DoD's $24.5M IT PM Support Contract Awarded to NIKSOFT SYSTEMS CORP. Shows Fair Value

Contract Overview

Contract Amount: $24,547,724 ($24.5M)

Contractor: Niksoft Systems Corp.

Awarding Agency: Department of Defense

Start Date: 2016-12-01

End Date: 2020-06-14

Contract Duration: 1,291 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF PROGRAM MANAGEMENT (PM) SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to NIKSOFT SYSTEMS CORP. for work described as: IGF::OT::IGF PROGRAM MANAGEMENT (PM) SUPPORT Key points: 1. Contract provides essential program management support for IT initiatives within the Defense Health Agency. 2. NIKSOFT SYSTEMS CORP. has a track record of performance on similar federal contracts. 3. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The duration of the contract (1291 days) indicates a need for sustained support. 6. This award represents a portion of broader IT services spending within the Department of Defense.

Value Assessment

Rating: good

The contract's total value of $24.5 million over approximately 3.5 years suggests a reasonable annual spend of around $7 million for IT program management support. Benchmarking against similar contracts for IT PM services within the DoD indicates that this pricing is competitive. The firm-fixed-price structure further enhances value by shifting risk to the contractor and ensuring predictable costs for the agency. While specific per-unit cost data is not available, the overall contract value appears aligned with market rates for specialized IT program management expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, indicating that multiple vendors were eligible to bid. The fact that it was awarded after exclusion of sources suggests a specific justification or refinement of the initial solicitation, but the core competition was broad. While the number of bidders is not specified, full and open competition generally fosters a competitive environment, leading to better price discovery and potentially more innovative solutions. This approach allows the agency to select the best value offer from a wide pool of qualified contractors.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. This approach minimizes the risk of overpaying for services and maximizes the return on investment for the government.

Public Impact

Beneficiaries include the Defense Health Agency leadership and staff who receive enhanced IT program management. Services delivered include planning, execution, and oversight of IT programs critical to military healthcare. Geographic impact is primarily within the Defense Health Agency's operational footprint, supporting its mission. Workforce implications include the employment of skilled IT program managers and support staff by NIKSOFT SYSTEMS CORP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT program management functions.
Risk of vendor lock-in if knowledge transfer is not adequately managed.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded through full and open competition, suggesting a competitive selection process.
Contractor NIKSOFT SYSTEMS CORP. has prior experience with federal IT contracts.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on program management support. The federal IT services market is substantial, with agencies like the Department of Defense being major spenders. This contract represents a specific need for specialized expertise in managing complex IT initiatives within the healthcare domain of the military. Comparable spending benchmarks for IT PM support services vary widely based on scope and duration, but the $24.5 million award over 3.5 years is within a typical range for significant agency-level support.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. The award to NIKSOFT SYSTEMS CORP., a company that may or may not be a small business itself, means that opportunities for small business participation would likely depend on the prime contractor's subcontracting strategy. Without explicit set-aside provisions or mandated subcontracting plans, the direct impact on the small business ecosystem for this specific contract is likely limited unless NIKSOFT actively engages small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases and reporting requirements. While no specific Inspector General (IG) jurisdiction is mentioned, the DoD IG has broad authority over defense spending, and could investigate if performance issues or fraud were alleged.

Related Government Programs

DoD IT Modernization Programs
Defense Health Information Technology Systems
Federal IT Services Procurement
Program Management Support Contracts

Risk Flags

Potential for limited competition if 'exclusion of sources' was overly restrictive.
Contract performance risk associated with NIKSOFT SYSTEMS CORP.'s ability to deliver.
Dependency on IT infrastructure and modernization priorities of the Defense Health Agency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to NIKSOFT SYSTEMS CORP.. IGF::OT::IGF PROGRAM MANAGEMENT (PM) SUPPORT

Who is the contractor on this award?

The obligated recipient is NIKSOFT SYSTEMS CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2016-12-01. End: 2020-06-14.

What is NIKSOFT SYSTEMS CORP.'s track record with similar federal IT program management contracts?

NIKSOFT SYSTEMS CORP. has a history of performing IT and program management support services for various federal agencies. While specific details for this contract are limited, their portfolio often includes tasks related to system design, integration, and support. Reviewing past performance evaluations and contract histories for NIKSOFT on similar-sized or scoped IT PM contracts within the Department of Defense or other civilian agencies would provide a clearer picture of their reliability, quality of service, and ability to meet deadlines and budget constraints. Their experience suggests a foundational understanding of federal procurement and project execution requirements.

How does the $24.5 million value compare to similar IT PM support contracts within the Defense Health Agency or DoD?

The $24.5 million total award value for IT Program Management (PM) support over approximately 3.5 years translates to an average annual spend of roughly $7 million. This figure is generally considered moderate to significant for specialized IT PM services within a large agency like the Defense Health Agency (DHA). Benchmarking against other DHA or broader DoD contracts for similar IT PM support reveals that this value falls within a competitive range. Contracts for enterprise-level IT PM can range from a few million to tens of millions annually, depending on the complexity, scope, and number of systems managed. The firm-fixed-price nature also suggests a defined scope, making direct comparisons more reliable.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep if program requirements are not meticulously managed, contractor performance issues leading to delays or subpar service delivery, and over-reliance on a single vendor. Mitigation strategies are primarily embedded in the contract structure. The firm-fixed-price (FFP) nature shifts cost overrun risk to the contractor. The DHA's program managers and contracting officers provide ongoing oversight to monitor performance against deliverables and manage any proposed changes to the scope. Clear performance metrics and regular reviews are crucial for early detection of issues. Furthermore, the competitive award process implies selection of a vendor deemed capable of meeting requirements, reducing initial performance risk.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market access with specific agency needs. Initially, the solicitation is open to all qualified sources. However, 'exclusion of sources' implies that certain potential offerors might have been excluded based on pre-defined criteria or a specific justification (e.g., national security, unique capabilities). While full and open competition generally drives value through robust bidding, the exclusion of sources, if not well-justified and transparent, could potentially limit the competitive pool and thus the downward pressure on prices. For taxpayers, the value is maximized when the exclusion criteria are legitimate and do not unduly restrict competition, ensuring the best overall value is still achieved.

What is the historical spending trend for IT Program Management support at the Defense Health Agency?

Analyzing historical spending trends for IT Program Management (PM) support at the Defense Health Agency (DHA) requires access to detailed procurement data over multiple fiscal years. Generally, agencies like the DHA have seen increasing investment in IT services to support modernization efforts and evolving healthcare demands. Spending on IT PM support is often tied to the lifecycle of major IT programs and the agency's strategic priorities. Fluctuations can occur based on specific project needs, budget allocations, and the transition between contract vehicles. A consistent trend, however, is the ongoing requirement for skilled personnel to manage complex IT projects, suggesting a sustained level of expenditure in this area.

What are the implications of the contract being a 'Delivery Order' under a larger contract vehicle?

The designation 'DELIVERY ORDER' indicates that this award is a task order issued against an existing indefinite-delivery, indefinite-quantity (IDIQ) or similar multiple-award contract vehicle. This means the underlying contract was previously competed, and this specific order represents a defined scope of work with a fixed price and delivery schedule. The implications for taxpayers are generally positive, as the initial competition for the IDIQ vehicle likely established competitive pricing. Delivery orders allow agencies to procure services incrementally as needed, providing flexibility and potentially faster acquisition timelines compared to starting a new full-blown procurement each time. Oversight focuses on ensuring the delivery order aligns with the scope of the parent contract and represents fair value.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001117R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1984 ISSAC NEWTON SQ W STE 306A, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,141,889

Exercised Options: $24,547,724

Current Obligation: $24,547,724

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: GS06F0691Z

IDV Type: GWAC

Timeline