DoD's $80M Desktop Support Contract with TEKSYNAP Corporation Faces Scrutiny Amidst Fair Competition Concerns

Contract Overview

Contract Amount: $80,090,406 ($80.1M)

Contractor: Teksynap Corporation

Awarding Agency: Department of Defense

Start Date: 2022-02-05

End Date: 2024-02-04

Contract Duration: 729 days

Daily Burn Rate: $109.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8508794557!TASK 4 END USER/DESKTOP SUPPO

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $80.1 million to TEKSYNAP CORPORATION for work described as: 8508794557!TASK 4 END USER/DESKTOP SUPPO Key points: 1. The contract awarded to TEKSYNAP Corporation for $80,009,046.19 represents a significant investment in end-user and desktop support services for the Department of Defense. 2. While the contract was awarded under 'Full and Open Competition', the specific details of the bidding process and the number of bids received are crucial for assessing true market competitiveness. 3. Potential risks include over-reliance on a single vendor for critical IT support, which could lead to price escalations or service disruptions if not managed effectively. 4. The 'Other Computer Related Services' NAICS code (541519) encompasses a broad range of IT services, making direct sector benchmarks challenging without further detail on the specific services provided.

Value Assessment

Rating: fair

The contract's total value of $80,009,046.19 over two years suggests a substantial price point. Benchmarking against similar large-scale IT support contracts within the DoD or other federal agencies is necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating an intention to solicit bids from all responsible sources. However, the number of bids received and the evaluation criteria are key to understanding the effectiveness of this competition in driving down costs and ensuring value.

Taxpayer Impact: The significant expenditure of taxpayer funds necessitates rigorous oversight to ensure that the competition yielded the best possible price and service for the government.

Public Impact

Military personnel and civilian employees rely on consistent and effective desktop support for daily operations. The contract's duration and value suggest a widespread impact across various DoD installations. Any disruption in these services could impact readiness and operational efficiency. The use of taxpayer dollars for these services requires transparency and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bid count for 'Full and Open Competition'
Broad NAICS code limits precise benchmarking
Potential for vendor lock-in over contract duration

Positive Signals

Awarded under 'Full and Open Competition'
Firm Fixed Price contract type provides cost certainty
Long-term contract allows for stable service provision

Sector Analysis

The IT services sector, particularly end-user and desktop support, is a critical component of government operations. Spending benchmarks for similar contracts within the Department of Defense can vary widely based on scope, duration, and specific service level agreements.

Small Business Impact

The data 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 in this contract.

Oversight & Accountability

Oversight of this contract by the Defense Logistics Agency is crucial to ensure that TEKSYNAP Corporation meets all performance requirements and that the pricing remains competitive throughout the contract's life. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of specific bid count for 'Full and Open Competition'
Broad NAICS code limits precise benchmarking
Potential for vendor lock-in over contract duration
Absence of detailed performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.1 million to TEKSYNAP CORPORATION. 8508794557!TASK 4 END USER/DESKTOP SUPPO

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 $80.1 million.

What is the period of performance?

Start: 2022-02-05. End: 2024-02-04.

What was the total number of bids received under the 'Full and Open Competition' for this contract, and how did the winning bid compare to others?

The provided data does not specify the number of bids received. Understanding the competitive landscape is vital. If only a few bids were submitted, or if the winning bid was significantly higher than others, it could indicate potential issues with the competition's effectiveness or the initial price negotiation, impacting overall value for the taxpayer.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract, and how is TEKSYNAP Corporation's performance being monitored?

The data does not detail specific performance metrics or SLAs. Effective oversight requires clear, measurable performance standards and regular monitoring by the Defense Logistics Agency. Without this, it's difficult to assess if the government is receiving the expected quality of service and value for the $80 million investment.

How does the $80 million contract value compare to industry benchmarks for similar end-user/desktop support services provided to large federal agencies?

Benchmarking this $80 million contract requires detailed comparison with similar-sized contracts for end-user and desktop support within the federal government, particularly the DoD. Factors like the number of users supported, geographic scope, and specific services offered (e.g., hardware maintenance, software support, cybersecurity) are critical for an accurate assessment of value.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470921Q0020

Offers Received: 117

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: $91,201,534

Exercised Options: $81,914,163

Current Obligation: $80,090,406

Actual Outlays: $25,095,658

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $25,273,748

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