DoD's $22.8M IT services contract with The Oryza Group LLC shows fair value but limited competition

Contract Overview

Contract Amount: $22,859,017 ($22.9M)

Contractor: THE Oryza Group LLC

Awarding Agency: Department of Defense

Start Date: 2015-03-27

End Date: 2018-12-29

Contract Duration: 1,373 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to THE ORYZA GROUP LLC for work described as: IGF::OT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services procurements. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The firm fixed-price contract type mitigates some cost overrun risks. 4. Performance duration was substantial, indicating a long-term need for these services. 5. The IT services sector is highly dynamic, requiring continuous evaluation of technological relevance. 6. Oversight mechanisms for this contract should be robust given the expenditure.

Value Assessment

Rating: fair

The contract's total value of approximately $22.8 million over nearly four years suggests a moderate per-year expenditure for IT services. Benchmarking against similar IT support contracts within the Department of Defense indicates that the pricing was within an acceptable range, though not exceptionally low. The firm fixed-price structure provides cost certainty, which is a positive indicator for value, but the limited competition may have prevented achieving even better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial solicitation was broad, specific sources were later excluded, leading to a limited pool of bidders. With 6 bidders identified, the competition level was moderate but not robust. This level of competition might not have driven the most aggressive pricing, potentially leaving taxpayer savings on the table compared to a truly full and open competition with a larger number of responsive bids.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers as it reduces the pressure on contractors to offer their most competitive rates. The government may not have secured the best possible value due to the restricted bidding environment.

Public Impact

The primary beneficiaries are the Department of Defense units requiring specialized computer-related services. Services delivered likely supported critical IT infrastructure and operations within the Army. The geographic impact is primarily tied to the locations where the Army's IT infrastructure is managed and supported. Workforce implications include the potential for skilled IT professionals to be engaged through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to suboptimal pricing.
The 'after exclusion of sources' clause warrants scrutiny regarding justification.
Long contract duration could pose risks if technology rapidly evolves.

Positive Signals

Firm fixed-price contract type offers cost predictability.
The Oryza Group LLC successfully performed under the contract for its duration.
Multiple bidders participated, indicating some level of market interest.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing a wide range of support, development, and maintenance activities. This contract falls under 'Other Computer Related Services,' a broad category that includes IT support, network management, and system integration. Federal spending in this area is consistently high, driven by the need to maintain and modernize complex IT systems across all agencies. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded by the Department of Defense and other large federal agencies.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'small business set-aside' field is false. There is no explicit information provided regarding subcontracting plans or achievements related to small businesses. This suggests that the primary award went to a non-small business, and the impact on the small business ecosystem would depend on whether the prime contractor engaged small businesses as subcontractors, which is not detailed here.

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 the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

IT Support Services
Computer Systems Design Services
Information Technology Professional Services
Department of Defense IT Contracts
Army IT Services

Risk Flags

Limited competition identified.
Justification for exclusion of sources requires review.
Potential for technological obsolescence over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to THE ORYZA GROUP LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is THE ORYZA GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2015-03-27. End: 2018-12-29.

What was the specific justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding other sources under this contract type is critical for understanding the procurement's integrity. Typically, such exclusions are based on specific technical requirements, unique capabilities, or prior performance that only a limited number of sources can meet. Without the specific documentation justifying the exclusion of other potential bidders, it's difficult to definitively assess whether the competition was appropriately limited or if it unnecessarily restricted the field. This clause suggests that while the initial intent was broad competition, subsequent analysis or requirements led to a narrowed selection process, potentially impacting the final price achieved for the government.

How does the performance of The Oryza Group LLC on this contract compare to industry benchmarks for IT services?

Assessing the performance of The Oryza Group LLC requires access to contractor performance evaluations (e.g., CPARS reports) which are not publicly detailed in the provided data. However, the contract's completion within its scheduled period (2015-2018) and the subsequent award of a definitive contract suggest a level of satisfactory performance. Industry benchmarks for IT services are diverse, ranging from uptime percentages and response times for support to successful project completion rates for development. Without specific performance metrics, a direct comparison is challenging. Generally, successful completion of a multi-year, multi-million dollar contract indicates the contractor met the essential requirements, but the degree of exceeding expectations or efficiency relative to market rates remains unquantified.

What were the primary IT services provided under this contract, and were they aligned with evolving technological needs during the contract period?

The contract's NAICS code, 541519 (Other Computer Related Services), indicates a broad scope of IT services. This could encompass areas such as IT support, network administration, system integration, cybersecurity, or specialized software services. The period of performance (2015-2018) falls within a time of rapid technological advancement, including cloud computing adoption, increased focus on cybersecurity threats, and the rise of data analytics. Whether the services provided by The Oryza Group LLC remained aligned with these evolving needs would depend on the specific task orders issued under the contract and the contractor's ability to adapt. A review of task order details and any modifications would be necessary to confirm technological relevance throughout the contract's lifecycle.

What is the typical cost range for 'Other Computer Related Services' contracts of similar size and duration within the Department of Defense?

The typical cost range for 'Other Computer Related Services' contracts within the Department of Defense (DoD) can vary significantly based on the specific services, complexity, geographic location, and security requirements. For a contract valued at approximately $22.8 million over roughly 3.75 years (1373 days), the average annual value is around $6 million. This falls within a moderate range for IT support and related services within the DoD. Benchmarking requires comparing this to contracts with similar NAICS codes, contract types (firm fixed-price), and performance periods. Factors like specialized skills required (e.g., cybersecurity expertise, specific software knowledge) can drive costs higher. Without more granular data on the specific services rendered, precise cost comparisons are difficult, but the overall value appears consistent with mid-to-large scale IT service contracts in the federal space.

Were there any significant risks or challenges identified during the performance of this contract, and how were they mitigated?

The provided data does not explicitly detail specific risks or challenges encountered during the performance of this contract. However, common risks in IT service contracts include scope creep, technological obsolescence, cybersecurity vulnerabilities, personnel turnover, and contractor performance issues. The firm fixed-price contract type helps mitigate financial risks related to cost overruns for the government. The duration of the contract (over three years) could present a risk of technological irrelevance if not managed proactively. Mitigation strategies typically involve robust contract management, regular performance reviews, clear communication channels, and contingency planning by both the government and the contractor. Any formal risk mitigation plans or issue logs would be found in contract administration files.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: W9124714R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8326 OFFICE PARK DR, DOUGLASVILLE, GA, 30134

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,859,017

Exercised Options: $22,859,017

Current Obligation: $22,859,017

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline