DoD's $25.4M IT Support Contract with NOVA DATACOM LLC: Fair Value?

Contract Overview

Contract Amount: $25,399,510 ($25.4M)

Contractor: Nova Datacom LLC

Awarding Agency: Department of Defense

Start Date: 2009-10-23

End Date: 2012-11-14

Contract Duration: 1,118 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: IT SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to NOVA DATACOM LLC for work described as: IT SUPPORT Key points: 1. Contract awarded to NOVA DATACOM LLC for IT Support services. 2. Totaling $25.4 million over 1118 days. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Information Technology. 5. The contract was a Fixed Price Level of Effort type.

Value Assessment

Rating: fair

The contract's total value of $25.4 million over nearly three years suggests a moderate annual spend. Benchmarking against similar IT support contracts is difficult without more granular data on the specific services provided and their complexity. The fixed price structure implies a defined scope, but the overall value needs comparison to industry standards for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition method 'Full and Open Competition After Exclusion of Sources' indicates an initial broad solicitation followed by a specific exclusion. This could potentially limit the competitive pool. The impact on price discovery is uncertain; while full and open competition generally drives better prices, the exclusion might have led to a less competitive outcome than a truly unrestricted process.

Taxpayer Impact: Taxpayer funds are being utilized for IT support services. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Ensures critical IT support for the Defense Counterintelligence and Security Agency. Supports agency operations through essential technology services. Potential for cost savings or overspending depending on service delivery efficiency. Impact on agency's ability to maintain and upgrade its IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Competition method could have limited the pool of bidders.
Lack of detailed service breakdown makes value assessment challenging.
Fixed Price Level of Effort can sometimes lead to inefficiencies if not managed closely.

Positive Signals

Contract awarded through a form of full and open competition.
Long-term contract provides stability for IT support services.
Clear contract type (Fixed Price Level of Effort) aids in budget planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services. The IT sector is characterized by rapid technological advancements and a constant need for skilled support. Spending benchmarks for IT support can vary widely based on the scope of services, agency size, and specific technological requirements.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct analysis of small business participation or impact from this specific award.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Defense Counterintelligence and Security Agency to ensure services meet requirements and are delivered efficiently. Accountability rests with NOVA DATACOM LLC for performance and the agency for proper contract management and oversight.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Defense Counterintelligence and Security Agency Programs

Risk Flags

Competition method potentially limited bidder pool.
Lack of detailed service scope hinders value assessment.
No small business participation noted.
Performance metrics and quality assurance data are not available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to NOVA DATACOM LLC. IT SUPPORT

Who is the contractor on this award?

The obligated recipient is NOVA DATACOM LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2009-10-23. End: 2012-11-14.

What specific IT support services were included in this $25.4 million contract, and how do they compare to industry benchmarks for similar government contracts?

The provided data identifies the service as 'Computer Facilities Management Services' (NAICS 541513). However, a detailed breakdown of specific tasks, service levels, and required expertise is missing. Without this granular information, a precise comparison to industry benchmarks for similar government IT support contracts is not feasible. Further analysis would require access to the contract's statement of work and performance metrics.

Given the 'Full and Open Competition After Exclusion of Sources' method, what was the rationale for excluding certain sources, and did this exclusion potentially increase costs for taxpayers?

The rationale for excluding sources is not provided in the data. This method suggests an initial broad competition followed by a narrowing down. While intended to ensure specific capabilities, exclusions can limit competition, potentially leading to higher prices if the remaining bidders face less pressure. A thorough review of the exclusion justification and the resulting bid landscape is needed to assess the impact on taxpayer cost-effectiveness.

How effectively did NOVA DATACOM LLC perform its IT support duties under this contract, and did the Fixed Price Level of Effort structure incentivize efficient service delivery?

Performance effectiveness data is not included in the provided summary. The Fixed Price Level of Effort structure aims to control costs by defining a set amount of work for a fixed price. However, its effectiveness hinges on precise scope definition and diligent oversight. If the scope was well-defined and managed, it could promote efficiency. Conversely, poorly defined scopes or inadequate oversight might lead to cost overruns or under-delivery of services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HS002109R0051

Offers Received: 13

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 4501 SINGER CT STE 350, CHANTILLY, VA, 20151

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $38,339,165

Exercised Options: $25,399,510

Current Obligation: $25,399,510

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline