State Dept. Spends $11.3M on IT Services via Non-Competitive Order to Orkand Corp
Contract Overview
Contract Amount: $11,268,058 ($11.3M)
Contractor: Orkand Corporation, the
Awarding Agency: Department of State
Start Date: 2005-09-29
End Date: 2011-03-03
Contract Duration: 1,981 days
Daily Burn Rate: $5.7K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LABOR HOURS
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $11.3 million to ORKAND CORPORATION, THE for work described as: LABOR HOURS Key points: 1. Significant spending on IT services highlights reliance on external contractors. 2. The non-competitive nature of this award raises questions about price discovery and value. 3. Long contract duration (1981 days) suggests a substantial, ongoing need. 4. The 'Other Computer Related Services' NAICS code is broad, potentially masking specific service types.
Value Assessment
Rating: questionable
The contract value of $11.3 million for approximately 1.1 million labor hours suggests a blended hourly rate of around $10.25. This rate appears low for IT services, but without specific task details, it's difficult to assess true value. The non-competitive award limits comparison.
Cost Per Unit: $10.25 (estimated blended hourly rate)
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning competition was likely waived. This limits the government's ability to secure the best possible price through market forces and may result in higher costs than a competitive procurement.
Taxpayer Impact: Taxpayers may have overpaid due to the lack of competition, as the government did not explore potentially lower-cost alternatives or negotiate more aggressively.
Public Impact
Citizens rely on the State Department for critical services, and efficient spending ensures taxpayer funds are used effectively. Transparency in government contracting is essential for public trust and accountability. The use of non-competitive contracts can impact the broader IT services market by limiting opportunities for other businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Long contract duration
- Broad NAICS code
Positive Signals
- Firm Fixed Price contract type
- Specific agency identified
Sector Analysis
The IT services sector is vast, encompassing everything from basic computer maintenance to complex software development. Benchmarking requires understanding the specific services rendered under NAICS 541519. Government spending in this area is substantial, making efficient procurement crucial.
Small Business Impact
The contract was awarded to Orkand Corporation, a firm, and there is no indication that small businesses were involved as subcontractors or prime contractors. This award does not appear to support small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants further review by oversight bodies to ensure the government received fair value and that competition was appropriately waived. Documentation supporting the sole-source justification is critical.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Broad service description
- Long contract duration without clear justification for sole-source
Tags
other-computer-related-services, department-of-state, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $11.3 million to ORKAND CORPORATION, THE. LABOR HOURS
Who is the contractor on this award?
The obligated recipient is ORKAND CORPORATION, THE.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $11.3 million.
What is the period of performance?
Start: 2005-09-29. End: 2011-03-03.
What specific IT services were procured under this contract, and how do they align with the broad 'Other Computer Related Services' NAICS code?
The specific services procured are not detailed in the provided data. The broad NAICS code 541519, 'Other Computer Related Services,' encompasses a wide range of activities, including computer facilities management, computer disaster recovery services, and computer systems integration design services. Without further documentation, it's impossible to determine the exact nature of the work performed for the Department of State under this contract.
What was the justification for awarding this contract on a non-competitive basis, and did it represent the best value for the government?
The justification for the non-competitive award is not provided. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities of the contractor, or a lack of other responsible sources. Without this justification, it's impossible to assess if the government received the best value or if competition was truly not feasible.
How does the estimated blended hourly rate of $10.25 compare to market rates for similar IT services during the contract period (2005-2011)?
An estimated blended hourly rate of $10.25 is exceptionally low for IT services, especially considering the contract period spanned from 2005 to 2011. Market rates for IT professionals, even for less specialized roles, were generally significantly higher during that timeframe. This low rate could indicate either highly efficient service delivery, a misunderstanding of the labor involved, or potentially an underestimation of the true cost if the scope was not fully captured.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 7799 LEESBURG PIKE 700N, FALLS CHURCH, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,268,058
Exercised Options: $11,268,058
Current Obligation: $11,268,058
Parent Contract
Parent Award PIID: SLMAQM01D0051
IDV Type: IDC
Timeline
Start Date: 2005-09-29
Current End Date: 2011-03-03
Potential End Date: 2011-03-03 00:00:00
Last Modified: 2011-04-06
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