NASA's $386M IT Services Contract with Dynetics Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $385,977,767 ($386.0M)
Contractor: Dynetics Technical Solutions Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-02-01
End Date: 2016-10-31
Contract Duration: 2,464 days
Daily Burn Rate: $156.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MITS (MSFC INFORMATION TECHNOLOGY SERVICES) THE DESCRIPTION OF THE CONTRACTOR'S MISSION IS TO PROVIDE ALL NECESSARY MANAGERIAL AND TECHNICAL EXPERTISE TO SUPPORT THE OCIO IN MEETING THE IT NEEDS OF MSFC, EXCLUDING LAN SERVICES AND DESKTOP SERVICES, AS FOLLOWS: INFORMATION TECHNOLOTY (IT) SECURITY SERVICES IT PLANNING, POLICY, ARCHITECTURE&INTEGRATION TELECOMMUNICATIONS SERVICES APPLICATIONS AND WEB SERVICES COMPUTER SERVICES AUDIO VISUAL INFORMATION SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $386.0 million to DYNETICS TECHNICAL SOLUTIONS INC for work described as: MITS (MSFC INFORMATION TECHNOLOGY SERVICES) THE DESCRIPTION OF THE CONTRACTOR'S MISSION IS TO PROVIDE ALL NECESSARY MANAGERIAL AND TECHNICAL EXPERTISE TO SUPPORT THE OCIO IN MEETING THE IT NEEDS OF MSFC, EXCLUDING LAN SERVICES AND DESKTOP SERVICES, AS FOLLOWS: INFORMATION TECHN… Key points: 1. The contract awarded to Dynetics Technical Solutions Inc. for IT services at MSFC, excluding LAN and desktop support, is substantial at $385.9M. 2. Competition was 'Full and Open Competition After Exclusion of Sources,' suggesting a potentially limited but structured bidding process. 3. The contract type is 'Cost Plus Fixed Fee,' which can lead to cost overruns if not managed tightly. 4. The sector is IT services, specifically telecommunications, IT security, planning, and applications, within the aerospace industry.
Value Assessment
Rating: questionable
The $385.9M contract value over its 8-year duration appears high for IT services, especially considering it excludes LAN and desktop support. Benchmarking against similar NASA IT contracts is crucial to assess if the pricing reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' indicates that while competition was sought, certain sources were pre-selected or excluded, potentially limiting the breadth of competitive pricing and innovation.
Taxpayer Impact: The significant contract value raises concerns about taxpayer impact, particularly if the cost-plus-fixed-fee structure did not incentivize maximum cost efficiency.
Public Impact
Taxpayers funded extensive IT support for NASA's Marshall Space Flight Center, impacting critical aerospace operations. The exclusion of certain sources in the competition process may have limited the diversity of IT solutions and potentially inflated costs. The long duration and high value of the contract warrant a review of its effectiveness in delivering necessary IT services within budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'Full and Open' designation
- Cost-plus-fixed-fee structure can incentivize higher spending
- High contract value for IT services excluding core desktop support
Positive Signals
- Contract aimed to meet critical IT needs for MSFC
- Specific IT service areas were clearly defined
Sector Analysis
This contract falls within the IT services sector, specifically supporting a government agency (NASA) with a broad range of IT functions. Spending benchmarks for similar large-scale government IT contracts often range in the hundreds of millions, but efficiency and scope are key differentiators.
Small Business Impact
The data provided does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' suggests a structured but potentially restricted oversight process. The cost-plus-fixed-fee nature necessitates robust oversight to control costs and ensure performance.
Related Government Programs
- Wired Telecommunications Carriers
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for inflated costs due to CPFF structure
- Limited competition may have reduced price discovery
- High contract value warrants scrutiny for efficiency
- Exclusion of sources requires strong justification
Tags
wired-telecommunications-carriers, national-aeronautics-and-space-administr, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $386.0 million to DYNETICS TECHNICAL SOLUTIONS INC. MITS (MSFC INFORMATION TECHNOLOGY SERVICES) THE DESCRIPTION OF THE CONTRACTOR'S MISSION IS TO PROVIDE ALL NECESSARY MANAGERIAL AND TECHNICAL EXPERTISE TO SUPPORT THE OCIO IN MEETING THE IT NEEDS OF MSFC, EXCLUDING LAN SERVICES AND DESKTOP SERVICES, AS FOLLOWS: INFORMATION TECHNOLOTY (IT) SECURITY SERVICES IT PLANNING, POLICY, ARCHITECTURE&INTEGRATION TELECOMMUNICATIONS SERVICES APPLICATIONS AND WEB SERVICES COMPUTER SERVICES AUDIO VISUAL INFORMATION SERVICES
Who is the contractor on this award?
The obligated recipient is DYNETICS TECHNICAL SOLUTIONS 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 $386.0 million.
What is the period of performance?
Start: 2010-02-01. End: 2016-10-31.
Was the exclusion of sources in the competition process justified and did it lead to a fair price?
The justification for excluding sources needs to be thoroughly reviewed. While 'Full and Open Competition After Exclusion of Sources' implies a rationale, it inherently limits the competitive landscape. This limitation can impact price discovery, potentially leading to higher costs for taxpayers if the remaining bidders do not face sufficient pressure to offer the most competitive pricing.
What was the actual cost efficiency achieved under the Cost Plus Fixed Fee structure for this IT contract?
The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to ensure cost efficiency. Without detailed financial breakdowns and performance metrics, it's difficult to assess if Dynetics achieved optimal value. Agencies must actively monitor expenditures against the fixed fee and the cost ceiling to prevent unnecessary spending and ensure the contractor remains incentivized to control costs.
How effectively did the IT services provided by Dynetics support NASA MSFC's mission objectives given the contract's scope and value?
Evaluating effectiveness requires comparing the delivered IT services against MSFC's specific mission requirements and performance metrics outlined in the contract. While the contract aimed to meet IT needs, the significant investment of $385.9M necessitates a detailed performance review to confirm that the services provided were not only adequate but also contributed demonstrably to the success of NASA's aerospace endeavors.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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
Solicitation ID: NNM09270570R
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $432,180,024
Exercised Options: $432,180,024
Current Obligation: $385,977,767
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2010-02-01
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2022-08-15
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