DoD's $12.7M IT contract for computer systems design services awarded to MZM, INC

Contract Overview

Contract Amount: $12,688,174 ($12.7M)

Contractor: MZM, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-02-13

End Date: 2008-01-16

Contract Duration: 1,798 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to MZM, INC. for work described as: Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract duration of approximately 5 years suggests a significant, ongoing requirement. 3. Awarded by the Department of Defense, highlighting its role in national security infrastructure. 4. The contract was competed under full and open competition, suggesting a robust bidding process. 5. The contractor, MZM, INC., has secured a substantial award, indicating past performance or competitive advantage. 6. The service category (NAICS 541512) is common for IT support across federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The raw award amount of $12.7 million over nearly five years averages to approximately $2.5 million annually. This figure needs to be compared against the scope and complexity of the computer systems design services provided. Without more detailed information on the services rendered, it's difficult to definitively assess if this represents excellent value for money or if it's on the higher end for similar engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which typically implies that all responsible sources were permitted to submit a bid. This method is generally favored for ensuring the government receives the best possible pricing and services by fostering a competitive environment. The number of bidders is not specified, but the use of full and open competition suggests a healthy level of interest from the market.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings and better service delivery.

Public Impact

The Department of Defense benefits from enhanced computer systems design and support, crucial for its operational effectiveness. Personnel within the DoD likely receive improved IT infrastructure and services, aiding their daily tasks and mission accomplishment. The contract supports the functioning of critical defense information systems, indirectly contributing to national security. The geographic impact is primarily within the District of Columbia, where the contract was registered, suggesting a concentration of services or administrative oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the true value and effectiveness of the services provided.
The duration of the contract without clear performance benchmarks could pose a risk if services degrade over time.
Limited transparency on the specific deliverables and outcomes achieved under this contract hinders a comprehensive assessment.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair bidding process.
The contract addresses a core IT service need for a major federal agency (DoD).
The contractor, MZM, INC., has secured a significant award, suggesting a level of established capability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a broad and essential category for government operations, encompassing the design, development, and integration of complex IT systems. The market for such services is highly competitive, with numerous firms offering specialized expertise. Federal spending in this area is substantial, reflecting the ongoing need for modern and secure IT infrastructure across all agencies. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT services awarded by defense or civilian agencies of comparable size and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The award to MZM, INC. does not appear to have a mandated small business component based on the provided information.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). As a contract awarded under full and open competition, standard procurement regulations and oversight mechanisms would apply. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available, though detailed performance data may be less accessible.

Related Government Programs

Department of Defense IT Services
Computer Systems Design Services
Information Technology Support Contracts
Defense Information Systems Agency Contracts

Risk Flags

Potential for technological obsolescence given the contract duration.
Lack of specific performance metrics hinders value assessment.
Limited transparency on detailed service delivery and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to MZM, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MZM, 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 $12.7 million.

What is the period of performance?

Start: 2003-02-13. End: 2008-01-16.

What specific computer systems design services were rendered under this contract?

The provided data indicates the contract was for 'Computer Systems Design Services' under NAICS code 541512. However, the specific nature of these services is not detailed. Typically, this category includes services such as analyzing user needs and designing computer systems to fulfill those needs, including software and hardware integration. This could range from network architecture design, system integration planning, IT infrastructure modernization, to the development of custom IT solutions. Without further documentation, the precise scope of work, such as whether it involved hardware procurement, software development, network engineering, or cybersecurity integration, remains unspecified.

How does the $12.7 million award compare to similar IT services contracts within the DoD?

Comparing the $12.7 million award for computer systems design services requires context regarding the contract's duration and scope. This contract spanned approximately 5 years (1798 days), averaging around $2.5 million annually. To benchmark effectively, one would need to analyze other DoD contracts for similar NAICS codes (541512) awarded within a comparable timeframe. Factors such as the specific services (e.g., network design vs. enterprise architecture), the complexity of the systems involved, and the geographic location of service delivery would influence pricing. Generally, IT services contracts for large federal agencies can range from hundreds of thousands to tens of millions of dollars annually, depending on the scale and criticality of the systems supported.

What is the track record of MZM, INC. in securing federal IT contracts?

The award of this $12.7 million contract to MZM, INC. by the Department of Defense suggests the company has a demonstrated capability in securing and presumably performing federal IT services contracts. To fully assess their track record, a deeper dive into their contract history would be necessary. This would involve examining the number and value of previous awards, the agencies they have served, the types of services provided, and any performance reviews or past performance evaluations. A history of successful contract completions and positive performance feedback would indicate reliability, while a pattern of issues or disputes might raise concerns.

What are the potential risks associated with a 5-year contract for computer systems design services?

A significant risk with a long-term contract like this (nearly 5 years) for evolving IT services is technological obsolescence. The systems designed or services provided at the outset may become outdated by the end of the contract term if not managed proactively. Another risk is vendor lock-in, where the government becomes heavily reliant on a single provider, potentially limiting future flexibility or competitive options. Performance degradation over time is also a concern, especially if contract oversight and performance monitoring are not rigorous. Finally, changes in government requirements or budget constraints could necessitate contract modifications or terminations, introducing programmatic risk.

How does the 'full and open competition' award mechanism impact taxpayer value?

Awarding contracts through 'full and open competition' is generally considered beneficial for taxpayer value. This process allows any interested and qualified vendor to submit a bid, fostering a competitive environment. Increased competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering both cost and technical merit. This contrasts with sole-source or limited competition awards, which may result in higher prices due to a lack of market pressure. Therefore, the use of full and open competition suggests a deliberate effort to maximize the return on taxpayer investment for these computer systems design services.

What is the historical spending trend for computer systems design services within the DoD?

Historical spending trends for computer systems design services within the DoD are generally characterized by significant and consistent investment. The DoD is a major consumer of IT services, driven by the need to maintain complex, secure, and advanced technological capabilities. Spending in this area fluctuates based on modernization initiatives, emerging threats, and strategic priorities. While this specific $12.7 million contract represents a single data point, the overall DoD budget allocation for IT and related services typically runs into the tens of billions of dollars annually. Analyzing broader spending patterns would reveal shifts towards cloud computing, cybersecurity, data analytics, and artificial intelligence, influencing the demand for design and integration services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 1523 NEW HAMPSHIRE AVE NW, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: DCA20002A5016

IDV Type: IDC

Timeline