DoD's $31M contract for IT sustainment and development support awarded to ASRC Federal Data Network Technologies, LLC

Contract Overview

Contract Amount: $31,083,119 ($31.1M)

Contractor: Asrc Federal Data Network Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2016-06-16

End Date: 2019-09-30

Contract Duration: 1,201 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF MSAT/TMDS/TMDG SUSTAINMENT&DEVELOPMENT SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC for work described as: IGF::CT::IGF MSAT/TMDS/TMDG SUSTAINMENT&DEVELOPMENT SUPPORT Key points: 1. The contract value of $31.1 million over approximately three years suggests a moderate investment in IT sustainment and development. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources,' indicating a potentially competitive process with specific source exclusions. 3. The contract type is 'Firm Fixed Price,' which shifts cost risk to the contractor and provides budget certainty. 4. Performance occurred over 1201 days, suggesting a long-term need for these IT services. 5. The award was a Delivery Order under a larger contract, implying it's part of a broader IT services framework. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services, a common area for IT support.

Value Assessment

Rating: fair

Benchmarking the value of this $31.1 million contract requires more context on the specific services rendered and the duration. However, for IT sustainment and development support over three years, the average annual value is approximately $10.3 million. This figure needs to be compared against similar contracts for comparable services within the Department of Defense or other federal agencies to determine if it represents good value for money. Without specific performance metrics or detailed service breakdowns, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, certain sources were excluded from bidding. The exact reasons for these exclusions are not detailed, but it could be due to specific technical requirements, prior performance, or other programmatic considerations. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests it may not have been as wide as a purely 'full and open' competition.

Taxpayer Impact: The exclusion of certain sources, even in a nominally open competition, could potentially limit price discovery and may result in higher costs for taxpayers if the remaining pool of bidders is smaller or less competitive.

Public Impact

The primary beneficiaries of this contract are the Department of Defense, specifically the Defense Health Agency, which relies on sustained and developed IT systems. The services delivered likely include maintenance, upgrades, and potentially new development for critical IT infrastructure supporting military health operations. The geographic impact is likely concentrated within DoD facilities and operations, potentially supporting personnel and operations globally. Workforce implications include the employment of IT professionals by ASRC Federal Data Network Technologies, LLC, and potentially by subcontractors, to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type warrants further investigation to ensure fair market access and optimal pricing.
Lack of detailed performance metrics makes it difficult to fully assess the contractor's effectiveness and value delivered.
The fixed-price nature, while offering budget certainty, could incentivize cost-cutting that might impact service quality if not closely monitored.

Positive Signals

The 'Firm Fixed Price' contract type provides clear cost expectations and transfers risk to the contractor.
The contract duration of over 1200 days indicates a sustained need and potentially a stable IT support environment.
Awarding to ASRC Federal Data Network Technologies, LLC, suggests a contractor with established capabilities in the federal IT sector.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT sector is characterized by rapid innovation and significant government spending, particularly within defense and healthcare. The market size for federal IT services is substantial, with agencies constantly seeking to modernize infrastructure, enhance cybersecurity, and improve data management. This contract likely supports the Defense Health Agency's efforts to maintain and evolve its complex IT systems, which are essential for healthcare delivery and operational readiness.

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 specifically mandated for small businesses through a set-aside program. However, the prime contractor, ASRC Federal Data Network Technologies, LLC, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own business practices and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency's contracting and program management offices. As a Delivery Order under a larger contract, it likely adheres to the oversight mechanisms established for the parent contract. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the 'Firm Fixed Price' terms and performance expectations, with potential for corrective actions if performance deviates significantly. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD IT Modernization Programs
Defense Health Information Systems
Federal Civilian IT Services
IT Infrastructure Support Contracts
Computer Systems Design Services

Risk Flags

Competition Type: 'Exclusion of Sources' warrants scrutiny.
Performance Data: Lack of detailed metrics hinders full value assessment.
Contract Type Risk: Potential for quality compromise in FFP if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC. IGF::CT::IGF MSAT/TMDS/TMDG SUSTAINMENT&DEVELOPMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2016-06-16. End: 2019-09-30.

What specific IT systems or platforms does this contract support for the Defense Health Agency?

The contract, identified by the description 'IGF::CT::IGF MSAT/TMDS/TMDG SUSTAINMENT&DEVELOPMENT SUPPORT,' suggests support for systems related to Medical Surveillance, Tracking, and Analysis (MSAT), Theater Medical Data Store (TMDS), and Theater Medical Data Gateway (TMDG). These systems are crucial for managing health data, patient tracking, and medical logistics within military operational environments. The sustainment and development support would encompass ensuring these platforms remain operational, secure, and potentially updated with new functionalities to meet evolving military healthcare needs.

How does the pricing of this $31.1 million contract compare to similar IT sustainment contracts within the DoD?

A direct comparison of the $31.1 million total value is difficult without knowing the exact scope and duration of services. However, the average annual value of approximately $10.3 million ($31.1M / ~3 years) can be used as a preliminary benchmark. To assess pricing, this figure should be compared against contracts for similar Computer Systems Design Services (NAICS 541512) awarded by the Defense Health Agency or other DoD entities over comparable periods. Factors like the complexity of the systems supported, the level of technical expertise required, and the specific deliverables will heavily influence price variations. A detailed analysis would involve examining contract line item numbers (CLINs) and labor rates if available.

What are the primary risks associated with a 'Firm Fixed Price' contract for IT sustainment and development?

The primary risk with a Firm Fixed Price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed initial estimates. For IT sustainment and development, this could manifest as delayed updates, inadequate testing, or reduced support responsiveness. Conversely, the government risks paying a premium if the contractor's actual costs are significantly lower than anticipated. Effective oversight, clear performance metrics, and robust acceptance criteria are crucial to mitigate these risks and ensure the government receives the intended value and quality of services.

What does 'Full and Open Competition After Exclusion of Sources' imply about the competitive landscape for this contract?

This contract type suggests that the initial solicitation was intended for all responsible sources ('Full and Open Competition'). However, specific sources were subsequently excluded from bidding. The reasons for exclusion are not provided but could stem from requirements for specialized knowledge, prior performance issues with certain contractors, or specific security clearances. While it aimed for broad competition, the exclusion narrows the field, potentially impacting the number of bids received and the intensity of price competition. This could lead to less favorable pricing for the government compared to a truly unrestricted full and open competition.

What is the historical spending trend for similar IT sustainment and development support within the Defense Health Agency?

Analyzing historical spending trends for similar IT sustainment and development support within the Defense Health Agency (DHA) would require access to historical contract data beyond this single award. Generally, the DHA, like other major DoD components, has seen consistent and significant investment in IT infrastructure and services to support its vast healthcare mission. Spending in this area is often driven by the need to maintain legacy systems while simultaneously adopting new technologies for data analytics, telehealth, and electronic health records. Trends likely show a steady demand, with potential increases tied to major system modernization initiatives or evolving cybersecurity threats.

How does the contractor, ASRC Federal Data Network Technologies, LLC, perform on other federal contracts, particularly within the DoD?

Assessing the performance of ASRC Federal Data Network Technologies, LLC, on other federal contracts, especially within the DoD, would involve reviewing their past performance ratings in federal procurement databases (e.g., Contractor Performance Assessment Reporting System - CPARS). A positive track record with similar IT services, timely delivery, and adherence to budget on previous contracts would indicate a lower risk for this award. Conversely, a history of performance issues, cost overruns, or missed deadlines on comparable contracts would raise concerns about their ability to successfully execute this $31.1 million agreement effectively.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,643,480

Exercised Options: $35,643,480

Current Obligation: $31,083,119

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,841,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200127W

IDV Type: GWAC

Timeline