DoD awards $42.9M IT support contract to Viatech, Inc. for USSOUTHCOM operations

Contract Overview

Contract Amount: $42,949,134 ($42.9M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-08

End Date: 2013-09-06

Contract Duration: 882 days

Daily Burn Rate: $48.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE ALL NECESSARY PERSONNEL AND SERVICES TO SUCCESSFULLY PERFORM THE IT SUPPORT JTF-GTMO USSOUTHCOM

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $42.9 million to VIATECH, INC. for work described as: THE CONTRACTOR SHALL PROVIDE ALL NECESSARY PERSONNEL AND SERVICES TO SUCCESSFULLY PERFORM THE IT SUPPORT JTF-GTMO USSOUTHCOM Key points: 1. Contract value appears reasonable for IT support services over a two-year period. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored. 4. Performance period of 882 days indicates a substantial, long-term requirement. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, which may encompass IT support. 6. Contract awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of approximately $42.9 million for IT support over 882 days appears to be within a reasonable range for services of this nature. Benchmarking against similar IT support contracts for Department of Defense components would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) pricing structure necessitates careful oversight to ensure costs remain controlled and that the fixed fee is appropriate for the scope of work.

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. The presence of two bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the U.S. Southern Command (USSOUTHCOM) and Joint Task Force Guantanamo (JTF-GTMO), receiving essential IT support. Services delivered include comprehensive IT support crucial for military operations and command functions. The geographic impact is focused on USSOUTHCOM's area of responsibility, potentially including Latin America and the Caribbean. Workforce implications may involve the direct and indirect employment of IT professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not managed diligently.
The limited number of bidders (2) might indicate potential barriers to entry or a niche market for these specific services.

Positive Signals

Awarded under full and open competition, maximizing the opportunity for diverse vendor participation.
The contract is a Delivery Order, suggesting it aligns with a pre-established IDIQ vehicle, potentially streamlining future procurements.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT support for defense operations. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and upgrading technological infrastructure. Comparable spending benchmarks for IT support within the Department of Defense can vary widely based on scope, duration, and specific technological requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, Viatech, Inc., is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a set-aside means opportunities for small businesses would likely be through prime contractor subcontracting, if pursued by Viatech, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) within the Department of Defense. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like the Federal Procurement Data System (FPDS), though detailed operational performance data may be less accessible to the public.

Related Government Programs

Defense Information Technology Support Services
IT Services for Combatant Commands
USSOUTHCOM IT Modernization Programs
JTF-GTMO Operational Support Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition (2 bidders) may impact price discovery.
NAICS code 541330 (Engineering Services) may not fully capture the IT support scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.9 million to VIATECH, INC.. THE CONTRACTOR SHALL PROVIDE ALL NECESSARY PERSONNEL AND SERVICES TO SUCCESSFULLY PERFORM THE IT SUPPORT JTF-GTMO USSOUTHCOM

Who is the contractor on this award?

The obligated recipient is VIATECH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $42.9 million.

What is the period of performance?

Start: 2011-04-08. End: 2013-09-06.

What is Viatech, Inc.'s track record with the Department of Defense, particularly in IT support roles?

Viatech, Inc. has a history of performing contracts with the Department of Defense. Analyzing their past performance on similar IT support or engineering services contracts would reveal their reliability, quality of service, and adherence to schedules and budgets. Specific details on past performance metrics, any contract disputes, or awards would provide a clearer picture of their capabilities and suitability for this significant IT support role at USSOUTHCOM and JTF-GTMO. A review of their contract history would indicate if they have successfully managed Cost Plus Fixed Fee contracts previously and the outcomes of those engagements.

How does the $42.9 million contract value compare to similar IT support contracts for regional military commands?

The $42.9 million contract value for IT support over approximately two years (882 days) for USSOUTHCOM and JTF-GTMO needs to be benchmarked against similar procurements. Regional military commands often have complex IT needs due to diverse operational environments and varying levels of technological infrastructure. Contracts for IT support at commands like CENTCOM, INDOPACOM, or EUCOM, with similar scopes and durations, would serve as relevant comparators. Factors such as the specific services required (e.g., network management, cybersecurity, help desk, system integration), the number of users supported, and the geographic dispersion of operations significantly influence contract value. Without direct comparative data, it's challenging to definitively assess if this award represents superior or inferior value for money.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT support requirement?

The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in evolving IT environments, presents inherent risks. The primary risk is cost overrun, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. If costs exceed projections, the government bears the burden, potentially leading to a higher final price than initially anticipated. Effective management and stringent oversight are crucial to mitigate this risk. This includes detailed cost tracking, regular audits, and clear definition of allowable costs. The fixed fee, intended to incentivize efficiency, might not always align perfectly with the actual effort required, especially in complex IT projects where scope can be fluid. Contractor performance monitoring is paramount to ensure the fixed fee remains justified.

What is the expected effectiveness of Viatech, Inc.'s IT support in enhancing USSOUTHCOM and JTF-GTMO operational capabilities?

The effectiveness of Viatech, Inc.'s IT support will be directly tied to their ability to maintain and enhance the critical IT infrastructure required by USSOUTHCOM and JTF-GTMO. This includes ensuring network availability, cybersecurity resilience, system performance, and user support. Successful execution should lead to seamless communication, efficient data management, and reliable access to essential systems, thereby bolstering operational readiness and decision-making capabilities. The contract's performance metrics and service level agreements (SLAs) will be key indicators of effectiveness. Consistent achievement of these metrics, coupled with positive feedback from end-users within the commands, will signify successful support delivery.

How has federal spending on IT support services for regional military commands evolved over the past five years?

Federal spending on IT support services for regional military commands has generally seen a steady increase over the past five years, driven by the growing reliance on technology for global operations, intelligence gathering, and command and control. This trend is influenced by evolving geopolitical landscapes, the need for advanced cybersecurity measures against sophisticated threats, and the modernization of aging IT infrastructure. Spending patterns are also shaped by strategic priorities, such as enhancing interoperability between commands and allies, and adopting emerging technologies like cloud computing and artificial intelligence. Specific figures for each command would vary based on their unique mission requirements and geographic scope, but the overall trajectory indicates sustained investment in robust IT capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: D & S Consultants Inc. (UEI: 792244097)

Address: 615 HOPE RD STE 3A, EATONTOWN, NJ, 07724

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,703,934

Exercised Options: $51,465,741

Current Obligation: $42,949,134

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline