DoD's $21.4M Custom Computer Programming Contract with Universal Technical Resource Services Inc. Shows Fair Value

Contract Overview

Contract Amount: $21,398,136 ($21.4M)

Contractor: Universal Technical Resource Services Inc

Awarding Agency: Department of Defense

Start Date: 2012-05-25

End Date: 2017-11-30

Contract Duration: 2,015 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD - LABOR, MATERIALS&EQUIP

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC for work described as: BASE PERIOD - LABOR, MATERIALS&EQUIP Key points: 1. The contract awarded to Universal Technical Resource Services Inc. for custom computer programming services represents a significant investment by the Department of Defense. 2. Competition was full and open, suggesting a robust price discovery process, though the specific benchmark for 'fair' value is not immediately clear. 3. Potential risks include the long performance period (2012-2017) and the firm-fixed-price structure, which could lead to cost overruns if requirements change. 4. The sector is IT services, a critical area for defense modernization and operational efficiency.

Value Assessment

Rating: fair

The contract's total value of $21.4 million over five years suggests a moderate annual spend. Without specific benchmarks for similar custom programming services within the DoD, assessing precise value is challenging, but the price appears within a reasonable range for complex IT solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.

Public Impact

This contract supports critical IT infrastructure for the Department of the Air Force, impacting national security operations. The duration of the contract suggests a long-term need for these specialized programming services. The use of a firm-fixed-price contract aims to control costs, but requires careful management to avoid scope creep. The awardee, Universal Technical Resource Services Inc., is a key contractor in the defense IT services space.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years)
Firm Fixed Price contract type
Potential for scope creep impacting cost

Positive Signals

Full and open competition
Awarded to a specialized IT services firm
Supports critical defense functions

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, driven by the need for modern software solutions and cybersecurity. Benchmarks vary widely based on complexity and labor rates.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). While large prime contractors often play a vital role, it's important to ensure opportunities exist for small businesses in subcontracting roles to foster innovation and competition.

Oversight & Accountability

The contract's firm-fixed-price nature and full and open competition suggest a degree of oversight is built-in. However, ongoing monitoring of performance, deliverables, and cost management by the Department of the Air Force is crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long-term reliance on a single vendor for critical IT services.
Potential for cost overruns if scope is not tightly managed under FFP.
Lack of small business participation explicitly noted.
Limited insight into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC. BASE PERIOD - LABOR, MATERIALS&EQUIP

Who is the contractor on this award?

The obligated recipient is UNIVERSAL TECHNICAL RESOURCE SERVICES 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 $21.4 million.

What is the period of performance?

Start: 2012-05-25. End: 2017-11-30.

What specific custom computer programming services were rendered, and how did they directly contribute to the Air Force's mission objectives?

The contract likely involved the development, modification, and maintenance of specialized software applications tailored to the Air Force's unique operational requirements. These services could range from enhancing existing systems to creating entirely new platforms for data analysis, command and control, or logistics. The direct contribution would be improved efficiency, enhanced capabilities, and better decision-making support for Air Force personnel, ultimately bolstering mission effectiveness and readiness.

Given the firm-fixed-price structure, what mechanisms were in place to manage potential cost increases due to evolving technological needs or unforeseen technical challenges?

A firm-fixed-price contract generally places the cost risk on the contractor. However, mechanisms to manage evolving needs might include well-defined change order procedures, strict scope management, and regular performance reviews. For unforeseen technical challenges, the contract might allow for equitable adjustments under specific circumstances, or the contractor would absorb the costs. Robust contract administration by the Air Force would be key to preventing uncontrolled cost escalation.

How does the $21.4 million expenditure compare to industry benchmarks for similar custom programming projects of comparable complexity and duration?

Comparing this $21.4 million expenditure requires detailed analysis of the specific services provided, the labor categories involved, and the project's complexity. Industry benchmarks for custom programming can vary significantly. However, for a five-year contract supporting a major agency like the Air Force, this figure suggests a substantial but potentially reasonable investment, especially if it involved highly specialized skills or critical infrastructure development. A direct comparison would necessitate access to detailed project scope and labor rates.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA940111R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 KINGS HWY N STE 208, CHERRY HILL, NJ, 08034

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,139,688

Exercised Options: $22,602,114

Current Obligation: $21,398,136

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline