DoD's $20.3M IGF Support Costs contract with TECNICO CORPORATION shows fair value with 3 bidders

Contract Overview

Contract Amount: $20,286,017 ($20.3M)

Contractor: Tecnico Corporation

Awarding Agency: Department of Defense

Start Date: 2013-08-20

End Date: 2017-12-31

Contract Duration: 1,594 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::CT::IGF SUPPORT COSTS

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23324

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to TECNICO CORPORATION for work described as: IGF::CT::IGF SUPPORT COSTS Key points: 1. The contract's value appears reasonable given the duration and number of bidders. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance risks seem manageable, with a clear delivery order structure. 4. This contract supports shipbuilding and repair operations for the Navy. 5. The IT support services sector is characterized by dynamic technological advancements. 6. Spending on IT support is a significant component of defense operations.

Value Assessment

Rating: fair

The total award amount of $20.3 million over approximately 4.3 years suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular data on the specific services provided. However, the presence of three bidders indicates a degree of market interest and potential for competitive pricing, which generally supports fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were excluded. The fact that three bidders participated suggests that the exclusion did not unduly limit the competitive landscape. This level of competition is generally sufficient to drive reasonable pricing.

Taxpayer Impact: With three bidders, taxpayers likely benefited from a competitive process that prevented excessive pricing, though the exclusion of sources might have limited the absolute lowest possible price.

Public Impact

The Department of the Navy benefits from essential IT support services. This contract ensures the smooth operation of critical shipbuilding and repair infrastructure. The services provided are crucial for maintaining the readiness of naval assets. The contract supports a workforce involved in IT infrastructure management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT support services over a long contract duration.
Dependence on a single contractor for critical IT functions could pose risks if performance falters.

Positive Signals

Awarded through a competitive process, indicating TECNICO CORPORATION was selected based on merit.
The contract structure as a delivery order under a larger vehicle allows for flexibility.
The duration of the contract suggests a stable, ongoing need for these services.

Sector Analysis

The IT support services sector is a critical component of modern defense operations, encompassing a wide range of activities from network management to cybersecurity. The market is characterized by rapid technological evolution and a mix of large and small specialized firms. Spending in this area is substantial across all federal agencies, with defense being a major consumer due to the complexity and sensitivity of its IT infrastructure.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the nature of IT support contracts often involves opportunities for specialized small businesses to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

Defense Information Technology Support Services
Naval Ship Systems Engineering Support
IT Infrastructure Modernization Programs
Defense Logistics Agency IT Services

Risk Flags

Limited competition due to source exclusion
Potential for cost overruns if scope is not well-defined
Reliance on contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to TECNICO CORPORATION. IGF::CT::IGF SUPPORT COSTS

Who is the contractor on this award?

The obligated recipient is TECNICO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2013-08-20. End: 2017-12-31.

What specific IT support services were included under this contract?

The provided data does not detail the specific IT support services rendered under this contract. Typically, such contracts encompass a broad range of services including network administration, system maintenance, help desk support, cybersecurity, software updates, and hardware management. For the Department of the Navy, these services are crucial for maintaining the operational readiness of its IT infrastructure, which supports everything from administrative functions to advanced combat systems. Understanding the precise nature of the services is key to a more accurate assessment of value and performance.

How does TECNICO CORPORATION's performance on this contract compare to industry benchmarks?

Assessing TECNICO CORPORATION's performance against industry benchmarks requires access to performance metrics and quality data that are not included in the provided summary. Factors such as on-time delivery, service availability, incident resolution times, and customer satisfaction are critical for such a comparison. Without these specific performance indicators, it is difficult to definitively state how the company's execution compares to industry standards. However, the award itself suggests they met the initial requirements and were deemed capable of fulfilling the contract's needs.

What is the historical spending trend for IGF Support Costs within the Department of the Navy?

The provided data point represents a single contract award for IGF Support Costs totaling $20.3 million from 2013 to 2017. To understand the historical spending trend, one would need to analyze aggregate spending data for 'IGF Support Costs' or similar IT support categories within the Department of the Navy over multiple fiscal years. This would involve examining annual budgets, contract obligations, and award histories to identify patterns of increase, decrease, or stability in this spending area, and to contextualize the significance of this particular contract within the broader financial landscape.

Were there any significant risks or challenges encountered during the performance of this contract?

The provided summary does not detail specific risks or challenges encountered during the performance of this contract. Contracts of this nature, especially those involving IT support over several years, can face risks such as evolving technological requirements, cybersecurity threats, personnel turnover, and unforeseen system issues. Effective contract management typically involves proactive risk mitigation strategies and contingency planning. Without specific reports or documentation, it's impossible to identify any actualized risks or challenges that may have impacted the contract's execution or cost.

What is the typical duration and value range for similar IT support contracts in the defense sector?

IT support contracts in the defense sector can vary significantly in duration and value, often ranging from one to five years, with potential for option periods extending the term. Values can range from a few million dollars for specialized services to hundreds of millions or even billions for large-scale enterprise-wide IT support. A $20.3 million contract over approximately 4.3 years, as seen here, falls within a moderate range for specific IT support functions within a large organization like the Department of the Navy. Larger, more comprehensive contracts would typically encompass broader scopes of work and higher total values.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6554012R0018

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Maritime Holdings, LLC (UEI: 827462636)

Address: 831 INDUSTRIAL AVE, CHESAPEAKE, VA, 23324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,551,086

Exercised Options: $20,551,086

Current Obligation: $20,286,017

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,179,247

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6554013D0008

IDV Type: IDC

Timeline