AC TECHNOLOGIES, INC. awarded $15.2M for custom computer programming services by the Department of Education

Contract Overview

Contract Amount: $15,202,715 ($15.2M)

Contractor: AC Technologies, Inc.

Awarding Agency: Department of Education

Start Date: 2003-09-30

End Date: 2008-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $8.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE DEPARTMENT'S WEBSITE. DIFFERENT PARTS GET FUNDED BY DIFFERENT OFFICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $15.2 million to AC TECHNOLOGIES, INC. for work described as: THE DEPARTMENT'S WEBSITE. DIFFERENT PARTS GET FUNDED BY DIFFERENT OFFICES. Key points: 1. Contract awarded at a competitive price point, suggesting good value. 2. Full and open competition likely ensured a competitive market for services. 3. Contract duration of 5 years indicates a stable, long-term need. 4. Firm Fixed Price contract type mitigates cost overrun risks. 5. Services align with the core IT needs of the Department of Education. 6. The contract was awarded to a single vendor, AC TECHNOLOGIES, INC.

Value Assessment

Rating: good

The contract's total value of $15.2 million over five years appears reasonable for custom computer programming services. Benchmarking against similar IT service contracts within the federal government suggests this award is within expected cost ranges. The firm fixed-price structure further supports value by capping potential expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally leads to better price discovery and selection of qualified vendors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

The Department of Education benefits from enhanced custom computer programming capabilities. Services delivered likely support the agency's mission-critical IT infrastructure and operations. The contract's impact is primarily within the District of Columbia, where the Department is headquartered. Workforce implications include potential job creation or utilization of skilled IT professionals by AC TECHNOLOGIES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition limits a deeper assessment of competitive intensity.
The provided data does not include performance metrics, making it difficult to assess the quality or effectiveness of the services delivered.
No information is available regarding potential subcontracting opportunities for small businesses.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust bidding process.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration of five years indicates a stable and ongoing requirement for these services.
The North American Industry Classification System (NAICS) code 541511 aligns with standard IT service needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and maintenance. This contract represents a typical expenditure for an agency like the Department of Education requiring specialized IT support to manage its operations and data.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary focus was on securing the best value through full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Education. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

Department of Education IT Modernization Efforts
Federal Custom Software Development Contracts
IT Services for Educational Agencies
Contracting for Computer Programming Services

Risk Flags

Contract Duration
Lack of Performance Data
Limited Bidder Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $15.2 million to AC TECHNOLOGIES, INC.. THE DEPARTMENT'S WEBSITE. DIFFERENT PARTS GET FUNDED BY DIFFERENT OFFICES.

Who is the contractor on this award?

The obligated recipient is AC TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2003-09-30. End: 2008-09-30.

What specific custom computer programming services were delivered under this contract?

The provided data identifies the contract's purpose as 'Custom Computer Programming Services' under NAICS code 541511. However, it does not detail the specific types of programming, software development, system integration, or maintenance tasks performed. To understand the exact services, one would need to review the contract's Statement of Work (SOW) or task orders issued against it. These documents would outline the technical requirements, deliverables, and performance standards expected from AC TECHNOLOGIES, INC. for the Department of Education.

How does the awarded amount of $15.2 million compare to similar custom programming contracts?

The $15.2 million award over five years, averaging approximately $3 million annually, is a moderate-sized contract for custom computer programming services within the federal government. Larger agencies often award multi-million dollar contracts for complex IT solutions. Without specific details on the scope and complexity of the services rendered by AC TECHNOLOGIES, INC., a precise comparison is difficult. However, for a single vendor providing specialized programming support to a federal agency, this amount appears to be within a reasonable range, especially given the firm fixed-price structure which caps government liability.

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

Key risks for a custom programming contract include scope creep, contractor performance issues, and potential cost overruns (though mitigated by FFP). The firm fixed-price (FFP) contract type is a primary mitigation strategy against cost overruns, as the contractor assumes the risk of exceeding budget. The duration of the contract (5 years) could pose a risk if technology rapidly evolves, making the developed solutions obsolete; however, this is managed through potential modifications or new contract vehicles. Contractor performance risk is typically managed through performance monitoring, defined deliverables, and contract clauses allowing for remedies if performance is unsatisfactory.

What is the track record of AC TECHNOLOGIES, INC. in performing federal IT contracts?

The provided data indicates AC TECHNOLOGIES, INC. was awarded this specific contract. To assess their track record, one would need to examine their past performance on other federal contracts, including their history with the Department of Education or other agencies. This would involve reviewing contract databases for previous awards, performance evaluations (e.g., CPARS reports), and any documented issues or successes. Without this additional information, it's impossible to definitively assess their track record beyond this single award.

How does the competition level (full-and-open) impact the value received by the Department of Education?

A full-and-open competition generally maximizes value for the government. It allows any qualified vendor to submit a bid, increasing the pool of potential offerors and fostering a more competitive environment. This competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering both price and technical merit. For the Department of Education, this means they are more likely to receive high-quality services at a competitive market rate, maximizing the return on their IT 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: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 2751 PROSPERITY AVE # 500, FAIRFAX, VA, 11

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,202,715

Exercised Options: $15,202,715

Current Obligation: $15,202,715

Parent Contract

Parent Award PIID: GS35F4768H

IDV Type: FSS

Timeline