DoD's $17M IT support contract with Choisys Technology Inc. awarded via full and open competition

Contract Overview

Contract Amount: $17,044,773 ($17.0M)

Contractor: Choisys Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2020-08-17

End Date: 2024-08-16

Contract Duration: 1,460 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LIFELONG LEARNING CENTER (LLC) TECHNICAL SUPPORT SERVICES

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to CHOISYS TECHNOLOGY INC. for work described as: LIFELONG LEARNING CENTER (LLC) TECHNICAL SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and 4-year duration. 2. Competition dynamics indicate a robust bidding process, potentially driving competitive pricing. 3. Risk indicators are moderate, with a firm-fixed-price contract and established contractor. 4. Performance context is within IT technical support services, a common government need. 5. Sector positioning is within IT services, a significant area of federal spending.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) nature suggests a degree of cost control. While specific benchmarks for 'Computer Facilities Management Services' are difficult to ascertain without more granular data, the total award value of approximately $17 million over four years indicates a moderate annual spend. Comparing this to similar IT support contracts within the Department of Defense or other federal agencies would provide a clearer picture of value for money. The number of bidders (11) also suggests a competitive environment that likely influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 11 bidders suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions being considered.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that the government is receiving services at a price that reflects market conditions.

Public Impact

The Department of Defense benefits from reliable technical support for its computer facilities. Services delivered include computer facilities management, ensuring operational continuity. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment opportunities for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the firm-fixed-price structure.
Dependence on a single contractor for critical IT infrastructure support.
Ensuring continued relevance of technical skills to evolving DoD IT needs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multiple bidders indicate a competitive market for these services.
Contract duration of four years allows for stability and potential for contractor expertise development.

Sector Analysis

The federal IT services market is substantial, with agencies consistently seeking support for complex computing environments. This contract for computer facilities management falls within the broader IT services sector, which includes areas like network management, cybersecurity, and help desk support. Comparable spending benchmarks for similar IT support contracts within the Department of Defense can range widely based on scope and duration, but this $17 million award over four years represents a significant, yet not extraordinary, investment for specialized technical services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Choisys Technology Inc., is likely a larger entity or a small business that won through full and open competition. There is no explicit information on subcontracting plans, but under full and open competition, there is less emphasis on mandatory small business subcontracting goals compared to set-aside contracts. The impact on the small business ecosystem is neutral to potentially negative if larger firms dominate the bidding and execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is facilitated through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Design Services
Information Technology Professional Services
Defense Information Technology Contracting

Risk Flags

Potential for reduced competition due to 'Exclusion of Sources' clause.
Need for ongoing monitoring to prevent scope creep in FFP contract.
Ensuring contractor maintains up-to-date technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to CHOISYS TECHNOLOGY INC.. LIFELONG LEARNING CENTER (LLC) TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHOISYS TECHNOLOGY 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 $17.0 million.

What is the period of performance?

Start: 2020-08-17. End: 2024-08-16.

What is the track record of Choisys Technology Inc. with the Department of Defense?

Choisys Technology Inc. has a history of contracting with the Department of Defense, as evidenced by this award. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes, and the overall value and duration of previous DoD contracts. A consistent record of successful performance, timely delivery, and adherence to contract terms would indicate a reliable contractor. Conversely, a history of performance issues, contract disputes, or significant cost overruns would raise concerns about their capability to execute this current $17 million contract effectively over its four-year term.

How does the $17 million award compare to similar IT support contracts within the DoD?

Benchmarking this $17 million contract against similar IT support contracts within the DoD requires access to a broader dataset of federal procurement information. Factors such as the specific services provided (e.g., help desk, network management, cybersecurity), the duration of the contract (4 years), and the specific branch of the military or agency awarding the contract are crucial for a meaningful comparison. Generally, IT support contracts can range from a few million to hundreds of millions of dollars. The firm-fixed-price structure and the 11 bidders suggest this award is likely competitive. However, without specific comparable contract data, it's challenging to definitively state if $17 million represents a high, low, or average spend for this type of service over a four-year period within the DoD.

What are the primary risks associated with this firm-fixed-price contract for computer facilities management?

The primary risks associated with this firm-fixed-price (FFP) contract for computer facilities management revolve around potential scope creep and the contractor's ability to manage costs effectively. While FFP provides cost certainty for the government, it places the cost risk on the contractor. If the scope of work expands beyond what was initially defined, and this is not managed through formal contract modifications, the contractor may incur losses or attempt to cut corners on quality. Conversely, if the contractor underestimates the effort or encounters unforeseen technical challenges, they bear the financial burden. For the government, the risk lies in ensuring the contractor maintains service quality and meets all performance requirements within the fixed price, especially as technology evolves over the four-year period.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers is nuanced. The 'Full and Open' aspect is positive, as it allows all responsible sources to submit offers, fostering competition that typically drives down prices and improves quality. However, the 'Exclusion of Sources' clause introduces a potential limitation. If the exclusion is based on arbitrary or unjustified reasons, it could inadvertently reduce competition and potentially lead to higher prices or less optimal solutions. The key to value for taxpayers lies in the justification for excluding sources; if the exclusions are based on legitimate, documented reasons (e.g., specific security clearances, unique capabilities, or prior performance issues with certain vendors), then the competition remains robust and valuable. If the exclusions are not well-justified, it could diminish the competitive benefit.

What are the implications of this contract's duration (4 years) on IT service delivery and cost?

A four-year duration for this IT technical support contract offers several implications for both service delivery and cost. For service delivery, a longer term allows the contractor, Choisys Technology Inc., to develop deeper expertise in the specific systems and infrastructure they are supporting, potentially leading to more efficient operations and proactive problem-solving. It also provides stability for the government's IT operations, reducing the disruption associated with frequent contract transitions. From a cost perspective, a longer contract can sometimes lead to better pricing due to economies of scale and the contractor's ability to amortize startup costs over a longer period. However, it also locks the government into a specific provider and set of services for an extended time, potentially missing out on newer technologies or more cost-effective solutions that might emerge during the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911S020R0006

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20098 ASHBROOK PL STE 160, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,335,590

Exercised Options: $17,335,590

Current Obligation: $17,044,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline