DoD's $28M IT contract for core equipment management awarded to Coho Construction Management LLC

Contract Overview

Contract Amount: $27,998,551 ($28.0M)

Contractor: Coho Construction Management LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2026-09-29

Contract Duration: 1,463 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EQUIPMENT- CORE AND ADN

Place of Performance

Location: OCEANSIDE, SAN DIEGO County, CALIFORNIA, 92058

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to COHO CONSTRUCTION MANAGEMENT LLC for work described as: EQUIPMENT- CORE AND ADN Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost efficiencies. 2. The contract's duration of nearly four years suggests a long-term need for these services. 3. Focus on 'Computer Facilities Management Services' indicates a critical IT infrastructure support role. 4. The firm fixed-price structure aims to control costs, but initial pricing needs benchmarking. 5. Geographic focus on California may concentrate economic benefits within a specific region. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

The contract's value of $27.99 million for Computer Facilities Management Services requires careful benchmarking against similar IT infrastructure support contracts. Without competitive bidding, it is difficult to ascertain if the pricing reflects fair market value. The firm fixed-price nature provides some cost certainty, but the initial award price needs to be scrutinized against industry standards for core equipment management and IT facility maintenance. Further analysis of the specific services rendered and their criticality will inform a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. The lack of competition means that potential bidders were not solicited, and alternative solutions or pricing structures were not explored through a bidding process. This approach can limit price discovery and may not yield the most cost-effective outcome for the government.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the competitive pressure that typically drives down prices.

Public Impact

The Department of the Army benefits from dedicated IT infrastructure support, ensuring operational continuity. Services likely include maintenance, management, and potentially upgrades of core IT equipment within facilities. The contract's geographic focus on California suggests that facilities and personnel in that state will be directly impacted. The contract may support a workforce of IT specialists and facility managers, either directly employed by the contractor or through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Limited transparency into the selection process for a sole-source award.
Potential for vendor lock-in due to the long-term nature of the contract.
Absence of small business participation could limit broader economic impact.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term award suggests a stable and reliable service provider.
Focus on core IT facilities management addresses a critical operational need.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This sub-sector involves the maintenance, operation, and support of IT infrastructure, including hardware, networks, and data centers. The market for such services is substantial, driven by government and commercial entities' reliance on robust and secure IT operations. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar agencies or facilities, considering factors like scope of work, duration, and service level agreements.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or set-aside. This means that the prime contractor, Coho Construction Management LLC, was not obligated to subcontract a specific portion of the work to small businesses. Without explicit set-asides or subcontracting goals, the direct economic benefit to the small business ecosystem from this specific contract may be limited, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are established through the contract's terms and conditions, including performance standards and reporting requirements. Transparency is often limited in sole-source procurements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Infrastructure Management Services
Computer Facilities Operations
IT Equipment Maintenance Contracts
Department of Defense IT Spending
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competition.
Potential for unbenchmarked pricing.
Long contract duration may increase risk of vendor lock-in.
No stated small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to COHO CONSTRUCTION MANAGEMENT LLC. EQUIPMENT- CORE AND ADN

Who is the contractor on this award?

The obligated recipient is COHO CONSTRUCTION MANAGEMENT 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 $28.0 million.

What is the period of performance?

Start: 2022-09-27. End: 2026-09-29.

What is the specific scope of 'EQUIPMENT- CORE AND ADN' services covered under this contract?

The provided data abbreviates the service as 'EQUIPMENT- CORE AND ADN' and categorizes it under 'Computer Facilities Management Services' (NAICS 541513). While 'ADN' is not a standard acronym in this context, 'CORE EQUIPMENT' likely refers to essential IT hardware such as servers, storage devices, networking equipment (routers, switches), and potentially related infrastructure components within data centers or IT facilities. The services would typically encompass installation, configuration, maintenance, repair, monitoring, and lifecycle management of this core equipment. A detailed statement of work (SOW) within the contract documentation would provide the precise definition of 'EQUIPMENT- CORE AND ADN' and the specific tasks and deliverables expected from Coho Construction Management LLC.

How does the $27.99 million contract value compare to similar IT facilities management contracts awarded by the Department of Defense?

Benchmarking this $27.99 million contract requires comparing it against similar IT facilities management contracts, particularly those for core equipment and computer facilities. Without access to a comprehensive database of all DoD IT contracts, a precise comparison is challenging. However, contracts of this magnitude for long-term (nearly four years) IT infrastructure support are substantial. Factors influencing value include the number of facilities supported, the criticality of the equipment, specific service level agreements (SLAs), and the geographic scope. Given this is a sole-source award, it is crucial to assess if the pricing aligns with industry standards for similar managed IT services, considering the lack of competitive pressure that typically moderates costs.

What are the primary risks associated with a sole-source award for critical IT infrastructure management?

The primary risks associated with a sole-source award for critical IT infrastructure management include potential overpayment due to the absence of competitive bidding, which can lead to higher costs for the government. There's also a risk of reduced innovation and service quality, as the contractor may face less pressure to improve offerings. Vendor lock-in is another significant risk; the government becomes dependent on a single provider, making it difficult and costly to switch vendors in the future, even if performance issues arise or better alternatives become available. Furthermore, the lack of transparency in the procurement process can raise concerns about fairness and the best use of taxpayer funds.

What is the expected impact of this contract on the IT workforce, particularly in California?

This contract is likely to have a positive impact on the IT workforce, particularly in California, by creating or sustaining jobs related to IT facilities management. Coho Construction Management LLC will require skilled personnel to perform the services outlined in the contract, potentially including IT technicians, system administrators, network engineers, and project managers. Depending on the company's subcontracting strategy, there may also be opportunities for small businesses specializing in IT support services. The duration of the contract suggests a stable employment outlook for those involved in its execution within the specified geographic region.

What historical spending patterns exist for Computer Facilities Management Services within the Department of the Army?

Analyzing historical spending patterns for Computer Facilities Management Services within the Department of the Army (DoA) would involve examining past contracts for similar services, including their value, duration, competition levels, and awarded contractors. This contract, valued at approximately $28 million over nearly four years and awarded sole-source, provides a data point. Historical data might reveal trends such as an increasing reliance on outsourced IT management, shifts in contracting strategies (e.g., more sole-source awards for specialized services), and average contract values for different types of IT support. Understanding these patterns helps contextualize the current award and assess its alignment with broader DoA procurement strategies and budget allocations for IT infrastructure.

What are the implications of the 'FIRM FIXED PRICE' contract type for cost control and risk management?

The 'FIRM FIXED PRICE' (FFP) contract type is generally favored for its cost control and risk management benefits. Under an FFP contract, the contractor agrees to a fixed price for the specified goods or services, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For the government, this provides budget certainty and predictability, making financial planning easier. It incentivizes the contractor to manage its costs efficiently to maximize profit. However, for the government to realize the full benefit, the initial price must be fair and reasonable, which is a challenge in sole-source procurements where competitive benchmarking is absent.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1577 C ST STE 300F, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,794,840

Exercised Options: $27,998,551

Current Obligation: $27,998,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline