DoD's $37.3M software engineering contract with Viatech, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $37,298,671 ($37.3M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2012-03-26

Contract Duration: 1,278 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: APPLICATIONS DEVELOPMENT SOFTWARE ENGINEERING SUPPORT (SYSTEMS & SOFTWARE ENGINEERING SUPPORT)

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to VIATECH, INC. for work described as: APPLICATIONS DEVELOPMENT SOFTWARE ENGINEERING SUPPORT (SYSTEMS & SOFTWARE ENGINEERING SUPPORT) Key points: 1. Contract awarded for software engineering support, indicating a need for specialized technical expertise. 2. The contract duration of 1278 days suggests a long-term requirement for these services. 3. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The use of Time and Materials pricing may lead to cost overruns if not closely managed. 5. The contract was awarded by the Defense Contract Management Agency, a key oversight body within DoD. 6. The geographic location of performance is New Jersey. 7. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of services and the specific tasks performed under the Time and Materials (T&M) pricing structure. T&M contracts can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, as the contractor is reimbursed for labor hours and material costs. Comparing this to similar software engineering support contracts within the Department of Defense would require detailed analysis of the specific technical requirements and the prevailing market rates for such specialized services during the contract period (2008-2012).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a delivery order implies it was likely competed as part of a broader IDIQ vehicle. The number of bidders is not specified, but full and open competition generally promotes a competitive environment, which can lead to better pricing and innovation. However, the effectiveness of this competition in driving down costs depends on the specific requirements and the number of qualified bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially leading to more competitive pricing and efficient service delivery.

Public Impact

The Department of Defense benefits from specialized software engineering and systems support, crucial for maintaining and developing its complex technological infrastructure. This contract supports the development and maintenance of critical software systems used by defense personnel. The services are delivered within New Jersey, potentially impacting the local technology workforce. The contract likely supports military operations and readiness by ensuring the functionality of essential defense software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost uncertainty and potential overruns if not rigorously monitored.
The contract's duration (over 3 years) means that initial pricing assumptions might not reflect later market changes.
Lack of specific details on performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The contract was awarded in 2008, and market rates for software engineering have evolved significantly since then.

Positive Signals

Awarded through full and open competition, suggesting a competitive process aimed at achieving best value.
The contract was managed by the Defense Contract Management Agency, indicating established oversight processes.
The duration suggests a stable, long-term need for these critical software engineering services.
The contractor, Viatech, Inc., has experience in providing engineering services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on software and systems engineering. The market for these services is highly competitive, with numerous firms offering specialized expertise to government and commercial clients. The Department of Defense is a significant consumer of such services, requiring advanced capabilities for its complex technological systems. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar software development and engineering support, considering factors like contract type, duration, and specific technical requirements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that larger businesses were eligible to compete and potentially win the award. The absence of small business set-asides or explicit subcontracting goals could limit opportunities for small businesses to participate in this specific contract's execution, potentially impacting the broader small business ecosystem within the defense IT sector.

Oversight & Accountability

The contract was awarded by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. Oversight mechanisms would typically include regular progress reports, performance reviews, and audits, especially given the Time and Materials (T&M) pricing structure which requires careful monitoring of labor hours and costs. Transparency is generally maintained through contract databases and reporting requirements, though specific details of day-to-day oversight are not publicly detailed. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

Software Engineering Services
Systems Engineering Support
Information Technology Services
Defense Contract Management
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics makes objective assessment difficult.
Contract awarded in a past period (2008-2012), market conditions and technology have evolved.
Limited information on the number of bidders and specific evaluation criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to VIATECH, INC.. APPLICATIONS DEVELOPMENT SOFTWARE ENGINEERING SUPPORT (SYSTEMS & SOFTWARE ENGINEERING SUPPORT)

Who is the contractor on this award?

The obligated recipient is VIATECH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2008-09-25. End: 2012-03-26.

What was the specific scope of work for Viatech, Inc. under this contract?

The provided data indicates the contract was for 'APPLICATIONS DEVELOPMENT SOFTWARE ENGINEERING SUPPORT (SYSTEMS & SOFTWARE ENGINEERING SUPPORT)'. While the exact scope is not detailed, this generally involves activities such as designing, developing, testing, and maintaining software applications and systems. For a contract awarded under Time and Materials, the scope would likely be defined by specific task orders issued against the base contract, detailing the required engineering efforts, personnel hours, and any necessary materials. These tasks could range from initial system design and architecture to coding, debugging, integration, and ongoing support for defense-related software systems.

How does the $37.3 million total value compare to similar software engineering contracts awarded by the DoD during the 2008-2012 period?

Comparing the $37.3 million value requires context regarding the specific services rendered and the duration. During 2008-2012, the Department of Defense awarded numerous contracts for software engineering and IT support, with values ranging from thousands to billions of dollars. A contract of this magnitude, spanning over three years, is substantial but not exceptionally large within the DoD's overall IT spending. To assess its value comparatively, one would need to analyze contracts with similar task orders, technical complexities, and performance periods. Factors like the number of bidders, the specific technical requirements, and the prevailing market rates for specialized engineering talent during that era would be crucial for a meaningful benchmark.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the contractor is reimbursed for actual labor hours and material costs incurred, plus a fixed fee or fixed hourly rate. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently if oversight is lax. For the government, this means the final cost can exceed initial estimates, making budgeting more challenging. Effective risk mitigation requires robust government oversight, detailed tracking of all hours and materials, and clear definitions of what constitutes billable time and necessary materials. Without stringent management, T&M contracts can become more expensive than anticipated.

What was the track record of Viatech, Inc. with DoD contracts prior to and during this contract period?

Information on Viatech, Inc.'s specific track record with the DoD prior to and during the 2008-2012 contract period is not detailed in the provided data. Generally, a contractor's history with government agencies is assessed through past performance evaluations, which are part of the source selection process. These evaluations consider factors like adherence to schedule, quality of work, cost control, and overall customer satisfaction on previous contracts. A thorough analysis would involve reviewing performance reports, any contract disputes or awards, and the contractor's experience with similar types of services and contract vehicles. Without access to these specific performance records, it's difficult to definitively assess their track record.

How did the competition level (full and open) influence the pricing and quality of services obtained by the DoD?

Awarding the contract through 'full and open competition' theoretically allows a wide range of qualified vendors to submit proposals, fostering a competitive environment. This competition is intended to drive down prices and encourage vendors to offer high-quality services to win the contract. The extent to which this occurred depends on the number of actual bidders and the specific evaluation criteria used. If many capable companies competed, the DoD likely benefited from competitive pricing and a strong pool of talent. However, if only a few bidders participated, or if the requirements were highly specialized, the competitive pressure might have been less intense. The Time and Materials pricing structure adds a layer of complexity, as cost control is heavily reliant on government oversight rather than solely on upfront price competition.

What is the significance of this contract being a 'Delivery Order' within a larger contract vehicle?

Being a 'Delivery Order' signifies that this contract is a specific order placed against a broader, pre-established contract, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQ contracts provide a flexible framework for agencies to procure services or supplies over a period, allowing them to issue task orders or delivery orders as needed. This approach streamlines the procurement process for recurring needs. For this specific contract, it means Viatech, Inc. was awarded a portion of a larger potential contract, and this order defined the specific scope, quantity, and delivery timeline for the software engineering support. The underlying IDIQ contract would have undergone its own competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: D & S Consultants Inc. (UEI: 792244097)

Address: 615 HOPE RD STE 3A, EATONTOWN, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $53,488,080

Exercised Options: $37,403,853

Current Obligation: $37,298,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline