DoD's $12M IT Services Contract with RCF Information Systems Raises Questions on Value and Competition
Contract Overview
Contract Amount: $12,046,000 ($12.0M)
Contractor: RCF Information Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-30
End Date: 2011-06-30
Contract Duration: 1,826 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: 200610!000917!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7520! !20060630!20070630!023755291!023755291!023755291!N!RCF INFORMATION SYSTEMS, INC !4200 COLONEL GLENN HWY !BEAVERCREEK !OH!45431!04720!057!39!BEAVERCREEK !GREENE !OHIO !+000001000000!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541513!E! !6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45431
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $12.0 million to RCF INFORMATION SYSTEMS, INC. for work described as: 200610!000917!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7520! !20060630!20070630!023755291!023755291!023755291!N!RCF INFORMATION SYSTEMS, INC !4200 COLONEL GLENN HWY !BEAVERCREEK !OH!45431!04720!057!39!BEAVERCREEK !GREE… Key points: 1. The contract awarded to RCF Information Systems for IT services appears to be a significant expenditure, warranting scrutiny. 2. Competition details are unclear, with 'FULL AND OPEN COMPETITION' listed but further context needed to assess its effectiveness. 3. The contract duration of 5 years (2006-2011) for $12M suggests a substantial, long-term commitment. 4. The sector is IT services, specifically 'Other Computer Related Services', a common area for government spending.
Value Assessment
Rating: questionable
The contract value of $12,046,000 over five years averages $2.4M annually. Without specific deliverables or performance metrics, it's difficult to assess if this pricing is competitive or represents good value for 'Other ADP & Telecommunication Services'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract states 'FULL AND OPEN COMPETITION', but the lack of detailed award justification or information on bidding firms makes it hard to determine if this competition was truly robust and led to optimal price discovery.
Taxpayer Impact: The $12M expenditure represents taxpayer funds. Ensuring fair competition and value for money is crucial to maximize the impact of these funds.
Public Impact
Taxpayers are funding IT services for the Department of Defense, a critical but often expensive area of government operations. The long-term nature of the contract (5 years) means sustained investment, requiring ongoing oversight to ensure continued relevance and effectiveness. The specific services procured are 'Other ADP & Telecommunication Services', which can range widely in scope and necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics
- Unclear competitive landscape despite 'full and open' designation
- Potential for cost overruns in long-term IT contracts
Positive Signals
- Awarded to a single vendor, potentially simplifying administration
- Long-term contract provides stability for service delivery
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in IT is substantial, and benchmarks for similar services can vary widely based on complexity and duration.
Small Business Impact
There is no indication from the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Department of the Air Force to ensure RCF Information Systems meets all performance requirements and that taxpayer funds are used efficiently and effectively.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of specific deliverables
- Ambiguity in competition effectiveness
- Long contract duration without clear performance benchmarks
- Potential for scope creep and cost escalation
Tags
other-computer-related-services, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to RCF INFORMATION SYSTEMS, INC.. 200610!000917!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7520! !20060630!20070630!023755291!023755291!023755291!N!RCF INFORMATION SYSTEMS, INC !4200 COLONEL GLENN HWY !BEAVERCREEK !OH!45431!04720!057!39!BEAVERCREEK !GREENE !OHIO !+000001000000!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541513!E! !6! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is RCF INFORMATION SYSTEMS, 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 $12.0 million.
What is the period of performance?
Start: 2006-06-30. End: 2011-06-30.
What specific IT services were procured under this contract, and how do they align with the Department of Defense's strategic objectives?
The contract specifies 'OTHER ADP & TELECOMMUNICATION SERVICES'. Without a detailed statement of work, it's unclear if these services are mission-critical, support functions, or legacy system maintenance. Aligning these services with strategic goals is essential for justifying the $12M expenditure and ensuring it contributes to broader defense objectives.
How was the 'full and open competition' process managed, and what measures were in place to ensure a level playing field for all potential bidders?
While 'full and open competition' is stated, the data lacks details on the solicitation process, evaluation criteria, and the number of bids received. Robust competition requires transparency and fair evaluation to ensure the government secures the best value and avoids potential bid-rigging or preferential treatment.
What performance metrics and key performance indicators (KPIs) were established to measure the effectiveness and value of RCF Information Systems' services over the contract's five-year duration?
The provided data does not include any performance metrics or KPIs. Measuring effectiveness is crucial for long-term contracts to ensure accountability, identify areas for improvement, and justify continued spending. Without them, assessing the true value and impact of the $12M investment is challenging.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Contractor Details
Address: 4200 COLONEL GLENN HWY #, DAYTON, OH, 10
Business Categories: Category Business, Small Business, Veteran Owned Business
Parent Contract
Parent Award PIID: GS35F0613J
IDV Type: FSS
Timeline
Start Date: 2006-06-30
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2011-04-23
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