DoD's $14.7M IT Services Contract with TRI-COR Industries Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $10,397,443 ($10.4M)

Contractor: Tri-Cor Industries, Inc

Awarding Agency: Department of Defense

Start Date: 2002-10-01

End Date: 2007-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200301!000034!5700!QA27 !AMC/CONF/LGC !GS35F4500G !C!N! !Y!FA445203F0031 !20021001!20030930!146881875!146881875!146881875!N!TRI-COR INDUSTRIES, INC !4600 FORBES BLVD, SUITE 20!LANHAM !MD!20706!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000001439638!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to TRI-COR INDUSTRIES, INC for work described as: 200301!000034!5700!QA27 !AMC/CONF/LGC !GS35F4500G !C!N! !Y!FA445203F0031 !20021001!20030930!146881875!146881875!146881875!N!TRI-COR INDUSTRIES, INC !4600 FORBES BLVD, SUITE 20!LANHAM !MD!20706!68328!163!17!SCOTT AFB !ST. C… Key points: 1. The contract awarded to TRI-COR INDUSTRIES, INC. for IT services represents a significant expenditure. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. However, the lack of detailed pricing information and the duration of the contract raise questions about overall value. 4. The sector is IT services, a critical area for government operations, making efficient spending paramount.

Value Assessment

Rating: questionable

The total award amount is $14,688,187.50 over 5 years. Without detailed breakdowns or benchmarks for similar custom computer programming services, it's difficult to definitively assess if this pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the lack of specific details on the bidding process and the final pricing structure makes it hard to confirm if the competition effectively drove down costs.

Taxpayer Impact: While full and open competition is intended to benefit taxpayers, the absence of transparent pricing details makes it challenging to quantify the precise taxpayer savings achieved.

Public Impact

Taxpayers may be concerned about the substantial $14.7 million expenditure on IT services over five years. The contract's duration and the limited public information on its specific deliverables could lead to questions about long-term necessity and efficiency. Citizens expect government contracts, especially in critical IT sectors, to demonstrate clear value for money and robust oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing justification
Long contract duration without clear performance metrics
Potential for cost overruns if not closely managed

Positive Signals

Awarded under full and open competition
Contracted by a major agency (Department of Defense)
Services are in a critical IT sector

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. IT spending is a significant portion of federal budgets, and benchmarks for custom development can vary widely based on complexity and scope.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

While the contract was awarded through a competitive process, the limited public data on performance metrics and detailed pricing necessitates robust oversight from the Department of Defense to ensure accountability and value for taxpayer money.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of detailed pricing justification
Long contract duration (5 years)
Limited public information on specific deliverables and performance metrics
Potential for scope creep or evolving needs not fully captured in initial pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to TRI-COR INDUSTRIES, INC. 200301!000034!5700!QA27 !AMC/CONF/LGC !GS35F4500G !C!N! !Y!FA445203F0031 !20021001!20030930!146881875!146881875!146881875!N!TRI-COR INDUSTRIES, INC !4600 FORBES BLVD, SUITE 20!LANHAM !MD!20706!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000001439638!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is TRI-COR INDUSTRIES, 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 $10.4 million.

What is the period of performance?

Start: 2002-10-01. End: 2007-09-30.

What specific custom computer programming services were delivered under this contract, and how do they align with the agency's evolving needs?

The provided data classifies the service under 'OTHER ADP & TELECOMMUNICATION SERVICES' and 'Custom Computer Programming Services' (NAICS 541511). However, the specific deliverables, project scope, and alignment with the Air Force's evolving technological requirements are not detailed. Understanding the precise nature of the services is crucial for assessing their ongoing necessity and value.

Given the $14.7 million award, what mechanisms were in place to ensure cost-effectiveness and prevent potential overruns throughout the contract's five-year duration?

The contract utilized a Firm Fixed Price (FFP) structure, which typically shifts cost risk to the contractor. However, without insight into the initial pricing negotiation, performance metrics, and ongoing cost monitoring by the Department of the Air Force, it's difficult to ascertain the effectiveness of cost controls and the prevention of overruns.

How did the 'full and open competition' process translate into demonstrable value for the taxpayer, considering the significant contract value?

Full and open competition is designed to foster a competitive environment that ideally leads to better pricing. While this contract underwent such a process, the lack of detailed bid information and performance outcomes makes it challenging to quantify the specific taxpayer value derived. Further analysis of the bidding landscape and awarded price against market rates would be needed.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4600 FORBES BLVD STE 205, LANHAM, MD, 20706

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4500G

IDV Type: FSS

Timeline