Army awards $5.6M for IT support services to Summit Technical Solutions, LLC

Contract Overview

Contract Amount: $5,582,824 ($5.6M)

Contractor: Summit Technical Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-22

End Date: 2026-04-21

Contract Duration: 729 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: IT

Official Description: THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND (USASMDC), HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ONSITE, REMOTE AND ON-CALL, ENTERPRISE/SECURITY SYSTEMS TECHNICAL SUPPORT AND ADMINISTRATION 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 $5.6 million to SUMMIT TECHNICAL SOLUTIONS, LLC for work described as: THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND (USASMDC), HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ONSITE, REMOTE AND ON-CALL, ENTERPRISE/SECURITY SYSTEMS TECHNICAL SUPPORT AND ADMINISTRATION SERVICES ON A CONTINGENCY BASIS. Key points: 1. Contract focuses on enterprise/security systems technical support and administration. 2. Services will be provided onsite, remotely, and on-call. 3. The contract is for a base period of 729 days. 4. This is a delivery order under a larger contract. 5. The contract type is Cost No Fee. 6. The contractor, Summit Technical Solutions, LLC, is based in Alabama.

Value Assessment

Rating: fair

The total award amount is $5,582,823.93. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The Cost No Fee contract type suggests the government is reimbursing costs plus a fixed fee, which can sometimes lead to less incentive for cost control by the contractor compared to fixed-price contracts. Benchmarking against similar IT support contracts for enterprise and security systems would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation was open, specific sources were later excluded, leading to a limited competition scenario. The number of bidders is not specified, but the limited nature suggests fewer than a truly full and open competition, which could impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: A limited competition may result in less competitive pricing for taxpayers compared to a scenario with a broader range of bidders actively vying for the contract.

Public Impact

The U.S. Army Space and Missile Defense Command (USASMDC) will benefit from enhanced IT support. Services include technical support and administration for enterprise and security systems. The contract supports operations in Alabama. This contract ensures the continuity of critical IT infrastructure for a key Army command.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce cost savings for taxpayers.
Cost No Fee contract type could disincentivize contractor cost efficiency.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.

Positive Signals

Contract awarded to a specific company for essential IT services.
Services are critical for the operational readiness of USASMDC.
Contract duration provides a stable period of support.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. The market for IT support and systems administration is vast and highly competitive, with numerous companies offering specialized services. The Army's reliance on such contracts is typical for maintaining complex IT infrastructures. Benchmarking would involve comparing this award to other IT support contracts awarded by DoD agencies for similar scope and duration.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this particular contract's structure as a sole award. Further analysis would be needed to determine if subcontracting opportunities exist within the awarded company's plans.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Space and Missile Defense Command (USASMDC) contracting and program management offices. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army IT Support Services
Enterprise Systems Administration
Security Systems Management
Computer Facilities Management Services
DoD IT Contracts

Risk Flags

Limited competition may impact price competitiveness.
Cost No Fee contract type requires diligent oversight to manage costs.
Performance metrics and contractor track record require further investigation for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to SUMMIT TECHNICAL SOLUTIONS, LLC. THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND (USASMDC), HAS CONTRACTUAL SUPPORT REQUIREMENTS FOR APPLICABLE ONSITE, REMOTE AND ON-CALL, ENTERPRISE/SECURITY SYSTEMS TECHNICAL SUPPORT AND ADMINISTRATION 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 $5.6 million.

What is the period of performance?

Start: 2024-04-22. End: 2026-04-21.

What is the track record of Summit Technical Solutions, LLC with government contracts, particularly within the Department of Defense?

A comprehensive review of Summit Technical Solutions, LLC's track record would require accessing federal procurement databases like SAM.gov or FPDS. Generally, understanding a contractor's past performance involves examining their history of on-time delivery, quality of work, adherence to budget, and any past disputes or contract terminations. For this specific contract, the award is a delivery order, implying the existence of a parent contract under which they were selected. Further investigation into their performance on previous Army or DoD contracts, especially those involving similar IT support services, would provide crucial insights into their reliability and capability. Without specific past performance data, assessing their suitability is speculative.

How does the $5.6 million award compare to similar IT support contracts for Army commands?

Comparing this $5.6 million award requires benchmarking against similar contracts for IT support, enterprise systems, and security administration services awarded to other Army commands or DoD agencies. Factors such as contract duration (729 days), scope of services (onsite, remote, on-call), and the specific technical requirements (enterprise/security systems) are critical. If similar commands have awarded contracts for comparable services over similar periods for significantly less or more, it would indicate whether this award is within an expected range. For instance, if other commands are securing similar support for $3-4 million, this $5.6 million award might warrant closer scrutiny regarding its value proposition. Conversely, if comparable contracts are in the $7-8 million range, this award could be seen as cost-effective.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns due to the Cost No Fee (CNF) structure, which offers limited incentive for the contractor to control expenses. Another risk is the potential for service disruptions if Summit Technical Solutions, LLC underperforms or faces staffing issues, given the critical nature of enterprise and security systems. The limited competition also poses a risk of suboptimal pricing. Mitigation strategies would typically involve robust government oversight, clear performance metrics and service level agreements (SLAs) within the contract, regular performance reviews, and potentially contingency planning for alternative support if needed. The CNF structure necessitates diligent government monitoring of costs and performance.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring competitive pricing for the Army?

The 'Full and Open Competition After Exclusion of Sources' approach is a hybrid method that aims to balance broad initial solicitation with specific source selection criteria. While it starts with an open approach, the subsequent exclusion of sources inherently limits the pool of potential bidders. This limitation can reduce the intensity of competition compared to a truly unrestricted full and open competition. Consequently, the pricing achieved might be less competitive than what could be obtained with a larger number of bidders. The effectiveness in ensuring competitive pricing depends heavily on the justification for excluding sources and the number of bidders remaining in the final pool. If the exclusions were well-justified and several capable bidders remained, competitive pricing could still be achieved, but it carries a higher risk of being suboptimal.

What are the historical spending patterns for similar IT support services at USASMDC or the Department of the Army?

Analyzing historical spending patterns for similar IT support services at USASMDC or the broader Department of the Army is crucial for context. This involves examining previous contract awards for enterprise and security systems technical support, administration, and maintenance over the past several years. Key metrics to consider include the total amount spent annually on such services, the average contract value, the duration of typical contracts, and the primary contractors utilized. Understanding these patterns helps determine if the current $5.6 million award is an outlier, an increase, or consistent with past investments. Significant deviations from historical spending could signal changes in requirements, market conditions, or procurement strategies that warrant further investigation.

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 NO FEE (S)

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: $9,535,438

Exercised Options: $9,535,438

Current Obligation: $5,582,824

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