DoD awards $12.7M for Tobyhanna Army Depot IT services, with 1 bid received

Contract Overview

Contract Amount: $12,747,656 ($12.7M)

Contractor: Williams Electric CO Inc

Awarding Agency: Department of Defense

Start Date: 2006-11-20

End Date: 2011-04-01

Contract Duration: 1,593 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PHASE I, 5TH STREET, TOBYHANNA ARMY DEPOT

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to WILLIAMS ELECTRIC CO INC for work described as: PHASE I, 5TH STREET, TOBYHANNA ARMY DEPOT Key points: 1. Contract awarded for IT services at Tobyhanna Army Depot. 2. The contract was competed on a full and open basis. 3. One bid was received for this contract. 4. The contract type is Firm Fixed Price. 5. The period of performance was 1593 days. 6. The contract was awarded to Williams Electric Co Inc.

Value Assessment

Rating: fair

The contract value of $12.7 million for computer systems design services over approximately 4.3 years appears within a reasonable range for IT support at a large military installation. However, without specific details on the scope of services and comparable contract data for similar depot-level IT support, a precise value-for-money assessment is challenging. The single bid received raises questions about the competitiveness of the pricing and whether the government achieved the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. However, only one bid was received. This limited competition could suggest potential barriers to entry for other firms, a lack of market interest, or that the solicitation was structured in a way that favored a specific type of offeror. The single bid limits the government's ability to leverage competitive pressure for optimal pricing.

Taxpayer Impact: A single bid limits the potential for price reduction through robust competition, potentially resulting in higher costs for taxpayers than if multiple bids had been submitted.

Public Impact

Provides essential IT and computer systems design services to the Tobyhanna Army Depot. Supports the operational readiness and technological infrastructure of a key Army logistics facility. Benefits military personnel and civilian employees relying on robust IT systems for their duties. Impacts the efficiency and effectiveness of depot operations, contributing to overall defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received could indicate potential market issues or solicitation design flaws.
Lack of comparative pricing data makes it difficult to definitively assess if the price paid was optimal.
The long performance period (1593 days) could expose the government to risks if technology or requirements change significantly.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Williams Electric Co Inc., was selected, implying they met the technical and performance requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Contracts like this are crucial for ensuring the operational effectiveness of military installations. Benchmarking this contract's value against similar IT support services at other large federal facilities would provide further context on its cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor may engage small businesses as subcontractors, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. The Firm Fixed Price nature of the contract provides a degree of cost control. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General involvement would be contingent on any reported issues of fraud, waste, or abuse.

Related Government Programs

Tobyhanna Army Depot IT Support Services
Department of Defense IT Modernization Programs
Army Logistics Command IT Infrastructure
Computer Systems Design Services Contracts

Risk Flags

Limited competition (1 bid)
Potential for suboptimal value due to limited competition
Long performance period for IT services may carry inherent risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to WILLIAMS ELECTRIC CO INC. PHASE I, 5TH STREET, TOBYHANNA ARMY DEPOT

Who is the contractor on this award?

The obligated recipient is WILLIAMS ELECTRIC CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2006-11-20. End: 2011-04-01.

What specific computer systems design services were included in this $12.7 million contract?

The provided data classifies the contract under NAICS code 541512 for Computer Systems Design Services. While the specific services are not detailed, this typically encompasses a range of activities such as designing, developing, and integrating hardware, software, and communication systems. For Tobyhanna Army Depot, this could include network design, system integration, cybersecurity implementation, software development support, and IT infrastructure management. The $12.7 million value over nearly five years suggests a comprehensive scope of support critical for maintaining the depot's complex operational technology environment.

How does the single bid received impact the potential value for money compared to a multi-bid scenario?

A single bid significantly diminishes the government's leverage in price negotiation and can lead to suboptimal value for money. In a competitive environment with multiple bidders, companies are incentivized to offer their best pricing and terms to win the contract. With only one offer, the contractor has less pressure to be competitive, potentially leading to higher prices than might be achieved through open competition. While the government can still negotiate, the absence of alternative offers limits the ability to benchmark against competing proposals, making it harder to ascertain if the final price truly reflects market rates or the most efficient solution.

What are the potential risks associated with a Firm Fixed Price contract for IT services over a 1593-day period?

Firm Fixed Price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, for long-duration IT contracts, an FFP structure can pose risks. If the scope of work is not precisely defined or if technological advancements outpace the contract's duration, the contractor might be locked into outdated specifications or face unexpected costs to deliver modern solutions. Conversely, if the contractor significantly underestimates costs or scope, they bear the loss. For the government, the risk lies in potentially paying a premium to cover the contractor's risk, or receiving less innovative solutions if the contractor is disincentivized to propose improvements beyond the fixed scope.

What is the historical spending trend for similar IT services at Tobyhanna Army Depot or comparable Army depots?

Analyzing historical spending for similar IT services at Tobyhanna Army Depot or comparable Army depots is crucial for context. Without access to specific historical data for this depot or similar facilities, it's difficult to establish a precise trend. However, federal IT spending, particularly within the Department of Defense, has generally been on an upward trajectory, driven by modernization efforts, cybersecurity needs, and the increasing reliance on digital infrastructure. Contracts for IT support services at large depots are substantial and recurring. Understanding past award values, competition levels, and contract durations for similar services would help determine if this $12.7 million award represents an increase, decrease, or stable spending pattern.

What is the track record of Williams Electric Co Inc. in performing similar government IT contracts?

Assessing the track record of Williams Electric Co Inc. is vital for understanding their capability to successfully execute this $12.7 million IT services contract. Information on their past performance, including the types and values of previous government contracts, client satisfaction ratings, and any history of contract disputes or terminations, would provide insight into their reliability and expertise. A review of their performance on similar computer systems design services or IT support contracts, particularly within the Department of Defense or for other large federal agencies, would be necessary to gauge their suitability and mitigate potential performance risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: FIRM FIXED PRICE (J)

Contractor Details

Address: 695 DENTON BOULEVARD, FORT WALTON BE, FL

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,747,656

Exercised Options: $12,747,656

Current Obligation: $12,747,656

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8703D0029

IDV Type: IDC

Timeline