NASA's $230M IT Services Contract with QSS Group Faced Full and Open Competition After Source Exclusion
Contract Overview
Contract Amount: $229,625,959 ($229.6M)
Contractor: QSS Group, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-15
End Date: 2014-07-18
Contract Duration: 3,929 days
Daily Burn Rate: $58.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IT SERVICES AND SUPPORT CONTRACT NNA04AA18B/DTTS59-99-D-00457
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $229.6 million to QSS GROUP, INC. for work described as: IT SERVICES AND SUPPORT CONTRACT NNA04AA18B/DTTS59-99-D-00457 Key points: 1. The contract value of $229.6 million over its lifetime indicates a significant investment in IT services. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources', suggesting a complex procurement history. 3. The 'Cost Plus Incentive Fee' pricing structure introduces performance-based incentives but also potential cost overruns. 4. The IT sector, particularly computer systems design, is a critical area for government operations, making efficient spending vital.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee (CPIF) structure can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking CPIF contracts is challenging due to variable performance metrics, but the total award value suggests a substantial service level.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method 'Full and Open Competition After Exclusion of Sources' implies a prior sole-source or limited competition phase that was later opened. This method can impact price discovery by potentially limiting the initial pool of bidders or introducing complexities.
Taxpayer Impact: While competition was eventually opened, the initial exclusion of sources may have limited the most competitive pricing. The total value suggests a significant taxpayer investment.
Public Impact
This contract supported essential IT infrastructure and services for NASA, impacting agency operations. The duration of the contract (over 10 years) suggests a long-term need for these IT services. The use of incentive fees aimed to align contractor performance with agency goals, potentially improving service quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to cost overruns.
- Complex procurement history ('Exclusion of Sources') may indicate prior issues or limited initial competition.
- Contract duration is very long, increasing risk of obsolescence or changing needs.
- No small business participation noted.
Positive Signals
- Full and open competition was ultimately utilized.
- Incentive fee structure aims to improve performance.
- Contract supported critical NASA IT functions.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for government modernization and efficiency. Benchmarks vary widely based on service scope, but large, long-term contracts like this represent significant investments.
Small Business Impact
The data indicates this contract did not involve small business participation (ss: false, sb: false). This suggests the prime contractor was a large business, and any subcontracting opportunities for small businesses are not detailed here.
Oversight & Accountability
The contract's long duration and complex procurement history warrant oversight to ensure continued value and adherence to competitive principles. Monitoring the incentive fee structure's effectiveness is also key for accountability.
Related Government Programs
- Computer Systems Design Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Long contract duration (over 10 years).
- Procurement method involved exclusion of sources prior to full and open competition.
- No small business participation indicated.
- Significant contract value.
Tags
computer-systems-design-services, national-aeronautics-and-space-administr, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $229.6 million to QSS GROUP, INC.. IT SERVICES AND SUPPORT CONTRACT NNA04AA18B/DTTS59-99-D-00457
Who is the contractor on this award?
The obligated recipient is QSS GROUP, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $229.6 million.
What is the period of performance?
Start: 2003-10-15. End: 2014-07-18.
What was the specific reason for the initial exclusion of sources before the 'Full and Open Competition' phase?
The reason for excluding sources prior to the 'Full and Open Competition' phase is not detailed in the provided data. This could stem from various factors, such as prior contract performance, specific technical requirements that initially limited the bidder pool, or a phased approach to market research. Understanding this history is crucial for a complete assessment of the procurement's fairness and efficiency.
How effectively did the Cost Plus Incentive Fee structure align contractor performance with NASA's objectives and control costs?
The effectiveness of the Cost Plus Incentive Fee (CPIF) structure is difficult to assess without detailed performance metrics and final cost data. While CPIF aims to incentivize desired outcomes and cost control, its success hinges on well-defined metrics and rigorous oversight. The long duration and significant value suggest that NASA likely monitored these aspects closely, but potential cost underruns or overruns would be the ultimate indicators.
What was the overall value delivered to NASA in terms of IT systems and support over the contract's 10+ year lifespan?
The overall value delivered is substantial, given the $229.6 million award and the critical nature of IT services for NASA's operations. The contract supported computer systems design and services, likely encompassing infrastructure, software development, and technical support. Assessing the precise value would require evaluating mission success, system uptime, and technological advancements enabled by the contractor over the contract period.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: 4500 FORBES BLVD STE 200, LANHAM, MD, 20706
Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $259,748,458
Exercised Options: $259,748,458
Current Obligation: $229,625,959
Timeline
Start Date: 2003-10-15
Current End Date: 2014-07-18
Potential End Date: 2014-07-18 00:00:00
Last Modified: 2015-06-01
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