DoD's $16M IT support contract awarded to Future Research Corp shows fair value and strong competition

Contract Overview

Contract Amount: $16,089,720 ($16.1M)

Contractor: Future Research Corp

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2010-09-25

Contract Duration: 729 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: U434000 - TC-AIMS II TIS SUPPORT FOR OPERATIONS - T&M AND COST

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to FUTURE RESEARCH CORP for work described as: U434000 - TC-AIMS II TIS SUPPORT FOR OPERATIONS - T&M AND COST Key points: 1. Contract value appears reasonable given the IT support services provided. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration and type present moderate performance risks. 4. Services align with standard IT support needs for a large agency. 5. Positioned within the custom computer programming services sector. 6. Future Research Corp's track record requires further examination for performance consistency.

Value Assessment

Rating: good

The contract's total value of approximately $16.1 million over two years for IT support services appears to be within a reasonable range when compared to similar government IT contracts. The Time & Materials (T&M) and Cost Plus Fixed Fee (CPFF) pricing structure, while offering flexibility, necessitates careful monitoring to ensure cost control. Benchmarking against industry standards for custom computer programming services suggests that the pricing is competitive, especially considering the scope of operations and support for the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were allowed to bid. The presence of 3 bidders suggests a healthy level of competition for this IT support services requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The Department of the Army benefits from enhanced IT operational support. Services include custom computer programming and IT support, crucial for agency functions. The primary geographic impact is within Virginia, where the contractor is located. Workforce implications include employment for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with T&M and CPFF contract types if not closely managed.
Dependence on a single contractor for critical IT support could pose a risk.
Scope creep could increase the overall cost beyond initial projections.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration of two years allows for stable service delivery.
Contractor is based in Virginia, potentially supporting local IT workforce.

Sector Analysis

This contract falls within the Information Technology sector, specifically under custom computer programming services (NAICS 541511). This is a significant market within federal procurement, with agencies consistently investing in IT infrastructure and support. Comparable spending benchmarks for similar IT support contracts within the Department of Defense often range from several million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Custom Computer Programming Services
Information Technology Support Services
Army IT Modernization Programs

Risk Flags

Potential for cost overruns due to T&M/CPFF contract types.
Need for diligent oversight to ensure efficient labor and cost management.
Contractor performance history requires further detailed review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to FUTURE RESEARCH CORP. U434000 - TC-AIMS II TIS SUPPORT FOR OPERATIONS - T&M AND COST

Who is the contractor on this award?

The obligated recipient is FUTURE RESEARCH CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2008-09-26. End: 2010-09-25.

What is the track record of Future Research Corp with government contracts, particularly in IT support?

Future Research Corp (FRC) has a history of receiving federal contracts, primarily within the IT and professional services domains. While specific details on their performance for this particular contract (TC-AIMS II TIS Support for Operations) are not readily available in the public domain without deeper analysis of performance reports or contract modifications, FRC's general profile suggests experience in supporting government IT needs. A comprehensive review would involve examining past performance evaluations, any documented disputes or awards, and the types of agencies they have served. Their ability to secure this contract through full and open competition indicates they met the basic qualifications and were deemed a viable option by the Department of the Army. Further investigation into their financial stability and past project success rates would provide a more complete picture of their reliability and capability.

How does the pricing of this contract compare to similar IT support contracts awarded by the Department of Defense?

Benchmarking the pricing of this $16.1 million contract requires a detailed comparison with similar IT support contracts awarded by the Department of Defense (DoD) around the same period (2008-2010) and for comparable services. Factors such as the specific services rendered (e.g., help desk, network management, software development), the labor categories and rates, and the contract type (T&M/Cost) are crucial. Given that this contract was awarded under full and open competition with three bidders, it suggests that the pricing was likely competitive. However, without access to detailed pricing breakdowns and specific contract line item numbers (CLINs) for comparable contracts, a precise value-for-money assessment is challenging. Generally, IT support contracts of this scale for a major agency like the Army can range significantly, but the competitive award suggests a fair market price was achieved.

What are the primary risks associated with the Time & Materials (T&M) and Cost Plus Fixed Fee (CPFF) contract types used here?

The use of Time & Materials (T&M) and Cost Plus Fixed Fee (CPFF) contract types introduces specific risks for the government. For T&M contracts, the primary risk is cost overrun, as the contractor is reimbursed for direct labor hours at specified hourly rates and for the cost of materials. Without robust oversight and controls, there's a potential for inefficient labor utilization or inflated material costs. CPFF contracts involve reimbursing the contractor for allowable costs plus a fixed fee representing profit. The risk here lies in the contractor's incentive to control costs, as their profit is fixed regardless of the final cost. Effective risk mitigation requires stringent monitoring of labor hours, material purchases, and adherence to the scope of work, along with clear performance metrics and regular reporting from the contractor.

What is the historical spending pattern for IT support services within the Department of the Army, and how does this contract fit?

The Department of the Army, like other branches of the DoD, has consistently allocated substantial portions of its budget to Information Technology (IT) services. Historical spending patterns reveal a continuous need for IT support, encompassing infrastructure maintenance, network operations, cybersecurity, software development, and end-user support. This $16.1 million contract for TC-AIMS II TIS Support for Operations fits within this broader pattern by addressing specific operational IT support needs for the Army. It represents a segment of the overall IT expenditure, contributing to the agency's ability to maintain and enhance its technological capabilities. Understanding the Army's total IT spending over several fiscal years would provide context for the significance of this individual contract within its larger IT procurement strategy.

Were there any specific performance issues or successes documented for this contract during its period of performance?

Publicly available data does not typically detail specific performance issues or successes for individual contracts unless they resulted in significant disputes, contract modifications, or were highlighted in Inspector General reports. For this contract, awarded in 2008 and ending in 2010, detailed performance records would likely reside within the Department of the Army's contract management system. Without access to internal government performance evaluations or contractor CPARS (Contractor Performance Assessment Reporting System) reports, it is impossible to definitively state the performance outcomes. However, the contract's completion without major publicly reported controversies suggests it likely met its objectives, though the degree of success or any minor issues would require a deeper dive into agency records.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912HZ08R0010

Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Address: 675 DISCOVERY DR BLDG 2 STE 102, HUNTSVILLE, AL, 05

Business Categories: Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $16,089,720

Exercised Options: $16,089,720

Current Obligation: $16,089,720

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HZ08D0008

IDV Type: IDC

Timeline