FCC Spends $63.5M on IT Infrastructure Support with AAC Inc. via Full and Open Competition
Contract Overview
Contract Amount: $63,508,650 ($63.5M)
Contractor: AAC Inc.
Awarding Agency: Federal Communications Commission
Start Date: 2008-08-11
End Date: 2012-05-31
Contract Duration: 1,389 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT INFRASTRUCTURE SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554
Plain-Language Summary
Federal Communications Commission obligated $63.5 million to AAC INC. for work described as: IT INFRASTRUCTURE SUPPORT Key points: 1. Total contract value of $63.5M over nearly 4 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type is Time and Materials, which can pose cost control risks. 4. Sector is IT Infrastructure Support, a common area for federal spending.
Value Assessment
Rating: fair
The contract is Time and Materials, which can lead to cost overruns if not managed closely. The total award value is substantial, but without specific performance metrics or benchmarks, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure may limit the effectiveness of price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayers may face increased costs due to the Time and Materials nature of the contract, which can be less predictable than fixed-price arrangements.
Public Impact
Federal Communications Commission (FCC) relies on this contract for essential IT infrastructure. The duration of the contract (2008-2012) indicates a long-term need for these services. The significant dollar amount suggests a critical function within the FCC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation.
- Lack of specific performance metrics makes value assessment challenging.
- Contract duration is long, increasing potential for scope creep or inefficiency.
Positive Signals
- Awarded under full and open competition.
- Clear identification of the agency and service provided.
Sector Analysis
This contract falls within the IT Infrastructure Support sector, specifically Computer Facilities Management Services. Federal spending in this area is substantial, supporting the operational backbone of government agencies. Benchmarks for similar contracts would typically focus on hourly rates for different labor categories and the efficiency of managed services.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary contractor, AAC Inc., is not specified as a small business. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Federal Communications Commission, suggesting internal oversight. However, the Time and Materials nature requires diligent monitoring to ensure costs remain reasonable and services are necessary.
Related Government Programs
- Computer Facilities Management Services
- Federal Communications Commission Contracting
- Federal Communications Commission Programs
Risk Flags
- Time and Materials contract type.
- Lack of performance metrics.
- Long contract duration.
- No explicit mention of small business subcontracting.
Tags
computer-facilities-management-services, federal-communications-commission, dc, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Federal Communications Commission awarded $63.5 million to AAC INC.. IT INFRASTRUCTURE SUPPORT
Who is the contractor on this award?
The obligated recipient is AAC INC..
Which agency awarded this contract?
Awarding agency: Federal Communications Commission (Federal Communications Commission).
What is the total obligated amount?
The obligated amount is $63.5 million.
What is the period of performance?
Start: 2008-08-11. End: 2012-05-31.
What was the average hourly rate or cost per unit of service provided under this Time and Materials contract?
The provided data does not detail the specific hourly rates or cost per unit of service for this Time and Materials contract. To assess value, a breakdown of labor categories, rates, and the volume of services rendered would be necessary. Without this granular data, it's difficult to benchmark against industry standards or identify potential inefficiencies.
How effectively did the full and open competition mitigate potential cost overruns inherent in a Time and Materials contract?
While full and open competition aims for competitive pricing, its effectiveness in mitigating Time and Materials cost overruns is limited. The competition likely secured a reasonable baseline rate, but the inherent risk of escalating costs due to hours worked and material usage remains. Robust oversight and clear task definitions are crucial to control spending under such contracts, regardless of the initial competition.
What was the overall effectiveness of the IT infrastructure support provided by AAC Inc. in meeting the FCC's operational needs?
The provided data focuses on contract financials and structure, not on the quality or effectiveness of the IT infrastructure support delivered. Assessing effectiveness would require examining performance metrics, user satisfaction surveys, system uptime, and the achievement of IT modernization goals during the contract period. This information is not present in the dataset.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: RFQ08000016
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 8470 TYCO RD, VIENNA, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $79,913,357
Exercised Options: $72,094,738
Current Obligation: $63,508,650
Timeline
Start Date: 2008-08-11
Current End Date: 2012-05-31
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-06-06
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