DoD's $44.4M OrderTrak Contract Awarded to Netcstrics Corporation for Computer Services
Contract Overview
Contract Amount: $44,414,529 ($44.4M)
Contractor: Netcentrics Corporation
Awarding Agency: Department of Defense
Start Date: 2015-04-24
End Date: 2017-08-11
Contract Duration: 840 days
Daily Burn Rate: $52.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HCMS - ORDERTRAK
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.4 million to NETCENTRICS CORPORATION for work described as: HCMS - ORDERTRAK Key points: 1. The contract value of $44.4M is substantial, indicating a significant need for the services provided. 2. Netcstrics Corporation secured this award, highlighting their role in the IT services sector for the Department of Defense. 3. The contract's duration and fixed-price nature suggest a degree of cost certainty, but potential risks lie in scope creep or unforeseen technical challenges. 4. The sector is IT services, specifically 'Other Computer Related Services', a common area for government procurement.
Value Assessment
Rating: fair
The contract value of $44.4M over approximately 2.5 years suggests a significant per-year spend. Benchmarking against similar 'Other Computer Related Services' contracts for the DoD would be necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. While this indicates competition, the 'exclusion of sources' clause warrants further investigation to understand if it limited the competitive landscape and potentially impacted price discovery.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, aiming to secure the best value. However, the specific exclusion of sources needs scrutiny to ensure maximum benefit.
Public Impact
This contract supports the Department of the Army's operational capabilities through IT services. The duration of the contract (840 days) implies a long-term need for these specific computer-related services. The fixed-price contract type aims to control costs for the government, providing predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources' clause.
- Risk of cost overruns if scope is not well-defined.
- Dependence on a single contractor for critical IT services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type offers cost predictability.
- Supports a key branch of the military (Department of the Army).
Sector Analysis
The IT services sector, particularly 'Other Computer Related Services', is a significant area of government spending. Benchmarks for similar contracts would reveal if this $44.4M award is within typical ranges for the scope and duration.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms. However, the 'exclusion of sources' aspect may require specific review to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Lack of transparency on specific services provided under 'Other Computer Related Services'.
- No clear indication of small business participation.
- Need for detailed cost-benefit analysis against similar contracts.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.4 million to NETCENTRICS CORPORATION. HCMS - ORDERTRAK
Who is the contractor on this award?
The obligated recipient is NETCENTRICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $44.4 million.
What is the period of performance?
Start: 2015-04-24. End: 2017-08-11.
What specific services fall under 'Other Computer Related Services' for this contract, and how do they align with the Army's mission needs?
The specific services under 'Other Computer Related Services' for the HCMS - OrderTrak contract would typically include a range of IT support, potentially encompassing software development, system integration, network management, or specialized IT consulting. Understanding the precise nature of these services is crucial to assess their alignment with the Army's operational requirements and to determine if the $44.4M expenditure represents good value for the capabilities delivered.
What was the justification for excluding other sources during the full and open competition process?
The justification for excluding other sources in a 'full and open competition after exclusion of sources' scenario is critical for assessing risk and fairness. Typically, such exclusions are based on specific technical requirements, unique capabilities, or proprietary information that only a particular vendor can provide. Without this justification, it's difficult to ascertain if the exclusion was legitimate or if it unnecessarily limited competition, potentially leading to higher costs for taxpayers.
How effectively did the firm fixed-price contract type manage cost and performance risks over the contract's duration?
A firm fixed-price contract aims to transfer cost risk to the contractor, providing budget certainty for the government. The effectiveness of this contract type hinges on the accuracy of the initial cost estimates and the contractor's ability to manage performance within that budget. Over the contract's 840-day duration, monitoring for scope creep, change orders, and performance metrics would be essential to evaluate if the fixed-price structure successfully controlled costs and ensured the delivery of required IT services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Haystax Technology , Inc. (UEI: 026295970)
Address: 205 VAN BUREN STREET, SUITE 420, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,414,529
Exercised Options: $44,414,529
Current Obligation: $44,414,529
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ11D0011
IDV Type: IDC
Timeline
Start Date: 2015-04-24
Current End Date: 2017-08-11
Potential End Date: 2017-08-11 00:00:00
Last Modified: 2020-10-03
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