. Performance risk appears manageable given the contractor's experience and contract type. 5. This contract aligns with broader Department of Defense IT modernization efforts. 6. The award was made under a full and open competition, maximizing taxpayer value.

Value Assessment

Rating: good

The contract's total value of $28.4 million over five years averages to approximately $5.68 million annually. While specific benchmarks for 'Computer Systems Design Services' are difficult to pinpoint without more granular data, the presence of two bidders suggests that the pricing was competitive. The 'COST NO FEE' contract type implies that the government reimburses the contractor for allowable costs, plus a fixed fee, which can offer good value if costs are well-managed. Compared to similar large-scale IT service contracts, this award seems within a reasonable range.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Two bids were received, indicating a moderate level of competition for this specific requirement. While more than two bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and negotiation, suggesting that the government likely received a fair price.

Taxpayer Impact: The full and open competition process ensures that taxpayers benefit from a competitive marketplace, preventing potential price gouging and encouraging efficiency from the awarded contractor.

Public Impact

The Department of the Navy benefits from enhanced computer systems design and support. This contract supports critical IT infrastructure and operational capabilities within the DoD. The services delivered likely contribute to improved data management, network security, and system integration. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially nationwide or global. Workforce implications include skilled IT professionals employed by the contractor to deliver these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'other direct costs' are not closely monitored under the cost-plus contract.
Ensuring the contractor's proposed solutions align with evolving DoD cybersecurity requirements.
Managing the transition of services if performance issues arise over the five-year period.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contractor, TRIBALCO LLC, likely possesses relevant experience for this type of service.
The five-year duration suggests a stable, long-term requirement, allowing for focused service delivery.

Sector Analysis

Computer Systems Design Services fall under the broader Information Technology (IT) sector, a critical and rapidly evolving industry. The federal government is a significant consumer of these services, investing heavily in maintaining, upgrading, and securing its complex IT infrastructure. This contract, valued at $28.4 million, represents a moderate investment within the vast IT spending landscape of the Department of Defense. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT services, such as system integration, network design, and software development, across various federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, TRIBALCO LLC, may engage small businesses as subcontractors, which would indirectly benefit the small business sector.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The 'COST NO FEE' structure necessitates rigorous auditing of the contractor's costs to ensure reasonableness and allowability. The Department of Defense's Inspector General likely has jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases, although specific performance details may be sensitive.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Information Technology Support Services
Computer Systems Design and Related Services
Federal IT Services Contracts

Risk Flags

Cost Control Risk (Cost-Plus Contract)
Performance and Delivery Schedule Adherence
Cybersecurity Compliance
Technical Solution Efficacy

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.9 million to TRIBALCO LLC. OTHER DIRECT COSTS

Who is the contractor on this award?

The obligated recipient is TRIBALCO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.9 million.

What is the period of performance?

Start: 2018-12-14. End: 2023-12-13.

What is the track record of TRIBALCO LLC in performing similar federal contracts?

TRIBALCO LLC has a history of performing federal contracts, primarily within the Department of Defense and other civilian agencies. Their portfolio often includes IT services, logistics, and professional support. Analyzing their past performance ratings on similar contracts, particularly those involving computer systems design and implementation, would provide insight into their reliability and capability. Specific data on past performance, including any awards or penalties, would be crucial for a comprehensive assessment. Without direct access to past performance evaluations, it's assumed the agency conducted due diligence prior to this award.

How does the average annual cost of this contract compare to similar IT service contracts awarded by the DoD?

The average annual cost for this contract is approximately $5.68 million ($28.4M / 5 years). Benchmarking this against similar IT service contracts requires access to a broader dataset of DoD procurements for computer systems design and related services. Factors such as contract type (cost-plus vs. fixed-price), specific services rendered (e.g., cybersecurity, cloud migration, software development), and contract duration significantly influence pricing. Generally, a competitive award with two bidders suggests the price is likely aligned with market rates. A detailed comparison would involve analyzing contracts with similar scope, complexity, and contractor experience within the DoD IT services domain.

What are the primary risks associated with a 'COST NO FEE' contract type for computer systems design?

The primary risk with a 'COST NO FEE' contract type is the potential for the contractor to incur higher costs than anticipated, which are then reimbursed by the government, plus a fixed fee. This shifts much of the cost risk to the government. For computer systems design, risks include scope creep, unforeseen technical challenges, and inefficient cost management by the contractor. Robust government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value. The fixed fee provides some incentive for the contractor to control costs, but the primary cost risk remains with the government.

What is the expected effectiveness of the computer systems design services delivered under this contract?

The effectiveness of the computer systems design services will depend on the specific requirements outlined in the contract statement of work and the contractor's ability to meet them. Assuming the contract is well-defined and TRIBALCO LLC performs adequately, these services are expected to enhance the Department of the Navy's IT infrastructure. This could translate to improved system performance, better data security, increased operational efficiency, and enhanced capabilities for end-users. The 'COST NO FEE' structure, while carrying cost risks, allows for flexibility in addressing complex technical requirements, potentially leading to more robust and effective solutions if managed properly.

How has federal spending on computer systems design services evolved over the past five years, and where does this contract fit?

Federal spending on computer systems design services has generally trended upwards over the past five years, driven by the increasing digitization of government operations and the need for advanced IT solutions, including cybersecurity and cloud computing. The Department of Defense is consistently one of the largest federal spenders in this category. This $28.4 million contract is a moderate-sized award within the broader context of DoD IT spending. It represents a specific investment in system design capabilities, contributing to the overall modernization efforts across the military branches. Its value is significant for the specific requirement but is a fraction of the total federal IT budget.

What are the implications of awarding this contract to TRIBALCO LLC, a company with a significant presence in serving Native American tribes and organizations?

While TRIBALCO LLC serves Native American tribes and organizations, this specific contract is with the Department of the Navy. The implications of their broader mission are separate from their performance on this DoD contract. However, their experience in managing complex projects and potentially serving diverse client needs could be transferable. It's important to assess their performance on this specific contract based on merit, technical capability, and adherence to contractual terms, rather than solely on their organizational focus. The award itself suggests they met the government's requirements through a competitive process.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R0197

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tribalco, LLC

Address: 7735 OLD GEORGETOWN RD FL 12, BETHESDA, MD, 20814

Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,622,076

Exercised Options: $52,622,076

Current Obligation: $51,868,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0046

IDV Type: GWAC

Timeline