DoD's $19.3M IT contract with Blackhawk Management Corp. for computer facilities management services

Contract Overview

Contract Amount: $19,285,210 ($19.3M)

Contractor: Blackhawk Management Corp

Awarding Agency: Department of Defense

Start Date: 2003-05-22

End Date: 2008-03-31

Contract Duration: 1,775 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to BLACKHAWK MANAGEMENT CORP for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1775 days indicates a long-term need for these services. 3. Awarded to a single vendor, Blackhawk Management Corp., for computer facilities management. 4. The firm-fixed-price contract type aims to control costs for the government. 5. The contract was awarded in Texas, potentially impacting the local IT services market. 6. This contract represents a significant investment in maintaining critical IT infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $19.3 million over approximately 4.8 years suggests an average annual spend of around $4 million. This figure needs to be assessed against the scope and complexity of the computer facilities management services provided. Without details on the specific services rendered, it's difficult to definitively assess if this represents good value for money compared to industry standards or similar government contracts.

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 a bid. This typically suggests a robust bidding process where multiple companies had the opportunity to compete for the contract. The fact that it was competed openly is a positive sign for price discovery and potentially achieving a competitive price for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings, as vendors strive to win the contract.

Public Impact

The Department of the Army benefits from the continuity of essential computer facilities management services. This contract ensures the operational readiness and efficiency of critical IT infrastructure. The services delivered likely support military operations and administrative functions within the Department of Defense. The geographic impact is primarily within Texas, where the contract was awarded and likely performed. The contract supports jobs within the IT services sector, particularly in the region where Blackhawk Management Corp. is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The long contract duration could lead to vendor lock-in if not managed carefully.
Potential for cost overruns if the firm-fixed-price model does not adequately account for unforeseen complexities in IT management.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Blackhawk Management Corp., has secured a significant contract, suggesting a level of established capability.
The contract duration implies a stable and ongoing requirement for these IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. This is a critical area for any large organization, especially the Department of Defense, as it ensures the smooth operation of essential digital infrastructure. The market for IT services is vast and competitive, with numerous companies offering specialized solutions. The size of this contract, approximately $19.3 million, places it as a mid-to-large-sized IT services contract within the federal government landscape. Comparable spending benchmarks would typically involve looking at other contracts for similar IT support and facilities management services across various federal agencies.

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 tied to small business set-asides for this particular award. The absence of a small business set-aside means that larger businesses were eligible and likely competed for this contract. The impact on the small business ecosystem is neutral in terms of direct set-aside opportunities, but it highlights the significant federal IT service contracts that may be awarded to larger prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

IT Operations and Maintenance Services
Information Technology Support Services
Computer Systems Management
Cloud Computing Services
Cybersecurity Services

Risk Flags

Contract duration is long (1775 days), requiring careful monitoring for performance and potential scope creep.
Firm-fixed-price contracts can sometimes lead to quality compromises if not adequately overseen.
Lack of detailed service breakdown in summary data hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to BLACKHAWK MANAGEMENT CORP. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BLACKHAWK MANAGEMENT CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2003-05-22. End: 2008-03-31.

What specific computer facilities management services were included in this $19.3 million contract?

The provided data indicates the contract was for 'Computer Facilities Management Services' (nd: 541513). However, the specific details of the services rendered are not itemized in the abbreviated data. Typically, such services can encompass a wide range of activities including network management, server maintenance, data center operations, hardware and software support, IT infrastructure planning, and potentially cybersecurity monitoring. To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this, it's difficult to precisely define the deliverables beyond the general category.

How does the $19.3 million award compare to other similar IT facilities management contracts awarded by the Department of Defense?

Comparing this $19.3 million award requires access to a broader dataset of similar contracts. The award amount, spread over approximately 4.8 years (1775 days), averages around $4 million annually. This figure needs to be contextualized by the scale and complexity of the facilities managed. For instance, managing a large data center with high security requirements would command a different price point than basic IT support for office facilities. A comprehensive benchmark would involve analyzing contracts with similar North American Industry Classification System (NAICS) codes (like 541513) awarded by the DoD or other federal agencies over a comparable period, considering factors like contract duration, number of bidders, and specific service inclusions to determine if the price is competitive.

What is Blackhawk Management Corp.'s track record with federal IT contracts, particularly those of similar size and scope?

The data shows Blackhawk Management Corp. was awarded this $19.3 million contract by the Department of the Army. To assess their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary. This would reveal other contracts awarded to Blackhawk Management Corp., including their value, duration, agency, and performance history. Information on past performance evaluations, any contract disputes, or awards for similar IT facilities management services would provide crucial insights into their reliability and capability in handling large federal contracts. Without this additional data, it's challenging to provide a detailed assessment of their track record.

What are the potential risks associated with a firm-fixed-price contract for IT facilities management services?

Firm-fixed-price (FFP) contracts offer cost certainty to the government, which is a significant advantage. However, for complex IT facilities management, there are inherent risks. If the scope of work is not precisely defined or if unforeseen technical challenges arise, the contractor might incur costs exceeding the fixed price, potentially leading to reduced profit margins or even financial losses for them. This could incentivize the contractor to cut corners on service quality or defer necessary upgrades to maintain profitability. Conversely, if the contractor is highly efficient and the scope is less demanding than anticipated, the government might be paying a premium. Effective oversight is crucial to ensure the contractor meets performance standards despite the FFP structure.

How has federal spending on IT facilities management services evolved over the past decade, and where does this contract fit in?

Federal spending on IT services, including facilities management, has generally seen a steady increase over the past decade, driven by digital transformation initiatives and the growing reliance on technology across all government functions. While specific figures for 'IT facilities management' as a distinct category can be hard to isolate without detailed spending analysis, the overall IT services market within the federal government is substantial, often measured in the tens of billions of dollars annually. This $19.3 million contract, awarded in 2003 and ending in 2008, represents a specific investment during that period. Its significance would be relative to the prevailing IT budgets and priorities of the Department of the Army at that time. Understanding broader trends would require analyzing historical spending data across multiple agencies and contract types within the IT domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1335 REGENTS PARK DRIVE, S, HOUSTON, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $30,679

Exercised Options: $30,679

Current Obligation: $19,285,210

Parent Contract

Parent Award PIID: GS35F0043N

IDV Type: FSS

Timeline