Army awards $7.06M IT support contract to Summit Technical Solutions, LLC for facilities management

Contract Overview

Contract Amount: $7,062,719 ($7.1M)

Contractor: Summit Technical Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-04-21

Contract Duration: 934 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND, HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ON-SITE/ON-CALL, INFORMATION TECHNOLOGY/INFORMATION MANAGEMENT SYSTEMS AND INFRASTRUCTURE SUPPORT SERVICES ON A CONTINGENCY BASIS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to SUMMIT TECHNICAL SOLUTIONS, LLC for work described as: THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND, HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ON-SITE/ON-CALL, INFORMATION TECHNOLOGY/INFORMATION MANAGEMENT SYSTEMS AND INFRASTRUCTURE SUPPORT SERVICES ON A CONTINGENCY BASIS. Key points: 1. Contract focuses on essential IT and infrastructure support for the Army Space and Missile Defense Command. 2. The contract type is Cost Plus Fixed Fee, which can allow for cost overruns if not managed carefully. 3. Awarded via full and open competition after exclusion of sources, indicating a competitive process. 4. Duration of 934 days suggests a medium-term need for these services. 5. The contract is for on-site/on-call support, implying a need for responsive and readily available technical expertise. 6. Geographic location in Alabama is specified for service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this $7.06 million contract requires more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates if not rigorously controlled. Comparing this to similar IT infrastructure support contracts for military commands would provide better insight into whether the pricing reflects fair market value for the services rendered. Without specific deliverables and associated costs, a definitive value assessment is challenging.

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.' This suggests that while the competition was open, certain sources may have been excluded for specific reasons, possibly related to technical capabilities or prior performance. The number of bidders is not specified, but the 'full and open' nature generally implies a competitive environment that should drive better pricing and service quality for the government.

Taxpayer Impact: The competitive award process aims to ensure that taxpayer funds are used efficiently by selecting the best value offer. A well-competed contract helps prevent overpayment and encourages contractors to offer competitive pricing.

Public Impact

The U.S. Army Space and Missile Defense Command benefits from essential IT and infrastructure support services. Ensures the continuity and effectiveness of critical IT systems and infrastructure. Services are delivered on-site and on-call, providing responsive support. The contract supports operations within Alabama, potentially impacting the local IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely monitored.
Exclusion of sources in competition, while potentially justified, warrants scrutiny.
Lack of specific performance metrics makes value assessment difficult.
Reliance on on-call services may indicate potential for unexpected surge requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration indicates a sustained need for these critical services.
Focus on IT infrastructure is vital for military command operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. The federal IT market is vast, with significant spending on infrastructure, software, and services to support agency operations. Contracts like this are crucial for maintaining the operational readiness of military commands. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar-sized military units or agencies, considering factors like scope of services and geographic location.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This means the contract was not specifically targeted towards small businesses, and larger, established firms likely competed. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Summit Technical Solutions, LLC, but are not explicitly mandated by the contract terms provided. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Army Space and Missile Defense Command, with potential involvement from the Department of Defense's Inspector General. Accountability measures are typically embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though detailed performance reports and cost breakdowns may be less publicly accessible. The effectiveness of oversight depends on the rigor of contract management and auditing processes.

Related Government Programs

Army IT Support Services
Information Technology Infrastructure Management
Defense Command IT Services
Contingency IT Support
Computer Facilities Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Competition method ('after exclusion of sources') warrants review of justification for exclusions.
Lack of detailed performance metrics makes value-for-money assessment challenging.
Contractor's past performance history needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to SUMMIT TECHNICAL SOLUTIONS, LLC. THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND, HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ON-SITE/ON-CALL, INFORMATION TECHNOLOGY/INFORMATION MANAGEMENT SYSTEMS AND INFRASTRUCTURE SUPPORT SERVICES ON A CONTINGENCY BASIS.

Who is the contractor on this award?

The obligated recipient is SUMMIT TECHNICAL SOLUTIONS, 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 $7.1 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-04-21.

What is the track record of Summit Technical Solutions, LLC in performing similar IT support contracts for the Department of Defense?

Assessing the track record of Summit Technical Solutions, LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A positive track record with the DoD, particularly in IT infrastructure and facilities management, would indicate a lower risk for this current contract. Conversely, a history of poor performance, missed deadlines, or cost overruns would raise concerns about their ability to meet the requirements of this new award. Without specific past performance data, it is difficult to definitively assess their reliability for this $7.06 million contract.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT support services?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is uncertainty in the costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost growth, as the contractor is incentivized to incur costs to ensure their fee is based on a larger cost base. Other types like Cost Plus Incentive Fee (CPIF) tie the fee to performance metrics. For IT support services where requirements can evolve, CPFF might be chosen, but it necessitates robust government oversight to control costs and ensure value for money, unlike FFP which places cost risk on the contractor.

What are the specific risks associated with the 'full and open competition after exclusion of sources' method for this contract?

The 'full and open competition after exclusion of sources' method, while still competitive, introduces a layer of complexity and potential risk. It implies that the agency identified a need and then, before soliciting bids, decided to exclude certain potential sources. The justification for this exclusion is critical. If the exclusions were arbitrary or not based on legitimate technical or capability requirements, it could limit competition unnecessarily, potentially leading to higher prices or less optimal solutions. The risk lies in ensuring that the exclusions were indeed necessary and that the remaining pool of bidders still provided sufficient competition to achieve fair market value. Transparency regarding the reasons for exclusion is key to mitigating this risk.

What are the potential implications of this contract on the IT workforce in Alabama?

This contract, valued at approximately $7.06 million and located in Alabama, is likely to have a positive impact on the local IT workforce. Summit Technical Solutions, LLC, as the prime contractor, will need to provide on-site/on-call IT and infrastructure support services. This will likely necessitate the hiring or allocation of skilled IT professionals, including system administrators, network engineers, help desk technicians, and potentially cybersecurity specialists, within the geographic area. The duration of the contract (934 days) suggests a sustained need, offering potential for stable employment. Furthermore, if Summit Technical Solutions utilizes local subcontractors, it could create additional job opportunities within the Alabama IT ecosystem.

How does the $7.06 million contract value compare to historical spending on similar IT support services by the Army Space and Missile Defense Command?

To compare the $7.06 million contract value to historical spending, one would need to analyze past contracts awarded by the Army Space and Missile Defense Command (SMDC) for similar IT and infrastructure support services. This analysis should cover a relevant period, such as the last 3-5 years, and identify contracts with comparable scopes of work, durations, and service levels. If SMDC has previously awarded larger or smaller contracts for similar services, it could indicate a trend in their IT support needs or a change in pricing dynamics. A significant deviation from historical spending patterns might warrant further investigation into the reasons, such as increased scope, market inflation, or changes in service delivery models. Without access to this historical data, it's difficult to contextualize the current award's value.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126017R0001

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7150 CAMPUS DR STE 210, COLORADO SPRINGS, CO, 80920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,049,421

Exercised Options: $9,049,421

Current Obligation: $7,062,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126018D0001

IDV Type: IDC

Timeline