Air Force Awards $6.67M Party Bus Contract to Rackner Inc. for Custom Programming
Contract Overview
Contract Amount: $6,667,311 ($6.7M)
Contractor: Rackner Inc
Awarding Agency: Department of Defense
Start Date: 2023-05-05
End Date: 2026-05-04
Contract Duration: 1,095 days
Daily Burn Rate: $6.1K/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: P1 OPS - PARTY BUS - TEAM 2
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $6.7 million to RACKNER INC for work described as: P1 OPS - PARTY BUS - TEAM 2 Key points: 1. Contract awarded for custom computer programming services. 2. Significant contract value of $6.67 million over 3 years. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Sector: Information Technology (NAICS 541511).
Value Assessment
Rating: fair
The contract value of $6.67 million for 1095 days suggests a daily rate of approximately $6,100. This appears high for custom programming services, especially considering the benchmark of $6,089.
Cost Per Unit: $6,089
Competition Analysis
Competition Level: limited
The 'Full and Open Competition after Exclusion of Sources' indicates a limited competition. While competition was sought, the exclusion of specific sources may have limited the pool of bidders, potentially impacting price discovery.
Taxpayer Impact: The high per-unit cost and limited competition raise concerns about taxpayer value for money.
Public Impact
Taxpayers may be overpaying for custom programming services. Limited competition could stifle innovation and lead to higher costs. The specific nature of 'Party Bus' services is unclear, raising questions about necessity and public benefit.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost compared to benchmark
- Limited competition method
- Unclear service justification
Positive Signals
- Contract awarded under Full and Open Competition
- Clear contract duration and pricing type
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Benchmarks for this sector vary widely based on complexity and skill, but the reported per-unit cost is at the higher end.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses were excluded or did not bid.
Oversight & Accountability
The contract is a delivery order under a larger contract, suggesting some level of pre-existing oversight. However, the specific justification for excluding sources and the high cost warrant further scrutiny.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High per-unit cost
- Limited competition
- Unclear service description
- Potential for vendor lock-in due to source exclusion
Tags
custom-computer-programming-services, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.7 million to RACKNER INC. P1 OPS - PARTY BUS - 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 $6.7 million.
What is the period of performance?
Start: 2023-05-05. End: 2026-05-04.
What specific custom computer programming services are being procured under the 'Party Bus' designation, and how do they align with the Department of Defense's mission?
The provided data does not specify the exact nature of the 'Party Bus' custom computer programming services. This designation is unusual for a defense contract and necessitates further inquiry into its functional requirements, technical specifications, and direct relevance to military operations or support functions to ensure appropriate use of taxpayer funds.
How was the benchmark of $6,089 determined, and why is the awarded contract's implied per-unit cost so close to this benchmark, especially given the limited competition?
The method for determining the $6,089 benchmark is not detailed. The proximity of the awarded contract's implied per-unit cost to this benchmark, coupled with a limited competition strategy, raises questions about whether the benchmark accurately reflects fair market value or if the competition structure allowed for less aggressive pricing.
What were the specific reasons for excluding certain sources during the 'Full and Open Competition after Exclusion of Sources' process, and what was the impact on overall cost savings?
The rationale behind excluding specific sources is not provided in the data. This exclusion limits the competitive landscape, potentially preventing the government from accessing lower prices or more innovative solutions that might have been offered by the excluded vendors. Understanding these reasons is crucial for assessing the effectiveness of the procurement strategy.
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: 12
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: $9,014,901
Exercised Options: $8,693,981
Current Obligation: $6,667,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830723GB003
IDV Type: BOA
Timeline
Start Date: 2023-05-05
Current End Date: 2026-05-04
Potential End Date: 2026-05-04 00:00:00
Last Modified: 2026-02-04
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