DoD Defense IT Contract Awarded to Computer Associates for $115M, Raising Concerns Over Competition and Value

Contract Overview

Contract Amount: $115,033,757 ($115.0M)

Contractor: CA, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-26

End Date: 2007-03-30

Contract Duration: 1,099 days

Daily Burn Rate: $104.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200407!001215!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101304C5007 !A!N! !N! ! !20040326!20050331!007685969!007685969!080399256!N!COMPUTER ASSOCIATES INTERNATIO!2291 WOOD OAK DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000033549127!N!N!000000000000!7030!ADP SOFTWARE !S1 !SERVICES !000 !* !541519!E! !3!C!S! ! ! !99990909!B!B!N!A! !D!N!J!1!001!N!1G!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! !H98272!0001! !

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $115.0 million to CA, INC. for work described as: 200407!001215!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101304C5007 !A!N! !N! ! !20040326!20050331!007685969!007685969!080399256!N!COMPUTER ASSOCIATES INTERNATIO!2291 WOOD OAK DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIR… Key points: 1. The contract awarded to Computer Associates International for $115M for IT services raises questions about the competitive bidding process. 2. The 'NOT COMPETED' status suggests a lack of market research and potentially higher costs for taxpayers. 3. The duration of the contract (over 3 years) and its significant value warrant scrutiny regarding performance and ongoing necessity. 4. The sector is Defense Information Technology, a critical area where competitive pricing is essential for effective resource allocation.

Value Assessment

Rating: questionable

The contract value of $115M for 'ADP SOFTWARE' and 'SERVICES' is difficult to benchmark without specific deliverables. The lack of competition suggests potential overpricing compared to what might be achieved through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED,' indicating a sole-source award. This significantly limits price discovery and may lead to inflated costs for the government, as there was no opportunity for other vendors to bid.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive solicitation, meaning taxpayers may have overpaid for these IT services.

Public Impact

Taxpayers may be paying a premium for IT services due to the absence of competitive bidding. The Defense Information Systems Agency's reliance on a single vendor for this contract could impact future IT modernization efforts if alternatives are not explored. The significant financial commitment raises questions about the long-term strategic value and necessity of these specific IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential Overpricing
Limited Transparency

Positive Signals

Awarded to a known vendor
Contract duration aligns with potential project needs

Sector Analysis

This contract falls within the Defense Information Technology sector, which is a high-spending area for the government. Benchmarks for similar IT services contracts vary widely, but competitive awards typically yield better value.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. The focus appears to be on a large, sole-source award to a major contractor.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lapse in robust oversight regarding market research and justification for a sole-source award. Further review is needed to ensure accountability and adherence to procurement regulations.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of competitive bidding raises concerns about price fairness.
Potential for overpayment due to sole-source award.
Limited transparency in the procurement process.
No clear indication of small business participation.
Need for detailed justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.0 million to CA, INC.. 200407!001215!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101304C5007 !A!N! !N! ! !20040326!20050331!007685969!007685969!080399256!N!COMPUTER ASSOCIATES INTERNATIO!2291 WOOD OAK DRIVE !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000033549127!N!N!000000000000!7030!ADP SOFTWARE !S1 !SERVICES !000 !* !541519!E! !3!C!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is CA, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $115.0 million.

What is the period of performance?

Start: 2004-03-26. End: 2007-03-30.

What was the justification for not competing this $115M IT contract, and was a thorough market analysis conducted to ensure fair and reasonable pricing?

The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards require extensive documentation, including a market analysis and a justification for why competition is not feasible or advantageous. Without this information, it's impossible to assess if fair and reasonable pricing was achieved or if taxpayer funds were used efficiently.

What specific IT services were procured under this contract, and how does their performance and cost compare to industry standards or similar government contracts?

The contract specifies 'ADP SOFTWARE' and 'SERVICES' with a Product Service Code of '541519' (Other Computer Related Services). Without detailed performance metrics and specific service descriptions, a direct comparison to industry standards or similar contracts is challenging. The lack of competition inherently makes cost comparisons difficult, suggesting potential inefficiencies.

What is the long-term strategic impact of awarding a $115M contract without competition on the Department of Defense's IT infrastructure and future technological advancements?

Awarding a large contract without competition can stifle innovation by limiting exposure to new technologies and vendors. It may also create vendor lock-in, making it harder to transition to more advanced or cost-effective solutions later. This could hinder the DoD's ability to adapt to evolving threats and technological landscapes.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2291 WOOD OAK DRIVE, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $252,987

Exercised Options: $252,987

Current Obligation: $115,033,757

Timeline