DoD's $31.4M Contract with Tecport Solutions Inc. for IT Services Lacked Competition
Contract Overview
Contract Amount: $31,429,075 ($31.4M)
Contractor: Tecport Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2009-12-01
End Date: 2015-04-30
Contract Duration: 1,976 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LABOR
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43213
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $31.4 million to TECPORT SOLUTIONS INC for work described as: LABOR Key points: 1. Significant spending of $31.4M on IT services. 2. Sole-source award to Tecport Solutions Inc. raises competition concerns. 3. Long contract duration (1976 days) may indicate potential for cost overruns. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $31.4M for 'Other Computer Related Services' is substantial. Without a competitive bidding process, it's difficult to assess if this price is fair market value compared to similar IT service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long duration of the contract could mask inefficiencies or scope creep. Limited transparency into the justification for the sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this sector can vary widely, but competitive procurement is crucial for obtaining cost-effective solutions.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to support small business growth within the federal contracting landscape.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure the justification was sound and that appropriate oversight was in place to manage costs and performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive pressure.
- Long contract duration increases risk of cost overruns and obsolescence.
- No small business participation noted.
Tags
other-computer-related-services, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to TECPORT SOLUTIONS INC. LABOR
Who is the contractor on this award?
The obligated recipient is TECPORT SOLUTIONS 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 $31.4 million.
What is the period of performance?
Start: 2009-12-01. End: 2015-04-30.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source justification was applied. However, the specific reasons, such as unique capabilities or urgent needs, are not detailed. A thorough review would require access to the justification documentation to understand why competition was deemed impractical or impossible.
How can the government ensure fair pricing when sole-source contracts are necessary?
When sole-source contracts are unavoidable, agencies must conduct robust price analysis using independent government cost estimates, historical pricing data, and commercial price lists. Negotiation strategies should be employed to challenge contractor proposals and secure the best possible value. Independent cost estimating and benchmarking are critical to mitigate the risks associated with limited competition.
What is the typical duration for similar IT service contracts, and does this contract's length pose a risk?
IT service contracts can vary greatly in duration depending on the scope and complexity. However, a contract lasting 1976 days (over 5 years) is quite long. This extended period increases the risk of scope creep, technological obsolescence, and potential cost overruns if not managed with stringent oversight and regular performance reviews.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102810R2003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Yak-Tat Kwaan Incorporated (UEI: 079248340)
Address: 470 FRIENDSHIP RD STE 349, HARRISBURG, PA, 17111
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,429,075
Exercised Options: $31,429,075
Current Obligation: $31,429,075
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-01
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2021-02-23
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