DoD's $15.9M IT contract for computer facilities management services awarded to NANA PACIFIC, LLC
Contract Overview
Contract Amount: $15,915,827 ($15.9M)
Contractor: Nana Pacific, LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2011-09-30
Contract Duration: 730 days
Daily Burn Rate: $21.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DESK OFFICERS - JHFQ STATE JOC'S
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to NANA PACIFIC, LLC for work described as: DESK OFFICERS - JHFQ STATE JOC'S Key points: 1. Contract value appears reasonable given the duration and scope of IT facilities management. 2. Limited competition may have impacted overall value for money. 3. Contract duration and fixed-price nature suggest moderate risk. 4. Services provided are critical for maintaining operational readiness. 5. This contract falls within the IT services sector, specifically IT infrastructure management. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: good
The contract's total value of approximately $15.9 million over two years suggests a per-year cost of around $7.95 million. This figure seems within a reasonable range for comprehensive IT facilities management services for a military installation, considering the complexity and criticality of such operations. Benchmarking against similar contracts for IT infrastructure support at Department of Defense facilities would provide a more precise value assessment, but initial indications suggest fair pricing for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source justification, indicating that it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking broader competition. The lack of multiple bidders means that price discovery through competitive bidding was not leveraged, potentially leading to a higher price than might have been achieved in a full and open competition.
Taxpayer Impact: Sole-source awards can mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding processes. This can result in a less efficient use of public funds compared to contracts awarded after a robust competition.
Public Impact
The Department of Defense benefits through the reliable operation of its IT infrastructure. Services include computer facilities management, ensuring the availability and performance of critical systems. The geographic impact is primarily within Virginia, where the services are likely performed. Workforce implications include the employment of IT professionals by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
- Lack of transparency in the sole-source justification process can obscure true value.
- Contract duration of two years might not fully capture long-term IT needs or allow for market shifts.
Positive Signals
- Contract awarded to NANA PACIFIC, LLC, a known entity, suggesting some level of established capability.
- Fixed-price contract type shifts cost risk to the contractor, providing budget certainty.
- Services are essential for maintaining military operational readiness.
Sector Analysis
The IT services sector is a significant area of federal spending, encompassing a wide range of support from software development to infrastructure management. Contracts like this, focused on facilities management, are crucial for ensuring the backbone of government operations functions smoothly. The market for these services is competitive, but specific niche requirements or existing infrastructure dependencies can sometimes lead to less open competition. Comparable spending benchmarks for IT infrastructure support within the federal government often run into millions of dollars annually per installation, depending on size and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside. The award to NANA PACIFIC, LLC, a company that may or may not be classified as small depending on its size and NAICS code, indicates that subcontracting opportunities for small businesses were not mandated through a set-aside. Further analysis would be needed to determine if NANA PACIFIC, LLC has a subcontracting plan that includes small businesses, which would be crucial for assessing the impact on the small business ecosystem.
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 contract clauses, performance metrics, and payment schedules. Transparency is generally maintained through contract databases like FPDS, although the specifics of sole-source justifications may have limited public visibility. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Infrastructure Management Services
- Computer Facilities Management
- Department of Defense IT Support Contracts
- Army IT Services
- Sole-Source IT Contracts
Risk Flags
- Sole-source award may indicate limited market availability or strategic sourcing.
- Contract duration of 2 years (730 days) is moderate, allowing for reassessment.
- Fixed-price contract type shifts cost risk to the contractor.
Tags
it-services, department-of-defense, department-of-the-army, firm-fixed-price, large-contract, sole-source, computer-facilities-management-services, virginia, information-technology, facilities-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to NANA PACIFIC, LLC. DESK OFFICERS - JHFQ STATE JOC'S
Who is the contractor on this award?
The obligated recipient is NANA PACIFIC, 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 $15.9 million.
What is the period of performance?
Start: 2009-09-30. End: 2011-09-30.
What is the track record of NANA PACIFIC, LLC in performing similar IT facilities management contracts for the federal government?
NANA PACIFIC, LLC has a history of performing various service contracts with the federal government, including those related to IT and facilities management. While specific details on their performance for this particular $15.9 million contract are not immediately available in this data snippet, their past performance on similar contracts would be a key indicator of their capability. Federal procurement data often includes past performance reviews and award histories that can be analyzed to assess their reliability, quality of service, and adherence to contract terms. A review of their contract awards and performance evaluations would provide a more comprehensive understanding of their track record in delivering IT facilities management services.
How does the awarded price of approximately $7.95 million per year compare to market rates for similar IT facilities management services?
Benchmarking the $7.95 million annual cost against market rates for similar IT facilities management services requires detailed analysis of contract scope, service level agreements, and geographic location. Factors such as the size of the facilities managed, the complexity of the IT infrastructure, security requirements, and the specific services included (e.g., network management, data center operations, help desk support) significantly influence pricing. Without a direct comparison to publicly available market data or similar federal contracts awarded through full and open competition, it is difficult to definitively assess if this price represents excellent, good, fair, or questionable value. However, given the critical nature of DoD IT infrastructure, costs can be higher than commercial equivalents due to stringent security and operational demands.
What are the primary risks associated with a sole-source award for IT facilities management services?
The primary risks associated with a sole-source award for IT facilities management services include a lack of competitive pricing, which can lead to higher costs for the government and taxpayers. Without competition, there is less incentive for the contractor to innovate or offer the most cost-effective solutions. Furthermore, a sole-source award can limit the government's access to a broader range of technological solutions or specialized expertise that might be available from other vendors. There's also a potential risk of vendor lock-in, making it difficult to switch providers in the future. Transparency and accountability can also be reduced, as the justification for not competing the award may not always be fully transparent to the public.
What is the expected effectiveness of these computer facilities management services in supporting the Department of Defense's mission?
The effectiveness of these computer facilities management services is expected to be high, given their critical role in supporting the Department of Defense's mission. Reliable IT infrastructure is fundamental to military operations, communication, intelligence gathering, and administrative functions. By ensuring the proper functioning, maintenance, and security of computer facilities, NANA PACIFIC, LLC directly contributes to the operational readiness and effectiveness of DoD personnel and systems. The contract's duration and scope suggest a commitment to sustained support, which is essential for maintaining the complex IT environment required by the military. Performance metrics and service level agreements within the contract would further define and measure this effectiveness.
How has federal spending on computer facilities management services evolved over the past five years, and where does this contract fit in?
Federal spending on computer facilities management services has generally seen a steady increase over the past five years, driven by the growing reliance on digital infrastructure across all government agencies. This trend is fueled by modernization efforts, cybersecurity imperatives, and the expansion of cloud computing and data analytics. This specific $15.9 million contract, awarded in 2009 and ending in 2011, represents a portion of that spending during that period. While it is a significant amount for a single contract, it fits within the broader context of substantial federal investment in IT infrastructure. Analyzing overall trends would require aggregating data across multiple agencies and contract types within the 'Computer Facilities Management Services' category.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3150 C ST #250, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,568,505
Exercised Options: $15,915,827
Current Obligation: $15,915,827
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-30
Current End Date: 2011-09-30
Potential End Date: 2014-09-27 00:00:00
Last Modified: 2015-09-15
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