DoD's $34M Enterprise Service Delivery contract awarded to TEKSYNAP CORPORATION shows fair value with 7 bidders

Contract Overview

Contract Amount: $34,058,225 ($34.1M)

Contractor: Teksynap Corporation

Awarding Agency: Department of Defense

Start Date: 2019-02-05

End Date: 2022-02-04

Contract Duration: 1,095 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE SERVICE DELIVERY - CTA PORTION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to TEKSYNAP CORPORATION for work described as: ENTERPRISE SERVICE DELIVERY - CTA PORTION Key points: 1. The contract demonstrates a competitive landscape with 7 bidders, suggesting a healthy market for enterprise service delivery. 2. TEKSYNAP CORPORATION secured this contract through full and open competition, indicating a robust bidding process. 3. The fixed-price nature of the contract provides cost certainty for the Defense Logistics Agency. 4. Performance is situated in Virginia, potentially impacting the local IT services sector. 5. The contract's duration of 1095 days (3 years) allows for sustained service delivery. 6. The NAICS code 541519 suggests a focus on broader computer-related services beyond specialized IT functions.

Value Assessment

Rating: good

While specific performance metrics are not detailed, the contract's award under full and open competition with 7 bidders suggests a competitive pricing environment. The firm fixed-price structure further supports value by capping costs. Benchmarking against similar enterprise service delivery contracts would provide a more precise value assessment, but the competitive award indicates a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 7 bidders indicates a significant level of interest and competition within the market for these enterprise services. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of capable providers.

Taxpayer Impact: The robust competition suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best value. This competitive pressure helps to drive down costs and improve the quality of services received by the government.

Public Impact

The Department of Defense benefits from enterprise-level IT services, enhancing operational efficiency. TEKSYNAP CORPORATION, as the awardee, will deliver critical computer-related services. The contract's geographic impact is focused on Virginia, potentially supporting local IT jobs and businesses. The delivery order structure implies ongoing service needs within the Defense Logistics Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Dependence on a single contractor for critical enterprise services could pose a risk if performance falters.
The broad NAICS code (541519) might encompass a wide range of services, requiring careful oversight to ensure scope alignment.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty.
Multiple bidders (7) suggest a healthy vendor landscape.
The contract duration allows for stable service provision.

Sector Analysis

This contract falls within the broader IT services sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category often includes services like IT consulting, system integration, and IT support that are not elsewhere classified. The federal IT services market is substantial, with agencies like the Defense Logistics Agency being significant consumers of these services to maintain and modernize their operations. Comparable spending benchmarks would typically be found within IT services procurement data for large federal agencies.

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 mandated by a set-aside. However, the prime contractor, TEKSYNAP CORPORATION, may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Logistics Agency (DLA) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Defense Logistics Agency IT Support Services
Enterprise Resource Planning (ERP) Systems Support
IT Consulting and Integration Services
Department of Defense Information Technology Contracts

Risk Flags

Potential for scope creep due to broad NAICS code.
Contractor performance risk.
Dependence on single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to TEKSYNAP CORPORATION. ENTERPRISE SERVICE DELIVERY - CTA PORTION

Who is the contractor on this award?

The obligated recipient is TEKSYNAP CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2019-02-05. End: 2022-02-04.

What is TEKSYNAP CORPORATION's track record with federal contracts, particularly with the Department of Defense?

TEKSYNAP CORPORATION has a history of receiving federal contracts, including those with the Department of Defense. Analyzing their past performance on similar contracts, including on-time delivery, quality of service, and adherence to budget, is crucial. While this specific contract award indicates they were deemed capable, a deeper dive into their contract history, including any past performance issues or awards of excellence, would provide a more comprehensive understanding of their reliability and expertise. Information from sources like the Federal Procurement Data System (FPDS) can reveal the volume and types of contracts they have held, as well as their performance ratings on those contracts, if available.

How does the awarded price of $34,058,224.68 compare to market rates for similar enterprise service delivery contracts?

Benchmarking this contract's total value against similar enterprise service delivery contracts awarded by the Department of Defense or other large federal agencies is essential for assessing value for money. Factors such as contract duration (1095 days), scope of services (NAICS 541519 - Other Computer Related Services), and the number of bidders (7) provide context. A firm fixed-price contract awarded under full and open competition with multiple bidders generally suggests a competitive price. However, without access to detailed pricing structures or a database of comparable contract values, a precise comparison is difficult. Analysis would involve looking at per-unit costs if applicable, or total contract value relative to service levels and duration for similar procurements.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance issues by the contractor, scope creep, or over-reliance on a single vendor for critical services. Given the 'Other Computer Related Services' NAICS code, the breadth of services could lead to misunderstandings or unmet expectations if not clearly defined. Mitigation strategies typically involve robust contract management by the Defense Logistics Agency, including performance monitoring, regular reviews, and clear communication channels. The firm fixed-price nature helps mitigate cost overrun risks for the government. However, specific risk mitigation plans documented within the contract or agency oversight procedures would offer a more detailed assessment.

How effective has the Defense Logistics Agency been in managing enterprise service delivery contracts of this nature?

Assessing the effectiveness of DLA's contract management requires examining their historical performance on similar contracts. This includes their ability to define clear requirements, monitor contractor performance against those requirements, manage contract modifications, and ensure timely delivery of services. The fact that this contract was awarded under full and open competition with 7 bidders suggests a well-defined procurement process. However, ongoing effectiveness would be judged by the contractor's actual performance, the achievement of program objectives, and the absence of significant disputes or contract breaches. Reviewing DLA's procurement success rates and contract close-out data could provide further insights.

What are the historical spending patterns for enterprise service delivery within the Defense Logistics Agency or similar DoD components?

Analyzing historical spending patterns for enterprise service delivery within DLA and the broader DoD is crucial for context. This involves examining trends in contract awards, total spending over time, and the types of services procured. Understanding whether spending has increased, decreased, or remained stable can indicate evolving needs or strategic shifts. Comparing spending on contracts like this one to previous years or similar contracts awarded to different vendors can reveal patterns in vendor selection and pricing. Such analysis helps in forecasting future needs and budgeting effectively, ensuring that current spending aligns with historical norms or justifiable deviations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470918Q0054

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 ORACLE WAY, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,058,225

Exercised Options: $34,058,225

Current Obligation: $34,058,225

Actual Outlays: $11,340,938

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,938,097

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0017

IDV Type: IDC

Timeline