DoD's $10.75M IT contract for custom programming services awarded to TRI-COR INDUSTRIES, INC
Contract Overview
Contract Amount: $10,754,172 ($10.8M)
Contractor: Tri-Cor Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-30
End Date: 2011-03-31
Contract Duration: 1,278 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: NON PERSONAL SERVICES
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.8 million to TRI-COR INDUSTRIES, INC for work described as: NON PERSONAL SERVICES Key points: 1. Value for money appears fair given the duration and scope of custom programming services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a Time and Materials pricing structure potentially leading to cost overruns if not managed closely. 4. Performance context is within custom computer programming, a critical but often complex IT service area. 5. Sector positioning is within Defense IT, a significant area of federal spending. 6. The contract was awarded as a delivery order under a larger IDIQ, suggesting it's part of a broader IT services strategy.
Value Assessment
Rating: fair
This contract for custom computer programming services, valued at over $10.75 million, was awarded to TRI-COR INDUSTRIES, INC. by the Department of Defense. The Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation if not meticulously managed. Benchmarking against similar custom programming contracts is challenging without more granular data on specific services rendered. However, the duration of the contract (over 3 years) suggests a substantial scope of work that may justify the overall expenditure.
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. The presence of 3 bids suggests a reasonable level of competition for this particular delivery order. A full and open competition generally promotes price discovery and allows the government to select the best value offering from a wide pool of qualified contractors.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically drives down prices through competitive bidding, ensuring that government funds are used more efficiently.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, receiving custom computer programming services. Services delivered include custom software development and programming, crucial for maintaining and enhancing defense IT infrastructure. The geographic impact is likely concentrated around the agency's operational locations, primarily Maryland. Workforce implications involve skilled IT professionals, including programmers and developers, employed by TRI-COR INDUSTRIES, INC. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not closely monitored.
- The duration of the contract (over 3 years) increases the potential for scope creep and associated cost increases.
- Custom programming can be complex, leading to potential delays or unmet requirements if not managed effectively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The contractor, TRI-COR INDUSTRIES, INC., has a track record of performing federal contracts.
- The contract supports critical IT infrastructure for the Department of Defense.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services (NAICS 541511). This is a vital segment of the federal IT market, supporting agencies' needs for specialized software development and integration. Federal spending on IT services, particularly custom programming, is substantial, driven by the need for tailored solutions that off-the-shelf software cannot provide. Comparable spending benchmarks would typically involve analyzing other custom programming contracts awarded by DoD or other large federal agencies over similar timeframes.
Small Business Impact
This contract does not appear to have a small business set-aside, as indicated by 'sb': false. Furthermore, 'ss': false suggests no specific small business subcontracting goals were mandated for this particular award. This means the prime contractor, TRI-COR INDUSTRIES, INC., was not required to subcontract a portion of the work to small businesses under this specific contract, potentially limiting opportunities for the small business ecosystem on this particular award.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Defense Information Systems Agency (DISA). The contract's Time and Materials nature necessitates diligent oversight to ensure labor hours and material costs are reasonable and allocable to the contract's scope. Transparency is facilitated through contract award databases, but detailed performance metrics and cost justifications are typically internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Information Systems Agency IT Services
- Custom Computer Programming Services
- Department of Defense IT Contracts
- Time and Materials IT Contracts
- Federal IT Services Delivery Orders
Risk Flags
- Time and Materials Pricing
- Potential for Cost Overruns
- Scope Creep Risk
- Custom Programming Complexity
Tags
it, defense, department-of-defense, defense-information-systems-agency, custom-computer-programming-services, full-and-open-competition, delivery-order, time-and-materials, maryland, tri-cor-industries-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to TRI-COR INDUSTRIES, INC. NON PERSONAL SERVICES
Who is the contractor on this award?
The obligated recipient is TRI-COR INDUSTRIES, 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 $10.8 million.
What is the period of performance?
Start: 2007-09-30. End: 2011-03-31.
What is the historical spending pattern for TRI-COR INDUSTRIES, INC. with the Department of Defense for similar IT services?
Analyzing TRI-COR INDUSTRIES, INC.'s historical spending with the Department of Defense for similar IT services reveals a pattern of consistent engagement. Prior to this $10.75 million contract, the company has secured various awards, primarily in the IT and professional services categories. These awards often fall under larger indefinite-delivery, indefinite-quantity (IDIQ) contracts, suggesting a strategic relationship with DoD components like the Defense Information Systems Agency (DISA). The value and duration of these prior contracts provide context for the current award, indicating a sustained demand for their services. While specific dollar amounts for individual past contracts vary, the aggregate spending demonstrates a significant, ongoing business relationship, underscoring the contractor's established presence and performance within the DoD IT landscape.
How does the per-unit cost of this contract compare to market rates for custom computer programming services?
Determining a precise per-unit cost for this contract is challenging due to its Time and Materials (T&M) pricing structure and the nature of custom programming, which involves diverse skill sets and variable effort. Unlike fixed-price contracts with clearly defined deliverables, T&M contracts bill based on actual labor hours and material costs incurred. Therefore, a direct 'per-unit' comparison to market rates is not straightforward. However, the total contract value of $10.75 million over approximately 3.5 years suggests an average annual spend of roughly $3 million. To benchmark this, one would need to analyze average loaded labor rates for senior programmers, project managers, and other IT specialists in the Maryland region (where the contract is managed) and compare them against industry surveys and government cost-allowability guidelines. Without specific breakdowns of labor categories and hours, a definitive market rate comparison remains qualitative, suggesting the need for robust government oversight of billed hours and rates.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk associated with the Time and Materials (T&M) pricing structure in this contract is the potential for cost overruns. Unlike fixed-price contracts where the contractor assumes the risk of cost overruns, T&M shifts this risk, in part, to the government. If the project scope is not well-defined, or if project management is weak, the contractor may bill for more hours or resources than initially anticipated, leading to expenditures exceeding the government's budget. Another risk is the potential for inefficient performance, as there is less financial incentive for the contractor to complete tasks quickly compared to a fixed-price arrangement. Effective mitigation requires strong government oversight, including detailed monitoring of labor hours, validation of material costs, and clear definition and control of the contract's scope of work to prevent scope creep.
How effective has TRI-COR INDUSTRIES, INC. been in delivering custom computer programming services under previous federal contracts?
Assessing the effectiveness of TRI-COR INDUSTRIES, INC. in delivering custom computer programming services under previous federal contracts requires a review of past performance evaluations and contract close-out data. While this specific contract award notice does not contain performance metrics, general contract databases indicate that TRI-COR has a history of performing IT services for various federal agencies. Positive performance signals often include timely delivery, adherence to technical specifications, and satisfactory quality of work. Conversely, negative signals might involve contract modifications due to performance issues, disputes, or below-average performance ratings. Without access to detailed past performance reports (which are often proprietary or CUI), a definitive statement on their effectiveness is limited. However, their continued ability to win and perform on federal contracts suggests a generally acceptable level of performance.
What is the significance of this contract being a Delivery Order under a larger IDIQ contract?
This contract being a Delivery Order (DO) under a larger Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract signifies a strategic approach to acquiring IT services. IDIQ contracts establish pre-negotiated terms, conditions, and pricing for a broad category of services over a period of time, allowing agencies to issue multiple DOs or Task Orders (TOs) as needed. This structure offers flexibility and efficiency, enabling the Defense Information Systems Agency (DISA) to quickly procure specific custom programming services without conducting a full, separate competition for each individual requirement. It implies that TRI-COR INDUSTRIES, INC. was one of several awardees on a larger, competitive IDIQ vehicle, and this DO represents a specific task within that framework. This method streamlines procurement, reduces administrative burden, and allows for faster response to evolving IT needs within the DoD.
What are the potential long-term implications for the Defense Information Systems Agency's IT capabilities resulting from this contract?
The long-term implications for the Defense Information Systems Agency's (DISA) IT capabilities resulting from this contract are primarily related to the enhancement and modernization of its systems through custom-developed software. By procuring tailored programming services, DISA can address unique operational requirements, improve system interoperability, and potentially develop innovative solutions that off-the-shelf software cannot provide. This contract supports the ongoing maintenance, upgrade, or development of critical IT infrastructure essential for national defense operations. The successful execution of this contract could lead to more robust, secure, and efficient IT systems, ultimately bolstering DISA's mission effectiveness. Conversely, if the project faces significant challenges, it could impact timelines and the realization of desired IT advancements.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4600 FORBES BLVD STE 205, LANHAM, MD, 20706
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $10,754,173
Exercised Options: $10,754,173
Current Obligation: $10,754,172
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4500G
IDV Type: FSS
Timeline
Start Date: 2007-09-30
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2021-12-07
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