DoD's $12.4M IT contract for computer systems design services awarded to MZM, INC

Contract Overview

Contract Amount: $12,387,347 ($12.4M)

Contractor: MZM, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-01-30

End Date: 2008-01-24

Contract Duration: 1,455 days

Daily Burn Rate: $8.5K/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 $12.4 million to MZM, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1455 days indicates a significant, long-term engagement. 3. Awarded by the Defense Information Systems Agency, highlighting a focus on critical defense IT infrastructure. 4. The North American Industry Classification System (NAICS) code 541512 points to specialized computer systems design services. 5. The contract was awarded as an "Other" type, which may warrant further investigation into its specific nature. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

Benchmarking the value of this $12.4 million contract is challenging without specific performance metrics or comparable contract data. The duration suggests a substantial investment in IT services. However, the lack of detailed justification for the award amount and the 'Other' award type prevent a definitive assessment of value for money. Further analysis would require understanding the specific services rendered and their criticality to the Defense Information Systems Agency's mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a reasonable level of market engagement for these computer systems design services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best available solution through an open process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, which receives critical IT support. Services delivered likely include the design, development, and implementation of complex computer systems to support military operations and intelligence. The geographic impact is centered in Washington D.C., where the contract was awarded and likely where the primary services were performed. Workforce implications include the employment of IT professionals and specialists by the contractor, MZM, INC., and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The 'Other' award type requires further clarification to understand the specific nature and potential risks associated with the contract.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the true extent of market engagement.
Absence of small business participation flags raises questions about opportunities for smaller firms within the contracting ecosystem.

Positive Signals

Awarded through full and open competition, indicating a commitment to a transparent and competitive procurement process.
The long contract duration suggests a stable and potentially successful working relationship between the agency and the contractor.
The contract supports critical IT functions for the Department of Defense, contributing to national security objectives.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The IT services market is highly dynamic, with significant government spending driven by the need for advanced technological solutions in defense, intelligence, and civilian agencies. Comparable spending benchmarks would involve analyzing other large-scale IT system design and integration contracts awarded by federal agencies, particularly within the Department of Defense, to assess pricing and scope.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. This suggests that the primary award was made to a large business or that the set-aside criteria were not met or applicable. Consequently, opportunities for small businesses would likely be limited to subcontracting roles, the availability and extent of which are not detailed in this award information. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Information Systems Agency. Accountability measures are usually embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the public award notice, though detailed justifications and performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Services
IT Systems Integration
Computer Systems Design and Related Services
Department of Defense IT Procurement
Federal IT Contracts

Risk Flags

Lack of detailed performance metrics
Ambiguity in 'Other' award type
Limited information on number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 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 $12.4 million.

What is the period of performance?

Start: 2004-01-30. End: 2008-01-24.

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

The contract, identified by NAICS code 541512, pertains to 'Computer Systems Design Services.' While the specific services are not detailed in the provided data, this category typically encompasses a broad range of activities including analyzing user needs, designing and developing custom software and hardware solutions, integrating different computer systems, and providing IT consulting. For the Defense Information Systems Agency (DISA), these services could range from designing secure communication networks and command and control systems to developing specialized software for intelligence analysis or logistical support. The 'Other' award type (AW: DO) might indicate a specific type of service or a unique contracting vehicle not easily categorized, warranting further inquiry into DISA's procurement practices for such services.

How does the $12.4 million contract value compare to similar IT services contracts awarded by the DoD?

Comparing the $12.4 million value requires context regarding the contract's duration and scope. This contract spans 1455 days (approximately 4 years), making its annual value around $3.1 million. The Department of Defense awards numerous IT contracts, with values ranging from thousands to billions of dollars. For specialized computer systems design services, $3.1 million annually is a moderate figure. Larger, more complex system integrations or development projects often exceed tens or hundreds of millions annually. However, without knowing the specific deliverables and complexity, a precise comparison is difficult. It is advisable to benchmark against other DISA contracts for similar NAICS codes and durations to ascertain if the pricing is competitive.

What are the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for IT services contracts, KPIs would relate to system uptime, response times for technical support, successful deployment of new features or systems, adherence to security protocols, and project completion within defined timelines and budgets. The absence of this information in the award notice suggests that these details are likely outlined in the contract's statement of work (SOW) or performance work statement (PWS), which are not publicly available. Assessing the contractor's performance and the true value derived from the contract would necessitate access to these performance-related documents and associated reports.

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

Information regarding MZM, INC.'s specific track record on federal IT contracts is not detailed in the provided data. To assess their performance history, one would need to examine past contract awards and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for MZM, INC. with federal agencies, particularly the Department of Defense. A review of their portfolio would reveal their experience in computer systems design, project management capabilities, and history of meeting contractual obligations. Without this external data, it's impossible to definitively state their track record based solely on this single award notice.

What is the historical spending trend for computer systems design services by the Defense Information Systems Agency?

Analyzing historical spending trends for computer systems design services by the Defense Information Systems Agency (DISA) would require access to historical federal procurement data. This would involve querying databases like USAspending.gov or FPDS-NG for contracts awarded under NAICS code 541512 (and potentially related codes) by DISA over several fiscal years. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and identify the primary contractors and types of services procured. This contract, awarded in 2004, represents a snapshot from that period and may not reflect current spending patterns or priorities.

What are the potential risks associated with a sole-source or limited competition award for IT services?

This contract was awarded under 'full and open competition,' not sole-source or limited competition. Therefore, the risks typically associated with non-competitive awards (such as inflated pricing, lack of innovation due to reduced market pressure, and potential for vendor lock-in) are mitigated. Full and open competition generally ensures that the government receives proposals from multiple vendors, allowing for price comparison and selection of the most advantageous offer. However, even in competitive procurements, risks can exist related to contractor performance, cybersecurity, scope creep, and budget overruns, which are managed through contract oversight and performance management.

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: NO

Parent Contract

Parent Award PIID: DCA20002A5016

IDV Type: IDC

Timeline