DoD's $15M Firm Fixed Price Contract with BearingPoint, Inc. for IT Services Awarded in 2005
Contract Overview
Contract Amount: $15,083,494 ($15.1M)
Contractor: Bearingpoint, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-28
End Date: 2009-05-31
Contract Duration: 1,433 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.1 million to BEARINGPOINT, INC. for work described as: Key points: 1. Contract awarded to BearingPoint, Inc. for $15,083,493.64. 2. The contract was for IT services, likely supporting the Defense Information Systems Agency. 3. Awarded in 2005 and ending in 2009, this represents a significant investment over its duration. 4. The contract was not competed, raising questions about potential price discovery. 5. The 'VA' contract type suggests a specific administrative category, possibly related to value or acquisition.
Value Assessment
Rating: questionable
The contract's fixed price of $15M over four years suggests a substantial investment. Without comparable contract data or detailed scope, assessing its value relative to similar IT services for defense agencies is difficult. The lack of competition further complicates a fair pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis ('NOT COMPETED'). This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent. The government did not explore alternative vendors or solutions.
Taxpayer Impact: The lack of competition for a $15M contract means taxpayers may have paid a premium compared to a competitively bid award, as there was no market pressure to drive down costs.
Public Impact
Taxpayers funded a significant IT services contract without competitive bidding. The duration of the contract (nearly 4 years) indicates a long-term need for the services provided. The specific IT services rendered are not detailed, making it hard to assess their direct impact on defense operations. The award to a single vendor raises concerns about vendor lock-in and future acquisition strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Limited transparency on specific services and outcomes
Positive Signals
- Firm Fixed Price contract type can provide cost certainty if scope is well-defined
- Awarded to a single entity, potentially simplifying management
Sector Analysis
This contract falls within the Information Technology sector, a critical area for defense operations. Spending benchmarks for IT services within the DoD can vary widely based on complexity, but $15M over four years for a single contract is a notable investment, especially when not competitively sourced.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited initial oversight regarding market research and justification for a sole-source award. Further oversight would be needed to ensure the services were necessary, performed adequately, and priced reasonably.
Related Government Programs
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Lack of transparency on services and outcomes
- Limited opportunity for small business participation
- Questionable value for taxpayer money without competition
Tags
department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to BEARINGPOINT, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BEARINGPOINT, 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 $15.1 million.
What is the period of performance?
Start: 2005-06-28. End: 2009-05-31.
What was the specific justification for awarding this $15M IT contract on a sole-source basis?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts require extensive documentation demonstrating why competition is not feasible or advantageous, such as unique capabilities, urgent needs, or follow-on work to a previous contract. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.
How did the government ensure fair and reasonable pricing for this $15M sole-source IT contract?
Assessing fair and reasonable pricing for a sole-source contract is challenging without competitive benchmarks. The government likely relied on cost analysis, historical pricing data (if available), or other negotiation techniques. However, the absence of competition inherently limits the government's leverage in price negotiations, potentially resulting in a higher price than if multiple vendors had bid.
What were the key performance outcomes and overall effectiveness of the IT services provided under this $15M contract?
The provided data lacks information on the specific IT services rendered and their performance outcomes. Effectiveness would be measured against the contract's objectives and deliverables, which are not detailed here. Without knowing the scope of work and any associated performance metrics or evaluations, it's impossible to determine the contract's overall effectiveness or value delivered to the Defense Information Systems Agency.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP (UEI: 014127109)
Address: 715 SIEBERT RD, SCOTT AIR FORC, IL
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5017
IDV Type: IDC
Timeline
Start Date: 2005-06-28
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2010-06-06
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