DoD's $9.97M Server Admin Support Contract Awarded to DeUmbra, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $9,968,173 ($10.0M)

Contractor: Deumbra, LLC

Awarding Agency: Department of Defense

Start Date: 2006-10-25

End Date: 2009-08-31

Contract Duration: 1,041 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVER ADMIN SUPPORT SVCS FUNDING

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to DEUMBRA, LLC for work described as: SERVER ADMIN SUPPORT SVCS FUNDING Key points: 1. Contract value represents a moderate investment in essential IT infrastructure support. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. Contract duration of over 1000 days indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award was made by the Department of the Air Force, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 541519 points to specialized computer services.

Value Assessment

Rating: good

The total contract value of approximately $9.97 million over its period of performance is within a reasonable range for server administration support services for a federal agency of this size. Without specific benchmarks for the exact scope of services, a direct per-unit cost comparison is difficult. However, the firm fixed-price nature of the contract suggests that the pricing was determined upfront and is intended to be cost-effective, assuming the contractor can deliver efficiently within that structure. The award to DeUmbra, LLC, under full and open competition, implies that the pricing was deemed competitive among multiple bidders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 12 bids suggests a robust level of competition for these services. A higher number of bidders generally leads to better price discovery and can result in more favorable pricing for the government, as contractors vie to win the award.

Taxpayer Impact: The strong competition for this contract likely resulted in a more advantageous price for taxpayers compared to a sole-source or limited competition scenario. This ensures that government funds are used efficiently by leveraging market forces.

Public Impact

The Department of the Air Force benefits from reliable and consistent server administration, ensuring the smooth operation of critical IT systems. This contract supports the maintenance and functioning of essential digital infrastructure required for military operations and administrative functions. The services provided likely impact a wide range of Air Force personnel who rely on stable network and server performance. Workforce implications are primarily for the contractor's IT specialists, who are responsible for delivering these technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is not adequately managed.
Dependence on a single contractor for critical IT infrastructure support.

Positive Signals

Firm fixed-price contract reduces the risk of cost overruns for the government.
Full and open competition indicates a competitive market and potentially good value.
Long contract duration suggests a stable, ongoing need that is being met.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and support. The market for server administration and related computer services is substantial within the federal government, with agencies consistently requiring support for their complex IT infrastructures. This contract represents a typical procurement for maintaining operational IT capabilities, fitting within the broader landscape of IT services spending by defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The competition was open to all responsible sources, which would include small businesses if they chose to compete and met the requirements.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, which has established oversight mechanisms for its procurements. As a firm fixed-price contract, performance is monitored against defined deliverables and service levels. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Infrastructure Support Services
Server Management Contracts
Department of Defense IT Spending
Air Force IT Services
Computer Systems Design Services

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Dependence on a single vendor for critical IT functions.
Potential for performance degradation if contractor faces resource constraints.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to DEUMBRA, LLC. SERVER ADMIN SUPPORT SVCS FUNDING

Who is the contractor on this award?

The obligated recipient is DEUMBRA, LLC.

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 $10.0 million.

What is the period of performance?

Start: 2006-10-25. End: 2009-08-31.

What is the track record of DeUmbra, LLC in performing federal IT support contracts?

DeUmbra, LLC has been awarded federal contracts, including this one from the Department of the Air Force. Analyzing their past performance on similar IT support contracts would involve reviewing contract performance reports (CPARS) and any documented awards or penalties. A deeper dive into their contract history would reveal the types of services they have provided, their performance ratings, and any issues encountered. For this specific contract, the 'st' and 'sn' fields are marked as 'OK', suggesting satisfactory performance during its term. However, a comprehensive assessment would require examining all contracts awarded to DeUmbra, LLC across various agencies to understand their overall reliability and expertise in delivering IT services.

How does the awarded price compare to market rates for similar server administration services?

Benchmarking the $9.97 million contract value against market rates for server administration services requires detailed knowledge of the specific tasks, service levels, and geographic locations involved. As a firm fixed-price contract awarded under full and open competition with 12 bidders, it suggests the price was competitive at the time of award. To perform a precise comparison, one would need to analyze industry pricing data for comparable IT support contracts, considering factors like the number of servers managed, complexity of the environment, security requirements, and the specific technologies supported. Without such granular data, it's challenging to definitively state if the price was above or below market. However, the competitive bidding process is a strong indicator that the price was considered fair and reasonable by the market.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks associated with this contract include potential performance issues if DeUmbra, LLC fails to meet the service level agreements, leading to disruptions in critical IT operations. There's also a risk of vendor lock-in, where the agency becomes overly dependent on the contractor's expertise, making future transitions difficult or costly. Given the long duration, the risk of technology obsolescence or the need for evolving services not fully captured in the original scope could arise. Finally, while the firm fixed-price structure mitigates cost overrun risks, there's a risk that the contractor might cut corners on quality to maintain profitability if margins are tight. Robust contract management and oversight are crucial to mitigate these risks.

How effective has the Department of the Air Force been in managing similar IT support contracts?

Assessing the overall effectiveness of the Department of the Air Force (DoD) in managing similar IT support contracts requires a broad analysis of their procurement history, contract performance data (like CPARS), and any documented successes or failures. The DoD is a massive organization with a vast portfolio of IT contracts, and effectiveness can vary significantly by program, agency component, and contract type. The fact that this contract was awarded under full and open competition with multiple bids suggests a structured approach to market research and solicitation. The 'OK' status for performance ('st', 'sn') indicates satisfactory execution during its term. However, a comprehensive evaluation would involve looking at trends across numerous contracts, including any instances of contract disputes, overruns, or significant performance failures.

What are the historical spending patterns for server administration support within the Department of Defense?

Historical spending patterns for server administration support within the Department of Defense (DoD) show a consistent and significant investment in maintaining IT infrastructure. Agencies like the Department of the Air Force regularly procure services for server management, network support, and data center operations. Spending in this area is driven by the need to support a wide array of military, intelligence, and administrative functions. Over the years, there has been a trend towards consolidating IT services and leveraging cloud solutions, but dedicated on-premises server support remains crucial. The total annual spending across the DoD for such services likely runs into billions of dollars, reflecting the scale and complexity of its technological requirements. This specific $9.97 million contract is a component of that larger spending picture.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810106R0022

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4515 SETON CENTER PKWY STE 320, AUSTIN, TX, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,222,781

Exercised Options: $10,217,782

Current Obligation: $9,968,173

Contract Characteristics

Cost or Pricing Data: NO

Timeline