Logtec, Inc. awarded $15M+ for ADP and Telecommunication Services, highlighting potential value concerns

Contract Overview

Contract Amount: $9,974,982 ($10.0M)

Contractor: Logtec, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-28

End Date: 2009-03-31

Contract Duration: 1,280 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: 200511!000659!5700!FA8770!MSG/PK !GS35F4528G !C!N! !Y!FA877005F0078! !20050928!20060115!150670404!150670404!150670404!N!LOGTEC, INC !1825 COMMERCE CENTER BLVD !FAIRBORN !OH!45324!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000002388260!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to LOGTEC, INC. for work described as: 200511!000659!5700!FA8770!MSG/PK !GS35F4528G !C!N! !Y!FA877005F0078! !20050928!20060115!150670404!150670404!150670404!N!LOGTEC, INC !1825 COMMERCE CENTER BLVD !FAIRBORN !OH!45324!86660!057!39!WRIGHT PATTERSON AFB!GREE… Key points: 1. Contract value appears high relative to duration, suggesting a need for detailed cost analysis. 2. Full and open competition was utilized, which should theoretically drive competitive pricing. 3. The contract's duration and scope warrant scrutiny for potential scope creep or inefficiencies. 4. Performance context is limited, making it difficult to assess the contractor's track record on this specific award. 5. This contract falls within the 'Other ADP & Telecommunication Services' category, a broad area requiring specific performance metrics. 6. The absence of small business set-aside indicates a focus on larger prime contractors or specific capabilities.

Value Assessment

Rating: fair

The total award amount of $15,067,040.40 over approximately 4 years (from Sep 2005 to Mar 2009) averages to roughly $3.77 million per year. While not inherently excessive for IT services, a deeper dive into the specific services rendered and the labor hours billed is necessary to benchmark this against similar contracts. Without detailed breakdowns of labor categories, rates, and hours, it's challenging to definitively assess value for money. The contract type (Labor Hours) can sometimes lead to higher costs if not managed tightly.

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 offers. This is generally a positive sign for price discovery and market competition. However, the number of bidders is not specified in the provided data, which is crucial for understanding the actual level of competition. A single bidder responding to a full and open solicitation could indicate market limitations or issues with the solicitation itself.

Taxpayer Impact: Full and open competition is intended to ensure taxpayers receive the best possible prices by encouraging multiple companies to bid. The effectiveness of this mechanism depends on the number of actual bids received and the competitiveness of those bids.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel at Wright Patterson AFB, who receive the ADP and telecommunication services. Services delivered include custom computer programming and other ADP/telecommunication support, crucial for military operations and infrastructure. The geographic impact is centered around Wright Patterson AFB in Ohio, supporting a key military installation. Workforce implications include employment for individuals with specialized IT and telecommunications skills working for Logtec, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to labor hour contract type if not closely monitored.
Scope creep is a risk in IT service contracts if not clearly defined and managed.
Dependence on a single contractor for critical ADP and telecommunication services could pose a risk.
Limited data on specific performance metrics makes it hard to gauge effectiveness proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, Logtec, Inc., has a contract history, implying some level of established business operations.
The contract specifies a clear period of performance, providing a defined timeframe for service delivery.

Sector Analysis

This contract falls under the broad category of Information Technology services, specifically 'Other ADP & Telecommunication Services' (NAICS 541519) and 'Custom Computer Programming Services' (NAICS 541511). The IT services market is vast and highly competitive, with significant government spending. Comparable spending benchmarks would require analyzing other contracts for similar IT support services, particularly those awarded by the Department of Defense to understand pricing and service level expectations within this sector.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the requirement may have been beyond the scope or capability of typical small business set-asides, or that larger businesses were deemed more suitable. There is no direct information on subcontracting plans or their impact on the small business ecosystem from the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force contracting and program management offices at Wright Patterson AFB. Accountability measures would be defined in the contract's Performance Work Statement (PWS). Transparency is facilitated through contract databases like FPDS, where basic award information is recorded. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
ADP Equipment and Software
Telecommunications Services
Custom Computer Programming Services
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns due to labor hour contract type.
Risk of scope creep in broad IT service categories.
Limited data on the number of bidders in a full and open competition.
Absence of specific performance metrics in provided data.
Contract duration requires monitoring for sustained value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to LOGTEC, INC.. 200511!000659!5700!FA8770!MSG/PK !GS35F4528G !C!N! !Y!FA877005F0078! !20050928!20060115!150670404!150670404!150670404!N!LOGTEC, INC !1825 COMMERCE CENTER BLVD !FAIRBORN !OH!45324!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000002388260!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is LOGTEC, 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 $10.0 million.

What is the period of performance?

Start: 2005-09-28. End: 2009-03-31.

What specific IT and telecommunication services were provided under this contract?

The contract data indicates the primary NAICS code as 541519 ('Other ADP & Telecommunication Services') and also lists 541511 ('Custom Computer Programming Services'). This suggests a range of services including software development, system integration, network support, and potentially hardware/software maintenance and consultation related to ADP and telecommunications infrastructure. A detailed breakdown would typically be found in the contract's Performance Work Statement (PWS), outlining deliverables, service levels, and specific tasks expected from Logtec, Inc. Without the PWS, the exact nature of the services remains generalized.

How does the average annual cost of $3.77 million compare to similar IT service contracts awarded by the Department of Defense during the mid-2000s?

Benchmarking the average annual cost of $3.77 million requires comparing it against similar IT service contracts awarded by the Department of Defense in the mid-2000s, specifically for 'Other ADP & Telecommunication Services' or 'Custom Computer Programming Services'. Factors like contract duration, scope complexity, labor mix, and specific deliverables heavily influence pricing. Contracts for large-scale system development or enterprise-wide network management could easily exceed this annual average, while smaller, more focused support contracts might be significantly less. A comprehensive analysis would involve querying contract databases for comparable awards, adjusting for inflation, and normalizing for scope differences to determine if Logtec's contract represented good or fair value.

What was the number of bids received for this 'Full and Open Competition' contract?

The provided data states the contract was awarded under 'Full and Open Competition' (ct: FULL AND OPEN COMPETITION). However, it does not specify the number of bids received. In a full and open competition, the goal is to solicit offers from all responsible sources. The actual number of bidders is a critical indicator of the level of competition achieved. If only one or two bids were received, it might suggest limitations in the market, issues with the solicitation's clarity or requirements, or that the incumbent contractor had a significant advantage. A higher number of bids generally leads to better price competition and potentially lower costs for the government.

What is the track record of Logtec, Inc. with government contracts, particularly within the Department of Defense?

Logtec, Inc. has a history of receiving government contracts, as indicated by this award. To assess their track record, one would need to examine their complete contract history, including past performance evaluations, any contract disputes or terminations, and the types and values of previous awards. A positive track record would involve consistent successful performance, adherence to contract terms, and positive feedback from government agencies. Conversely, a history of issues could raise concerns about their ability to successfully execute current and future contracts. Specific details on Logtec's performance on this particular $15M+ contract would be found in performance reports and potentially CPARS (Contractor Performance Assessment Reporting System) data, which are not included here.

Are there any indications of potential risks or concerns associated with this contract's execution or management?

Potential risks associated with this contract include the 'Labor Hours' (pt: LABOR HOURS) contract type, which can be susceptible to cost overruns if not meticulously managed and monitored for efficiency. The broad nature of 'Other ADP & Telecommunication Services' also presents a risk of scope creep if the Performance Work Statement (PWS) is not precisely defined and enforced. Furthermore, reliance on a single award for critical services can pose a risk if the contractor fails to perform adequately or faces financial instability. Without access to performance reports or CPARS, it's difficult to identify specific execution or management issues that may have arisen during the contract's period of performance.

How does this contract's value and duration compare to the overall spending on IT services by the Department of the Air Force during the mid-2000s?

This contract, valued at over $15 million with a duration spanning from late 2005 to early 2009 (approximately 3.5 years), represents a significant, but not necessarily dominant, portion of IT spending for the Department of the Air Force during that period. The Air Force is a major consumer of IT services, with annual budgets often in the billions for technology acquisition, maintenance, and support. To contextualize this specific award, one would need to analyze aggregate spending data for IT services procured by the Air Force during FY2005-FY2009. This contract's value would be benchmarked against the total IT budget and the distribution of funds across various IT service categories and contractors to understand its relative scale and significance within the broader spending landscape.

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 › 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)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 2900 PRESIDENTIAL DR # 13, FAIRBORN, OH, 45324

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4528G

IDV Type: FSS

Timeline