Segue Technologies Inc. awarded $28.3M for Air Force software lifecycle support, facing 7 bidders

Contract Overview

Contract Amount: $28,296,735 ($28.3M)

Contractor: Segue Technologies, Inc

Awarding Agency: Department of Defense

Start Date: 2015-12-10

End Date: 2022-02-04

Contract Duration: 2,248 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETCENTS-2, SOFTWARE LIFECYCLE SUPPORT TO THE AFRL ENTERPRISE BUSINESS SYSTEM PROGRAM OFFICE AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB) ENCLAVE OF CAPABILITIES AND THE SOFTWARE TOOLS SUPPORTING THOSE CAPABILITIES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to SEGUE TECHNOLOGIES, INC for work described as: NETCENTS-2, SOFTWARE LIFECYCLE SUPPORT TO THE AFRL ENTERPRISE BUSINESS SYSTEM PROGRAM OFFICE AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB) ENCLAVE OF CAPABILITIES AND THE SOFTWARE TOOLS SUPPORTING THOSE CAPABILITIES. Key points: 1. Contract value of $28.3M over nearly 6 years suggests a moderate annual spend. 2. Full and open competition with 7 bidders indicates a healthy market response. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. The contract supports the Air Force Research Laboratory's enterprise business systems. 5. This award falls within custom computer programming services, a common IT sector. 6. The duration of 2248 days (approx. 6 years) is typical for complex software support.

Value Assessment

Rating: good

The total award of $28.3M over approximately 6 years averages to about $4.7M annually. Benchmarking this against similar custom computer programming services contracts is challenging without more specific service details. However, the presence of 7 bidders suggests competitive pricing was likely achieved. The firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, with seven bidders participating. This level of competition is generally positive, suggesting that multiple vendors were capable and interested in providing the required services. A robust bidding process typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition indicates that taxpayer dollars were likely used efficiently, as vendors competed to offer their best pricing and capabilities. This reduces the risk of overpayment and ensures the government receives good value for its investment.

Public Impact

The primary beneficiaries are the Air Force Research Laboratory (AFRL) and its Enterprise Business System Program Office. Services delivered include software lifecycle support, crucial for maintaining and updating critical business systems. The geographic impact is centered around Wright-Patterson Air Force Base (WPAFB) in Ohio. Workforce implications include the potential for skilled IT professionals to be employed by Segue Technologies, Inc. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by Segue.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical software lifecycle support.

Positive Signals

Award to an established company (Segue Technologies, Inc.) with prior contract experience.
Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially good value.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous companies offering specialized support for government and commercial enterprise systems. The total contract value of $28.3M over its duration places it in the mid-tier range for complex software support contracts. Comparable spending benchmarks would depend on the specific nature of the software and the complexity of its lifecycle management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, Segue Technologies, Inc., is likely a mid-sized or large business, and their subcontracting practices would be determined by their own business strategy and the specific needs of the contract, rather than a government mandate for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force and the relevant contracting officers at Wright-Patterson Air Force Base. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NETCENTS-2 Program
Air Force Enterprise Business Systems
Software Development Services
IT Support Services
Department of Defense IT Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined (though mitigated by FFP).
Risk of vendor lock-in due to specialized knowledge.
Dependence on contractor performance for critical business systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to SEGUE TECHNOLOGIES, INC. NETCENTS-2, SOFTWARE LIFECYCLE SUPPORT TO THE AFRL ENTERPRISE BUSINESS SYSTEM PROGRAM OFFICE AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB) ENCLAVE OF CAPABILITIES AND THE SOFTWARE TOOLS SUPPORTING THOSE CAPABILITIES.

Who is the contractor on this award?

The obligated recipient is SEGUE TECHNOLOGIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2015-12-10. End: 2022-02-04.

What is the track record of Segue Technologies, Inc. in performing similar software lifecycle support contracts for the Department of Defense?

Segue Technologies, Inc. has a history of performing IT services for the U.S. government, including various contracts related to software development, sustainment, and IT support. While specific details on past performance for AFRL's Enterprise Business System Program Office are not provided in this data snippet, their presence as a contractor suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous similar contracts, would provide a more comprehensive understanding of their reliability and capability in delivering complex software lifecycle support.

How does the awarded price of $28.3M compare to market rates for similar custom computer programming services over a 6-year period?

Benchmarking the $28.3M award against market rates for custom computer programming services over approximately six years requires detailed analysis of the specific services rendered, the complexity of the software, and the labor categories involved. The average annual value of approximately $4.7M suggests a significant undertaking. Given that this was a full and open competition with seven bidders, it implies that the price achieved was likely competitive within the market. However, without specific service details and labor rates, a precise comparison to market benchmarks is difficult. Factors such as the level of security clearance required, specialized skills, and the criticality of the systems supported would influence market rates.

What are the primary risks associated with a firm fixed-price contract for software lifecycle support, and how are they mitigated?

A primary risk with firm fixed-price (FFP) contracts for software lifecycle support is that the contractor may face financial losses if costs exceed estimates due to unforeseen technical challenges, scope creep, or inefficient performance. Conversely, the government risks paying a premium if the contractor's estimates are overly conservative. Mitigation strategies include robust initial scope definition, clear performance work statements, and strong government oversight to manage requirements and prevent scope creep. The contractor's own risk management processes, including accurate cost estimation and efficient execution, are also crucial. The competitive nature of the award can also incentivize the contractor to perform efficiently to realize profit.

How effective has the NETCENTS-2 program been in facilitating the procurement of IT services for the Air Force, and does this contract reflect its success?

The NETCENTS-2 (Network-Centric Solutions-2) program was designed to streamline the acquisition of a wide range of network-centric IT services and capabilities for the U.S. Air Force. Its success is generally measured by its ability to provide timely, cost-effective solutions and foster competition. This contract, supporting the AFRL Enterprise Business System Program Office, falls under the umbrella of IT services that NETCENTS-2 aimed to procure. The fact that it was awarded under full and open competition with multiple bidders suggests that NETCENTS-2 was effective in attracting a competitive field for this particular requirement, contributing to the program's objective of efficient procurement.

What is the historical spending pattern for software lifecycle support within the Air Force Research Laboratory (AFRL) or similar enterprise business systems?

Historical spending patterns for software lifecycle support within AFRL or similar enterprise business systems can vary significantly based on the age and complexity of the systems, as well as the pace of technological change and modernization efforts. Without access to specific historical spending data for AFRL's Enterprise Business System Program Office, it's difficult to provide a precise pattern. However, it's common for such systems to require continuous investment in maintenance, updates, security patches, and enhancements over many years. Annual spending can fluctuate based on major upgrade cycles, unforeseen issues, or shifts in strategic priorities. The $28.3M over nearly 6 years represents a sustained investment in ensuring the operational effectiveness of these critical business systems.

What are the implications of this contract being awarded to Segue Technologies, Inc. for the broader IT services market, particularly concerning competition?

The award to Segue Technologies, Inc. for this significant software lifecycle support contract signifies their continued presence and capability within the federal IT services market. For the broader market, it indicates that Segue is a capable competitor for large-scale enterprise IT support. The fact that seven other companies bid on this contract suggests a healthy level of competition for such opportunities, preventing market concentration with a single provider. This competitive landscape encourages innovation and efficiency among all players vying for government contracts, ultimately benefiting the government through better service offerings and pricing.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 2300 WILSON BLVD # 420, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,852,516

Exercised Options: $28,933,165

Current Obligation: $28,296,735

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1009

IDV Type: IDC

Timeline