DoD's $10.9M EF&IT PATCH contract awarded to Alcatel-Lucent USA Inc. for computer systems design
Contract Overview
Contract Amount: $10,909,629 ($10.9M)
Contractor: Alcatel-Lucent USA Inc.
Awarding Agency: Department of Defense
Start Date: 2006-08-17
End Date: 2009-09-30
Contract Duration: 1,140 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIXED PRICE
Sector: IT
Official Description: EF&IT PATCH - PHASE 2
Plain-Language Summary
Department of Defense obligated $10.9 million to ALCATEL-LUCENT USA INC. for work described as: EF&IT PATCH - PHASE 2 Key points: 1. Contract value appears reasonable for the duration and scope of computer systems design services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. Performance period of approximately three years provides a substantial timeframe for delivery. 5. The contract falls within the broader IT services sector, a significant area of federal spending. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.
Value Assessment
Rating: good
The contract's total value of $10.9 million over approximately three years suggests a moderate annual spend. Without specific performance metrics or detailed deliverables, a direct value-for-money assessment is challenging. However, given the fixed-price nature and the competitive award, it implies a negotiated price deemed fair at the time of award. Benchmarking against similar large-scale IT system design contracts would provide further context on its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a competitive environment for this type of IT service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: A competitive award process like this typically benefits taxpayers by driving down costs through market forces, ensuring that the selected contractor offers the best value proposition.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches relying on enhanced IT systems. Services delivered include computer systems design, crucial for modern military operations and data management. The geographic impact is likely centered around DoD facilities and operational areas requiring advanced IT infrastructure. Workforce implications may include specialized IT professionals involved in system design, implementation, and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex IT system design projects.
- Dependence on a single prime contractor for critical system development.
- Risk of technological obsolescence if system design does not anticipate future needs.
Positive Signals
- Fixed-price contract can provide cost certainty.
- Full and open competition suggests a robust market and potential for quality solutions.
- Award to a known entity like Alcatel-Lucent USA Inc. may indicate a track record in similar projects.
Sector Analysis
This contract falls within the Computer Systems Design Services sector (NAICS 541512), a critical component of the broader Information Technology industry. The federal government is a major consumer of these services, essential for maintaining and upgrading complex digital infrastructures. Spending in this sector is driven by the need for cybersecurity, data analytics, cloud computing, and modernization of legacy systems. Comparable spending benchmarks would involve analyzing other large IT system design contracts awarded by defense agencies.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of small business subcontracting plans being a primary focus. This suggests that the prime contract was likely awarded to a large business capable of handling the scope and complexity of the project. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potential subcontracting roles if the prime contractor opts to engage them.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) Contracting Officer and Contracting Officer's Representative (COR). Accountability measures are embedded within the fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Network (DISN)
- Global Information Grid (GIG)
- IT Modernization Programs
- Cybersecurity Infrastructure Support
Risk Flags
- Potential for schedule slippage in complex system design.
- Risk of technological obsolescence if design is not future-proof.
- Dependence on contractor expertise for critical system components.
Tags
it-services, computer-systems-design, department-of-defense, defense-information-systems-agency, fixed-price, delivery-order, full-and-open-competition, large-contract, information-technology, defense-contracting, usa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to ALCATEL-LUCENT USA INC.. EF&IT PATCH - PHASE 2
Who is the contractor on this award?
The obligated recipient is ALCATEL-LUCENT USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2006-08-17. End: 2009-09-30.
What was the specific nature of the 'EF&IT PATCH - PHASE 2' system being designed, and what were its primary objectives?
The 'EF&IT PATCH - PHASE 2' likely refers to a specific phase of a project aimed at enhancing or patching existing Enterprise, Facilities, and Information Technology (EF&IT) systems within the Department of Defense. Phase 2 suggests a continuation or expansion of initial efforts. The primary objectives would typically involve improving system functionality, security, interoperability, or performance to meet evolving military operational requirements. Without access to the detailed SOW (Statement of Work), the precise technical specifications and goals remain proprietary. However, such projects are crucial for maintaining the technological edge and operational readiness of defense forces.
How does the awarded amount of $10.9 million compare to the estimated value or budget for this system design phase?
The awarded amount of $10.9 million represents the total value obligated for the contract. To assess its comparison to the estimated value or budget, one would need access to the government's initial cost estimates or budget allocations for 'EF&IT PATCH - PHASE 2'. As the contract was awarded under full and open competition with 7 bidders, the awarded price is presumed to be competitive. If the awarded amount is significantly below or within a reasonable range of the government's estimate, it suggests effective price negotiation and market competitiveness. Conversely, if it significantly exceeded estimates, it might warrant further scrutiny into the bidding process or scope definition.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of Alcatel-Lucent USA Inc. under this contract?
Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for computer systems design services, typical KPIs would likely include adherence to project timelines, successful completion of design milestones, system performance benchmarks (e.g., speed, reliability, uptime), security compliance, and user satisfaction. For a fixed-price contract, meeting the defined scope of work within the agreed-upon schedule and budget is paramount. The Contracting Officer's Representative (COR) would be responsible for monitoring performance against the Statement of Work (SOW) and ensuring deliverables meet the required quality standards.
What is Alcatel-Lucent USA Inc.'s track record with similar large-scale IT system design contracts for the Department of Defense?
Alcatel-Lucent USA Inc. (now part of Nokia) has a history of providing telecommunications and IT infrastructure solutions. While specific details on their track record for 'EF&IT PATCH - PHASE 2' are not provided, their involvement in a competitive bid for a DoD contract of this nature suggests they possess the requisite capabilities and experience. Companies of this size typically have extensive portfolios of past performance, including work on complex government IT projects. A thorough review would involve examining their past performance evaluations and any documented successes or challenges in similar large-scale system design and integration efforts for defense clients.
Were there any significant risks identified during the procurement or award process for this contract?
The provided data does not explicitly detail risks identified during the procurement or award process. However, common risks associated with large IT system design contracts include technical complexity, integration challenges with existing systems, potential for schedule delays, cost overruns (though mitigated by fixed-price), and cybersecurity vulnerabilities. The fact that it was awarded under full and open competition with multiple bidders suggests that the government assessed the market as capable of meeting the requirements. Risk mitigation strategies would typically be incorporated into the contract terms and oversight plan.
How does this contract's spending pattern compare to overall federal IT spending trends during the 2006-2009 period?
During the 2006-2009 period, federal IT spending was substantial and generally increasing, driven by modernization efforts, cybersecurity needs, and the expansion of digital services across agencies. The Department of Defense, being the largest federal agency, consistently accounts for a significant portion of this spending. A $10.9 million contract for computer systems design, while substantial for a single award, represents a small fraction of the overall DoD and federal IT budget. This contract aligns with the broader trend of investment in IT infrastructure to support national security and operational missions during that era.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC102105R2000
Offers Received: 7
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Alcatel Lucent (UEI: 275127975)
Address: 5440 MILLSTREAM RD STE RE2P18, MC LEANSVILLE, NC, 27301
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,909,629
Exercised Options: $10,909,629
Current Obligation: $10,909,629
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102106D2000
IDV Type: IDC
Timeline
Start Date: 2006-08-17
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2018-10-17
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