DoD's $11.7M Library Contract with KeyLogic Associates Raises Questions on Value and Competition
Contract Overview
Contract Amount: $11,667,651 ($11.7M)
Contractor: Keylogic Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-22
End Date: 2012-02-21
Contract Duration: 1,825 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: LIBRARY CONTRACT
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $11.7 million to KEYLOGIC ASSOCIATES, INC. for work described as: LIBRARY CONTRACT Key points: 1. The contract awarded to KeyLogic Associates for $11.7 million over five years appears to be for IT infrastructure services. 2. The 'COST NO FEE' contract type suggests potential for cost overruns or a lack of clear pricing structure. 3. The 'br' (benchmark ratio) of 6393 is exceptionally high, indicating a significant deviation from expected costs. 4. The lack of small business participation is noted, despite the contract's duration and value.
Value Assessment
Rating: questionable
The 'COST NO FEE' contract type, combined with a very high benchmark ratio (6393), suggests the pricing may not be cost-effective. Further analysis is needed to understand the fee structure and actual costs incurred.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the high benchmark ratio warrants investigation into whether the competitive process adequately ensured the best value for taxpayers.
Taxpayer Impact: The high benchmark ratio suggests potential overspending, which could negatively impact taxpayers if not justified by the services provided.
Public Impact
Taxpayers may be paying more than necessary for library services due to the contract's pricing structure and high benchmark ratio. The lack of small business involvement limits opportunities for smaller companies in this sector. The long contract duration (5 years) means any inefficiencies or overpricing could have a sustained impact on federal IT spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High benchmark ratio (6393)
- Cost No Fee contract type
- No small business participation
Positive Signals
- Awarded under full and open competition
Sector Analysis
This contract falls under Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. The benchmark ratio of 6393 is significantly higher than typical for this sector, indicating potential cost concerns.
Small Business Impact
The contract data indicates no small business participation ('sb': false). For a contract of this value and duration, greater efforts should be made to include small businesses to foster competition and economic opportunity.
Oversight & Accountability
The high benchmark ratio and 'COST NO FEE' structure warrant closer oversight to ensure the Department of Defense is receiving fair value and that funds are being used efficiently.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High benchmark ratio indicates potential overpricing.
- Cost No Fee contract type lacks inherent cost controls.
- No small business participation limits competition.
- Long contract duration (5 years) magnifies potential inefficiencies.
Tags
computing-infrastructure-providers-data-, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to KEYLOGIC ASSOCIATES, INC.. LIBRARY CONTRACT
Who is the contractor on this award?
The obligated recipient is KEYLOGIC ASSOCIATES, 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 $11.7 million.
What is the period of performance?
Start: 2007-02-22. End: 2012-02-21.
What specific services were provided under this 'Library Contract', and how does the 'COST NO FEE' structure translate into actual expenditures?
The contract is categorized under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services'. The 'COST NO FEE' designation implies that the contractor's fee is fixed, but the government covers all allowable costs. Understanding the breakdown of these costs and the justification for the high benchmark ratio is crucial to assessing value.
How did the 'full and open competition' process result in a benchmark ratio of 6393, and what steps were taken to ensure cost-effectiveness?
While the competition was full and open, the exceptionally high benchmark ratio suggests a potential disconnect between the bids received and the government's cost estimates or market rates. Further review of the solicitation, evaluation criteria, and negotiation process is needed to understand how this ratio was accepted and if adequate price discovery occurred.
What is the specific impact of the 'COST NO FEE' contract type on the government's ability to control costs and ensure effective service delivery?
The 'COST NO FEE' structure can incentivize contractors to incur costs, as their fee is typically a fixed percentage or amount. This necessitates robust government oversight to scrutinize all incurred costs. Without clear cost controls and justification for expenses, there's a risk of overpayment and reduced effectiveness in service delivery compared to fixed-price contracts.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 1055 COMMERCE PARK DR STE 110, OAK RIDGE, TN, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $78,284,115
Exercised Options: $22,134,256
Current Obligation: $11,667,651
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-02-22
Current End Date: 2012-02-21
Potential End Date: 2012-02-21 00:00:00
Last Modified: 2011-09-19
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