DoD's $16.8M contract for custom programming services awarded to Regent Systems, Inc. shows potential value concerns

Contract Overview

Contract Amount: $16,855,575 ($16.9M)

Contractor: Regent Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-13

End Date: 2012-09-30

Contract Duration: 1,325 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTENANCE AND OPS. TAS::97 0100::TAS

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056, UNITED STATES OF AMERICA

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to REGENT SYSTEMS, INC. for work described as: MAINTENANCE AND OPS. TAS::97 0100::TAS Key points: 1. The contract's duration and fixed-price nature suggest a controlled cost environment, but the final cost relative to deliverables needs scrutiny. 2. Competition was full and open, indicating a healthy market for these services, which should theoretically drive competitive pricing. 3. The contract was awarded under the 'Other Direct Costs' category, which can sometimes obscure true project costs. 4. Performance was rated 'Satisfactory' (ST), suggesting the contractor met basic requirements but may not have exceeded expectations. 5. The contract's value of $16.8 million over approximately 3.5 years warrants a detailed cost-benefit analysis. 6. The lack of small business involvement (SB=false) means potential missed opportunities for smaller, specialized firms.

Value Assessment

Rating: fair

The contract's total value of $16.8 million over 1325 days (approximately 3.5 years) averages to about $4.8 million per year. Without specific performance metrics or deliverables, it's difficult to benchmark the value for money. However, compared to similar custom programming contracts, this amount appears within a reasonable range, though the absence of detailed performance data makes a definitive assessment challenging. The firm fixed-price structure suggests the government aimed to control costs, but the ultimate value depends on the quality and impact of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of only one bid (no=1) is unusual for a full and open competition and raises questions about market interest or the specific requirements of the solicitation. While full and open competition is generally preferred for maximizing choice and driving down prices, a single bid might indicate a niche market, overly restrictive requirements, or a lack of contractor awareness.

Taxpayer Impact: A single bid in a full and open competition suggests that while the process was open, it may not have resulted in the most competitive pricing for taxpayers. The government may have missed out on potentially lower bids from other qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its components, receiving custom computer programming services. The services delivered likely supported critical defense information systems, ensuring operational readiness and technological advancement. The contract's geographic impact is tied to the Defense Information Systems Agency's operations, likely within the United States. Workforce implications include the employment of skilled programmers and IT professionals by Regent Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid in full and open competition raises questions about market engagement.
Lack of detailed performance metrics makes value assessment difficult.
Potential for unutilized small business subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition process theoretically ensures fair market access.
Awarded to a single contractor suggests specialized capability or a well-defined need.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511). The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Comparable spending benchmarks for custom programming services vary widely based on complexity, duration, and security requirements. This contract's value of $16.8 million over 3.5 years places it as a mid-sized engagement within the broader federal IT landscape.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements (sb=false). This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were not explicitly pursued. While the contract was competed full and open, the absence of specific small business provisions may limit the participation of smaller, potentially innovative firms in supporting the Department of Defense's IT needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency (DISA). Performance monitoring, quality assurance, and invoice approval are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense Custom Software Development
Federal Civilian IT Services Contracts
IT Services for National Security Agencies

Risk Flags

Single bid received under full and open competition.
Lack of detailed performance metrics for value assessment.
No small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to REGENT SYSTEMS, INC.. MAINTENANCE AND OPS. TAS::97 0100::TAS

Who is the contractor on this award?

The obligated recipient is REGENT SYSTEMS, 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 $16.9 million.

What is the period of performance?

Start: 2009-02-13. End: 2012-09-30.

What specific custom computer programming services were delivered under this contract, and how did they align with DISA's mission objectives?

The contract, awarded under NAICS code 541511 (Custom Computer Programming Services), likely involved the development, modification, and maintenance of software applications tailored to the unique needs of the Defense Information Systems Agency (DISA). These services could range from developing new command and control systems, enhancing existing defense software, to providing specialized programming for data analysis or cybersecurity tools. Without specific task orders or performance reports, the exact nature of the services remains general. However, given DISA's role in providing IT infrastructure and services to the DoD, these programming efforts would logically support the agency's mission of enabling information superiority for warfighters and defense decision-makers.

How does the final cost of $16.8 million compare to the initial estimated value or benchmarked costs for similar custom programming services?

The total award amount was $16,855,575.19. As this was a firm fixed-price contract, the award amount represents the ceiling price. To compare this to initial estimates or benchmarks, we would need access to the original solicitation's estimated cost or data from similar contracts awarded around the same period (2009-2012) for comparable services. Benchmarking custom programming is complex due to variations in complexity, security requirements, and labor categories. However, for a 3.5-year contract of this magnitude, the average annual cost of approximately $4.8 million suggests a significant undertaking. Without more granular data on the scope of work and specific deliverables, a precise value-for-money assessment against benchmarks is challenging, but the fixed-price nature provides a degree of cost control.

What factors might explain the single bid received under a 'full and open competition' award?

A single bid in a full and open competition can arise from several factors. The market for the specific programming services required might be highly specialized, with few companies possessing the necessary technical expertise, security clearances, or past performance. Alternatively, the solicitation's requirements could have been perceived as overly restrictive or difficult to meet, deterring other potential bidders. Contractor awareness also plays a role; perhaps Regent Systems, Inc. was uniquely positioned or had prior knowledge that facilitated their bid. It's also possible that other interested parties chose not to bid due to the perceived competitiveness of Regent Systems or other strategic business decisions. The contracting agency's outreach efforts and the clarity of the solicitation are critical in understanding this outcome.

What was the contractor's performance history with the government prior to and during this contract?

Information regarding Regent Systems, Inc.'s specific performance history prior to and during this contract (2009-2012) is not detailed in the provided data. The contract status indicates a performance rating of 'ST' (Satisfactory). A 'Satisfactory' rating generally means the contractor met the basic requirements of the contract but did not necessarily exceed expectations. It implies that there were no major performance deficiencies that would warrant termination or significant penalties, but also suggests room for improvement. A comprehensive review would require accessing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this and other contracts held by Regent Systems, Inc.

How has federal spending on custom computer programming services (NAICS 541511) evolved since this contract was awarded?

Federal spending on custom computer programming services (NAICS 541511) has generally increased significantly since this contract was awarded in 2009. Driven by the increasing digitization of government operations, cybersecurity needs, and the adoption of cloud technologies, agencies across the government have continued to invest heavily in software development and IT modernization. While specific figures fluctuate annually and by agency, the overall trend indicates sustained or growing demand for these services. Factors such as the push for agile development, data analytics capabilities, and the maintenance of legacy systems contribute to this ongoing expenditure. This contract represents a snapshot from a period of evolving IT needs within the DoD.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7333 PARAGON RD STE 250, DAYTON, OH, 45459

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,855,575

Exercised Options: $16,855,575

Current Obligation: $16,855,575

Parent Contract

Parent Award PIID: GS35F5023H

IDV Type: FSS

Timeline