Gafs-R Maintenance Contract Awarded to Maverick Systems LLC for Over $10.4 Million

Contract Overview

Contract Amount: $10,433,133 ($10.4M)

Contractor: Maverick Systems LLC

Awarding Agency: Department of Defense

Start Date: 2007-08-20

End Date: 2012-05-31

Contract Duration: 1,746 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: GAFS-R MAINTENANCE

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43213, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to MAVERICK SYSTEMS LLC for work described as: GAFS-R MAINTENANCE Key points: 1. Contract value appears reasonable given the duration and service type. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of nearly 5 years indicates a long-term need. 4. Service type 'Other Computer Related Services' is broad, requiring specific performance metrics. 5. Awarded by the Defense Finance and Accounting Service, indicating a critical defense function. 6. The contract was awarded under a Time and Materials pricing model.

Value Assessment

Rating: good

The contract value of $10.4 million over approximately 4.8 years (2007-2012) averages to about $2.17 million per year. This appears to be within a reasonable range for IT maintenance and support services for a large federal agency like DFAS. Without specific details on the scope of 'GAFS-R MAINTENANCE', direct comparison is difficult, but the annual spend is not exceptionally high for a system supporting defense finance operations. The Time and Materials pricing model, while potentially riskier for cost overruns, can be appropriate for undefined scopes or when flexibility is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests some level of competition, though the exact number of potential bidders in this specialized IT service market is unknown. A full and open competition is generally the preferred method for ensuring fair pricing and access to the best available solutions.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best value and likely achieved a competitive price by allowing all qualified vendors to participate.

Public Impact

The primary beneficiaries are the Department of Defense and its financial operations, ensuring the continued functionality of the GAFS-R system. Services delivered include maintenance and support for a critical financial system, likely impacting military personnel and civilian employees. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for personnel across various locations. Workforce implications are indirect, supporting the IT professionals who maintain and operate the GAFS-R system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The specific scope of 'GAFS-R MAINTENANCE' is not detailed, making it difficult to assess the full value proposition.
Limited competition (2 bids) might indicate potential market concentration or barriers to entry for other vendors.

Positive Signals

Awarded through full and open competition, suggesting a robust process for selecting the contractor.
The contract duration of nearly 5 years indicates a stable, long-term requirement for these services.
The contractor, MAVERICK SYSTEMS LLC, was selected to maintain a critical defense financial system.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and maintenance for government systems. The market for IT services supporting defense agencies is substantial, with numerous companies offering specialized maintenance and support. Comparable spending benchmarks for similar IT maintenance contracts within the federal government can vary widely based on system complexity, criticality, and vendor rates. This contract represents a portion of the broader federal IT spending aimed at maintaining essential operational capabilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to MAVERICK SYSTEMS LLC, a single entity, does not directly suggest opportunities for small business participation through subcontracting. The impact on the small business ecosystem is neutral, as this was not a targeted initiative for small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Finance and Accounting Service (DFAS) contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract's Statement of Work (SOW) and the Time and Materials pricing structure. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Financial Management Systems
IT Support Services
Core Financial Systems Maintenance
Department of Defense IT Contracts
Time and Materials IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may impact price discovery.
Scope of 'GAFS-R MAINTENANCE' not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to MAVERICK SYSTEMS LLC. GAFS-R MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MAVERICK SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2007-08-20. End: 2012-05-31.

What specific IT services were included under the 'GAFS-R MAINTENANCE' contract?

The provided data indicates the contract was for 'GAFS-R MAINTENANCE' under the NAICS code '541519 - Other Computer Related Services'. While the specific details of the GAFS-R system and the exact maintenance tasks are not elaborated in the summary data, this category typically encompasses services such as system administration, software maintenance, troubleshooting, technical support, and potentially hardware maintenance related to the GAFS-R platform. Given its award by the Defense Finance and Accounting Service (DFAS), it's highly probable that these services were critical for ensuring the operational readiness and integrity of a financial management system used by the Department of Defense.

How does the Time and Materials (T&M) pricing structure compare to other contract types for IT maintenance?

Time and Materials (T&M) contracts, like the one awarded for GAFS-R MAINTENANCE, compensate the contractor for the actual cost of materials used and the labor hours expended at specified fixed hourly rates. This contrasts with fixed-price contracts, where a set price is agreed upon for a defined scope of work, or cost-plus contracts, which reimburse the contractor for allowable costs plus a fee. T&M contracts offer flexibility, especially when the scope of work is not well-defined or is expected to change. However, they carry a higher risk of cost overruns for the government if not managed diligently, as the final cost is not predetermined. For IT maintenance, T&M can be suitable for reactive support or evolving system needs, but requires robust oversight to control expenditures.

What is the significance of the 'Defense Finance and Accounting Service' awarding this contract?

The Defense Finance and Accounting Service (DFAS) is a critical component of the Department of Defense (DoD) responsible for providing financial services to all branches of the U.S. military. Awarding an IT maintenance contract signifies the importance of the GAFS-R system to DFAS's core mission. This system likely handles sensitive financial data, payroll, accounting, and other essential financial operations for the DoD. Therefore, ensuring its continuous availability, security, and functionality through robust maintenance is paramount. The contract's value and duration reflect the ongoing, critical nature of these financial IT systems within the defense establishment.

What does the limited number of bids (2) suggest about the competition for this IT service contract?

The fact that only two bids were received for this 'FULL AND OPEN COMPETITION' contract suggests that the market for specialized IT services related to the GAFS-R system might be concentrated or that there were specific barriers to entry for other potential vendors. This could be due to the unique nature of the GAFS-R system, requiring specialized knowledge or clearances, or it could indicate that only a few companies possess the necessary expertise and capacity to bid on such contracts. While two bids still represent competition, it is on the lower end for a full and open solicitation and might warrant further investigation into market dynamics to ensure optimal pricing and innovation for the government.

How has spending on 'GAFS-R MAINTENANCE' or similar IT maintenance contracts evolved over time for the Department of Defense?

The provided data is for a single contract awarded in 2007 and ending in 2012. To understand the evolution of spending on 'GAFS-R MAINTENANCE' or similar IT maintenance contracts for the Department of Defense, a historical analysis of multiple contracts over a longer period would be necessary. This would involve examining trends in contract values, durations, types of services, and pricing models. Factors such as technological advancements, system upgrades or replacements, changes in defense spending priorities, and the increasing reliance on IT for financial operations would all influence spending patterns. Without access to broader historical data, it's impossible to definitively state how spending has evolved.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 1230 S PARKER ROAD, DENVER, CO, 80231

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,443,133

Exercised Options: $10,433,133

Current Obligation: $10,433,133

Parent Contract

Parent Award PIID: GS35F0391N

IDV Type: FSS

Timeline