DoD's $28M Computer Facilities Management Contract with FEDTEC LLC Raises Questions on Value and Competition

Contract Overview

Contract Amount: $28,173,764 ($28.2M)

Contractor: Fedtec LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-01

End Date: 2021-09-30

Contract Duration: 1,855 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 25

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF 30 DAY PHASE-IN/TRANSITION PERIOD

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to FEDTEC LLC for work described as: IGF::CL::IGF 30 DAY PHASE-IN/TRANSITION PERIOD Key points: 1. The contract awarded to FEDTEC LLC for computer facilities management services represents a significant expenditure of $28.17 million. 2. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests potential limitations in the competitive process. 3. The duration of the contract (1855 days) and its firm fixed-price nature warrant scrutiny for potential cost overruns or inefficiencies. 4. The lack of small business participation is noted, potentially limiting broader economic impact. 5. The sector is IT services, specifically computer facilities management, a critical but often complex area for government procurement.

Value Assessment

Rating: questionable

The contract's value of $28.17 million for computer facilities management services needs further benchmarking against similar contracts. The firm fixed-price structure aims for cost certainty, but the specific services and performance metrics are crucial for assessing true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicates that while competition was sought, it was not entirely unrestricted. This approach can sometimes lead to higher prices if the pool of eligible bidders is artificially narrowed.

Taxpayer Impact: The total value of $28.17 million represents taxpayer funds. The effectiveness of the competition and the final price paid will determine the overall taxpayer impact.

Public Impact

Taxpayers may be paying more than necessary due to a potentially limited competitive landscape. The long contract duration could mean the services provided are not keeping pace with technological advancements. Lack of small business involvement means fewer opportunities for smaller, potentially innovative companies to serve the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
No small business participation

Positive Signals

Firm fixed-price contract structure

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer facilities management services. Benchmarks for similar contracts are essential to determine if the $28.17 million expenditure is reasonable for the scope of work and duration.

Small Business Impact

The contract data indicates that small businesses were not involved (ss: false, sb: false). This suggests a missed opportunity to leverage the capabilities of small businesses in the IT services sector and potentially achieve better value or innovation.

Oversight & Accountability

The contract's long duration and specific competition method warrant thorough oversight to ensure accountability and that the services remain relevant and cost-effective throughout its term. Regular performance reviews are critical.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may have inflated costs.
Long contract duration risks service obsolescence.
No small business participation noted.
Lack of detailed service scope hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to FEDTEC LLC. IGF::CL::IGF 30 DAY PHASE-IN/TRANSITION PERIOD

Who is the contractor on this award?

The obligated recipient is FEDTEC 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 $28.2 million.

What is the period of performance?

Start: 2016-09-01. End: 2021-09-30.

What specific computer facilities management services were included in this $28.17 million contract, and how do they align with current industry standards and the Army's evolving needs?

The provided data does not detail the specific services rendered under the contract. Understanding the scope, such as network management, data center operations, or hardware maintenance, is crucial. Without this detail, it's difficult to assess if the $28.17 million was a fair price or if the services remained relevant over the 1855-day period, especially given the rapid pace of technological change in IT.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process impact the final price and the range of potential vendors for these computer facilities management services?

This procurement method suggests that while the initial intent was open competition, certain sources were excluded before the final bidding stage. This exclusion could have limited the number of qualified bidders, potentially reducing competitive pressure and leading to a higher final price than if the competition had been truly unrestricted. Further analysis of the exclusion rationale is needed.

What is the justification for the absence of small business participation in a contract of this magnitude within the IT services sector?

The lack of small business participation (sb: false) in a $28.17 million contract is a significant point. Government policy often encourages small business involvement. Understanding why no small businesses were considered or awarded a subcontract is important for assessing compliance with small business goals and for identifying potential barriers that may prevent smaller, innovative firms from competing for large federal contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124J16R0045

Offers Received: 25

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 PENNSYLVANIA AVE NW, 4TH FLOOR, ET OFF.NO. 4056, WASHINGTON, DC, 20037

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $38,128,368

Exercised Options: $30,280,185

Current Obligation: $28,173,764

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline