DoD's $17M Field Assistance Service Help Desk contract awarded to ZIGABYTE CORPORATION for custom computer programming

Contract Overview

Contract Amount: $17,021,792 ($17.0M)

Contractor: Zigabyte Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-03-31

Contract Duration: 913 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FIELD ASSISTANCE SERVICE HELP DESK SUPPORT

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to ZIGABYTE CORPORATION for work described as: FIELD ASSISTANCE SERVICE HELP DESK SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance period spans over two years, indicating a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541511 points to specialized IT services. 6. The award was a delivery order, suggesting it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract's total value of approximately $17 million over 913 days suggests a daily rate of around $18,644. This rate needs to be benchmarked against similar IT help desk and custom programming contracts. Without specific performance metrics or comparable data, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure implies that the contractor is incentivized to manage costs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the final award was made through a broad competitive process. The presence of 6 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple bids.

Public Impact

Provides essential IT help desk support services to the Department of Defense. Ensures the smooth operation of critical systems and user assistance for military personnel and civilian staff. The services are geographically focused within Alabama (AL), impacting the local workforce and economy. Supports the operational readiness and technological infrastructure of the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, increasing costs beyond initial estimates.
Dependence on a single contractor for critical IT support could pose continuity risks.
Ensuring adequate service levels and performance metrics are met throughout the contract duration.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration of over two years allows for stable service delivery and knowledge retention.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by federal agencies, particularly within the defense sector, to gauge pricing and service level expectations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless ZIGABYTE CORPORATION engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly available.

Related Government Programs

IT Help Desk Services
Custom Computer Programming
Defense IT Support Contracts
Information Technology Professional Services
Federal IT Services

Risk Flags

Potential for vendor lock-in if performance is consistently good.
Cybersecurity risks associated with remote access and system administration.
Dependence on contractor's ability to maintain staffing levels and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to ZIGABYTE CORPORATION. FIELD ASSISTANCE SERVICE HELP DESK SUPPORT

Who is the contractor on this award?

The obligated recipient is ZIGABYTE CORPORATION.

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 $17.0 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-03-31.

What is ZIGABYTE CORPORATION's track record with federal IT support contracts?

ZIGABYTE CORPORATION's track record with federal IT support contracts would need to be thoroughly reviewed. This includes examining past performance evaluations, any history of contract disputes or terminations, and the successful completion of similar services for government agencies. A review of their financial stability and capacity to handle a contract of this magnitude is also crucial. Understanding their experience with firm-fixed-price contracts and their ability to meet stringent service level agreements (SLAs) would provide further insight into their suitability for this role. Data from contract databases like SAM.gov or FPDS can offer insights into their award history and past performance ratings.

How does the awarded price compare to market rates for similar IT help desk services?

Benchmarking the awarded price against market rates requires detailed analysis of comparable contracts. Factors such as the scope of services (e.g., 24/7 support, specific software expertise, number of users supported), geographic location, and contract type (firm-fixed-price vs. cost-plus) significantly influence pricing. For a $17 million contract over approximately 3 years, the implied daily rate of roughly $18,644 needs to be compared with industry benchmarks for IT support and custom programming services. Government databases and industry reports can provide data points for similar services. If this rate is significantly higher or lower than comparable contracts, it warrants further investigation into the underlying reasons, such as unique technical requirements or exceptional service levels.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential cost overruns if the scope is not well-defined, contractor performance issues leading to service disruptions, and cybersecurity vulnerabilities associated with providing IT support. Mitigation strategies likely involve a robust performance work statement (PWS), clear service level agreements (SLAs) with defined penalties for non-performance, and rigorous security protocols. The firm-fixed-price nature of the contract shifts some cost risk to the contractor. Regular performance reviews and strong government oversight are essential to identify and address issues proactively. Cybersecurity assessments and compliance checks would also be critical components of risk mitigation.

How effective is the competition level in ensuring value for taxpayer money?

The award was made under 'Full and Open Competition After Exclusion of Sources' with 6 bidders, indicating a reasonably competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The fact that 6 entities vied for this contract suggests that the requirement was attractive and that the government likely received competitive proposals. However, the ultimate value for taxpayers also depends on the quality of services delivered and the contractor's ability to meet performance expectations throughout the contract's life. Continuous monitoring of performance and cost is necessary to ensure sustained value.

What is the historical spending trend for similar IT help desk and programming services within the Department of Defense?

Historical spending on IT help desk and custom programming services within the Department of Defense (DoD) has been substantial and consistently high, reflecting the critical role of technology in military operations. The DoD frequently awards large, multi-year contracts for these services across various branches, including the Air Force. Trends often show an increasing demand for specialized IT skills, cybersecurity support, and cloud integration services. Analyzing past spending patterns for similar NAICS codes (like 541511) and contract types can reveal average contract values, durations, and pricing structures, providing a baseline against which current awards can be assessed for reasonableness and efficiency.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1601 KOON RD, LUGOFF, SC, 29078

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $37,906,371

Exercised Options: $17,026,792

Current Obligation: $17,021,792

Actual Outlays: $1,112,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877120D0019

IDV Type: IDC

Timeline