DoD's $6.4M IT support contract for PEO Transport Services awarded via sole-source to Engenius Consulting Group

Contract Overview

Contract Amount: $6,440,599 ($6.4M)

Contractor: Engenius Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2024-02-03

End Date: 2025-08-11

Contract Duration: 555 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROGRAM EXECUTIVE OFFICE (PEO) TRANSPORT SERVICES DIRECTORATE (IE) APPROVED PRODUCTS CERTIFICATION OFFICE (APCO) AND SUPPORT.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to ENGENIUS CONSULTING GROUP INC for work described as: PROGRAM EXECUTIVE OFFICE (PEO) TRANSPORT SERVICES DIRECTORATE (IE) APPROVED PRODUCTS CERTIFICATION OFFICE (APCO) AND SUPPORT. Key points: 1. Contract provides essential IT support for the PEO Transport Services Directorate's Approved Products Certification Office. 2. Sole-source award raises questions about potential lack of competition and optimal pricing. 3. The contract duration of 555 days suggests a need for sustained support. 4. Fixed-price contract type aims to control costs, but initial pricing needs benchmarking. 5. The IT services sector is highly competitive, making sole-source awards less common for standard services. 6. Performance context is critical to assess if the contractor is meeting defined objectives. 7. Risk indicators include limited competition and the need for robust oversight.

Value Assessment

Rating: fair

Benchmarking the $6.4 million price tag against similar IT support contracts for government agencies is crucial. Without competitive bids, it's difficult to ascertain if this represents a fair market price. The fixed-price nature offers some cost certainty, but the absence of competition means there's less pressure on the contractor to offer the most economical solution. Further analysis of the specific services rendered and their market value is needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Engenius Consulting Group Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), they limit price discovery and can potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. This award highlights the importance of ensuring sole-source justifications are robust and that alternative solutions were thoroughly explored.

Public Impact

The primary beneficiaries are the Department of Defense's Program Executive Office (PEO) Transport Services Directorate, ensuring continued IT operational support. Services delivered include computer systems design and support, crucial for the Approved Products Certification Office (APCO). The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the contractor is located and likely where services are performed. Workforce implications are tied to the IT support roles required for the contract, potentially involving specialized technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards require strong justification to ensure taxpayer value.
Performance metrics and oversight are critical to ensure service delivery.
The fixed-price contract type doesn't inherently guarantee efficiency without strong performance monitoring.

Positive Signals

Contract is for a defined period, allowing for future re-competition.
Fixed-price contract provides cost certainty for the awarded amount.
The contract supports a critical function within the DoD's transport services.

Sector Analysis

The IT services sector is a vast and dynamic market within the federal government, encompassing a wide range of support, development, and maintenance activities. This contract falls under computer systems design services, a common category for IT support. Federal spending in this area is substantial, with agencies constantly seeking to modernize and maintain their technological infrastructure. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts awarded through competitive processes.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to Engenius Consulting Group Inc., a single entity, suggests that small business participation was not a primary consideration in this specific procurement. This could mean missed opportunities for small businesses to contribute to this IT support effort.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Given it's a sole-source award, there's an increased need for robust oversight to ensure the contractor is delivering services as specified and at a reasonable cost. Transparency would be enhanced through public contract databases and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
PEO Transport Services Directorate Operations
Approved Products Certification Office (APCO) IT Requirements
Federal IT Services Procurement
Sole-Source IT Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns if not closely managed.
Dependence on a single vendor for critical IT functions.
Need for strong performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to ENGENIUS CONSULTING GROUP INC. PROGRAM EXECUTIVE OFFICE (PEO) TRANSPORT SERVICES DIRECTORATE (IE) APPROVED PRODUCTS CERTIFICATION OFFICE (APCO) AND SUPPORT.

Who is the contractor on this award?

The obligated recipient is ENGENIUS CONSULTING GROUP 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 $6.4 million.

What is the period of performance?

Start: 2024-02-03. End: 2025-08-11.

What is the track record of Engenius Consulting Group Inc. with federal contracts, particularly within the Department of Defense?

Engenius Consulting Group Inc. has a history of performing federal contracts. While specific details on their track record with the Department of Defense are not fully detailed in the provided data, their ability to secure this sole-source award suggests prior experience or specialized capabilities deemed necessary by the agency. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and effectiveness in delivering government services. Analyzing their performance on similar IT support contracts would be particularly relevant.

How does the $6.4 million cost compare to similar IT support contracts awarded competitively?

Without access to a comprehensive database of comparable IT support contracts awarded competitively, it is challenging to provide a precise benchmark for the $6.4 million price tag. However, sole-source awards inherently carry a higher risk of being less cost-effective than competitively bid contracts. Typically, competitive processes drive down prices as vendors vie for the contract. To assess value, one would need to identify contracts for similar IT systems design and support services, with comparable scope and duration, awarded to multiple bidders. The average price per day or per service hour from those competitive contracts would serve as a benchmark.

What are the specific IT systems and services covered under this contract, and are they unique?

The contract specifies IT support for the Program Executive Office (PEO) Transport Services Directorate's Approved Products Certification Office (APCO). This likely includes a range of services such as system maintenance, network support, software updates, user assistance, and potentially the design or modification of computer systems related to product certification processes. The uniqueness of these systems and services would determine the justification for a sole-source award. If APCO relies on highly specialized, proprietary systems or requires expertise only Engenius possesses, the sole-source nature might be defensible. Otherwise, standard IT support functions are usually available from multiple vendors.

What are the key performance indicators (KPIs) and oversight mechanisms in place for this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or oversight mechanisms for this contract. However, for any government contract, especially a sole-source award, robust oversight is expected. This would typically involve contract performance management by the agency, regular progress reports from the contractor, and potentially site visits or audits. KPIs would be defined in the contract's Statement of Work (SOW) and would measure aspects like system uptime, response times for support requests, and successful completion of certification processes. The effectiveness of these KPIs and oversight will be crucial in ensuring the $6.4 million investment yields the intended results.

What is the historical spending trend for IT support services within the PEO Transport Services Directorate?

Historical spending data for IT support services within the PEO Transport Services Directorate is not provided in the current dataset. To analyze spending trends, one would need to examine past contracts awarded to this directorate or its sub-offices for similar IT support functions. This would involve looking at contract values, durations, and whether they were competitively awarded or sole-source. Understanding historical spending can reveal patterns of increasing or decreasing investment in IT support, identify potential cost efficiencies or inefficiencies over time, and provide context for the current $6.4 million award.

Are there any specific risks associated with relying on a single contractor for critical IT support functions?

Yes, there are inherent risks associated with relying on a single contractor for critical IT support functions. The primary risk is the lack of competition, which can lead to inflated prices and reduced incentive for the contractor to innovate or provide superior service. Dependence on one vendor can also create vulnerabilities if the contractor experiences financial instability, operational issues, or decides to discontinue services. Furthermore, knowledge transfer and continuity of operations can be challenging if the contractor's personnel depart. Robust contract management, clear performance expectations, and contingency planning are essential to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC102824R0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1525 PERIMETER PKWY #265, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,440,599

Exercised Options: $6,440,599

Current Obligation: $6,440,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline