DoD awards $46.7M for technical management support, with 26 bids received

Contract Overview

Contract Amount: $46,741,795 ($46.7M)

Contractor: Zantech IT Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-31

End Date: 2022-12-27

Contract Duration: 1,791 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF AWARD OF TECHNICAL MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to ZANTECH IT SERVICES, INC. for work described as: IGF::OT::IGF AWARD OF TECHNICAL MANAGEMENT SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest potential for favorable pricing. 3. Risk indicators are moderate, with contract duration and type needing monitoring. 4. Performance context is within administrative management consulting services. 5. Sector positioning is within IT services supporting defense operations.

Value Assessment

Rating: good

The contract value of $46.7 million over nearly five years suggests a moderate annual spend. Benchmarking against similar administrative management consulting services contracts is challenging without more specific service details. However, the presence of 26 bids indicates a healthy market response, which typically drives better pricing. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement with a fixed fee, which can be appropriate for services where cost estimation is difficult, but requires careful oversight to manage costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 26 bids received. This high level of competition is a positive signal, suggesting that the solicitation was widely accessible and that multiple capable vendors were interested. A robust bidding process generally leads to a more thorough evaluation of capabilities and pricing, increasing the likelihood of selecting the best value offer.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in more competitive pricing and a wider range of innovative solutions being considered, ultimately leading to better use of public funds.

Public Impact

The Department of the Army benefits from enhanced technical management support. Services delivered likely include strategic planning, program management, and operational support. Geographic impact is primarily within Virginia, where the contract is managed. Workforce implications may involve specialized consultants contributing to defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring to prevent overruns.
Long contract duration (nearly 5 years) necessitates ongoing performance evaluation.
Specific service details are limited, making precise value assessment difficult.

Positive Signals

Awarded under full and open competition with a significant number of bidders (26).
Contractor (ZANTECH IT SERVICES, INC.) has experience in government contracting.
Delivery Order under a larger IDIQ contract structure can indicate pre-vetted capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise that agencies may not possess internally. The market for these services is competitive, with numerous firms offering specialized support. The total federal spending in this category is substantial, reflecting its importance across various agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss=false, sb=false). While ZANTECH IT SERVICES, INC. may be a small business, the award itself was not a small business set-aside. This means opportunities for small business subcontracting would depend on the prime contractor's strategy and the terms of the underlying IDIQ contract, if applicable.

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. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight mechanisms are not detailed in the provided data.

Related Government Programs

Technical Support Services
Management Consulting Services
Department of Defense IT Services
Army Administrative Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance management.
Potential for scope creep in long-term service contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to ZANTECH IT SERVICES, INC.. IGF::OT::IGF AWARD OF TECHNICAL MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ZANTECH IT SERVICES, 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 $46.7 million.

What is the period of performance?

Start: 2018-01-31. End: 2022-12-27.

What is the track record of ZANTECH IT SERVICES, INC. with federal contracts, particularly within the Department of Defense?

ZANTECH IT SERVICES, INC. has a history of performing federal contracts, including those with the Department of Defense. While this specific award is for a significant amount, a deeper dive into their past performance, including contract values, types, and successful completion rates, would provide a more comprehensive understanding of their capabilities and reliability. Reviewing past performance evaluations and any reported issues or successes would be crucial for assessing their track record. Their experience with similar service categories and contract vehicles would also be a key indicator of their suitability for complex support roles.

How does the annual value of this contract compare to similar administrative management consulting services contracts awarded by the DoD?

The annual value of this contract, approximately $9.35 million ($46.7M / ~5 years), falls within a moderate range for administrative management and general management consulting services. However, a precise comparison requires detailed analysis of contract scope, duration, and specific services rendered. Contracts for highly specialized or strategic consulting may command higher annual values, while more routine support services might be lower. Given the competitive landscape and the number of bids received, this annual spend appears to be in line with market expectations for broad technical management support within a large agency like the Department of the Army.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration and value?

The primary risks with a CPFF contract of this nature include potential cost overruns if the contractor's actual costs exceed estimates significantly, despite the fixed fee. The government bears the risk of cost increases, necessitating robust oversight to ensure costs remain reasonable and allocable to the contract. For a contract spanning nearly five years, there's also a risk of scope creep or evolving requirements that may not be adequately captured by the initial fixed fee, potentially leading to contract modifications or disputes. Ensuring the contractor maintains efficient operations and that the fixed fee remains appropriate for the effort is critical.

How effective is the 'full and open competition' approach in ensuring the best value for taxpayers in this specific contract?

The 'full and open competition' approach, evidenced by 26 bids, is generally highly effective in ensuring best value for taxpayers. This broad competition drives down prices as contractors vie for the award, and it allows the government to select from a wide array of technical solutions and capabilities. The high number of bidders suggests that the solicitation was well-defined and accessible, attracting significant market interest. This process increases the likelihood of obtaining high-quality services at a competitive price, minimizing the risk of paying inflated costs or receiving suboptimal performance.

What is the historical spending trend for technical management support services within the Department of the Army over the last five years?

Analyzing historical spending trends for technical management support services within the Department of the Army over the last five years would reveal the agency's investment patterns in this area. Such an analysis would show whether spending has been increasing, decreasing, or remaining stable, potentially indicating shifts in strategic priorities or operational needs. It would also highlight major contract awards, dominant contractors, and the types of services most frequently procured. Understanding these trends provides context for the current $46.7 million award, helping to assess if it aligns with historical investment levels or represents a significant deviation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BOULEVARD SUITE 300, TYSONS CORNER, VA, 22182

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

Financial Breakdown

Contract Ceiling: $46,741,795

Exercised Options: $46,741,795

Current Obligation: $46,741,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J14D0034

IDV Type: IDC

Timeline