DoD's $4.3M contract for Functional System Administrators awarded to R & K Enterprise Solutions Inc. for Texas operations

Contract Overview

Contract Amount: $4,375,243 ($4.4M)

Contractor: R & K Enterprise Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-08

End Date: 2026-07-31

Contract Duration: 1,484 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE SEVEN (7) FUNCTIONAL SYSTEM ADMINISTRATOR (FSA).

Place of Performance

Location: GOODFELLOW AFB, TOM GREEN County, TEXAS, 76908

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $4.4 million to R & K ENTERPRISE SOLUTIONS INC for work described as: PROVIDE SEVEN (7) FUNCTIONAL SYSTEM ADMINISTRATOR (FSA). Key points: 1. Contract value of $4.3M over approximately 4 years for specialized IT support. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictable spending. 4. Performance period spans from July 2022 to July 2026. 5. The contract is for providing seven Functional System Administrators. 6. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).

Value Assessment

Rating: good

The contract value of $4.3M for seven Functional System Administrators over roughly four years suggests a per-administrator cost of approximately $154,000 annually. This appears to be within a reasonable range for specialized IT support roles requiring security clearances and specific technical expertise, especially within the defense sector. Benchmarking against similar IT support contracts for the Department of Defense would provide a more precise value-for-money assessment, but initial indicators suggest fair pricing.

Cost Per Unit: Approximately $154,000 per administrator annually (estimated).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was publicly advertised and multiple bidders were allowed to submit proposals. The presence of two bids suggests a moderate level of competition for this specific requirement. While not a large number of bidders, the open competition mechanism generally allows for price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The use of full and open competition, even with two bidders, is generally favorable for taxpayers as it allows for a broader range of offers and potentially lower prices compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives essential IT support services. The contract delivers critical support for maintaining and operating complex defense systems. Services are geographically focused within Texas, supporting local DoD infrastructure. The contract implies a need for skilled IT professionals, potentially impacting the local workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) may indicate potential for reduced competition over time.
NAICS code 541330 (Engineering Services) is broad; specific IT administration skills may not be fully captured.
Contract duration of nearly 4 years could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm Fixed Price contract type helps control costs and budget predictability.
Awarded through full and open competition, promoting a fair marketplace.
Clear definition of services (seven FSAs) provides specific performance expectations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure for the Department of Defense. The market for IT support services within the federal government is substantial, with agencies constantly seeking specialized skills to manage complex systems. Comparable spending benchmarks would involve analyzing other IT support contracts awarded by the Air Force or DoD to firms providing similar functional system administration services, often categorized under IT professional services or engineering support.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The prime contractor, R & K Enterprise Solutions Inc., is not identified as a small business in this context.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the Firm Fixed Price contract structure, requiring delivery of specified services. Transparency is facilitated by the contract award being made under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Defense IT Modernization
System Administration Contracts
Engineering Services for Government

Risk Flags

Limited number of bidders.
Broad NAICS code may obscure specific skill requirements.
Potential for vendor lock-in due to contract length.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.4 million to R & K ENTERPRISE SOLUTIONS INC. PROVIDE SEVEN (7) FUNCTIONAL SYSTEM ADMINISTRATOR (FSA).

Who is the contractor on this award?

The obligated recipient is R & K ENTERPRISE SOLUTIONS 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 $4.4 million.

What is the period of performance?

Start: 2022-07-08. End: 2026-07-31.

What is the track record of R & K Enterprise Solutions Inc. with the Department of Defense?

R & K Enterprise Solutions Inc. has a history of receiving federal contracts, primarily from the Department of Defense. Analyzing their past performance on similar IT support or engineering services contracts would reveal their reliability, quality of service, and adherence to contract terms. A review of contract databases like FPDS or SAM.gov would show the volume and types of contracts awarded to them, including any performance issues or awards for exceptional performance. Understanding their past relationship with the DoD provides context for their ability to successfully execute this current contract for Functional System Administrators.

How does the annual cost per administrator compare to industry benchmarks for similar roles?

The estimated annual cost per administrator of approximately $154,000 is a key metric for value assessment. This figure needs to be benchmarked against market rates for IT system administrators with comparable experience, security clearances, and specialized skills, particularly within the defense sector in Texas. Industry surveys from IT staffing firms or compensation data providers can offer insights. If this cost is significantly higher than market rates for equivalent civilian roles, it could indicate potential overpricing or reflect the unique demands and risks associated with defense contracting, such as stringent security requirements and specialized knowledge.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was open, certain sources might have been excluded prior to the final solicitation, or that the exclusion of sources was a condition of the competition. This could potentially limit the pool of eligible bidders compared to a truly unrestricted full and open competition. The risk lies in whether this exclusion mechanism inadvertently reduced the competitive pressure, potentially leading to less favorable pricing or fewer innovative solutions. Understanding the rationale behind the exclusion is crucial for assessing the true level of competition achieved and its impact on taxpayer value.

What is the expected impact of these seven FSAs on the Air Force's operational effectiveness?

The provision of seven Functional System Administrators (FSAs) is intended to bolster the operational effectiveness of the Department of the Air Force by ensuring the stability, security, and performance of critical IT systems. FSAs are typically responsible for managing, maintaining, and troubleshooting software applications and systems, which are fundamental to military operations, communications, and data management. Their expertise helps prevent system downtime, implement necessary updates, and ensure that the IT infrastructure reliably supports mission-critical functions. The successful deployment and performance of these FSAs directly contribute to the Air Force's ability to execute its missions efficiently and securely.

How has spending on similar IT support services by the Air Force evolved over the past five years?

Analyzing historical spending patterns for IT support services by the Air Force over the past five years would provide valuable context for this $4.3M contract. Trends in spending can reveal whether the Air Force is increasing or decreasing its reliance on contracted IT support, shifting towards specific types of services, or consolidating contracts. Understanding these trends can help assess if the current contract represents a typical investment, a potential increase in demand, or a strategic shift in how the Air Force procures IT expertise. It also helps in identifying potential cost efficiencies or areas where spending may have escalated.

Are there any performance metrics or KPIs defined within the contract that R & K Enterprise Solutions Inc. must meet?

While the provided data does not detail specific performance metrics or Key Performance Indicators (KPIs), Firm Fixed Price contracts typically include performance standards or service level agreements (SLAs) that the contractor must meet. These are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Failure to meet these defined metrics can result in penalties, reduced payment, or contract termination. A thorough review of the full contract document would be necessary to identify the specific KPIs and their associated remedies, which are crucial for ensuring accountability and measuring the contractor's success in delivering the required Functional System Administrator services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: R & K Enterprise Solutions, Inc

Address: 11830 CANON BLVD, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,523,671

Exercised Options: $4,375,243

Current Obligation: $4,375,243

Actual Outlays: $271,173

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,421,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1015

IDV Type: IDC

Timeline