DoD's $2.9M custom programming contract awarded to Rackner Inc. for services in Texas

Contract Overview

Contract Amount: $2,920,209 ($2.9M)

Contractor: Rackner Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-12

End Date: 2026-05-11

Contract Duration: 1,095 days

Daily Burn Rate: $2.7K/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: P1 OPS - JEDI PRAXIUM - TEAM 2

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to RACKNER INC for work described as: P1 OPS - JEDI PRAXIUM - TEAM 2 Key points: 1. Contract value appears reasonable for custom programming services, but requires benchmarking against similar projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of three years presents a moderate-term commitment. 4. Fixed-price contract type helps mitigate cost overrun risks. 5. The award is for custom computer programming, a critical IT service. 6. Geographic location of service delivery is Texas.

Value Assessment

Rating: good

The contract value of $2.9 million for custom computer programming services over three years appears to be within a reasonable range for specialized IT work. Benchmarking against similar federal contracts for custom software development would provide a more precise assessment of value for money. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of work is well-defined.

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 while initial sources may have been considered, the final award was made through a broad competitive process. The presence of two bidders suggests a degree of competition, though the exact number of proposals received and the evaluation process would offer further insight into the intensity of the competition.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

The Department of Defense benefits from specialized custom computer programming services. The contract supports the development or enhancement of critical IT systems. Services are to be delivered in Texas, potentially impacting the local IT workforce. The specific impact on the broader public is indirect, related to improved defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined upfront.
Dependence on a single contractor for critical custom programming services.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Full and open competition suggests a robust selection process.
Award to an established contractor (Rackner Inc.) may indicate a track record of performance.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT market is vast, with significant spending on software development and maintenance. This contract represents a small portion of overall federal IT expenditure but is crucial for the specific needs of the Department of the Air Force. Comparable spending benchmarks for custom software development vary widely based on complexity and duration.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary awardee, Rackner Inc., is likely a larger entity, and the contract's direct impact on the small business ecosystem may be limited unless subcontracting opportunities arise.

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 inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is generally maintained through contract databases like FPDS, where award details are published.

Related Government Programs

Custom Computer Programming Services
Information Technology Services
Department of Defense IT Contracts
Federal Software Development

Risk Flags

Competition level could be further analyzed to ensure optimal pricing.
Scope definition clarity is essential for fixed-price contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to RACKNER INC. P1 OPS - JEDI PRAXIUM - TEAM 2

Who is the contractor on this award?

The obligated recipient is RACKNER 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 $2.9 million.

What is the period of performance?

Start: 2023-05-12. End: 2026-05-11.

What is Rackner Inc.'s past performance record with the federal government, particularly in custom programming?

Assessing Rackner Inc.'s past performance is crucial for understanding their reliability and capability in delivering on this contract. A review of their federal contract history, including any past performance evaluations or awards, would reveal their track record. Specifically, looking for prior contracts of similar scope, complexity, and value within the Department of Defense or other agencies would provide relevant context. Any instances of contract disputes, performance issues, or successful project completions would inform the risk assessment for this current award. Without specific past performance data readily available in this summary, further investigation into federal procurement databases would be necessary to provide a comprehensive answer.

How does the awarded price of $2.9 million compare to market rates for similar custom programming services?

The awarded price of $2.9 million for custom computer programming services over a three-year period needs to be benchmarked against prevailing market rates. This involves comparing the contract's estimated hourly or project rates against industry standards for similar skill sets and service complexities. Factors such as the specific technologies involved, the level of expertise required, and the geographic location of service delivery can influence market rates. While the firm fixed-price nature provides cost certainty for the government, understanding the underlying cost structure relative to the market is key to assessing value. A detailed analysis would involve examining data from commercial IT service providers and other government contracts for comparable services.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost or schedule overruns. Another risk is contractor performance failure, where Rackner Inc. may not deliver the services to the required standard or within the agreed timeframe. Mitigation strategies include the firm fixed-price contract type, which incentivizes the contractor to manage costs effectively. Clear and detailed contract specifications, robust project management by the Air Force, and regular performance reviews are also critical for mitigating risks. The exclusion of sources in the competition phase, though followed by full and open competition, might warrant a review to ensure no potential risks were overlooked in the initial screening.

What is the expected effectiveness of the custom programming services in meeting the Department of the Air Force's objectives?

The effectiveness of these custom programming services hinges on how well they align with and fulfill the specific objectives of the Department of the Air Force. Since the nature of the custom programming is not detailed, its effectiveness can only be broadly assessed. If the services are designed to enhance critical IT infrastructure, improve operational efficiency, or provide new capabilities, their effectiveness will be measured by their contribution to these goals. Key performance indicators (KPIs) within the contract, if defined, would provide a framework for measuring success. Ultimately, the true effectiveness will be determined by the successful deployment and utilization of the developed software and its impact on the Air Force's mission readiness and operations.

How has the Department of Defense's spending on custom computer programming services evolved over the past five years?

Analyzing the Department of Defense's (DoD) spending trends on custom computer programming services over the past five years would provide valuable context for this $2.9 million award. Generally, federal IT spending, including custom programming, has seen consistent demand, driven by modernization efforts and evolving technological needs. The DoD, being a major technology consumer, likely represents a significant portion of this spending. Understanding whether this contract aligns with an increasing, decreasing, or stable trend in custom programming investments by the DoD would be insightful. Factors such as shifts in technology priorities (e.g., cloud migration, cybersecurity, AI) and budget allocations would influence these spending patterns.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8630 FENTON ST, SILVER SPRING, MD, 20910

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,471,672

Exercised Options: $4,040,674

Current Obligation: $2,920,209

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830723GB003

IDV Type: BOA

Timeline