DoD's $3.47M Digital Signage Contract Awarded to Intellectechs Inc. Raises Questions on Competition

Contract Overview

Contract Amount: $3,471,196 ($3.5M)

Contractor: Intellectechs Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-15

End Date: 2027-01-14

Contract Duration: 1,279 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIGITAL SIGNAGE PROGRAM SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $3.5 million to INTELLECTECHS INC for work described as: DIGITAL SIGNAGE PROGRAM SUPPORT SERVICES Key points: 1. The contract's value of $3.47 million over its potential duration suggests a significant investment in digital signage capabilities. 2. The award to Intellectechs Inc. under a 'not available for competition' basis warrants scrutiny regarding the justification for limited bidding. 3. The 'Other Computer Related Services' NAICS code indicates a broad scope, potentially encompassing various IT support functions. 4. The firm-fixed-price contract type aims to provide cost certainty for the government, but the lack of competition may have inflated the price. 5. The contract duration of 1279 days (approximately 3.5 years) indicates a long-term need for these services. 6. The single award and lack of competition raise concerns about potential price gouging and limited innovation. 7. The contract is managed by Washington Headquarters Services, a key administrative body within the Department of Defense.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and specific service details. The firm-fixed-price structure is standard, but without comparison to other similar contracts or market rates for digital signage support services, it's difficult to definitively assess value for money. The absence of competition suggests that the government may not have secured the most cost-effective solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, indicating that a full and open competition was not conducted. The specific reasons for this sole-source award are not detailed in the provided data. A sole-source award typically means only one vendor was considered, which significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these digital signage support services, as there was no market pressure to drive down prices.

Public Impact

The Department of Defense benefits from enhanced internal and external communication capabilities through digital signage. Services delivered likely include the installation, maintenance, and content management of digital display systems. The geographic impact is centered in the District of Columbia, where Washington Headquarters Services is located. Workforce implications could involve IT specialists and technicians responsible for the digital signage infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Sole-source award raises concerns about the thoroughness of the justification and potential for vendor lock-in.
Limited transparency into the selection process for this contract.
The broad 'Other Computer Related Services' category could mask inefficiencies or scope creep.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single vendor can streamline management and communication for this specific service.
Long-term contract duration suggests a stable and ongoing need for these services within the DoD.

Sector Analysis

The digital signage market is a growing segment within the broader IT services sector, encompassing hardware, software, and support. This contract falls under IT services, specifically 'Other Computer Related Services.' While specific spending benchmarks for digital signage support services within the DoD are not readily available, the overall IT services market is substantial. This contract represents a focused investment in a specific communication technology solution.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The award to Intellectechs Inc., a single entity, does not inherently suggest opportunities for small business subcontractors unless Intellectechs chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of Washington Headquarters Services, the contracting agency. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, with minimal public insight into the justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Support Services
Washington Headquarters Services Contracts
Digital Communication Systems
Federal IT Procurement

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement process.
Broad service category may obscure specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.5 million to INTELLECTECHS INC. DIGITAL SIGNAGE PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTELLECTECHS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2023-07-15. End: 2027-01-14.

What specific services are included under 'Digital Signage Program Support Services' for this contract?

The provided data offers a high-level description of 'DIGITAL SIGNAGE PROGRAM SUPPORT SERVICES' but does not detail the specific tasks or deliverables. Typically, such services could encompass the procurement, installation, configuration, maintenance, repair, and content management of digital display systems. This might include hardware maintenance, software updates, network connectivity management, troubleshooting, and potentially content creation or scheduling assistance. The broad NAICS code '541519 - Other Computer Related Services' suggests a wide range of potential IT support functions beyond just the physical signage.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. However, the specific justification for this determination is not provided. Common reasons for sole-source awards include unique capabilities of a specific vendor, urgent and compelling needs where only one vendor can respond in time, or when a follow-on contract is awarded to the incumbent under specific circumstances. Without the official justification document, it is impossible to ascertain the precise rationale behind not competing this significant contract.

How does the $3.47 million contract value compare to similar digital signage support contracts within the federal government?

Direct comparison of this $3.47 million contract value to similar federal digital signage support contracts is difficult without access to a comprehensive database of such awards, including detailed scopes of work and contract types. The value appears substantial, suggesting a significant deployment or long-term support requirement. However, the lack of competition for this specific award makes a direct value-for-money assessment against potentially more competitively priced contracts problematic. Benchmarking would ideally involve comparing pricing models and service levels for similar-sized deployments across different agencies.

What is the track record of Intellectechs Inc. in performing similar federal contracts, particularly for the Department of Defense?

The provided data does not include information on Intellectechs Inc.'s past performance or track record with federal contracts. To assess their suitability and reliability for this digital signage support services contract, a review of their contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any prior experience with the Department of Defense or similar IT support services would be necessary. This information is crucial for understanding their capabilities and potential risks associated with awarding them this sole-source contract.

What are the potential risks associated with a sole-source award for IT support services like digital signage?

Sole-source awards for IT support services carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. Secondly, it can reduce the incentive for the awarded contractor to innovate or improve service quality, as they face no direct market threat. Thirdly, it may limit the government's access to a wider range of technological solutions or specialized expertise that other vendors might offer. Finally, it raises concerns about the transparency and fairness of the procurement process itself.

What is the historical spending pattern for digital signage or related IT support services by Washington Headquarters Services or the DoD?

The provided data focuses solely on this single contract award and does not offer historical spending patterns for digital signage or related IT support services by Washington Headquarters Services (WHS) or the broader Department of Defense (DoD). To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for similar contracts over several fiscal years, filtering by agency, service type (e.g., IT support, digital displays, audiovisual services), and potentially by NAICS code. This would reveal trends in spending, identify key contractors, and highlight any significant shifts in investment in such technologies.

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 - DELIVERY

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003423R0038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 S ROSEMONT RD STE 103, VIRGINIA BEACH, VA, 23452

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,839,702

Exercised Options: $3,471,196

Current Obligation: $3,471,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline