DOD Awards $17.5M for CO Location Hosting Services to Planned Systems International Inc
Contract Overview
Contract Amount: $17,467,781 ($17.5M)
Contractor: Planned Systems International Inc
Awarding Agency: Department of Defense
Start Date: 2010-09-30
End Date: 2015-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CO LOCATION HOSTING SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.5 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: CO LOCATION HOSTING SERVICES Key points: 1. The contract value is $17.5 million over 5 years. 2. Planned Systems International Inc. is the sole awardee. 3. The contract type is Firm Fixed Price, indicating clear cost expectations. 4. The NAICS code 541519 suggests a broad range of computer-related services.
Value Assessment
Rating: fair
The contract value of $17.5M over 5 years averages $3.5M annually. Benchmarking this against similar hosting services contracts is difficult without more specific service details, but it appears to be within a reasonable range for comprehensive IT infrastructure support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary hosting services.
Public Impact
Ensures continued IT infrastructure support for Department of the Army operations. Supports a specific vendor, Planned Systems International Inc., for a defined period. The fixed-price nature provides budget certainty for the agency. The broad NAICS code may encompass a wide array of services, requiring careful monitoring of deliverables.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in despite initial competition.
- Broad NAICS code could lead to scope creep if not managed.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on hosting and related computer services. Spending benchmarks for IT hosting can vary widely based on scale, security requirements, and service level agreements. The $17.5M over 5 years suggests a significant, ongoing requirement.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Therefore, it is unclear what, if any, portion of this contract value is directed towards small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers, program managers, and potentially inspectors general to ensure compliance and performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of technological obsolescence.
- Cybersecurity vulnerabilities.
- Scope creep due to broad NAICS code.
- Dependence on a single awardee for critical services.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to PLANNED SYSTEMS INTERNATIONAL INC. CO LOCATION HOSTING SERVICES
Who is the contractor on this award?
The obligated recipient is PLANNED SYSTEMS INTERNATIONAL 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 $17.5 million.
What is the period of performance?
Start: 2010-09-30. End: 2015-09-29.
What specific hosting services are included under NAICS 541519, and how do they align with the Army's operational needs?
NAICS code 541519, 'Other Computer Related Services,' is broad and can encompass a wide range of IT support, including data center hosting, cloud services, network management, and IT consulting. For the Army, these services likely support critical command and control systems, data storage, and application hosting essential for military operations. The specific alignment would depend on the detailed statement of work within the contract, ensuring it meets the unique security and performance demands of defense applications.
Given the 5-year duration and $17.5M value, what are the primary risks associated with this hosting services contract?
Key risks include potential vendor lock-in, where switching providers becomes difficult or costly. Technological obsolescence is another risk; the services must remain current with evolving IT standards. Performance degradation or failure to meet service level agreements could impact Army operations. Furthermore, cybersecurity threats are a constant concern for hosting sensitive government data, requiring robust security measures from the contractor.
How effective is a full and open competition for IT hosting services in ensuring long-term value and cost savings for the government?
Full and open competition is generally effective in driving initial cost savings and encouraging innovation by allowing a wide range of vendors to compete. However, for long-term IT hosting, effectiveness can be challenged by the need for specialized knowledge, potential vendor lock-in, and the rapid pace of technological change. Continuous market analysis and performance monitoring are crucial to ensure sustained value beyond the initial competitive award.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10632 LITTLE PATUXENT PKW, COLUMBIA, MD, 21044
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $34,247,693
Exercised Options: $17,467,781
Current Obligation: $17,467,781
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4649G
IDV Type: FSS
Timeline
Start Date: 2010-09-30
Current End Date: 2015-09-29
Potential End Date: 2015-09-29 00:00:00
Last Modified: 2021-12-09
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