DoD awards $30.5M for Army development services to Data Networks, Inc
Contract Overview
Contract Amount: $30,531,937 ($30.5M)
Contractor: Data Networks, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-19
End Date: 2016-06-18
Contract Duration: 1,368 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF BASE PERIOD - DEVELOPMENT SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to DATA NETWORKS, INC. for work described as: IGF::OT::IGF BASE PERIOD - DEVELOPMENT SERVICES Key points: 1. Contract awarded for Computer Systems Design Services (NAICS 541512). 2. Data Networks, Inc. is the sole awardee. 3. The contract spans over 3 years with a base period value of $30.5M. 4. This award falls under the IT sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The base period value of $30.5M for development services over 3 years suggests a moderate investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a limited competition. This method may not have resulted in the most competitive pricing.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $30.5M awarded.
Public Impact
Army's need for computer systems design services is met. Potential for cost inefficiencies due to contract type and limited competition. Taxpayer funds are allocated for critical IT infrastructure development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Lack of transparency in the exclusion of sources.
Positive Signals
- Award addresses a specific need for development services.
- Contract has a defined period of performance.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Benchmarks for similar contracts would be needed to assess value, but the limited competition is a red flag.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The contract was awarded under the Department of Defense, suggesting existing oversight mechanisms. However, the limited competition and contract type warrant scrutiny to ensure accountability and prevent waste.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of transparency in source exclusion.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to DATA NETWORKS, INC.. IGF::OT::IGF BASE PERIOD - DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is DATA NETWORKS, 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 $30.5 million.
What is the period of performance?
Start: 2012-09-19. End: 2016-06-18.
What specific development services were procured, and how do they align with the Army's strategic IT goals?
The contract specifies 'Computer Systems Design Services' under NAICS 541512. While essential for IT infrastructure, the exact nature of these development services and their alignment with the Army's long-term strategic IT objectives requires further detail. Understanding the specific deliverables and their impact on modernization efforts would provide better insight into the value proposition.
What was the justification for excluding other sources, and was this exclusion truly necessary for the Army's needs?
The justification for excluding other sources is critical given the 'limited competition' award. Without a clear rationale, such as unique capabilities or urgent requirements, this exclusion raises concerns about fair opportunity and potentially inflated costs. A thorough review of the exclusion justification is necessary to ensure it was warranted and served the government's best interest.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the taxpayer?
The Cost Plus Fixed Fee (CPFF) contract type necessitates robust oversight to manage costs effectively. The government must diligently monitor expenditures and ensure that the fixed fee remains appropriate for the services rendered. Without strong program management and auditing, CPFF contracts can lead to cost overruns, diminishing the value received by taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,630,465
Exercised Options: $30,880,839
Current Obligation: $30,531,937
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0616Z
IDV Type: GWAC
Timeline
Start Date: 2012-09-19
Current End Date: 2016-06-18
Potential End Date: 2016-12-18 00:00:00
Last Modified: 2022-09-23
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