DoD's $13.4M contract for IT services awarded to Automated Sciences Group Inc. shows fair value

Contract Overview

Contract Amount: $13,440,960 ($13.4M)

Contractor: Automated Sciences Group Inc

Awarding Agency: Department of Defense

Start Date: 2001-10-31

End Date: 2006-06-16

Contract Duration: 1,689 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 200201!000013!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0001 !A!N! !Y! !20011031!20031130!074803958!094107844!045534641!N!AUTOMATED SCIENCES GROUP INC !1100 N GLEBE RD !ARLINGTON !VA!22201!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000002082175!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B!C!Y!A! !A!N!R!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !B!C!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to AUTOMATED SCIENCES GROUP INC for work described as: 200201!000013!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0001 !A!N! !Y! !20011031!20031130!074803958!094107844!045534641!N!AUTOMATED SCIENCES GROUP INC !1100 N GLEBE RD !ARLINGTON !VA!22201!86660!057!39!WRIGHT PATTERSON AFB!GREEN… Key points: 1. The contract's value appears reasonable when benchmarked against similar IT service contracts. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Award Fee) introduces performance incentives but also potential cost overruns. 4. The duration of the contract (over 4 years) indicates a long-term need for these services. 5. The contractor has a track record with the Department of Defense, suggesting familiarity with agency needs. 6. The services provided fall under 'Other Computer Related Services', a broad category within IT.

Value Assessment

Rating: good

The contract value of $13.4 million over approximately 4.5 years suggests an average annual spend of around $3 million. This figure appears to be within a reasonable range for IT services contracts of this nature, especially considering the 'Other Computer Related Services' category which can encompass a wide array of specialized support. Without specific details on the scope of work, a precise benchmark is difficult, but the overall value does not immediately raise concerns for a federal IT contract of this duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This method is generally preferred for ensuring the government receives the best possible value through a competitive process. The number of bidders is not specified in the provided data, but the use of full and open competition suggests a robust market engagement.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down prices through market forces and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiary is the Department of Defense, which receives essential IT support services. Services delivered likely include IT infrastructure management, software support, or other computer-related technical assistance. The geographic impact is centered around Wright Patterson AFB in Ohio, where the contract is managed. Workforce implications include the potential for direct employment by Automated Sciences Group Inc. and its subcontractors to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize performance but also carry a risk of costs exceeding initial estimates if not managed tightly.
The broad 'Other Computer Related Services' category could lead to scope creep if not clearly defined and monitored.
Long contract durations can sometimes lead to vendor lock-in or reduced agility in adopting new technologies if not structured with flexibility.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Automated Sciences Group Inc., has experience with federal contracts, implying a level of established capability.
The contract is managed by the Defense Contract Management Agency, indicating established oversight processes.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically under 'Other ADP & Telecommunication Services' (NAICS 541519). This category includes establishments primarily engaged in providing expertise in the science and art of computer application, development, and analysis. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of that ongoing investment, likely supporting specific operational needs at Wright Patterson AFB.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if any were mandated or pursued by the prime contractor, Automated Sciences Group Inc. Without specific subcontracting plans detailed, it's difficult to assess the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract type (Cost Plus Award Fee) implies performance metrics that would be evaluated to determine award fees, suggesting a degree of accountability. Transparency would depend on the public availability of contract performance reports and modifications, which are not detailed here.

Related Government Programs

IT Support Services
Computer Systems Design Services
Defense Information Technology Contracting
Professional, Scientific, and Technical Services

Risk Flags

Contract type (CPAF) carries inherent cost control risks.
Broad service category ('Other Computer Related Services') may lack specificity.
Limited data on number of bidders impacts competition assessment.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to AUTOMATED SCIENCES GROUP INC. 200201!000013!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0001 !A!N! !Y! !20011031!20031130!074803958!094107844!045534641!N!AUTOMATED SCIENCES GROUP INC !1100 N GLEBE RD !ARLINGTON !VA!22201!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000002082175!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is AUTOMATED SCIENCES GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2001-10-31. End: 2006-06-16.

What specific IT services were provided under this contract?

The contract falls under the NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support, including but not limited to IT system design, integration, and management; software development and maintenance; network administration; cybersecurity services; and IT consulting. Without further details on the specific Statement of Work (SOW) for FA877002C0001, the precise nature of the services rendered remains unspecified. However, given the agency (Department of Defense) and the location (Wright Patterson AFB), it likely supported critical defense-related IT infrastructure or operations.

How does the $13.4 million contract value compare to similar IT services contracts awarded by the DoD?

Benchmarking the $13.4 million value requires comparing it to similar IT services contracts awarded by the Department of Defense (DoD) for comparable services and durations. Contracts under NAICS 541519 can vary significantly in price based on complexity, duration, and specific requirements. For a contract spanning approximately 4.5 years (from Oct 2001 to June 2006), an average annual value of roughly $3 million is not uncommon for specialized IT support within a large federal agency. However, without access to a comprehensive database of comparable contracts with detailed scope information, a precise value-for-money assessment is challenging. Generally, this amount falls within the typical range for mid-sized IT service contracts supporting federal operations.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract type for this service?

Cost Plus Award Fee (CPAF) contracts, like the one awarded to Automated Sciences Group Inc., present specific risks. The primary risk is that the 'cost-plus' nature means the government reimburses the contractor for allowable costs incurred, plus a fee that is a combination of a fixed base fee and a performance-based award fee. This can lead to less incentive for the contractor to control costs rigorously compared to fixed-price contracts, as cost overruns are generally covered. The 'award fee' component aims to mitigate this by incentivizing high performance, but its subjectivity can also lead to disputes. For the government, effective oversight is crucial to ensure costs are reasonable and allowable, and that the award fee criteria are objective and consistently applied to avoid unwarranted payouts.

What was the historical spending trend for 'Other Computer Related Services' at Wright Patterson AFB prior to this contract?

Analyzing historical spending trends for 'Other Computer Related Services' at Wright Patterson AFB prior to October 2001 would require access to historical federal procurement data, specifically focusing on contracts awarded to this base under NAICS code 541519. This data is not directly available in the provided snippet. Generally, spending in this category tends to increase over time due to the growing reliance on technology and the need for continuous system upgrades and maintenance. However, specific trends can be influenced by budget allocations, major program initiatives, and shifts in technological requirements. A detailed analysis would involve querying databases like FPDS-NG or USAspending for relevant historical data.

How effective was Automated Sciences Group Inc. in meeting the performance objectives outlined in this contract?

The effectiveness of Automated Sciences Group Inc. in meeting the performance objectives of this contract (FA877002C0001) is not detailed in the provided data. The contract type is Cost Plus Award Fee (CPAF), which implies that performance was evaluated against specific criteria to determine the award fee. However, the data does not include the actual award fee amounts paid or any contractor performance evaluations. To assess effectiveness, one would need to review contractor performance reports, CPARS (Contractor Performance Assessment Reporting System) data, or any official assessments of the contractor's adherence to the Statement of Work and delivery timelines.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 1100 N GLEBE RD, ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline