DoD's $14.3M IT Services Contract with RCF Information Systems Raises Questions on Value and Competition
Contract Overview
Contract Amount: $14,303,539 ($14.3M)
Contractor: RCF Information Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-29
End Date: 2011-06-30
Contract Duration: 1,827 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: 200610!000918!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7521! !20060629!20070630!023755291!023755291!023755291!N!RCF INFORMATION SYSTEMS, INC !4200 COLONEL GLENN HWY !BEAVERCREEK !OH!45431!04720!057!39!BEAVERCREEK !GREENE !OHIO !+000000747653!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 $14.3 million to RCF INFORMATION SYSTEMS, INC. for work described as: 200610!000918!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7521! !20060629!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 sole-source award, potentially limiting competitive pricing. 2. With a total value of $14.3 million over its lifespan, the contract's effectiveness and cost-efficiency warrant scrutiny. 3. The 'Other Computer Related Services' category suggests a broad scope, making it difficult to assess specific value without further detail. 4. The contract's duration of 1827 days (approx. 5 years) is substantial, increasing the importance of ongoing oversight.
Value Assessment
Rating: questionable
The contract's total value is $14.3 million. Without specific deliverables or performance metrics, it's difficult to benchmark against similar IT service contracts. The pricing structure is based on 'LABOR HOURS', which can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION', but the 'AWARD TYPE' is 'DO' (Delivery Order), which can sometimes indicate a less competitive process or a specific set-aside. Further details on the competition method are needed to assess price discovery.
Taxpayer Impact: The potential for inflated costs due to limited competition or inefficient labor hour billing could result in a suboptimal use of taxpayer funds.
Public Impact
Taxpayers may be overpaying for IT services if competition was not robust or if labor hours were not efficiently utilized. The Department of Defense's reliance on specific contractors for IT services highlights potential vendor lock-in risks. Lack of transparency in contract performance metrics makes it hard for the public to gauge the effectiveness of this $14.3 million investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear performance metrics
- Potential for cost overruns with 'LABOR HOURS' pricing
- Limited insight into the competitive process
- Broad service category makes specific value assessment difficult
Positive Signals
- Contract awarded to a specific company, indicating a need for their services
- Contract has a defined period of performance
Sector Analysis
This contract falls under the 'Other Computer Related Services' (NAICS 541519) sector, which is a significant area of government spending. Benchmarks for IT services vary widely based on complexity and scope, but contracts of this size require careful justification.
Small Business Impact
The data indicates this contract was not awarded to a small business (SS=false, SB=false). Analysis of small business participation in broader IT service procurements by the Department of Defense is crucial for equitable distribution of federal contracts.
Oversight & Accountability
The 'AWARD TYPE' of 'DO' suggests this might be a delivery order under a larger contract vehicle. Oversight should focus on whether this order was competitively solicited and if it aligns with the original contract's terms and pricing.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed performance metrics
- Potential for cost overruns due to 'LABOR HOURS' pricing
- Ambiguity in the competitive award process ('DO' type)
- Broad service category hinders specific value assessment
- No indication of small business participation
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 $14.3 million to RCF INFORMATION SYSTEMS, INC.. 200610!000918!5700!FA8604!ASC/PKW !GS35F0613J !C!N! !Y!FA860406F7521! !20060629!20070630!023755291!023755291!023755291!N!RCF INFORMATION SYSTEMS, INC !4200 COLONEL GLENN HWY !BEAVERCREEK !OH!45431!04720!057!39!BEAVERCREEK !GREENE !OHIO !+000000747653!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 $14.3 million.
What is the period of performance?
Start: 2006-06-29. End: 2011-06-30.
What specific IT services were provided under this contract, and how did their performance align with the $14.3 million expenditure?
The contract falls under 'Other Computer Related Services' (NAICS 541519). Without detailed task orders or performance reports, it's impossible to ascertain the specific services rendered or their effectiveness relative to the cost. The 'LABOR HOURS' pricing model necessitates rigorous oversight to ensure efficiency and prevent overbilling for the $14.3 million total value.
What factors led to the 'FULL AND OPEN COMPETITION' designation, and were there any limitations or specific requirements that might have restricted the pool of bidders?
While designated as 'FULL AND OPEN COMPETITION', the 'AWARD TYPE' of 'DO' warrants further investigation. It's possible that this delivery order was placed against an existing contract vehicle where the initial competition was broad, but this specific order might have had constraints. Understanding the specific solicitation and evaluation process is key to assessing true competitive impact.
How does the 'LABOR HOURS' pricing model for this $14.3 million contract compare to industry standards for similar IT services, and what mechanisms were in place to control costs?
The 'LABOR HOURS' pricing model can be efficient if well-managed, but it carries inherent risks of cost escalation. Without specific rates or benchmarks for the labor categories used, a direct comparison is difficult. Effective oversight would involve tracking hours, ensuring alignment with deliverables, and comparing rates against established government or industry benchmarks to validate the $14.3 million expenditure.
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
Financial Breakdown
Contract Ceiling: $8,192,959
Exercised Options: $8,192,959
Current Obligation: $14,303,539
Parent Contract
Parent Award PIID: GS35F0613J
IDV Type: FSS
Timeline
Start Date: 2006-06-29
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2011-06-03
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