DoD's $14M Teradata Support Contract: High Cost for Limited Competition
Contract Overview
Contract Amount: $13,951,740 ($14.0M)
Contractor: Teradata Operations, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-17
End Date: 2012-06-30
Contract Duration: 1,352 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TECHNICAL SUPPORT TAS::97 0100::TAS
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to TERADATA OPERATIONS, INC. for work described as: TECHNICAL SUPPORT TAS::97 0100::TAS Key points: 1. Significant spending on technical support for Teradata systems. 2. Limited competition raises concerns about price discovery. 3. Contract duration spans over three years. 4. Sector context: IT services within the Defense sector.
Value Assessment
Rating: questionable
The contract's total value of $13.95M over 1352 days suggests a high per-diem cost. Without specific unit breakdowns, it's difficult to benchmark against industry standards, but the lack of competitive pricing information makes it appear potentially overvalued.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'full and open competition,' the data doesn't provide details on the number of bidders or the evaluation process. This lack of transparency hinders assessment of effective price discovery and whether the best value was achieved.
Taxpayer Impact: Taxpayer funds were used for this contract. The absence of clear competitive outcomes suggests potential for inefficient allocation of resources.
Public Impact
Defense agencies rely on robust IT infrastructure, making support contracts critical. High spending on specific vendors can limit flexibility and increase costs. Transparency in contracting is essential for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing information
- Potential for vendor lock-in
- Limited transparency in competition
Positive Signals
- Contract supports critical defense information systems
Sector Analysis
This contract falls within the IT services sector, specifically focusing on database technology support. Spending benchmarks for similar specialized technical support can vary widely, but large, long-term contracts without clear competitive advantages warrant scrutiny.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a key component of the DoD. Oversight mechanisms should ensure that such contracts deliver value and are managed effectively to prevent cost overruns and ensure performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- High total contract value
- Lack of detailed pricing justification
- Potential for cost overruns with T&M contract type
- Limited transparency on competition effectiveness
Tags
other-computer-related-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to TERADATA OPERATIONS, INC.. TECHNICAL SUPPORT TAS::97 0100::TAS
Who is the contractor on this award?
The obligated recipient is TERADATA OPERATIONS, 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 $14.0 million.
What is the period of performance?
Start: 2008-10-17. End: 2012-06-30.
What was the specific scope of services provided under this contract, and how did it align with the agency's needs?
The contract was for technical support related to Teradata operations. The specific scope would detail the nature of the support, such as maintenance, upgrades, troubleshooting, and performance tuning for Teradata database systems. Alignment with agency needs would depend on the criticality of these databases to DISA's mission and the availability of alternative solutions or in-house expertise.
Were there any performance metrics or service level agreements (SLAs) included in the contract, and were they met?
Performance metrics and SLAs are crucial for ensuring the contractor delivers the agreed-upon services effectively. Without access to the contract details, it's unknown if such provisions were in place. If they existed, their fulfillment would be a key indicator of the contract's success and value realization for the agency.
How did the pricing structure (Time and Materials) influence the final cost and potential for cost overruns?
Time and Materials (T&M) contracts offer flexibility but can lead to higher costs if not carefully managed, as they reimburse the contractor for actual labor hours and material costs plus a markup. The final cost of $13.95M suggests that either significant work was performed or the hourly rates/material costs were substantial. Effective oversight is critical with T&M to control spending.
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: TWO STEP
Solicitation ID: HC101305R2033
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Teradata Government Systems LLC (UEI: 801990768)
Address: 2835 MIAMI VILLAGE DR, MIAMISBURG, OH, 45342
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business
Financial Breakdown
Contract Ceiling: $13,951,740
Exercised Options: $13,951,740
Current Obligation: $13,951,740
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101306D2002
IDV Type: IDC
Timeline
Start Date: 2008-10-17
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2016-10-19
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