DoD's $23.5M Air Force IT Contract with SI Systems Technologies Raises Questions on Value and Competition

Contract Overview

Contract Amount: $23,474,503 ($23.5M)

Contractor: SI Systems Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-21

End Date: 2022-08-30

Contract Duration: 1,988 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INFORMATION SYSTEM SUPPORT SERVICES

Place of Performance

Location: FOLSOM, SACRAMENTO County, CALIFORNIA, 95630

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to SI SYSTEMS TECHNOLOGIES, LLC for work described as: IGF::OT::IGF INFORMATION SYSTEM SUPPORT SERVICES Key points: 1. The contract awarded to SI Systems Technologies, LLC for Information System Support Services represents a significant investment by the Department of the Air Force. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a potentially complex procurement process. 3. The duration of the contract (1988 days) and its firm fixed price structure are key factors in assessing its overall value and risk. 4. The NAICS code 541511 points to Custom Computer Programming Services, placing this spending within the IT sector.

Value Assessment

Rating: questionable

The contract's total value of $23.5M over nearly 2000 days warrants scrutiny. Without specific performance metrics or benchmarks for custom computer programming services of this scale, it's difficult to definitively assess if the pricing represents excellent value compared to similar government or commercial contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The significant expenditure of taxpayer funds on this contract necessitates a thorough review to ensure it achieved optimal value and that the exclusion of sources did not lead to inflated costs.

Public Impact

Taxpayers may be concerned about the justification for excluding certain sources in an otherwise open competition. The long duration of the contract raises questions about adaptability to evolving technological needs and potential for cost overruns if not managed effectively. The specific nature of 'Information System Support Services' could impact critical Air Force operations, making oversight crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Long contract duration may indicate inflexibility
Lack of clear performance benchmarks for value assessment

Positive Signals

Firm Fixed Price contract structure can provide cost certainty
Awarded to a single entity, potentially streamlining management

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. Spending benchmarks for similar large-scale IT support contracts within the Department of Defense can vary widely based on complexity, but a $23.5M award over five years requires careful justification.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a need for robust oversight to ensure the exclusion process was justified and that the final award represents fair value. Accountability for performance and cost management over the contract's duration is essential.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion
Lack of transparency regarding the exclusion justification
Long contract duration may not align with rapid IT evolution
Absence of clear performance metrics for value assessment
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to SI SYSTEMS TECHNOLOGIES, LLC. IGF::OT::IGF INFORMATION SYSTEM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SI SYSTEMS TECHNOLOGIES, 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 $23.5 million.

What is the period of performance?

Start: 2017-03-21. End: 2022-08-30.

What was the specific justification for excluding certain sources from this full and open competition, and how did this impact the final contract price?

The justification for excluding sources is critical for understanding the competitive landscape. If legitimate technical or security reasons existed, the price might be justified. However, if exclusions were arbitrary, it could have artificially limited competition, potentially leading to a higher price than achievable in a truly open market. This requires detailed review of the procurement documentation.

How does the performance and cost of SI Systems Technologies, LLC compare to industry benchmarks for similar custom computer programming services over the contract's duration?

Comparing performance and cost against industry benchmarks is essential for value assessment. Without specific performance metrics (e.g., uptime, bug resolution rates, project completion times) and detailed cost breakdowns, it's challenging to determine if the $23.5M was well-spent. Benchmarking against similar government or commercial contracts for custom programming services would reveal potential overspending or underperformance.

What mechanisms are in place to ensure the effectiveness and adaptability of the information system support services provided, given the contract's five-year duration?

A five-year contract for IT services requires built-in flexibility. Mechanisms like regular performance reviews, phased delivery schedules, and clear change order processes are crucial for ensuring the services remain effective and adapt to evolving technological needs and mission requirements. Without these, the system could become outdated or inefficient, diminishing its value to the Air Force.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA825016R0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 718 SUTTER ST STE 108, FOLSOM, CA, 95630

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,579,805

Exercised Options: $24,579,805

Current Obligation: $23,474,503

Actual Outlays: $49,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1010

IDV Type: IDC

Timeline