DoD's $619M IT Contract with BDM Corporation: A 13-Year Deal with Questionable Value

Contract Overview

Contract Amount: $12,909,173 ($12.9M)

Contractor: THE BDM Corporation of Saudi Arabia

Awarding Agency: Department of Defense

Start Date: 1996-12-06

End Date: 2009-08-27

Contract Duration: 4,647 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Sector: IT

Official Description: 199704!9700!0238!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA10096D0050 !A!*!0002 !19961206!19970421!074811357!074811357!619713282!N!67580!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000002262679!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !7379!5!B!M!*!B!A!*!A !N!Y!2!006!B!* !C!N!Z!* !* !N!C!*!D!D!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to THE BDM CORPORATION OF SAUDI ARABIA for work described as: 199704!9700!0238!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA10096D0050 !A!*!0002 !19961206!19970421!074811357!074811357!619713282!N!67580!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFA… Key points: 1. The contract, awarded in 1996, spans over 13 years, indicating a long-term need for IT services. 2. BDM Corporation, a large business, secured this significant contract, suggesting strong capabilities. 3. The contract's duration and cost raise questions about its overall value and potential for cost overruns. 4. Spending in the Defense Information Technology sector is substantial, making efficient contract management crucial.

Value Assessment

Rating: questionable

With a total value of $619,713,282 over 13 years, the average annual cost is approximately $47.6 million. Benchmarking this against similar long-term IT service contracts is difficult without more specific service details, but the extended duration may indicate a lack of competitive re-evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process initially. However, the long duration of the contract (over 13 years) might have limited subsequent competitive opportunities, potentially impacting long-term cost-effectiveness.

Taxpayer Impact: The significant taxpayer investment over more than a decade for IT services necessitates careful monitoring to ensure value for money and prevent potential waste.

Public Impact

Taxpayers funded a substantial IT contract for over 13 years, impacting defense capabilities. The long contract term could mean less flexibility for the DoD to adopt newer technologies. BDM Corporation, a significant contractor, benefited from this long-term government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (13+ years)
Potential for technology obsolescence
Lack of clear performance metrics in provided data

Positive Signals

Awarded under full and open competition
Long-term IT support for defense

Sector Analysis

This contract falls within the Defense Information Technology sector, a critical area for national security. Spending in this sector is consistently high, emphasizing the need for efficient and competitive contracting to ensure technological superiority and fiscal responsibility.

Small Business Impact

The data indicates this contract was awarded to BDM Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific contract award.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Information Systems Agency. Oversight would typically involve regular performance reviews and financial audits to ensure compliance and value, especially given the contract's extended duration.

Related Government Programs

Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Extended contract duration (13+ years)
Potential for technology obsolescence
Lack of detailed service scope
Unclear performance metrics
Limited post-award competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to THE BDM CORPORATION OF SAUDI ARABIA. 199704!9700!0238!ZD11 !DEFENSE INFO. TECHNOLOGY CONTRAC!DCA10096D0050 !A!*!0002 !19961206!19970421!074811357!074811357!619713282!N!67580!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000002262679!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !7379!5!B!M!*!B!A!*!A !N!Y!2!0

Who is the contractor on this award?

The obligated recipient is THE BDM CORPORATION OF SAUDI ARABIA.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 1996-12-06. End: 2009-08-27.

What specific IT services were provided under this contract, and how did their scope evolve over the 13-year period?

The provided data categorizes the contract under 'OTHER ADP & TELECOMMUNICATION SERVICES'. Without further details, it's impossible to ascertain the specific services. The evolution of these services over 13 years is crucial for assessing if the contract remained relevant and cost-effective as technology advanced and DoD needs changed.

How did the initial competitive bidding process ensure long-term cost savings, given the contract's extensive duration?

While awarded under full and open competition, the 13-year term raises questions about sustained cost-effectiveness. Initial competitive pricing might have been favorable, but the lack of subsequent re-competition over such a long period could have led to higher-than-market costs in later years. Periodic reviews or price adjustments would be key.

What was the impact of this contract on the DoD's ability to adopt emerging IT technologies during its 13-year lifespan?

A long-term, fixed contract like this can sometimes hinder the adoption of new technologies if it locks the agency into specific systems or vendors. The DoD's agility in integrating cutting-edge solutions might have been constrained, depending on the contract's flexibility clauses and the pace of technological change.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Contractor Details

Address: 1501 BDM WAY, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline