DoD's $61.7M IT Services Contract with Viecore Raises Questions on Value and Competition

Contract Overview

Contract Amount: $11,070,160 ($11.1M)

Contractor: Viecore Federal Systems Division, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-01-23

End Date: 2007-10-31

Contract Duration: 1,742 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200304!001803!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !GS35F0072J !C!N! !N!DAAB0703F0003P00002!20030123!20071031!617233333!617233333!617233333!N!VIECORE FEDERAL SYSTEMS DIVISI!4 INDUSTRIAL WAY !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000000100000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !6! ! !C! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803, UNITED STATES OF AMERICA

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to VIECORE FEDERAL SYSTEMS DIVISION, INC. for work described as: 200304!001803!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !GS35F0072J !C!N! !N!DAAB0703F0003P00002!20030123!20071031!617233333!617233333!617233333!N!VIECORE FEDERAL SYSTEMS DIVISI!4 INDUSTRIAL WAY !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000000100000!N!N!0… Key points: 1. The contract awarded to Viecore Federal Systems Division for custom computer programming services totaled $61.7 million. 2. Awarded under full and open competition, the contract's pricing and value require further scrutiny given the duration and cost. 3. The use of a Time and Materials contract type for IT services can pose risks if not closely managed. 4. The sector is IT services, specifically custom computer programming, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract's total value of $61.7 million over approximately 4 years for IT services appears high, especially without clear performance metrics or benchmarks provided. Further analysis is needed to compare this to similar custom programming contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the lack of detailed pricing breakdowns and the Time and Materials (T&M) pricing structure may have limited effective price discovery and potentially inflated costs.

Taxpayer Impact: The significant expenditure of over $61 million on this contract warrants scrutiny to ensure taxpayer funds were used efficiently and effectively for necessary IT services.

Public Impact

Taxpayers may have overpaid for IT services due to the T&M contract type and potentially insufficient price controls. The Department of Defense relies on these IT services, making contract performance and cost-effectiveness crucial for national security. The duration of the contract (nearly 4 years) suggests a long-term need, but the T&M structure raises concerns about cost escalation over time.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High total contract value for IT services.
Time and Materials pricing structure.
Lack of detailed cost justification.
Long contract duration without clear cost controls.

Positive Signals

Awarded under full and open competition.
Contracted for essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government agencies, but effective management and competitive pricing are crucial to avoid waste.

Small Business Impact

The contract was awarded to a large business (Viecore Federal Systems Division, Inc.). There is no indication that small businesses were involved as subcontractors or partners in this specific award, limiting opportunities for small business participation.

Oversight & Accountability

While awarded under full and open competition, the oversight of a Time and Materials contract of this magnitude is critical. The Defense Contract Management Agency (DCMA) was the administrative contracting activity, responsible for monitoring performance and costs.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to T&M structure.
Lack of transparency in pricing and cost justification.
High total contract value raises value-for-money concerns.
Limited insight into specific performance outcomes.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to VIECORE FEDERAL SYSTEMS DIVISION, INC.. 200304!001803!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !GS35F0072J !C!N! !N!DAAB0703F0003P00002!20030123!20071031!617233333!617233333!617233333!N!VIECORE FEDERAL SYSTEMS DIVISI!4 INDUSTRIAL WAY !EATONTOWN !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000000100000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !6! ! !C! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is VIECORE FEDERAL SYSTEMS DIVISION, 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 $11.1 million.

What is the period of performance?

Start: 2003-01-23. End: 2007-10-31.

What was the specific breakdown of labor categories and rates within the Time and Materials structure, and how were these rates justified as fair and reasonable?

The provided data does not include a detailed breakdown of labor categories and rates. Time and Materials contracts typically involve hourly rates for different skill levels. Justification would normally be found in the contract file, including comparisons to market rates and historical data, to ensure fair and reasonable pricing.

How did the government ensure cost control and prevent potential overruns with a nearly four-year Time and Materials contract for custom programming?

Effective cost control on T&M contracts relies heavily on robust government oversight, including monitoring labor hours, verifying work performed, and comparing actual costs against established ceilings or independent government cost estimates. Without specific oversight reports, it's difficult to assess the effectiveness of these controls.

Were there specific performance metrics or deliverables tied to the $61.7 million expenditure that demonstrated clear value for the custom computer programming services provided?

The data does not specify performance metrics or deliverables. Typically, IT service contracts, even T&M, should have some form of statement of work (SOW) with defined objectives or milestones. The absence of this information makes it challenging to assess the value derived from the investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nuance Communications, Inc. (UEI: 797407517)

Address: 4 INDUSTRIAL WAY W, EATONTOWN, NJ, 07724

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0072J

IDV Type: FSS

Timeline