DoD's $18M IT contract for computer systems design services awarded to Woolpert, Inc. shows fair value
Contract Overview
Contract Amount: $18,047,015 ($18.0M)
Contractor: Woolpert, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-15
End Date: 2013-04-30
Contract Duration: 867 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: S120F10 LABOR - BAA #10-024 TOPIC- AGC-31
Place of Performance
Location: ARLINGTON, ALEXANDRIA (CITY) County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to WOOLPERT, INC. for work described as: S120F10 LABOR - BAA #10-024 TOPIC- AGC-31 Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. Competition was robust, with 2 bids received, suggesting a competitive pricing environment. 3. The contract duration of 867 days (approx. 2.4 years) allowed for sustained service delivery. 4. The award was made under Broad Agency Announcement (BAA) #10-024, often used for research and development. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded by the Department of the Army, a major component of the DoD.
Value Assessment
Rating: fair
The contract's total value of approximately $18 million for computer systems design services appears reasonable given the duration and the nature of IT services. Benchmarking against similar contracts is challenging without more specific details on the scope of work. However, the firm-fixed-price structure suggests that the government secured predictable costs. The number of bids received (2) indicates some level of competition, which generally supports fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Two bids were received, which suggests a moderate level of competition. While more than two bidders would typically indicate stronger price discovery, two bids still provide a basis for comparison and negotiation.
Taxpayer Impact: The full and open competition, even with two bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The Department of the Army benefits from enhanced computer systems design capabilities. This contract supports the delivery of IT services crucial for military operations and administration. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications include potential employment for IT professionals and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bids) may have restricted optimal price discovery.
- The specific scope of 'Computer Systems Design Services' is broad and could encompass a wide range of activities, making direct value comparison difficult.
- The contract was awarded under a Broad Agency Announcement (BAA), which can sometimes be less structured than traditional procurement methods.
Positive Signals
- Awarded under full and open competition, allowing for broad market participation.
- Firm-fixed-price contract type provides cost certainty for the government.
- The contract duration allowed for sustained service delivery and potential for long-term IT infrastructure development.
Sector Analysis
The IT services sector is vast and highly competitive. Contracts for computer systems design services are essential for government agencies to maintain and upgrade their technological infrastructure. This $18 million contract falls within the mid-range for IT service procurements, supporting the Department of Defense's complex operational needs. Comparable spending benchmarks would depend heavily on the specific services rendered, but this award represents a significant investment in IT modernization.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. Large businesses were likely the primary participants in this competition.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Command and Control Systems
- Information Technology Services Contracts
- Broad Agency Announcement Procurements
Risk Flags
- Limited competition may have impacted optimal pricing.
- Scope definition for 'Computer Systems Design Services' is broad and requires further clarification for precise value assessment.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, broad-agency-announcement, mid-size-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to WOOLPERT, INC.. S120F10 LABOR - BAA #10-024 TOPIC- AGC-31
Who is the contractor on this award?
The obligated recipient is WOOLPERT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2010-12-15. End: 2013-04-30.
What was the specific scope of 'Computer Systems Design Services' under this contract?
The provided data does not detail the specific scope of 'Computer Systems Design Services.' This classification (NAICS 541512) broadly covers establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. Services can range from needs assessment and feasibility studies to system design, configuration, and implementation. Without further documentation, it's impossible to ascertain if this contract involved network architecture, software development integration, cybersecurity solutions, or other specialized IT design functions. This ambiguity makes precise value benchmarking difficult.
How does the price of this contract compare to similar IT services contracts awarded by the Department of the Army?
Direct price comparison is challenging without knowing the specific services rendered and the contract's duration relative to its value. The total award of $18,047,015.33 over approximately 2.4 years (867 days) yields an average annual value of roughly $7.5 million. The Department of the Army awards numerous IT contracts, varying significantly in scope and complexity. To perform a robust comparison, one would need to identify contracts with similar NAICS codes (541512), similar contract types (firm-fixed-price), and comparable service levels. The limited competition (2 bids) also suggests that the price might not be as optimized as it could be with more bidders, though it still represents a negotiated outcome.
What are the potential risks associated with a firm-fixed-price contract for computer systems design?
Firm-fixed-price (FFP) contracts are generally preferred for their cost certainty. However, for complex IT design services, risks can emerge. If the scope of work is not precisely defined, the contractor may face unforeseen challenges, potentially leading to cost overruns that they must absorb, or conversely, they might cut corners to maintain profitability. For the government, the risk lies in potentially paying a premium to account for the contractor's risk. If the contractor underestimates the effort required, they might deliver subpar quality or fail to meet all requirements. Conversely, if the government's requirements change significantly, a change order process would be necessary, potentially negating some of the FFP benefits.
What is the significance of this contract being awarded under a Broad Agency Announcement (BAA)?
Awards under Broad Agency Announcements (BAAs) are typically used for basic and applied research and development. They allow agencies to solicit proposals for innovative solutions outside traditional procurement processes. While this contract is classified under 'Computer Systems Design Services' (NAICS 541512), its award via BAA #10-024 suggests it may have had a research or developmental component. BAAs often emphasize technical merit and innovation over strict adherence to pre-defined specifications. This can lead to more flexible contract terms but may also mean less emphasis on traditional cost-competitiveness compared to sealed-bid procurements.
How does the number of bids (2) impact the value for money in this contract?
Receiving only two bids suggests a moderate level of competition. While any competition is generally better than none, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. With only two bidders, the government's negotiating position is somewhat constrained. The price achieved reflects the willingness of these two specific firms to undertake the work under the stated terms. It is possible that with more bidders, a lower price could have been secured, or conversely, the two bidders may have been the only ones capable or interested, making the price fair given the limited pool.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4454 IDEA CENTER BLVD, DAYTON, OH, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,047,015
Exercised Options: $18,047,015
Current Obligation: $18,047,015
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-15
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2012-10-19
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