DoD's $16M IT Services Contract Awarded to T.R. Systems, Inc. for Other Computer Related Services

Contract Overview

Contract Amount: $15,977,668 ($16.0M)

Contractor: T.R. Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-12-01

End Date: 2007-11-30

Contract Duration: 364 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to T.R. SYSTEMS, INC. for work described as: INFORMATION TECHNOLOGY SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award value of approximately $16 million over one year indicates a significant investment in IT services. 4. The contractor, T.R. Systems, Inc., has secured this award, highlighting their capability in the IT services sector. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: fair

The contract value of approximately $16 million for a one-year duration for IT services appears to be within a reasonable range for large-scale government IT support. However, without specific details on the services rendered and comparable contract data for similar scope and complexity, a definitive value-for-money assessment is challenging. The Time and Materials pricing structure necessitates careful monitoring to ensure costs do not escalate beyond initial projections and that the contractor's labor rates are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this requirement. While competition is generally positive for price discovery, the specific number of bidders (3) may not be sufficient to guarantee the most aggressive pricing compared to scenarios with a higher number of competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives competitive rates for the services procured.

Public Impact

The Department of the Air Force benefits from the IT services provided, likely supporting critical mission functions. The contract supports the delivery of 'Other Computer Related Services,' which could encompass a wide array of IT support, maintenance, or development. The contract is geographically located in Colorado (SN: COLORADO), impacting the local economy and workforce there. The provision of IT services can lead to job creation and skill development within the IT sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored for efficiency.
The limited number of bidders (3) might indicate potential barriers to entry or a niche market, possibly leading to less competitive pricing than ideal.
The broad NAICS code (541519) makes it difficult to ascertain the exact nature and complexity of the services without further detail, potentially masking scope creep or inefficiencies.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract is a Delivery Order, suggesting it aligns with a pre-established contracting vehicle, which can streamline procurement processes.
The contractor, T.R. Systems, Inc., has been selected, indicating they met the government's requirements and demonstrated capability.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of government operations, encompassing everything from software development and cybersecurity to cloud computing and data management. Government spending in this sector is consistently high, driven by the need to modernize infrastructure, enhance digital services, and maintain national security. This contract, falling under 'Other Computer Related Services,' represents a segment of this broader market, focusing on specialized IT support. Benchmarks for similar IT service contracts vary widely based on scope, duration, and complexity, but a $16 million award for a year of service is substantial.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SB: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless T.R. Systems, Inc. voluntarily engages small businesses for subcontracting. Without specific set-aside provisions or subcontracting plans, this contract primarily benefits larger, established IT service providers.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Other Computer Related Services
Defense IT Procurement

Risk Flags

Time and Materials contract type requires close monitoring to control costs.
Limited number of bidders may indicate suboptimal price competition.
Broad NAICS code requires further detail to fully understand service scope and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to T.R. SYSTEMS, INC.. INFORMATION TECHNOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is T.R. SYSTEMS, INC..

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 $16.0 million.

What is the period of performance?

Start: 2006-12-01. End: 2007-11-30.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data uses the broad NAICS code 541519, 'Other Computer Related Services.' This category can encompass a wide range of IT services beyond standard software development or IT management, such as IT consulting, disaster recovery planning, data recovery services, IT support services, and IT project management. Without access to the specific contract statement of work (SOW) or task orders issued under this delivery order, the precise nature of the services rendered remains undefined. Understanding the specific services is crucial for evaluating the contract's necessity, effectiveness, and value for money.

How does the $16 million award compare to similar IT services contracts awarded by the Department of Defense in the same fiscal year?

Comparing this $16 million award to similar IT services contracts requires access to a broader dataset of DoD procurements for the relevant period. However, as a general benchmark, $16 million for a one-year IT services contract is a significant award, suggesting a substantial scope of work or high-level expertise required. Contracts in this range often involve complex system integration, large-scale IT support, or specialized technical services. To provide a precise comparison, one would need to filter contracts by agency (DoD), service category (IT services, potentially more specific subcategories), contract type (Delivery Order), and duration, then analyze the distribution of award values to determine if this contract falls within the typical range, is an outlier, or represents a particularly large or small investment for its category.

What is the track record of T.R. Systems, Inc. in performing government IT contracts?

The provided data indicates T.R. Systems, Inc. was awarded this $16 million IT services contract. To assess their track record, further investigation into their past performance on federal contracts is necessary. This would involve reviewing contract databases (like FPDS) for previous awards, their values, durations, and agencies served. Key performance indicators such as on-time delivery, adherence to budget, quality of work, and any past performance issues or awards would be critical. A history of successful contract completions and positive performance reviews would suggest reliability, while a pattern of issues could indicate higher risk for future contracts.

What are the potential risks associated with the Time and Materials (T&M) contract type for this procurement?

The Time and Materials (T&M) contract type, used for this $16 million IT services award, carries inherent risks for the government. T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. The primary risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if the contractor's efficiency is low, as there is less incentive for the contractor to control costs compared to fixed-price contracts. Effective oversight, detailed tracking of labor hours and materials, and robust negotiation of labor rates are crucial to mitigate these risks and ensure fair pricing for the government.

How does the competition level (3 bidders) impact the potential value for taxpayers?

A competition with three bidders, while indicating some level of market interest, is generally considered moderate rather than robust. In government contracting, higher numbers of bidders often correlate with more competitive pricing as companies vie for the award. With only three bidders, there is a possibility that the government may not have received the lowest possible price achievable in a more crowded field. Taxpayers benefit most from intense competition, which drives down costs. While full and open competition was utilized, the limited number of participants suggests that further analysis might be warranted to understand if market dynamics or specific requirements deterred additional bidders, potentially impacting the overall value realized for taxpayer funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

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: MT Holdings Inc. (UEI: 826994316)

Address: 8270 GREENSBORO DR STE 850, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $16,484,005

Exercised Options: $16,484,005

Current Obligation: $15,977,668

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4995H

IDV Type: FSS

Timeline