August Schell Enterprises awarded $31.3M contract for IT services by Defense Information Systems Agency

Contract Overview

Contract Amount: $31,293,463 ($31.3M)

Contractor: August Schell Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-15

End Date: 2011-07-14

Contract Duration: 1,582 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE YEAR MINIMUM ANNUAL SUBSCRIPTION

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to AUGUST SCHELL ENTERPRISES, INC. for work described as: BASE YEAR MINIMUM ANNUAL SUBSCRIPTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 1500 days indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. Awarded to a single contractor, August Schell Enterprises, Inc., highlighting their role in fulfilling this requirement. 6. The contract's base year minimum suggests a guaranteed level of spending for the initial period.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar IT service contracts within the Department of Defense. The base year minimum of $31.3 million over approximately 4.3 years (1582 days) provides a starting point for analysis. Without specific performance metrics or a breakdown of services rendered, it is difficult to definitively assess value for money. However, the firm fixed-price nature of the contract can help control costs if the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought to leverage market competition to obtain the best value. The number of bidders is not specified, but the process itself implies a degree of price discovery and potential for competitive pricing.

Taxpayer Impact: Taxpayers benefit from a process designed to ensure competitive pricing and potentially lower costs through open bidding, rather than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely Department of Defense agencies requiring computer-related IT services. Services delivered are expected to support critical defense information systems and operations. The geographic impact is likely focused on defense installations where these IT services are deployed. Workforce implications may include the need for skilled IT professionals to support the contract's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The broad NAICS code (541519) could encompass a wide range of services, making it challenging to pinpoint the exact nature and cost-effectiveness of the work.
The contract's long duration without clear interim performance reviews could pose a risk if needs or technologies change significantly.

Positive Signals

Awarded through full and open competition, indicating a commitment to market-based pricing and vendor selection.
The firm fixed-price contract type provides cost predictability for the government.
The contract has a defined start and end date, offering a clear timeframe for service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with numerous companies offering a wide array of solutions. Contracts like this are crucial for government agencies to maintain and upgrade their technological infrastructure. Comparable spending benchmarks would involve analyzing other IT service contracts awarded by the Department of Defense and other federal agencies for similar scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small business participation may be limited unless August Schell Enterprises, Inc. voluntarily includes them in their subcontracting efforts. Further analysis of subcontracting plans would be needed to determine the full impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Defense Information Systems Agency (DISA) responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Technology Services
IT Support Services
Computer Systems Design Services
Federal IT Procurement

Risk Flags

Long contract duration without clear performance review milestones.
Broad NAICS code limits specificity of services and costs.
Potential for outdated technology or service scope given the award date.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to AUGUST SCHELL ENTERPRISES, INC.. BASE YEAR MINIMUM ANNUAL SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is AUGUST SCHELL ENTERPRISES, 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 $31.3 million.

What is the period of performance?

Start: 2007-03-15. End: 2011-07-14.

What specific IT services are covered under NAICS code 541519 for this contract?

NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT services beyond custom software development or computer facilities management. For this specific contract with August Schell Enterprises, Inc., the services could include IT consulting, IT project management, IT support services, network design and implementation, cybersecurity services, data management, and potentially specialized IT training or system integration. Without the detailed Statement of Work (SOW) or Performance Work Statement (PWS) for this contract, the precise nature of the services remains general. However, given the awarding agency (DISA), it is highly probable that these services are critical to supporting defense information systems and infrastructure, potentially involving complex network operations, system maintenance, or the deployment of new technologies to meet evolving defense requirements.

How does the base year minimum annual subscription of $31.3 million compare to similar contracts for IT services within the Department of Defense?

Comparing the base year minimum of $31.3 million requires context regarding the contract's duration and scope. This figure represents the minimum guaranteed amount for the base year, and the total contract value could be significantly higher if options are exercised or if the contract includes task orders that exceed this minimum. For IT services, especially those supporting a large agency like the Defense Information Systems Agency (DISA), a $31.3 million base year minimum is substantial, indicating a significant and ongoing requirement. To benchmark effectively, one would need to analyze other DISA or DoD contracts for similar IT services (e.g., network operations, system maintenance, cybersecurity) awarded around the same period (2007-2011) and with comparable contract types (firm fixed-price). Factors like the number of users supported, the criticality of the systems, and the specific technical requirements would heavily influence price. Without access to detailed comparative contract data and the specific SOW for this contract, a precise benchmark is challenging, but the amount suggests a large-scale, mission-critical IT support requirement.

What are the potential risks associated with a firm fixed-price contract of this duration (over 4 years)?

Firm fixed-price (FFP) contracts are generally favored for their cost certainty. However, for long-duration contracts like this one (1582 days, approx. 4.3 years), several risks can emerge. For the government, the primary risk is that the contractor may not be incentivized to innovate or improve efficiency beyond the contract's minimum requirements, as they are guaranteed their profit margin regardless of cost savings. If the scope of work is not perfectly defined or if unforeseen technical challenges arise, the contractor might struggle to deliver within the fixed price, potentially leading to disputes or a decline in service quality. Conversely, if the contractor significantly overestimates costs, the government might end up paying a premium. For the contractor, the risk lies in underestimating costs or facing scope creep without adequate compensation, potentially leading to losses. Given the long timeframe, technological obsolescence or changes in government requirements could also render the contracted services less valuable or necessitate costly modifications.

What does the 'VA' status for 'State' indicate about the contract's operational location?

The 'VA' status for 'State' likely refers to Virginia. This indicates that the contractor, August Schell Enterprises, Inc., is registered or primarily operates within Virginia. Given that the Department of Defense and its agencies like DISA have a significant presence and numerous facilities in Virginia and the surrounding National Capital Region, it is common for IT service contracts supporting these entities to be awarded to contractors based in or near the state. This proximity can facilitate communication, on-site support, and collaboration between the contractor and the government agency. While the contract might support operations elsewhere, the 'VA' designation points to a strong connection between the contractor's base of operations and the federal government's presence in that region.

How does the award date (2007) impact the relevance of the contract's pricing and service scope today?

The award date of March 15, 2007, means this contract was initiated over 15 years ago. In the rapidly evolving field of Information Technology, this timeframe is significant. Pricing structures, service level expectations, and the technological landscape have likely changed dramatically since 2007. The original pricing might not reflect current market rates for comparable IT services, potentially being either higher or lower depending on market dynamics and the specific technologies involved. Furthermore, the scope of services defined in the original contract may be outdated. Technologies that were cutting-edge in 2007 might now be legacy systems, and new requirements related to cloud computing, advanced cybersecurity threats, artificial intelligence, or mobile technologies may not have been fully anticipated. Therefore, while the contract structure (FFP, full competition) remains relevant, the specific dollar amounts and service details should be viewed through the lens of its historical context.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

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: 51 MONROE ST STE 1802, ROCKVILLE, MD, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $43,776,463

Exercised Options: $31,293,463

Current Obligation: $31,293,463

Parent Contract

Parent Award PIID: GS35F0794M

IDV Type: FSS

Timeline