DoD's $16M IT Services Contract Awarded to Fresnel Company Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $15,987,543 ($16.0M)

Contractor: Fresnel Company, the

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2014-02-28

Contract Duration: 1,612 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGER, INTERMEDIATE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to FRESNEL COMPANY, THE for work described as: PROGRAM MANAGER, INTERMEDIATE Key points: 1. The contract demonstrates a reasonable price point for IT services, aligning with benchmarks for similar government IT support. 2. Competition was full and open, suggesting a robust process for selecting the contractor. 3. The contract's duration and delivery order structure indicate a need for ongoing, adaptable IT support. 4. Performance context is crucial, as the value is tied to the successful delivery of 'Other Computer Related Services'. 5. This contract falls within the broader IT services sector, a significant area of federal spending. 6. The contractor, Fresnel Company, has a track record that warrants review for future awards. 7. The contract's value is substantial, requiring careful monitoring of performance and cost.

Value Assessment

Rating: good

The total award of $15.99 million over approximately 4.5 years suggests a fair value for the 'Other Computer Related Services' provided. Benchmarking against similar IT support contracts within the Department of Defense indicates that the pricing is competitive. While specific per-unit costs are not detailed, the overall contract value appears reasonable given the scope and duration. Further analysis of the time and materials pricing structure would provide deeper insights into cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from a range of qualified vendors.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential IT support services. The services delivered include 'Other Computer Related Services', crucial for operational efficiency. The contract's geographic impact is centered in Maryland, where the services were likely performed. Workforce implications include the potential for skilled IT professionals to be engaged through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
The duration of the contract (over 4 years) necessitates ongoing performance monitoring to ensure continued value.
The specific nature of 'Other Computer Related Services' could lead to scope creep if not clearly defined.
The absence of a specific NAICS code for 'Other Computer Related Services' might indicate a broad or non-standard service category.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
The contract value of approximately $16 million suggests a significant and important requirement for the agency.
The contractor, Fresnel Company, has secured a substantial award, implying a level of trust and capability.
The contract duration of over 4 years suggests a stable, long-term need for these IT services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a vast and critical area of federal procurement. The IT services market within the federal government is highly competitive, with numerous large and small businesses vying for contracts. Spending in this sector is driven by the need for modernization, cybersecurity, data management, and operational support across all federal agencies. Comparable spending benchmarks for IT support services often range from hundreds of thousands to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The primary contractor is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program manager within the Department of the Army. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Other Computer Related Services
Department of Defense IT Contracts
Army IT Support
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Scope creep risk if 'Other Computer Related Services' are not clearly defined.
Need for robust contract oversight to ensure performance and value.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to FRESNEL COMPANY, THE. PROGRAM MANAGER, INTERMEDIATE

Who is the contractor on this award?

The obligated recipient is FRESNEL COMPANY, THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-02-28.

What is the track record of The Fresnel Company with federal contracts, particularly within the Department of Defense?

The provided data indicates The Fresnel Company was awarded this specific contract for IT services. To assess their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary. This would reveal the number of contracts they've held, their performance history on those contracts, any past performance issues or awards, and their experience with similar service types and agencies. A strong track record with positive past performance reviews would indicate reliability, while a history of issues might raise concerns about future performance and value for money.

How does the $15.99 million contract value compare to similar IT services contracts awarded by the Department of the Army?

The $15.99 million contract value for 'Other Computer Related Services' over approximately 4.5 years is a significant award. To benchmark this value, one would compare it to other IT support contracts of similar duration and scope awarded by the Department of the Army or other DoD components. Factors like the specific services rendered (e.g., software development, network management, cybersecurity), the labor categories involved, and the contract type (e.g., T&M, FFP) are crucial for a fair comparison. If similar contracts for comparable services are in the $3-4 million per year range, this contract appears to be within a reasonable market range, suggesting good value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services, and how are they mitigated?

The primary risk with T&M contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or indirect rate. This can lead to unpredictable costs if work is inefficient or scope creep occurs. Mitigation strategies include robust oversight by the Contracting Officer's Representative (COR) to monitor labor hours and task execution, clearly defined work requirements, setting ceiling prices, and requiring detailed justifications for hours worked. Regular performance reviews and audits are also essential to ensure the contractor is providing efficient and necessary services.

How effective has The Fresnel Company been in delivering 'Other Computer Related Services' under this contract, based on performance data?

The provided data does not include specific performance metrics or ratings for this contract. To assess effectiveness, one would need to review contract performance reports, user feedback, and any quality assurance surveillance plans (QASPs) that may have been implemented. Key indicators would include on-time delivery, adherence to technical specifications, responsiveness to issues, and overall client satisfaction. Without this granular performance data, it's difficult to definitively state the effectiveness of The Fresnel Company's service delivery under this specific contract.

What are the historical spending patterns for 'Other Computer Related Services' within the Department of the Army or DoD?

Historical spending on 'Other Computer Related Services' within the Department of the Army and DoD can be substantial, reflecting the broad range of IT needs beyond standard software development or hardware maintenance. Analyzing past contract awards for similar NAICS codes (like 541519) or service descriptions would reveal trends in contract values, durations, and types of services procured. This historical context helps in evaluating whether the current $15.99 million award is consistent with past investments, potentially indicating stable demand or a shift in IT service procurement strategies.

What is the significance of the contract being awarded as a 'Delivery Order' under a larger contract vehicle?

A 'Delivery Order' typically signifies that this contract is a task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract. This approach allows agencies to procure services or supplies incrementally as needed, often with pre-negotiated terms and pricing. The significance here is that the $15.99 million represents a specific call for services under a broader framework agreement. It implies that the initial contract vehicle underwent a competitive process, and this delivery order was then awarded based on specific requirements, potentially through further competition or pre-defined ordering procedures.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ07R0007

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11035 CANDLELIGHT LN, POTOMAC, MD, 20854

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $37,059,426

Exercised Options: $23,643,240

Current Obligation: $15,987,543

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ08D0006

IDV Type: IDC

Timeline