DoD's Army awards $26.3M for IT support to Binary Group, Inc. under full and open competition

Contract Overview

Contract Amount: $26,310,477 ($26.3M)

Contractor: Binary Group, Inc

Awarding Agency: Department of Defense

Start Date: 2010-06-01

End Date: 2012-10-13

Contract Duration: 865 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FUNCTIONAL ANALYSIS OFFICE SUPPORT

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to BINARY GROUP, INC for work described as: FUNCTIONAL ANALYSIS OFFICE SUPPORT Key points: 1. Significant contract value for IT support services. 2. Binary Group, Inc. secured the award. 3. Awarded under full and open competition. 4. Contract duration spans over two years.

Value Assessment

Rating: fair

The contract value of $26.3M over approximately two years suggests a moderate annual spend. Benchmarking against similar IT support contracts would be necessary to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing and allows for a wide range of potential contractors to bid.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Ensures continued IT support for Department of the Army operations. Supports a private sector company, Binary Group, Inc. Potential impact on other IT service providers through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Potential for cost overruns in Time and Materials contracts.

Positive Signals

Awarded through full and open competition.
Clear contract end date.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the federal government, with IT support being a critical function for agency operations.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business participation or set-aside. This suggests that larger, established firms were likely the primary bidders.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Department of the Army to ensure services meet requirements and that billing is accurate, especially given the Time and Materials pricing structure.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Time and Materials pricing structure can lead to cost overruns.
Lack of specific performance metrics in provided data.
Potential for scope creep without strict oversight.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to BINARY GROUP, INC. FUNCTIONAL ANALYSIS OFFICE SUPPORT

Who is the contractor on this award?

The obligated recipient is BINARY GROUP, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2010-06-01. End: 2012-10-13.

What specific IT support services were rendered under this contract?

The contract description 'FUNCTIONAL ANALYSIS OFFICE SUPPORT' is broad. Detailed service requirements would typically be outlined in the contract's Statement of Work (SOW). These could range from help desk support, network maintenance, software installation, to system administration, depending on the Army's specific needs at the time.

What was the rationale for using a Time and Materials (T&M) contract type?

Time and Materials contracts are often used when the level of effort or the specific requirements cannot be clearly defined at the outset. While flexible, T&M contracts carry a higher risk of cost overruns if not closely monitored, as costs are directly tied to labor hours and material costs incurred.

How did the bidding process ensure the best value for the government?

The use of 'FULL AND OPEN COMPETITION' suggests a robust bidding process designed to solicit offers from all responsible sources. The government would evaluate proposals based on factors like technical capability, past performance, and price to determine the best value, aiming to secure high-quality services at a competitive price.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ07R0007

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1911 N FORT MYER DR STE 300, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $51,416,699

Exercised Options: $26,882,310

Current Obligation: $26,310,477

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ08D0007

IDV Type: IDC

Timeline