DoD Spends $29.5M on O&M Help Desk Support with Apriva ISS LLC, Lacking Competition

Contract Overview

Contract Amount: $29,465,812 ($29.5M)

Contractor: Apriva ISS LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-01

End Date: 2015-07-31

Contract Duration: 2,190 days

Daily Burn Rate: $13.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: O&M HELP DESK SUPPORT

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85251, UNITED STATES OF AMERICA

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to APRIVA ISS LLC for work described as: O&M HELP DESK SUPPORT Key points: 1. Significant spending on essential IT support services. 2. Lack of competition raises concerns about potential overpayment and reduced innovation. 3. Long contract duration (6 years) may have locked in suboptimal pricing. 4. Telecommunications Resellers sector context is relevant for understanding market dynamics.

Value Assessment

Rating: questionable

The contract value of $29.5M over six years for help desk support appears high given the lack of competition. Benchmarking against similar IT support contracts, especially those with competitive bidding, would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The absence of competition likely resulted in higher costs for taxpayers, as there was no market pressure to drive down prices.

Public Impact

Taxpayers may have overpaid for essential IT help desk services due to a lack of competitive bidding. Government reliance on a single vendor for critical support could pose a risk if the vendor's performance declines or pricing increases significantly. Limited transparency into the pricing structure makes it difficult for the public to assess the fairness of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential Overpricing
Long Contract Duration
Sole-Source Award

Positive Signals

Essential Service Provided
Established Vendor Relationship

Sector Analysis

The IT support sector, particularly help desk services, is highly competitive. The $29.5M expenditure falls within a moderate range for large-scale IT support contracts, but the lack of competition is a significant concern.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests potential weaknesses in the procurement process or justification for a sole-source award. Further review of the justification for other than full and open competition is warranted.

Related Government Programs

Telecommunications Resellers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of competition may lead to inflated prices.
Sole-source award limits market research and price discovery.
Long contract duration (6 years) increases risk of vendor lock-in.
No indication of small business participation.
Potential for suboptimal service quality due to lack of competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to APRIVA ISS LLC. O&M HELP DESK SUPPORT

Who is the contractor on this award?

The obligated recipient is APRIVA ISS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2009-08-01. End: 2015-07-31.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to determine the specific justification (e.g., urgent need, unique capability, follow-on to a competitive award). Without this documentation, it's impossible to assess the validity of the sole-source decision and its impact on value for money.

How does the per-unit cost of this help desk support compare to industry benchmarks for similar services, especially considering the lack of competition?

Benchmarking is difficult without specific details on service levels, number of users supported, and types of issues handled. However, given the sole-source nature, it's probable that the per-unit cost is higher than what could have been achieved through a competitive process. A detailed cost analysis comparing it to similar government or commercial contracts is needed.

What is the risk associated with relying on a single vendor for critical IT help desk support over a six-year period?

The primary risks include vendor lock-in, potential for price escalation upon contract renewal or modification, and reduced incentive for the vendor to innovate or improve service quality. If the vendor experiences financial difficulties or performance issues, it could significantly disrupt essential IT operations for the agency.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC101309R2001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6900 E CAMELBACK RD STE 750, SCOTTSDALE, AZ, 85251

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,613,940

Exercised Options: $29,465,812

Current Obligation: $29,465,812

Contract Characteristics

Cost or Pricing Data: NO

Timeline