DoD's $80.8M contract for engineering services awarded to ITEL Solutions, an Ilex Telos company

Contract Overview

Contract Amount: $12,808,091 ($12.8M)

Contractor: Itel Solutions, an Ilex Telos

Awarding Agency: Department of Defense

Start Date: 2004-03-05

End Date: 2010-01-08

Contract Duration: 2,135 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200406!003638!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !N!0032 ! !20040305!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000001049203!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !C! !99990909!B! ! !A! !A!N!Y!2!004!B! !C!N!Z! ! !N!C!N! ! ! !D!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to ITEL SOLUTIONS, AN ILEX TELOS for work described as: 200406!003638!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !N!0032 ! !20040305!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONM… Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 7 years indicates a long-term need for these engineering services. 3. The award type 'DO' suggests a priority rating, potentially impacting delivery timelines. 4. The contract is for engineering services, falling under the broader IT and electronics sector. 5. The geographic location of the contractor in New Jersey may have implications for local economic impact.

Value Assessment

Rating: fair

The contract value of $80.8 million over approximately 7 years averages to about $11.5 million annually. Without specific performance metrics or comparable contract data, it's difficult to definitively assess value for money. However, the duration suggests a significant need that the government deemed worth this investment. Further analysis would require benchmarking against similar engineering service contracts for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bids indicates a degree of competition. While the exact number of bidders is not exhaustive, full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and better service quality.

Public Impact

The Department of Defense benefits from specialized engineering technical services to support its operations. The contract likely supports the development, maintenance, or enhancement of electronic and communication equipment. The primary geographic impact is likely within the Department of Defense's operational areas, though the contractor is based in New Jersey. The contract supports jobs within the engineering and technical services sector, primarily at the contractor's location in Mays Landing, NJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's long duration (over 7 years) could lead to vendor lock-in if not managed carefully.
The 'DO' award type indicates a priority rating, which could potentially strain resources or impact other less-prioritized contracts.
Reliance on a single contractor for extended engineering services might reduce flexibility in adapting to new technologies or requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract specifies engineering technical services, indicating a need for specialized expertise that the contractor likely possesses.
The long duration suggests a stable, ongoing requirement, providing predictability for both the government and the contractor.

Sector Analysis

This contract falls within the Engineering Services sector, which is closely related to the broader Information Technology and Defense industries. The market for engineering services supporting defense electronics and communications is substantial, driven by the continuous need for technological advancement and maintenance of complex systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts within the DoD for similar types of equipment or services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to ITEL SOLUTIONS. However, the primary awardee is not a small business, and there's no explicit mention of small business subcontracting goals in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'DO' award type might involve additional oversight from agencies responsible for prioritizing defense production. Transparency is generally facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Electronic Warfare Systems
Engineering and Technical Services
Information Technology Support Services
Department of Defense IT Procurement

Risk Flags

Long contract duration may increase risk of obsolescence or performance degradation.
Time and Materials pricing structure can lead to cost overruns if not closely monitored.
Award type 'DO' indicates priority, potentially impacting resource allocation and other defense priorities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to ITEL SOLUTIONS, AN ILEX TELOS. 200406!003638!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !N!0032 ! !20040305!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000001049203!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !C! !999

Who is the contractor on this award?

The obligated recipient is ITEL SOLUTIONS, AN ILEX TELOS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2004-03-05. End: 2010-01-08.

What is the track record of ITEL SOLUTIONS, an ILEX TELOS company, in performing similar engineering services for the Department of Defense?

The provided data identifies ITEL SOLUTIONS, an ILEX TELOS company, as the contractor for this $80.8 million engineering services contract. To assess their track record, one would need to examine their past performance on similar contracts, including their history of meeting deadlines, staying within budget, and delivering quality services. Information on past performance ratings, any contract disputes, or awards received by the company for similar work would be crucial. Without access to detailed performance reviews or a broader contract history, it's difficult to provide a comprehensive assessment of their specific track record beyond this single award.

How does the awarded amount of $80.8 million compare to similar engineering services contracts within the Department of Defense?

The $80.8 million contract value over approximately 7 years represents an average annual spend of roughly $11.5 million. To benchmark this value, we would need to compare it against other Department of Defense contracts for engineering technical services, particularly those related to electronics and communication equipment. Factors such as contract duration, scope of work, specific technical requirements, and the number of bidders influence pricing. A comprehensive comparison would involve analyzing the average cost per year, cost per labor hour (if applicable), and overall contract value for similar services awarded over the same period or in recent years to determine if this contract represents a competitive price point.

What are the primary risks associated with this contract, considering its duration and the nature of engineering services?

Key risks for this contract include potential cost overruns if project requirements expand or unforeseen technical challenges arise, given its Time and Materials (PT) pricing structure. The long duration (over 7 years) increases the risk of technological obsolescence, where the services or equipment supported may become outdated before the contract concludes. There's also a risk of vendor performance degradation over time or a decline in the contractor's specialized expertise. Furthermore, the 'DO' award type suggests a priority rating, which could lead to resource conflicts or impact the timely delivery of other critical defense needs if not managed effectively.

How effective is the 'full and open competition' approach in ensuring optimal value for this specific engineering services contract?

The 'full and open competition' approach is generally considered effective in promoting value for money by encouraging a wide range of potential bidders to submit proposals. This competition drives down prices and incentivizes contractors to offer their best technical solutions. For this $80.8 million contract, the fact that it was competed openly and received 4 bids suggests that the government sought competitive offers. The effectiveness is further realized if the competition leads to a technically superior solution at a reasonable price, which would be assessed through post-award performance monitoring and comparison with market rates.

What are the historical spending patterns for engineering technical services within the Department of the Army, and how does this contract fit?

Historical spending patterns for engineering technical services within the Department of the Army are typically substantial, reflecting the complexity and scale of military operations and equipment. The Army consistently procures a wide array of engineering support, from R&D to sustainment. This specific $80.8 million contract for engineering services related to electronics and communication equipment fits within the broader category of IT and defense-related services that the Army procures regularly. Analyzing past Army spending on similar services would reveal trends in contract values, durations, and types of services sought, providing context for the significance and typicality of this particular award.

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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1413 CANTILLION BLVD, MAYS LANDING, NJ, 02

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0702DP001

IDV Type: IDC

Timeline