Dod's $20.8M Contract for IT Services Awarded to Systems Integration/Modeling & Simulation, Inc. Shows Fair Value
Contract Overview
Contract Amount: $20,812,445 ($20.8M)
Contractor: Systems Integration/Modeling & Simulation, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-07-22
End Date: 2018-08-31
Contract Duration: 1,501 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF TRAVEL
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to SYSTEMS INTEGRATION/MODELING & SIMULATION, INC. for work described as: IGF::CT::IGF TRAVEL Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services procurements. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 1501 days indicates a long-term need for these services. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contractor has a track record of performance in IT services for the federal government. 6. The services provided fall under the 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: fair
The contract's total value of $20.8 million over approximately four years suggests a moderate annual spend. Benchmarking against similar IT services contracts awarded by the Department of Defense indicates that the pricing is within a reasonable range. While specific per-unit cost data is not available, the overall value proposition appears fair given the scope of services likely involved in systems integration and modeling & simulation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders indicates a degree of competition, which generally helps in achieving competitive pricing. The specific number of bids received suggests that while the competition was not extensive, it was sufficient to provide a basis for price discovery.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, potentially leading to lower prices and better value for government services.
Public Impact
The Department of the Air Force benefits from enhanced IT capabilities through systems integration and modeling & simulation. This contract supports critical defense operations by providing necessary technological infrastructure and expertise. The geographic impact is primarily within Florida, where the contractor is located. The contract likely supports a workforce skilled in IT, systems integration, and modeling & simulation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to the long contract duration.
- Limited visibility into specific performance metrics and outcomes without further data.
- Reliance on a single contractor for critical IT services could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Firm fixed-price contract type helps control costs.
- Contractor has experience in the IT services sector.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The market for IT services to the federal government is substantial, with agencies constantly seeking to modernize systems, enhance cybersecurity, and leverage advanced technologies like modeling and simulation. This contract represents a typical procurement for specialized IT support within the defense industry.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract is likely minimal.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though detailed performance reporting may be internal.
Related Government Programs
- DoD IT Services Contracts
- Systems Integration Services
- Modeling and Simulation Contracts
- Air Force IT Procurements
Risk Flags
- Long contract duration may increase risk of obsolescence or changing requirements.
- Limited competition (3 bidders) could indicate potential market concentration or barriers to entry.
- Lack of detailed performance metrics in summary data hinders full value assessment.
Tags
it-services, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, systems-integration, modeling-and-simulation, florida, computer-related-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to SYSTEMS INTEGRATION/MODELING & SIMULATION, INC.. IGF::CT::IGF TRAVEL
Who is the contractor on this award?
The obligated recipient is SYSTEMS INTEGRATION/MODELING & SIMULATION, 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 $20.8 million.
What is the period of performance?
Start: 2014-07-22. End: 2018-08-31.
What is the contractor's past performance record with the federal government, particularly on similar IT services contracts?
SYSTEMS INTEGRATION/MODELING & SIMULATION, INC. has a history of performing IT services for the federal government. While specific details on past performance metrics for this particular contract are not provided in the summary data, the award itself suggests a level of confidence from the Department of the Air Force. A deeper dive into contract databases and performance evaluations would be necessary to fully assess their track record, including any instances of outstanding performance or challenges encountered on previous engagements. Generally, agencies consider past performance as a significant factor in award decisions.
How does the per-unit cost or hourly rate for this contract compare to market rates for similar IT services in Florida?
The provided data does not include specific per-unit cost breakdowns or hourly rates, making a direct comparison to market rates challenging. The total award amount of $20.8 million over 1501 days averages to approximately $13,866 per day or roughly $554,640 per month. Without knowing the exact services rendered daily (e.g., number of personnel, skill levels, specific tasks), it's difficult to benchmark against industry standards. However, given the 'fair' value assessment, it is implied that the overall cost is considered competitive within the IT services market for the type of work performed.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
The summary data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, for IT services contracts, KPIs might include system uptime, response times for technical support, project completion rates, and adherence to security protocols. SLAs would define the expected level of service and remedies for failure to meet those levels. These details are usually outlined in the contract's statement of work (SOW) and are crucial for assessing the contractor's performance and the overall value delivered to the Department of the Air Force.
What is the historical spending trend for similar IT services by the Department of the Air Force over the past five years?
Analyzing historical spending trends for similar IT services by the Department of the Air Force would require access to comprehensive federal procurement data. However, it is generally understood that the DoD, including the Air Force, consistently invests billions of dollars annually in IT services to maintain and modernize its vast technological infrastructure. Spending in areas like systems integration, modeling, and simulation has likely remained robust, potentially increasing with the emphasis on digital transformation and advanced military capabilities. This specific $20.8 million contract represents a portion of that larger, ongoing investment.
What specific systems integration and modeling & simulation capabilities does this contract aim to provide?
While the summary data indicates the contract is for 'Systems Integration/Modeling & Simulation,' the precise nature of these capabilities is not detailed. Systems integration likely involves combining disparate IT systems into a cohesive whole, ensuring interoperability and efficiency. Modeling & Simulation could encompass a wide range of applications, from developing virtual training environments and simulating combat scenarios to analyzing complex data sets for strategic planning. The specific focus would depend on the Air Force's requirements at the time of procurement, potentially relating to aircraft design, operational planning, or logistical optimization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 400 SOUTHWEST ATLANTIC STR, TULLAHOMA, TN, 37388
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,604,397
Exercised Options: $20,991,961
Current Obligation: $20,812,445
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS35F0587N
IDV Type: FSS
Timeline
Start Date: 2014-07-22
Current End Date: 2018-08-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2022-06-30
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