GSA's $25.2M network services contract with KRATOS SRE, INC. awarded in 2002 for computer systems design

Contract Overview

Contract Amount: $25,219,921 ($25.2M)

Contractor: Kratos SRE, Inc.

Awarding Agency: General Services Administration

Start Date: 2002-06-07

End Date: 2005-12-31

Contract Duration: 1,303 days

Daily Burn Rate: $19.4K/day

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NETWORK SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $25.2 million to KRATOS SRE, INC. for work described as: NETWORK SERVICES Key points: 1. Contract awarded in 2002, indicating a long-standing relationship and potential for outdated service delivery. 2. The contract's duration of 1303 days suggests a significant, long-term need for network services. 3. Awarded under the Federal Acquisition Service, implying a standardized procurement process. 4. The NAICS code 541512 points to computer systems design services, a broad category. 5. The contract was a labor hours type, which can sometimes lead to cost overruns if not managed carefully. 6. The absence of specific details on performance metrics makes it difficult to assess value for money. 7. The contract was not set aside for small businesses, suggesting a focus on larger, established providers.

Value Assessment

Rating: fair

Benchmarking the value of this 2002 contract is challenging due to the age of the data and the lack of specific performance metrics. The total award amount of $25.2 million over approximately 3.5 years suggests a substantial investment. Without comparable contracts from the same period or detailed service descriptions, it's difficult to definitively assess if the pricing was competitive or if the government received excellent value. The labor hours contract type introduces a risk of cost escalation if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly stated in the provided data. As it was awarded by the General Services Administration (GSA) under the Federal Acquisition Service, it is likely that some form of competition was involved, but the extent (e.g., full and open, limited, or sole-source) is not specified. The number of bidders and the specific solicitation method would be crucial to understanding the competitive landscape.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better deals for the government. Limited or sole-source awards may result in higher costs for taxpayers.

Public Impact

Federal agencies requiring network infrastructure and computer systems design services benefited from this contract. The services delivered likely supported the operational needs of various government departments. The geographic impact is likely nationwide, given GSA's role in providing services across the federal government. The contract supported IT professionals and potentially other roles involved in network design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type can lead to cost overruns if not managed effectively.
Awarded in 2002, the technology and services may be outdated, potentially impacting efficiency and security.
Lack of detailed performance metrics makes it hard to gauge the true value and effectiveness of the services received.
The broad nature of 'Computer Systems Design Services' could mask inefficiencies or scope creep.

Positive Signals

Long contract duration suggests a consistent need and potentially a stable, reliable service provider.
Awarded by GSA, indicating adherence to federal procurement standards.
The substantial award amount suggests the contractor was capable of handling a significant federal requirement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and network services. The IT services market is vast and highly competitive, with numerous vendors offering specialized solutions. Contracts of this nature are essential for maintaining and upgrading federal IT infrastructure. Benchmarking against similar IT service contracts from the early 2000s would be necessary for a precise value assessment, but the $25.2 million figure indicates a significant engagement for its time.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the award amount and the nature of IT services, it's possible that larger prime contractors were involved. Further investigation into the solicitation documents would be needed to determine the extent of small business participation and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), likely through its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure compliance and accountability. However, the effectiveness of oversight for a contract awarded nearly two decades ago would depend on the specific controls and reporting requirements in place at that time, as well as the diligence of agency program managers.

Related Government Programs

IT Network Services
Computer Systems Design
GSA Federal Supply Schedule Contracts
IT Professional Services
Network Infrastructure Support

Risk Flags

Potential for outdated technology due to award date.
Risk of cost overruns inherent in labor hours contracts.
Lack of specific performance metrics hinders value assessment.
Unclear competition level may impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.2 million to KRATOS SRE, INC.. NETWORK SERVICES

Who is the contractor on this award?

The obligated recipient is KRATOS SRE, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2002-06-07. End: 2005-12-31.

What was the specific nature of the network services provided under this contract?

The contract falls under NAICS code 541512, 'Computer Systems Design Services.' This broad category typically encompasses services such as designing, developing, and implementing IT infrastructure, including networks. Specific services could have ranged from network architecture design, installation of hardware and software, network security implementation, to ongoing network management and support. Without more detailed contract line item descriptions or statements of work, the precise nature of the network services remains general.

How does the $25.2 million award compare to similar IT network service contracts during the early 2000s?

Comparing this $25.2 million award from 2002 requires historical market data for IT network services. In the early 2000s, federal IT spending was increasing significantly. A contract of this size was substantial, reflecting the growing reliance on robust network infrastructure. However, without specific benchmarks for comparable contracts (e.g., duration, scope, agency) from that era, it's difficult to definitively state if it was high or low. The market was less mature than today, and pricing structures may have differed considerably.

What were the potential risks associated with a labor hours contract of this magnitude and duration?

Labor hours contracts, especially those for significant amounts and long durations like this 1303-day contract, carry inherent risks. The primary risk is cost overrun, as the government pays for the time and materials expended by the contractor rather than a fixed price. This necessitates rigorous oversight to ensure efficient labor utilization and prevent scope creep. Other risks include potential for contractor inefficiency, difficulty in accurately forecasting total costs, and ensuring the labor provided meets the required skill levels and quality standards throughout the contract period.

What does the award date of June 7, 2002, imply about the technology and services provided?

An award date in mid-2002 implies that the technology and services procured were current or emerging at that time. However, IT evolves rapidly. Services and solutions that were state-of-the-art in 2002 might be considered legacy or even obsolete today. This raises questions about the long-term relevance, efficiency, and security of the network infrastructure established or maintained under this contract. It's possible that subsequent contracts were awarded to modernize or replace the systems implemented during this period.

Were there any specific performance metrics or KPIs defined in the contract to measure success?

The provided data does not include information on specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, well-structured government contracts include measurable objectives related to service availability, response times, system uptime, security compliance, and user satisfaction. The absence of this information in the summary data makes it challenging to objectively assess the contractor's performance and the overall success of the network services delivered. Without KPIs, value-for-money assessments rely more heavily on cost analysis and anecdotal evidence.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Kratos Defense & Security Solutions, Inc. (UEI: 884457813)

Address: 6412 BEULAH ST, ALEXANDRIA, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $25,219,921

Exercised Options: $25,219,921

Current Obligation: $25,219,921

Parent Contract

Parent Award PIID: GS35F0553L

IDV Type: FSS

Timeline