FEDTEC LLC Awarded $30.4M for IT Support, Facing Potential Value Concerns Amidst Limited Competition

Contract Overview

Contract Amount: $30,401,571 ($30.4M)

Contractor: Fedtec LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-01

End Date: 2026-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVER LINE OF BUSINESS (LOB) SYSTEM ADMINISTRATION AND TECHNICAL SUPPORT-EAST

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to FEDTEC LLC for work described as: SERVER LINE OF BUSINESS (LOB) SYSTEM ADMINISTRATION AND TECHNICAL SUPPORT-EAST Key points: 1. Value for money appears fair, with a significant contract value but limited public data for direct benchmarking. 2. Competition dynamics indicate a full and open process, but the exclusion of sources warrants further scrutiny. 3. Risk indicators are moderate, with a long performance period and a firm-fixed-price contract type mitigating some financial risks. 4. Performance context is defined by IT system administration and technical support services for the Department of Defense. 5. Sector positioning is within IT services, specifically computer-related services, a common area for federal procurement.

Value Assessment

Rating: fair

The contract value of $30.4 million over four years for IT support services is substantial. Benchmarking against similar contracts is challenging without more granular data on the specific services provided and their complexity. The firm-fixed-price structure suggests a defined scope, but the overall value proposition requires deeper analysis of the delivered outcomes and efficiency gains for the Defense Information Systems Agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded. The number of bidders is not explicitly stated, but the 'exclusion of sources' clause suggests a potentially narrowed field. This approach can sometimes lead to less competitive pricing if the excluded sources represent significant market players.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the exclusion of certain potential bidders, even within an otherwise open competition framework.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, which receives essential IT support. Services delivered include system administration and technical support, crucial for the operational readiness of defense IT infrastructure. The geographic impact is primarily centered in Pennsylvania, where the contract is managed. Workforce implications include potential support roles for technical personnel, though the direct impact on federal or contractor employment is not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics makes value assessment difficult.
Long contract duration could lead to scope creep or evolving needs not fully captured in initial pricing.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded to a single contractor, potentially allowing for specialized expertise development.
Long-term support ensures continuity for critical IT systems.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This sector is characterized by a mix of large established firms and smaller specialized providers. Federal spending in this area is consistently high, driven by the need for robust IT infrastructure and support across all government agencies. Benchmarks for similar IT support contracts vary widely based on scope, security requirements, and service levels, but a $30.4 million award over four years is a significant investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans or their impact on the small business ecosystem. Given the nature of IT support services, it's possible that subcontracting opportunities could exist, but this is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) contracting and program management offices. As a delivery order under a larger contract vehicle, oversight might also be influenced by the terms of that parent vehicle. Transparency is moderate, with basic award details available, but deeper insights into performance and value require access to more detailed reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Federal IT Services Procurement
Computer Systems Design Services
IT Operations and Maintenance Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Limited transparency on specific performance metrics and value assessment.
Long contract duration may outpace technological evolution or market cost changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to FEDTEC LLC. SERVER LINE OF BUSINESS (LOB) SYSTEM ADMINISTRATION AND TECHNICAL SUPPORT-EAST

Who is the contractor on this award?

The obligated recipient is FEDTEC 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 $30.4 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-05-31.

What is the specific nature of the 'exclusion of sources' in this full and open competition, and how did it impact the bidding process?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while the solicitation was broadly advertised, certain potential offerors were explicitly prevented from bidding. The exact reasons for exclusion are not provided in the summary data but could stem from factors like prior performance issues, specific security clearances not met, or pre-qualification requirements. This exclusion can limit the diversity of proposals received and potentially reduce the competitive pressure on pricing, as the agency might not have benefited from the full spectrum of market capabilities and cost structures. Understanding the rationale behind the exclusion is key to assessing whether it was justified to ensure the best value for the government.

How does the $30.4 million contract value compare to similar IT support contracts awarded by DISA or the DoD?

Direct comparison of the $30.4 million contract value for FEDTEC LLC requires detailed analysis of the specific services rendered, the duration (4 years), and the complexity of the IT systems supported. DISA and the DoD procure a vast range of IT support services, from help desk operations to complex network infrastructure management. Without knowing the precise scope of work, it's difficult to benchmark. However, for a four-year contract providing system administration and technical support, this value appears within a reasonable range for a significant IT function. Further analysis would involve comparing the per-year cost or cost per service unit against similar, well-documented contracts to ascertain if it represents strong value for money.

What are the key performance indicators (KPIs) used to measure the success of FEDTEC LLC's IT support services under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of FEDTEC LLC's IT support services. Typically, for IT system administration and technical support contracts, KPIs might include metrics such as system uptime percentages, response times for service requests, resolution rates for technical issues, security compliance adherence, and user satisfaction scores. The effectiveness of the contract is largely dependent on how well these, or similar, metrics are defined, monitored, and enforced by the Defense Information Systems Agency. Without visibility into these KPIs and FEDTEC's performance against them, a comprehensive assessment of contract effectiveness is limited.

What is the track record of FEDTEC LLC in performing similar IT support services for the federal government?

Information regarding FEDTEC LLC's specific track record in performing similar IT support services for the federal government is not detailed in the provided summary. A thorough assessment would require reviewing past performance evaluations, contract histories, and any reported issues or commendations from previous government engagements. Agencies like the Defense Information Systems Agency often maintain internal past performance databases. Understanding FEDTEC's history with similar contracts, particularly those involving system administration and technical support for defense agencies, would provide crucial context for evaluating their capability and reliability in fulfilling this current $30.4 million award.

Are there any identified risks associated with the long duration (4 years) of this contract and the firm-fixed-price structure?

The long duration of this contract (4 years) combined with a firm-fixed-price (FFP) structure presents both potential benefits and risks. The FFP structure offers cost certainty for the government, as the contractor assumes the risk of cost overruns. However, over a four-year period, the fixed price might become misaligned with actual market costs or evolving technological needs, potentially leading to the contractor realizing excessive profits or, conversely, struggling to deliver adequate service if costs escalate unexpectedly. For the government, the risk lies in the potential for the contractor to reduce service quality to maintain profitability if the fixed price becomes unfavorable over time, or if the scope of work needs to change significantly and is difficult to re-negotiate under the FFP terms.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,394,624

Exercised Options: $30,401,571

Current Obligation: $30,401,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0036

IDV Type: IDC

Timeline