DoD's $13.6M IT services contract awarded to Optimal National Security Services Inc. shows fair value

Contract Overview

Contract Amount: $13,614,468 ($13.6M)

Contractor: Optimal National Security Services Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-17

End Date: 2012-09-30

Contract Duration: 1,474 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPUTER RELATED SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to OPTIMAL NATIONAL SECURITY SERVICES INC for work described as: COMPUTER RELATED SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT services. 2. Full and open competition suggests a competitive pricing environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 4 years provides stability for service delivery. 5. Services fall under 'Other Computer Related Services,' a broad IT category. 6. Awarded by the Defense Logistics Agency, indicating support for military operations.

Value Assessment

Rating: good

The contract's total value of $13.6 million over approximately 4 years suggests a moderate annual spend. Without specific performance metrics or detailed service breakdowns, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract generally aligns with market expectations for IT services, aiming to control costs. Benchmarking against similar IT service contracts of comparable scope and duration would be necessary for a more definitive evaluation of its cost-effectiveness.

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 bids. This typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders, though not explicitly quantified here beyond the award notice, generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, receiving essential computer-related services. Services delivered likely include IT support, system maintenance, network management, and potentially software development or integration. The geographic impact is likely concentrated around the Defense Logistics Agency's operational areas or wherever DoD IT infrastructure requires support. Workforce implications may involve skilled IT professionals employed by Optimal National Security Services 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 quality and effectiveness of services rendered.
The broad nature of 'Other Computer Related Services' could mask specific areas of potential inefficiency or overspending.
Limited insight into the specific tasks performed and their direct impact on DoD operations.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type helps control costs and mitigate financial risk for the government.
Contract duration of nearly four years provides continuity of essential IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer-related services. The IT services market is vast and highly competitive, encompassing a wide range of offerings from hardware maintenance to complex software development and cybersecurity. Government spending in this sector is substantial, driven by the need for modern, secure, and efficient technological infrastructure across all agencies. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded by other federal agencies or large state governments for similar scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. The prime contractor, Optimal National Security Services Inc., may still choose to engage small businesses as subcontractors, but this is not a requirement stemming from the contract's award terms. The absence of a small business set-aside means the opportunity was open to all eligible businesses, potentially favoring larger, more established firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Logistics Agency (DLA) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle. Accountability measures are embedded in the fixed-price contract type, which incentivizes the contractor to deliver services within the agreed-upon budget.

Related Government Programs

IT Services
Computer Systems Design
Defense Logistics Support
Federal IT Procurement
Information Technology Consulting

Risk Flags

Lack of detailed performance metrics.
Broad service category may obscure specific value.
Contract duration could lead to technology obsolescence risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to OPTIMAL NATIONAL SECURITY SERVICES INC. COMPUTER RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is OPTIMAL NATIONAL SECURITY SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2008-09-17. End: 2012-09-30.

What is the track record of Optimal National Security Services Inc. with federal contracts, particularly in IT services?

Optimal National Security Services Inc. has been awarded federal contracts, including this $13.6 million IT services contract with the Defense Logistics Agency. A comprehensive review of their contract history would involve examining past performance ratings, any documented disputes or contract terminations, and the types of services they have previously provided to government entities. Understanding their experience with similar contract types (e.g., fixed-price) and agencies can provide insight into their reliability and capability. Without access to detailed performance data or a broader contract portfolio analysis, it's difficult to definitively assess their overall track record beyond the information available for this specific award.

How does the per-unit cost or annual spend of this contract compare to similar IT services contracts awarded by the DoD or other federal agencies?

The annual spend for this contract averages approximately $3.4 million ($13.6 million / 4 years). Benchmarking this against similar IT services contracts requires access to a database of comparable awards, considering factors like contract duration, scope of services (e.g., network management, software development, help desk support), and the specific agency. Contracts for broad 'Other Computer Related Services' can vary significantly. If this contract involves highly specialized IT support or mission-critical systems, the annual spend might be considered reasonable. Conversely, for more commoditized IT support, it could be on the higher side. A detailed comparison would necessitate analyzing contracts with similar North American Industry Classification System (NAICS) codes and service descriptions.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential underperformance by the contractor, scope creep if not managed tightly, and the possibility of the IT services becoming outdated or misaligned with evolving DoD needs. The fixed-price contract type serves as a primary mitigation strategy against cost overruns, as the contractor bears the risk of exceeding budget. The Defense Logistics Agency's oversight, including contract monitoring and performance reviews, is crucial for mitigating performance risks. Clear statement of work and change control processes are essential to prevent scope creep. The contract's duration also presents a risk if technology rapidly advances, potentially rendering the contracted services less effective over time.

How effective has the 'full and open competition' process been in ensuring competitive pricing for this specific contract?

The 'full and open competition' award designation suggests that the bidding process was designed to attract multiple offers, which is generally conducive to competitive pricing. However, the effectiveness in achieving the lowest possible price depends on the number of bids received and the specific market conditions for the services required. Without knowing the number of bidders or the range of proposed prices, it's challenging to definitively state how effective the competition was in this instance. The fact that it was awarded under this mechanism implies an intent to leverage market forces for cost efficiency, which is a positive indicator for taxpayers.

What is the historical spending trend for 'Other Computer Related Services' by the Defense Logistics Agency or the DoD?

Analyzing historical spending trends for 'Other Computer Related Services' (NAICS 541519) by the Defense Logistics Agency (DLA) and the broader Department of Defense (DoD) would reveal patterns in demand, average contract values, and the prevalence of different contract types and competition levels. This specific contract represents a portion of that historical spending. Understanding trends can help contextualize whether this $13.6 million award is typical, an outlier, or indicative of a shift in procurement strategy. Such analysis would require querying historical federal procurement databases over several fiscal years.

Are there any specific performance indicators or metrics tied to this contract that demonstrate its success or impact?

The provided data does not include specific performance indicators or metrics for this contract. Typically, government contracts include clauses that define measurable performance standards, service level agreements (SLAs), and key performance indicators (KPIs) to evaluate the contractor's success. These might relate to system uptime, response times for IT support, project completion rates, or security compliance. Without these details, assessing the contract's effectiveness and impact beyond its financial award and duration is not possible from the given information.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N FAIRFAX ST STE 410, ALEXANDRIA, VA, 08

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $13,614,468

Exercised Options: $13,614,468

Current Obligation: $13,614,468

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470107A0021

IDV Type: IDC

Timeline