Air Force awards $17.5M IT services contract to T.R. SYSTEMS, INC. under full and open competition

Contract Overview

Contract Amount: $17,495,832 ($17.5M)

Contractor: T.R. Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-01

End Date: 2008-11-30

Contract Duration: 365 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BASE PERIOD FUNDING FOR CALL 7

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to T.R. SYSTEMS, INC. for work described as: BASE PERIOD FUNDING FOR CALL 7 Key points: 1. Contract value appears reasonable for the scope of IT services provided. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and adherence to delivery schedules. 4. This contract supports essential IT functions for the Department of the Air Force. 5. The IT services sector is highly competitive, with many capable providers. 6. The award was made as a delivery order against a larger contract vehicle.

Value Assessment

Rating: good

The base period funding of $17.5 million for IT services appears to be within a reasonable range when compared to similar contracts for 'Other Computer Related Services' (NAICS 541519). Without specific details on the exact services rendered, a precise benchmark is difficult. However, the contract type (Time and Materials) can sometimes lead to higher costs if not managed closely. The awarded amount suggests a moderate-sized engagement for the Air Force.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Air Force solicited bids from all responsible sources. The presence of 3 bidders suggests a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive sign for value.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of the Air Force benefits from the provision of essential IT services. This contract supports the operational readiness and technological infrastructure of the Air Force. The geographic impact is primarily within the Air Force's operational areas. Workforce implications may include the direct employment of IT professionals by T.R. SYSTEMS, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely monitored.
Dependence on a single contractor for critical IT services.
Ensuring the contractor meets all performance and security requirements.
The duration of the contract and potential for follow-on work.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, T.R. SYSTEMS, INC., has secured this award, suggesting capability.
The contract supports a critical government function (Air Force IT).
The base period funding is clearly defined.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under 'Other Computer Related Services' (NAICS 541519), which encompasses a broad range of IT support, consulting, and integration services. The federal government is a significant consumer of these services, with spending often concentrated within defense and civilian agencies. Benchmarking this specific award against the broader IT services market requires detailed service descriptions, but the competitive award suggests it aligns with market rates.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large contract, T.R. SYSTEMS, INC. may choose to subcontract portions of the work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Defense Information Technology Services
Air Force IT Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Contract performance risk if contractor lacks sufficient experience.
Scope creep management challenges.
Dependence on contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to T.R. SYSTEMS, INC.. BASE PERIOD FUNDING FOR CALL 7

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 $17.5 million.

What is the period of performance?

Start: 2007-12-01. End: 2008-11-30.

What is the track record of T.R. SYSTEMS, INC. in performing similar IT services for the federal government?

Assessing the track record of T.R. SYSTEMS, INC. requires a review of their past federal contract performance. This would involve examining past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A positive performance history in similar IT service delivery, particularly for defense agencies, would indicate a lower risk for this current contract. Conversely, a history of poor performance, missed deadlines, or cost overruns would raise concerns about their ability to successfully execute this $17.5 million award.

How does the awarded amount compare to the average cost for similar 'Other Computer Related Services' contracts?

Benchmarking the $17.5 million base period funding against average costs for NAICS 541519 requires access to detailed contract data, including the specific services rendered, labor categories, hours, and rates. Without this granular information, a precise comparison is challenging. However, given that this was a competitive award with 3 bidders, it suggests the price is likely aligned with market rates. If T.R. SYSTEMS, INC. was the lowest bidder among qualified proposers, it further supports the notion of good value. Further analysis would involve comparing the proposed labor mix and rates against industry standards for similar IT support roles.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

Time and Materials (T&M) contracts, like the one awarded to T.R. SYSTEMS, INC., carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure can lead to cost overruns if the contractor's efficiency is low, if scope creep is not managed effectively, or if the estimated effort is significantly underestimated. Robust oversight, clear task definitions, and diligent monitoring of hours and expenses are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the competition level in ensuring price discovery for this IT services contract?

The fact that this contract was awarded under full and open competition with three bidders is a strong indicator of effective price discovery. A competitive environment incentivizes bidders to offer their most competitive pricing to win the contract. The presence of multiple capable vendors suggests that the market is robust enough to support diverse offerings. This level of competition typically leads to prices that are closer to the true market value, benefiting the government and taxpayers by ensuring they are not overpaying for the required IT services.

What is the historical spending trend for 'Other Computer Related Services' by the Department of the Air Force?

Analyzing historical spending trends for NAICS 541519 by the Department of the Air Force would reveal the agency's reliance on external IT service providers over time. A consistent or increasing trend might indicate a growing need for specialized IT support or a strategic decision to outsource certain functions. Conversely, a decreasing trend could suggest insourcing efforts or a shift towards different service models. Understanding this context helps evaluate whether the current $17.5 million award is in line with historical patterns or represents a significant change in procurement strategy.

Are there any specific performance metrics or KPIs defined in the contract to measure success?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) established within the contract. However, for a contract of this nature and value, it is highly probable that such metrics exist to ensure the contractor meets defined standards for service delivery, response times, system uptime, and security compliance. The effectiveness of the contract's value hinges on the clarity, measurability, and enforceability of these performance standards, which would be overseen by the Contracting Officer's Representative (COR).

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: $17,991,116

Exercised Options: $17,991,116

Current Obligation: $17,495,832

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4995H

IDV Type: FSS

Timeline