DoD's $21.1M contract for computer facilities management services awarded to INGENIUM CORPORATION shows fair value

Contract Overview

Contract Amount: $21,099,258 ($21.1M)

Contractor: Ingenium Corporation

Awarding Agency: Department of Defense

Start Date: 2002-12-19

End Date: 2008-03-31

Contract Duration: 1,929 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to INGENIUM CORPORATION for work described as: Key points: 1. The contract demonstrates a reasonable price point for the services rendered, aligning with market benchmarks. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of 1929 days indicates a long-term need for these services. 4. Performance was rated as 'OK', suggesting satisfactory delivery without significant issues. 5. The contract falls within the IT sector, specifically focusing on computer facilities management. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The total award amount of $21.1 million for 1929 days of computer facilities management services appears reasonable when benchmarked against similar contracts. While specific per-unit cost data is not provided, the overall value suggests that the Department of Defense secured services at a competitive price, especially considering the duration and scope. The 'OK' performance rating further supports the notion that the contractor delivered adequate value for the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources were initially excluded before a full and open process was initiated. The presence of 7 bidders suggests a healthy level of competition, which typically drives better pricing and service quality. This approach likely ensured that the most capable and cost-effective solution was identified.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The multiple bids received indicate that taxpayer funds were used efficiently to secure necessary IT services.

Public Impact

The Department of Defense benefits from reliable computer facilities management, ensuring operational continuity. Essential IT infrastructure support services are delivered to maintain critical defense systems. The contract supports IT professionals and technicians, potentially impacting the federal IT workforce. Services are likely concentrated within the geographic areas served by the Department of Defense's Air Force operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long contract duration if not managed proactively.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
The 'OK' performance rating, while not negative, suggests room for improvement and warrants monitoring.

Positive Signals

Awarded through a competitive process, indicating a selection based on merit and price.
The contractor, INGENIUM CORPORATION, has a track record of performance on this contract.
The contract is firm fixed price, providing cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management. This is a critical support function for any large organization, ensuring the smooth operation of data centers, networks, and related hardware. The market for such services is substantial, with numerous providers ranging from large system integrators to specialized IT support firms. Benchmarking this $21.1 million contract against others in the federal IT services space would reveal its relative size and scope within the broader industry.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses within the provided data. The award to INGENIUM CORPORATION, a prime contractor, suggests that the focus was on securing the required capabilities directly. This approach may limit direct opportunities for small businesses to participate as prime contractors on this specific award, though they might be involved further down the supply chain.

Oversight & Accountability

The contract's firm fixed price structure provides a degree of cost control. Oversight would typically be managed through contract officers and technical representatives within the Department of the Air Force, monitoring performance against the Statement of Work. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Operations and Maintenance Services
Data Center Management Contracts
Information Technology Professional Services
Cloud Computing Services (if applicable)
Network Infrastructure Support

Risk Flags

Performance rating is satisfactory but not exceptional ('OK').
Long contract duration may increase risk of technological obsolescence.
Potential for vendor lock-in due to long-term engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to INGENIUM CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INGENIUM CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2002-12-19. End: 2008-03-31.

What is INGENIUM CORPORATION's overall track record with the federal government, particularly in IT services?

INGENIUM CORPORATION has a history of federal contracting, primarily within the IT services domain. While this specific contract received an 'OK' performance rating, a comprehensive review would involve examining ratings on other contracts, past performance questionnaires, and any documented disputes or awards. Understanding their broader performance history provides context for their capabilities and reliability in fulfilling government requirements. Data from systems like the Contractor Performance Assessment Reporting System (CPARS) would offer more granular insights into their past performance across various contracts and agencies.

How does the $21.1 million award value compare to similar computer facilities management contracts awarded by the DoD or other agencies?

The $21.1 million award for approximately 1929 days (roughly 5.3 years) of computer facilities management services represents an average annual value of approximately $3.98 million. This figure needs to be compared against the scope and complexity of services. For instance, contracts involving large-scale data center operations, extensive network management, or advanced cybersecurity measures would command higher values. Benchmarking against contracts with similar service levels, geographic scope, and security requirements would determine if this award represents a fair market price. Without detailed service descriptions, a precise comparison is challenging, but the value appears within a plausible range for significant IT support.

What are the primary risks associated with a long-term (1929 days) IT facilities management contract?

Long-term IT facilities management contracts carry several inherent risks. Technological obsolescence is a significant concern; IT infrastructure and management practices evolve rapidly, and a contract established years ago might not reflect current best practices or efficient solutions by its end date. Vendor lock-in is another risk, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors even if performance is subpar or better alternatives emerge. Performance degradation over time is also possible, as contractor focus or resources may shift. Furthermore, security vulnerabilities can arise if the contractor's security posture weakens or fails to adapt to new threats. Finally, budget fluctuations within the government could strain the fixed-price nature of the contract if unforeseen needs arise.

How effective are 'Full and Open Competition After Exclusion of Sources' procurements in achieving best value for the government?

This procurement method aims to balance the benefits of broad competition with the need to potentially exclude specific sources deemed unsuitable early in the process. When executed properly, it can lead to best value by ensuring a wide pool of capable vendors are considered while filtering out those who clearly do not meet minimum requirements. The 'exclusion of sources' aspect, however, requires careful justification to avoid limiting competition unnecessarily. In this case, with 7 bidders, the process appears to have fostered sufficient competition. The effectiveness hinges on the clarity and fairness of the exclusion criteria and the subsequent evaluation of the remaining proposals against technical and cost factors.

What are the implications of the 'OK' performance rating for future contract renewals or task orders?

An 'OK' performance rating generally signifies that the contractor met the contract requirements in a satisfactory manner. It is not a negative rating, but it also does not indicate exceptional performance. For future contract renewals or the award of new task orders, an 'OK' rating suggests that the contractor is eligible but may not be a preferred choice over contractors with higher performance ratings (e.g., 'Outstanding' or 'Exceeds Expectations'). Agencies often use past performance as a key evaluation factor, and while 'OK' meets the minimum threshold, it provides less of a competitive advantage compared to superior performance. It signals to the agency that while the contractor fulfilled their obligations, there might be opportunities for improvement.

What is the typical market size and competitive landscape for computer facilities management services within the federal government?

The market for computer facilities management services within the federal government is substantial and highly competitive. Agencies require robust support for their data centers, server infrastructure, network operations, and related IT environments. This includes services like hardware maintenance, system administration, network monitoring, data backup and recovery, and physical security of facilities. The landscape includes large system integrators, specialized IT service providers, and managed service organizations. Competition is driven by factors such as technical expertise, security clearances, past performance, and price. Many contracts are awarded through GSA schedules, IDIQs, and full and open competition, reflecting the ongoing demand and the diverse range of companies vying for these essential services.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 9200 BASIL CT STE 500, UPPER MARLBORO, MD, 05

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline